AN INCREASE in employers’ contributions to teachers’ pensions in England and Wales will cost local authorities an extra pound;130 million a year from next April.
The rise in contributions - to 8.35 per cent of a teacher’s salary - has been recommended by the Government actuary to cover the costs of improved benefits to the Teachers’ Pension Scheme.
These include the doubling of the death-in-service grant, more generous pensions for teachers with less than five years’ service who take ill-health retirement, and the chance for teachers to continue paying into the scheme if they carry on teaching after retirement.
The additional contributions will cost the largest LEAs several million pounds a year. Lancashire will have to find an extra pound;2.8m.
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