Damian Hinds has announced that the government will contribute an additional £940m to ensure teachers’ pensions in England remain generous
The government has announced that schools and colleges in England will receive an additional £940m to ensure teachers’ pensions remain some of the most generous in the country.
Education secretary, Damian Hinds, confirmed yesterday that the Department for Education will fully fund increased pension contributions that state-funded schools and colleges will have to make in 2019/20.
The announcement follows a public consultation on funding changes.
The Teachers’ Pension Scheme is one of only eight guaranteed by the government. It provides additional benefits linked to salary, is inflation-proof to offer teachers a secure retirement and offers the typical teacher around £7,000 in employer contributions every year.
Employees, employers and the government all contribute to the scheme – and the Hinds has underlined his belief that it is important that the Teachers’ Pension Scheme continues to offer excellent benefits to attract talented teachers.
He said: “The Teachers’ Pension Scheme is, quite rightly, one of the most generous pension schemes in the country. It’s one of only eight guaranteed by the government because we believe it is important that we continue to offer excellent benefits to attract talented teachers.
“We are providing an extra £940m to cover increased costs for 2019/20 so state-funded schools and colleges can focus their resources on providing the best education.
“To illustrate how this scheme compares to others available: a teacher who joins the pension scheme at 23 and follows a typical career path could expect to accrue a pensions product worth around £600,000 – that’s £30,000 a year – and the average classroom teacher will benefit from at least £7,000 a year in pension contributions from their employer on top of their salary.”