Changes to Member Contribution Bands

CPI increase to Annual Salary Rate Bands for Contribution Rates for members of the Teachers’ Pension Scheme.

We’ve been advised by the Department for Education that from 1 April 2017, the salary bands applicable to member contributions for the Teachers’ Pension Scheme will change in line with an increase in the Consumer Price Index (CPI).

Please Note: Only the bands are changing the percentage contribution rates remain the same.
The appropriate percentage increase to salary bands from 1 April 2017 is the same percentage as the percentage increase in CPI in the year to September 2016.

CPI rose by 1.00% in the year to September 2016. Therefore, the salary bands for contribution rates for members will increase by 1.00% with effect from 1 April 2017.

These arrangements apply to all members i.e. both those who remain in final salary arrangement and those in career average arrangement.

Member tiered contribution rates for the Scheme from 1 April 2017 are shown below:

 

Annual Salary Rate for the Eligible Employment from
1 April 2015 – 31 March 2017
Annual Salary Rate for the Eligible Employment from
1 April 2017
Member Contribution Rate
Up to £25,999.99 Up to £26,259.99 7.4%
£26,000 to £34,999.99 £26,260 to £35,349.99 8.6%
£35,000 to £41,499.99 £35,350 to £41,914.99 9.6%
£41,500 to £54,999.99 £41,915 to £55,549.99 10.2%
£55,000 to £74,999.99 £55,550 to £75,749.99 11.3%
£75,000 and above £75,750 and above 11.7%
 

Further guidance on how to determine the band a member falls into is available on the Teachers’ Pensions website and in the Payroll Guide.


Information

Published: 18/05/2017
Audience: Teachers
Contact: Teachers Pensions

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