Teachers’ pensions are set to rise by more than 40 per cent from September next year, school bosses have been warned.
The report follows the publication of the most recent teachers’ pension scheme valuation, which suggested that the amount employers must contribute towards teachers’ retirement looks set to rise from next year.
The latest figures, sent to school bosses in an email seen by education publication Schools Week, estimate that the contribution rate will rise to 23.6 per cent of annual pay from as early as the start of the next school year.
The email, issued by Employer Link, an employment guidance subscription service that is part of the Local Government Association (LGA), says the projected increase in contributions is based on the Government’s Actuary’s Department’s calculations.
The Government has previously agreed to cover any potential increased costs of employment for the 2019/20 year, but continued funding after this date has yet to be agreed.
Commenting on the report, Geoff Barton, general secretary of the Association of School and College Leaders, said schools could not possibly afford another “unfunded cost” on budgets which are “already under severe pressure”.
“We are reassured to an extent by the government’s intention to provide additional funding to schools and colleges in 2019/20 in respect of this extra cost,” he said.
Mr Barton added that the union will be “seeking assurances” that this funding will cover the cost of the increased contribution rate in full.
“Schools and colleges face uncertainty beyond 2019/20 because we will not know the arrangements for future years until the comprehensive spending review has taken place next year. We will be making strong representations that the increased contribution rate must be fully funded beyond that date,” he said.
On publishing the teachers’ pension scheme valuation, which is reviewed once every four years, a Department for Education (DfE) spokesperson said: “We will be consulting with the education sector on these proposals on the basis that the Government will cover the extra costs involved for state-funded schools and colleges for the rest of the Spending Review.”
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