The Department for Education (DfE) has published a consultation on proposed amendments to the Teachers’ Pension (This link opens in a new window)Scheme regulations. 

The Teachers’ Pension Scheme regulations require that members and their employers pay set contributions towards funding pension benefits. Employers currently pay contributions equivalent to 28.6% of pay, whilst members are required to pay an average of 9.6%. In order to ensure the Scheme remains attractive and affordable to teachers at all stages of their career, that contributions best reflect the benefits being built-up, and that the lower paid are protected, a tiered contribution structure is used whereby contributions vary with earnings - higher earners paying a higher level of contributions.  These principles were agreed in close consultation with the Teachers’ Pension Scheme Advisory Board (made up of member and employer representatives including all of the major teaching unions).

Periodical valuations of the Teachers’ Pension Scheme are conducted to ensure that it remains appropriately funded and the latest one has identified that the projected yield for overall member contributions, based on the current structure, would be 9.45% for this valuation period. This is due to variance between pay and contribution tier increases over time. Consequently, work has been carried out with the Government Actuary’s Department and the Scheme Advisory Board to identify an appropriate adjustment that will achieve the required average yield of 9.6%. 

Following the consideration of various options, the Scheme Advisory Board unanimously recommended that the Scheme meets this shortfall in the required level of contributions by raising the contribution rate of all except those in the lowest earnings tier by 0.3 percentage points (p.p.), with the bottom tier remaining unchanged to protect lower earners. 
This adjustment means that members continue to contribute an average of 9.6% - the overall rate is not being increased. 

The draft regulations also update provisions on Fair Deal to include Further Education establishments. The Fair Deal provisions allow members who are in scope to retain access to the Teachers’ Pension Scheme if they are transferred from a public sector employer to one in the private sector under Transfer of Undertakings (Protection of Employment) (TUPE) terms. HM Treasury has overall responsibility for public service pension scheme rules and is consulting on changes to the Fair Deal policy following reclassification of Further Education as public sector organisations by the ONS. 
Other minor amendments are also needed to ensure the regulations are up to date and reflect the longstanding policy. 

This consultation will run for 10 weeks, with the closing date of 23 January 2025. Any responses should be submitted to the consultation portal, and not to Teachers’ Pensions.

Once the consultation has closed, the DfE will consider all feedback before publishing its response.