Teachers' pensions – £46.4 billion more paid in than paid out - press release
Friday 18 November
The NUT today provides further support for the argument that public sector pensions are affordable and fair.
The NUT research shows that, during the lifetime of the Teachers' Pension Scheme (TPS), £46.4bn more has been paid into the scheme than has been paid out.
The NUT has calculated the total payments into and from the TPS over the period 1923 to date, using its official valuation reports and accounts. Adjusting these figures in line with GDP growth shows that at least £46.4bn more in current prices has been paid into the TPS in contributions over the years than has been paid out in pensions.
This follows earlier reports by the National Audit Office and the House of Commons Public Accounts Committee which show that the long term costs of the TPS are already declining following earlier reforms. The long term picture contrasts sharply with the Government's arguments that the current imbalance between contributions and payments makes teachers' pensions unsustainable.
Christine Blower, General Secretary of the National Union of Teachers, the largest teachers’ union, said:
"The NUT's research proves two points. First, funding public sector pensions is a complex area – we won't allow our opponents simply to ignore those parts of the story that don't suit them. Second, it is a long term issue – policies shouldn't be driven by short term considerations.
"There is no £46.4 billion to hand. The fact is, however, that the Government has accepted a long series of cheap loans from teachers’ pension contributions before complaining about paying the pensions promised in return."