{"id":423035,"date":"2022-01-06T15:59:54","date_gmt":"2022-01-06T15:59:54","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=423035"},"modified":"2026-01-30T04:19:38","modified_gmt":"2026-01-30T04:19:38","slug":"teachers-pension-scheme","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/pensions\/teachers-pension-scheme","title":{"rendered":"How does the Teachers’ Pension Scheme work?"},"content":{"rendered":"

Whether it\u2019s your first career move or something you switch to later in life, being a teacher can have many rewards. One of them you might not consider when you take the plunge is the pension scheme. When you become a teacher, you\u2019ll automatically be enrolled into the Teachers\u2019 Pension Scheme, a type of defined benefit pension that pays you a guaranteed income for life, and a perk that\u2019s well worth having.<\/p>

What is the Teachers\u2019 Pension Scheme?<\/h3>

It\u2019s a type of pension scheme open to those aged between 16 and 75 who are employed predominantly in a teaching role (full or part-time). It pays a guaranteed income in retirement based on your earnings as a teacher. The exact rules changed in 2015 and, as a result, how much members of the scheme receive in retirement in relation to their salary will depend on when they joined the scheme and how far away from retirement they were when the 2015 rule changes happened.<\/p>

Is the Teachers\u2019 Pension a final salary scheme?<\/h4>

It used to be a fully final salary scheme, which means that eligible scheme members receive pension benefits based on their salary at the point they stop being part of the scheme.<\/p>

However, those joining the scheme now will instead receive benefits based on their average earnings during their career as a teacher. This is still a form of defined benefit pension (so the amount you will receive is set in advance, rather than being dictated by investment performance as with defined contribution schemes). But, in most cases, the career average version of the scheme will work out as less generous. Some members of the scheme will receive part of their benefits under the final salary scheme, and part under the career average scheme.<\/p>

Which versions of the Teachers\u2019 Pension Scheme am I eligible for?<\/h3>

The version of the scheme that you qualify for as a teacher depends on when you joined and how far away you were from retirement when the rules changed in 2015. This rule change created 4 categories of membership:<\/p>
Membership type<\/th>Eligibility criteria<\/th>What you\u2019ll get<\/th><\/tr><\/thead>
Protected scheme members<\/th>Active member of the scheme as of 31 March 2012, within 10 years of your normal pension age (NPA) on 1 April 2012<\/td>Final salary arrangement until you take full pension entitlement*<\/td><\/tr>
Tapered scheme members<\/th>Active member of the scheme as of 1 April 2012, more than 10 years but less than 13.5 years away from your normal pension age on 1 April 2012<\/td>Final salary arrangement for years up to a certain date, determined by your age; career average arrangement for years after this<\/td><\/tr>
Transition scheme members<\/th>Active member of the scheme as of 31 March 2012, more than 13.5 years away from normal pension age on 1 April 2012<\/td>Final salary arrangement for years up to 1 April 2015; career average arrangement for years after this<\/td><\/tr>
New scheme members<\/th>Joined scheme on or after 1 April 2015<\/td>Career average arrangement<\/td><\/tr><\/tbody><\/table>

*Protection kept until\/unless you have a career break of more than 5 years.<\/p>

However, to make things even more complicated, a 2018 court ruling (the \u201cMcCloud Judgement\u201d), found that the protections introduced in 2015 were discriminatory against younger members of public sector pensions schemes, including the Teachers\u2019 Pension Scheme. Following consultation, 2 key things were decided:<\/p>