Teachers’ Pension Scheme – background

The Teachers’ Pension Scheme in England and Wales (TPS) is an unfunded, defined benefit public service occupational pension scheme.

This note looks at the development of the scheme to 2010, including reforms introduced in 2007. These included an increase in the normal pension age for new entrants (from 60 to 65) and increases in contributions – from 6% to 6.4% for employees and from 13.5% to 14.1% for employers. There would be a cap on employer contributions of 14% from the 2008 valuation onwards. A separate note looks at the current reforms SN 6731 Teachers’ Pension Scheme – current reforms.