Hundreds of teachers stand to lose interest on their top-up pension contributions because of delays by local authorities in handing them over to the Prudential.
The regulations governing teachers’ pensions demand that additional voluntary contributions (AVCs) are paid to the pension-providers within seven days of making salary deductions, otherwise teachers could lose interest on their payments. Yet at least three local education authorities have consistently failed to meet the deadlines, according to the Prudential.
The problem came to light when teachers received new-style benefit statements from the Prudential, showing for the first time the dates on which LEAs had paid over the AVC contributions.
Some of the new unitary authorities are among the worst offenders, particularly those in Wales, says the Association of Teachers and Lecturers, and the Prudential is regularly reporting late-paying LEAs to the Department for Education and Employment.
