Teachers' Pension Contributions 2015

The new structure:

  • Based on six tiers rather than eight tiers.
  • Members pay an average 9.6 per cent.
  • Covers the final salary scheme and the career average scheme

How it works

Banded contributions: A teacher would pay the same contribution rate on their whole salary rather than 7.4 per cent on the portion up to £25,999, 8.6 per cent on the portion between £26,000 and £34,999 etc.
The salary bands will rise each year with CPI inflation.

Our View

The Government’s proposed contribution structure will lead to some members paying more than in 2014-15 and some paying less. However all teachers are paying more versus the pre-April 2012 position. The NUT still opposes a 9.6 per cent average employee contribution rate as unnecessary and a tax on teachers to pay for the cost of the recession.
If the previous 2006 cost sharing agreement with the Government had been applied, the members’ contribution rate would have been 7.7 per cent. For contribution rates by salary and scale points, and more detail on how it works, see the document below.

Salary Band Contribution Rate Increase (vs pre April 2012)
Up to £25,999 7.4% 1%
£26,000 - £34,999 8.6% 2.2%
£35,000 - £41,499 9.6% 3.2%
£41,500 - £54,999 10.2% 3.8%
£55,000 - £74,999 11.3% 4.9%
£75,000+ 11.7% 5.3%