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On 9 March 2012 the Government announced that proposed final agreements covering reform of public service pension schemes, including the Teachers’ Pension Scheme (TPS), had been drawn up following extensive negotiations with trade unions.
The Government announced on 4 July 2012 that there is sufficient support from public service unions to proceed with implementation of the proposed final agreements announced on 9 March. A copy of the Chief Secretary to The Treasury’s written ministerial statement is available to download. A copy of the proposed final agreement for the TPS is also available.
A Welsh version of the document is now available.
The Teachers’ Pension Scheme is changing. This is necessary mainly because of increased life expectancy, meaning that people have longer in retirement.
The Teachers’ Pension Scheme will be reformed, with the new scheme in place from April 2015
Who it affects:
Those within 10 years of normal pension age (NPA) on 1 April 2012 will be protected from new scheme changes (other than changes to contribution increases).
What happens to my pension so far?
Any benefits you have accrued up to 2015 or when you join the CARE scheme will be protected and payable, based on final salary, when you decide to retire.
To summarise, for those who move to the new scheme; your pension will be in two parts:
In April 2012 monthly pension scheme contributions will increase for most people. Additional increases will apply from April 2013 and April 2014
In 2010 the Government announced that pension contributions for public service workers would rise by an average of 3.2 per cent of pay. This will take place over three years, with the first increases starting in April 2012. There will be further increases in April 2013 and 2014. Contribution rates will be tiered and provide protection for the lower paid.
To find out what this means for your own pay, use the online calculator. The contribution your employer makes to your pension will remain higher than your own.
Teachers’ Pensions recently launched a new website where you can find a calculator to estimate your pension under the new scheme.
A Welsh translation of this summary of reforms is available to download from the associated resources on this page.
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Statement by the Chief Secretary to the Treasury Danny Alexander.
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PDF, 162 Kb
Welsh translation of the TPS proposed final agreement for teachers' pension scheme reforms.
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Annex E of the Proposed Final Agreement, issued 9 March 2012.
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Welsh translation of the summary of reforms to the teachers' pension scheme.
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Press notice on HM Treasury website.