The Government has confirmed that career average pension rights for members in teaching will be increased by 4.6 per cent in April 2018.
Members with deferred pensions will have their career average pension rights increased by 3 per cent in April 2018.
Most teachers are now in the career average section of the Teachers’ Pension Scheme. Their pension is being built up at 1/57 of their pensionable earnings each year. These pension rights are then increased each year until retirement at CPI inflation + 1.6 per cent for teachers who stay in teaching, and at CPI inflation only for those who leave the Teachers’ Pension Scheme.
The increase is based on the CPI figure from September 2017, which was 3 per cent.