The Department for Education has today published the outcome of the valuation of the Teachers’ Pension Scheme (TPS) based upon 2020 data.

The outcome confirms a need to increase the employer contribution rate by 5 percentage points from 1 April 2024 to ensure that the Scheme continues to meet present and future obligations.

The Department will provide additional funding to cover the increase in the employer contribution rate for directly funded scheme employers for the financial year 2024/25. This includes mainstream 5-16 schools; high needs settings; post 16 and further education settings; and eligible early years providers. The subsequent costs for directly funded scheme employers for future years will be looked at as part of subsequent spending review rounds.

HE providers are autonomous bodies and the government does not fund the costs of changes to the scheme for them in the same way as for schools and colleges. Nevertheless, the Department will continue to work with the HE sector to explore how it can best support those providers affected, including planning effectively for implementation of these changes.

The Department for Education appreciates that the result means Independent Schools that participate in the Scheme will be faced with additional costs that aren’t funded. It’s hoped that the information shared previously, on the likely final result, will have helped them in planning for the change.

Please find the reports listed below:

• Actuarial valuation as at 31 March 2020 - Report on Membership Data (This link opens in a new window)
• Actuarial valuation as at 31 March 2020 - Advice on Assumptions (This link opens in a new window)
• Actuarial valuation as at 31 March 2020 - Valuation Results (This link opens in a new window)