Contribution Increases. Following the Independent Public Service Pensions Commission (IPSPC) review of public service pension schemes the Government announced a requirement to make £2.8bn of savings over three years by increasing contributions to public sector pensions. In July 2011 the Department opened a consultation to consider the contribution increases for 2012‐13. The consultation closed in October 2011 and the Department published its response on 16 December 2011. The table below shows the contribution rates to be implemented from 1 April 2012. The details of the contribution structure post 2012 will be subject to discussion with unions. Lower Salary Higher Salary Contribution Rate in 2012-13 Increase (against 6.4%) Membership % of member- ship 14,999 6.4% 0% 1,400 0.2% 15,000 25,999 7.0% 0.6% 116,000 17.1% 26,000 31,999 7.3% 0.9% 117,000 17.2% 32,000 39,999 7.6% 1.2% 271,000 39.6% 40,000 74,999 8.0% 1.6% 172,000 25.2% 75,000 111,999 8.4% 2.0% 4,000 0.6% 112,000 8.8% 2.4% 600 0.1% Employee contributions will be increased from 1st April 2012 to reflect the outcome of the recent consultation by the Department for Education. The Department has proposed a number of potential tiering structures for the following two years. Any such tiering structures will be discussed by the Department and unions in the light of experience of opt‐outs, other member behaviour and changing circumstances. Relevant data and information will be collated to inform a Government review of tiering structures in advance of the Department consulting on contribution increases for 2013‐14 onwards. Information will include data on opt‐out and also an assessment of members' expected behaviour in response to further increases in contribution rates. This work will be taken forward within the context of the Government’s wider consideration of tiering structures across public service pension schemes. Consideration of tiering structures for 2013‐14 and 2014‐15 will reflect the Government’s and unions’ shared priorities for those structures that they should: include protections for the low paid, minimise the risk of opt‐outs from the scheme across the whole membership, including for example, newly‐qualified teachers and lecturers and part time workers; and ensure that the scheme remains sustainable, a valuable part of teachers' and lecturers’ remuneration, and affordable to all members. Consideration will also be given to the case for and against a progressive tiering structure. Both the review and the consultation will be informed by available information on experience across all relevant public service schemes. The tiering structure for 2013‐14 and 2014‐15 would be subject to: • the review of opt‐out referred to above, that unions and other interested parties will feed into; and • the requirement to meet the Government’s spending review commitments in 2013‐14 and 2014‐15 across unfunded public service pension schemes.
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Contribution Increases. Following the Independent Public Service Pensions Commission (IPSPC) review of public service pension schemes the Government announced a requirement to make £2.8bn of savings over three years by increasing contributions to public sector pensions. In July 2011 the Department opened a consultation to consider the contribution increases for 2012‐13. The consultation closed in October 2011 and the Department published its response on 16 December 2011. The table below shows the contribution rates to be implemented from 1 April 2012. The details of the contribution structure post 2012 will be subject to discussion with unions. Lower Salary Higher Salary Contribution Rate in 2012-2012- 13 Increase (against 6.4%) Membership % of member- ship 14,999 6.4% 0% 1,400 0.2% 15,000 25,999 7.0% 0.6% 116,000 17.1% 26,000 31,999 7.3% 0.9% 117,000 17.2% 32,000 39,999 7.6% 1.2% 271,000 39.6% 40,000 74,999 8.0% 1.6% 172,000 25.2% 75,000 111,999 8.4% 2.0% 4,000 0.6% 112,000 8.8% 2.4% 600 0.1% Employee contributions will be increased from 1st April 2012 to reflect the outcome of the recent consultation by the Department for Education. The Department has proposed a number of potential tiering structures for the following two years. Any such tiering structures will be discussed by the Department and unions in the light of experience of opt‐outs, other member behaviour and changing circumstances. Relevant data and information will be collated to inform a Government review of tiering structures in advance of the Department consulting on contribution increases for 2013‐14 onwards. Information will include data on opt‐out and also an assessment of members' expected behaviour in response to further increases in contribution rates. This work will be taken forward within the context of the Government’s wider consideration of tiering structures across public service pension schemes. Consideration of tiering structures for 2013‐14 and 2014‐15 will reflect the Government’s and unions’ shared priorities for those structures that they should: include protections for the low paid, minimise the risk of opt‐outs from the scheme across the whole membership, including for example, newly‐qualified teachers and lecturers and part time workers; and ensure that the scheme remains sustainable, a valuable part of teachers' and lecturers’ remuneration, and affordable to all members. Consideration will also be given to the case for and against a progressive tiering structure. Both the review and the consultation will be informed by available information on experience across all relevant public service schemes. The tiering structure for 2013‐14 and 2014‐15 would be subject to: • the review of opt‐out referred to above, that unions and other interested parties will feed into; and • the requirement to meet the Government’s spending review commitments in 2013‐14 and 2014‐15 across unfunded public service pension schemes.
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Sources: Teachers’ Pension Scheme Agreement