Changes to teachers' pensions 2007
From that date new entrants to the scheme will have a pension age of 65, but their benefits will build up faster with an accrual rate of 1/60th. Existing members will retain a pension age of 60 and an accrual rate of 1/80th.
Both new entrants and existing members will be able to take a lump sum up to the value of 25% of their total pension fund. All members will pay a higher contribution of 6.4% of salary and there is an agreement on future cost sharing that should ensure the long term financial sustainability of the scheme.
The modernised scheme has a range of new retirement options, including the ability to take some pension whilst still teaching. It also includes a new way of topping up your pension and improvements to the way in which the pension is calculated that will allow teachers to wind down in the years leading up to retirement and still use earlier higher salaries in the calculation of their pension.
In a joint statement to coincide with the earlier launch of the consultation on TPS reforms, teacher unions, employer associations and the DfES said that they believed the package of reforms provides a fair and balanced solution to the challenges of meeting rising costs while maintaining quality of provision for existing and future members.
Look out for more detailed articles in TES over the coming months. In the meantime, further information about the changes and how they might affect you can be found at the Teachers’ Pensions website www.teacherspensions.co.uk