[UK] Teachers’ Pension 2019/20

On the 1^st of September 2019, The Teachers’ Pension scheme (in England and Wales) increased the employer contribution from 16.48% to 23.6%.  As we have reported before, this is a significant cost increase for employers with teachers in the pension scheme.  The Department for Education in England said that it will fund this increase and issued guidance on the grant methodology on 12 April 2019, calculating this would be £848 million.  This is designed to offset the increased costs for the 7 month period from September 2019 to March 2020.

On the 2nd of December 2019, the Department for Education issued three pieces of guidance for further education providers on the teachers’ pension grant:

1. “Teachers' pension scheme employer contribution grant: further education providers” (giving guidance on 2019/20 funding and advice on funding for 2020/21)
2. “Pension grant 2019 to 2020: allocations and supplementary fund” (giving information on the grant and supplementary fund for September 2019 to March 2020)
3. “Teachers' pension employer contribution grant (TPECG)” (giving guidance for schools and local authorities on the teachers' pension grant for the financial year 2019 to 2020)

The Teachers’ Pension scheme is actually split into three different and separate schemes 

1. The Teachers’ Pension Scheme (TPS) in England and Wales
2. The Northern Ireland Teachers Pension Scheme (NITPS)
3. The Scottish Teachers' Pension Scheme (STPS)

The Scottish Public Pensions Agency (SPPA) confirmed that contributions also increased from the 1^st of September 2019 (17.2% to 23%).  In Northern Ireland, contributions increase but from the 1^st of April 2019 (17.7% to 25.1%).

At the time of writing, as education and public sector is a devolved function, Scotland, Wales and Northern Ireland have yet to confirm funding arrangements. 

On the 1^st of September 2019, The Teachers’ Pension scheme (in England and Wales) increased the employer contribution from 16.48% to 23.6%.  As we have reported before, this is a significant cost increase for employers with teachers in the pension scheme.  The Department for Education in England said that it will fund this increase and issued guidance on the grant methodology on 12 April 2019, calculating this would be £848 million.  This is designed to offset the increased costs for the 7 month period from September 2019 to March 2020.

On the 2nd of December 2019, the Department for Education issued three pieces of guidance for further education providers on the teachers’ pension grant:

1. “Teachers' pension scheme employer contribution grant: further education providers” (giving guidance on 2019/20 funding and advice on funding for 2020/21)
2. “Pension grant 2019 to 2020: allocations and supplementary fund” (giving information on the grant and supplementary fund for September 2019 to March 2020)
3. “Teachers' pension employer contribution grant (TPECG)” (giving guidance for schools and local authorities on the teachers' pension grant for the financial year 2019 to 2020)

The Teachers’ Pension scheme is actually split into three different and separate schemes 

1. The Teachers’ Pension Scheme (TPS) in England and Wales
2. The Northern Ireland Teachers Pension Scheme (NITPS)
3. The Scottish Teachers' Pension Scheme (STPS)

The Scottish Public Pensions Agency (SPPA) confirmed that contributions also increased from the 1^st of September 2019 (17.2% to 23%).  In Northern Ireland, contributions increase but from the 1^st of April 2019 (17.7% to 25.1%).

At the time of writing, as education and public sector is a devolved function, Scotland, Wales and Northern Ireland have yet to confirm funding arrangements.