Teachers’ Pensions
Contents
Overview
Teachers’ Pensions is the second largest public sector pension in the UK. You may be a new teacher entering the profession, deciding whether to opt in or out of the Teachers’ Pensions Scheme or looking at retiring soon.
In this article, we provide an overview of the Teachers’ Pensions Scheme and where you can look for additional information.
What is the Teachers’ Pensions Scheme?
Teachers’ Pensions is the organisation responsible for administering the scheme on behalf of the Department for Education (DfE). You can sign up as soon as you start teaching and receive a Teachers’ Pension number.
The Teacher’s Pensions website is a good starting point to familiarise yourself. It includes:
- A factsheet providing an overview of the Teacher’s Pension Scheme
- An overview of what your contributions will look like
- A selection of pension calculators
- An FAQ microsite
Documents on the DfE’s website relating to the scheme can be found here.
Edapt recommend getting in contact with Teachers’ Pensions if you have a specific query about your arrangements.
How does Teachers’ Pensions work?
A pension is simply a financial product. It is a tax free portion of cash, your employer pays into, as a way of saving up for your retirement. So essentially a percentage of your pay each month will be going towards your pension pot.
Teachers’ Pensions say the scheme is “a defined benefit scheme based on your annual pensionable earning, revalued each year, rather than a scheme reliant on how investments perform, so there’ll be no surprises when you come to claim your pension as you’ll know in advance how much you’ll be getting.”
What happens if I already have an existing pension?
If you are a career changer and already have a private pension you might be able to transfer it into your new Teachers’ Pension. The Teachers’ Pension website has more information on this topic.
Am I allowed to opt out of Teachers’ Pensions?
Yes. If you calculate you might struggle to meet the contributions or know you only intend on teaching for a short period of times you might decide to opt out of the scheme. Information on opting out can be found here.
How much do I need to pay in?
How much you need to pay in depends on salary, with lower-earning members paying in a smaller percentage of income. Contributions from 1 April 2025 are:
| Annual Salary Rate for Eligible Employment from April 2025 | Member Contribution Rate |
| Up to £34,872.99 | 7.4% |
| £34,873 to £46,943.99 | 8.9% |
| £46,944 to £55,660.99 | 9.9% |
| £55,661 to £73,768.99 | 10.5% |
| £73,769 to £100,590.99 | 11.6% |
| £100,590.99 and above | 12% |
Can I pay in extra amounts?
Members of the Teachers’ Pension Scheme can increase their pension benefits through flexibilities that allow them to purchase either Additional Pension, Faster Accrual, or through the ‘Buy-out’ of the standard rate of actuarial reduction (the ‘Buy out’ must be made within six months of joining the Scheme and the member must be in pensionable service).
For the 2025-2026 Scheme year the Pensions Increase 1.7%, and the maximum extra pension amount will increase to: £8,600
What happens when I retire?
Well done on reaching the end of what will have hopefully been a rewarding career in teaching!
Each month your pension will be paid into your nominated bank account. Your monthly pension payment will be made on the day before your birth date. So, for example, if you were born on the 7th month, your pension will be paid on the 6th of each month.
Each year, you will receive a P60, outlining the amount of pension you have received and the tax you have paid in that tax year. You pension is index-linked to protect it from increases in the cost of living. The increase are paid in April , on the same date as increases in state social benefits. They are based on figures provided by HM Treasury.
Additional information about what to do when you retire can be found on their website.
We have also published another article on teacher pay scales if you are trying to make calculations on your pension contributions.
The information contained within this article is not a complete or final statement of the law.
While Edapt has sought to ensure that the information is accurate and up-to-date, it is not responsible and will not be held liable for any inaccuracies and their consequences, including any loss arising from relying on this information. This article may contain information sourced from public sector bodies and licensed under the Open Government Licence. If you are an Edapt subscriber with an employment-related issue, please contact us and we will be able to refer you to one of our caseworkers.