Teachers' pensions

Schools minister Jim Knight has announced the launch of a consultation for a reformed teachers' pension scheme (TPS) in England and Wales.

 

Key reforms include a normal pension age 65 for new entrants, more choice and flexibility over the way members can plan and save for their retirement, and cost-sharing arrangements that will see members and employers meeting an equal share of any future cost pressures.

 

Knight said: "I am grateful for the positive and constructive approach that has been taken throughout these complex negotiations.

 

"I am confident that we have reached an agreement which meets the objectives of long-term affordability and sustainability for a modernised teachers' pension scheme.

 

"I hope this will be recognised as a valuable part of the package supporting the future recruitment, retention and motivation of the teaching profession."

 

 

Stakeholder Response: Association of School and College Leaders

 

 

ASCL general secretary Dr John Dunford said: "Put into the wider context of the national pensions situation, this represents a seriously good deal for teachers. It will help schools and colleges to retain teachers and will also benefit those who wish to plan their savings so that they can retire between 55 and 60.

 

"Changing the way final salary is calculated and bringing in phased retirement will help to encourage senior leaders to stay in the profession longer."

 

 

Stakeholder Response: NASUWT

 

 

Chris Keates, general secretary of the NASUWT, said: "Taking into account the fact that when negotiations began the position looked extremely bleak, an excellent deal has been reached.

 

"The most important issue for existing scheme members was the retention of retirement age at 60 and this has been secured.

 

"New teachers starting work before January 2007 will have access to the package for existing scheme members.

 

"One of NASUWT’s key priorities was to maximise pension protection for teachers on safeguarded salaries as a result of the recent staffing restructuring. The provision we have secured will do just that.

 

"Although the agreement will result in a slight increase in teachers’ contributions, 0.4 per cent is considerably below the level for which the employers argued. It has ensured that the retirement age of 60 could be maintained and has secured additional benefits for existing scheme members.

 

"The agreement secured applies to England and Wales and we look forward to the relevant government departments in Scotland and Northern Ireland adopting it in its entirety."

 

 

Stakeholder Response: Association of Teachers and Lecturers

 

 

ATL deputy general secretary Gerald Imison said: "This deal is the outcome of months of hard and complex negotiations with the employers and government.  We believe both the improvements to the existing pensions scheme and the revised scheme give value for money for teachers.

 

"It's in everyone's best interests – children, parents, teachers, schools and society - that teaching is an attractive profession and attracts the best recruits, and we believe this package should play a significant role in doing so."

 

 

Stakeholder Response: NUT

 

 

Steve Sinnott, NUT general secretary, said: "These changes result from intense and constructive negotiations between all the teachers’ organisations, the employers and the government.

 

"They will improve, maintain and protect one of the best occupational pension schemes in the UK.

 

"There is clear recognition of societal changes and the threat to salary levels of teachers who lose out under the change to teaching and learning responsibilities.

 

"All these improved benefits will continue to help to recruit and retain young people in the profession."