Civil servant pensions to benefit teachers

9th February 2001 at 00:00
TEACHERS can expect a significant boost to their retirement funds following a review of the Civil Service pensions scheme.

The Department for Education and Employment confirmed this week that the teachers' pension scheme would benefit from improvements to civil servants' pensions.

New benefits for civil servants include pension increases of up to 33 per cent, survivors' pensions for single-sex and unmarried partners and the chance to opt for additional pension rather than a tax-free cash lump sum.

The increase is being achieved by a different method of calculating benefits ad civil servants will now pay an extra 2 per cent of their salary towards pensions. Those who do not wish to contribute more can remain in the current scheme.

A DFEE spokesman said: "No decision has yet been made on whether teachers will face increased contributions as a result. Discussions are continuing with the teachers' unions."

Pensions experts predict that many teachers will be prepared to pay extra for better benefits. Alan Walles, chief pensions officer from the National Union of Teachers, said: "We certainly want teachers to reap the benefits of this change."

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