A comprehensive new article from the Department for Education released today outlined the proposed changes for the Teachers’ Pension Scheme.
The Government states it “wants the Teachers’ Pension Scheme to be one of the best pensions available. The proposed scheme keeps high quality benefits that teachers deserve whilst balancing the need for a more sustainable scheme that is fairer to taxpayers.”
A comprehensive new article from the Department for Education released today outlined the proposed changes for the Teachers’ Pension Scheme.
The Government states it “wants the Teachers’ Pension Scheme to be one of the best pensions available. The proposed scheme keeps high quality benefits that teachers deserve whilst balancing the need for a more sustainable scheme that is fairer to taxpayers.”
A copy of the full article can be found on the Department For Education website. But the following is an in brief summary
What changes are proposed ?
- Moving pension scheme benefits from a final salary pension to a career average pension scheme.
- A phased increase to teachers’ Normal Pension Age in line with changes to the State Pension Age.
- A rebalancing of employee and employer contributions
What stays the same:
- Members will continue to receive a guaranteed income in your retirement – an enhanced benefit over the majority of people with private sector pensions.
- Pensions and lump sum already accrued will remain linked to your final salary on retirement.
- The option to retire at any age between 55 and 75 will remain