Teachers' Pensions Scheme UK explained

What is the Teachers' Pensions Scheme UK?

If you work as a teacher, you'll be enrolled in the the Teachers' Pension Scheme, which will pay you an income in retirement based upon your earnings over your career.

How this income is calculated depends on when you joined the scheme as the rules have changed over the years. The latest version of the scheme was introduced in April 2015. 

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Which Teachers' Pensions Scheme applies to you?

Until 2015, the Teachers' Pension Scheme was a final salary scheme. This meant that it was based on a teacher's salary when they left teaching. 

In April 2015, the scheme changed to a career average system, where your pension is based on your average earnings throughout your career.

Most teachers were transferred over to the career average scheme at this point, though some older members were able to remain in their final salary scheme for a further seven years. 

As of April 2022, all active members of the pension scheme are contributing to the career average scheme, but if you built up any benefits under the old final salary scheme, these will be protected. 

How much do I contribute to the Teachers' Pension Scheme?

Both full-time and part-time workers pay a percentage of their gross salary into their pension each month. This is topped up by employer contributions and you'll receive pension tax relief on your contributions.

The amount you contribute varies depending on how much you earn. 

Here are the contribution rates for 2025-26:

Teachers Pension contribution rates

When you can collect your Teachers' pension?

The age at which you get to access your pension, called your 'normal pension age', depends on when you joined the scheme.

For teachers who joined before 1 January 2007, the normal pension age is 60.

If you joined after this date, the normal pension age is 65. 

How much does the Teachers' Pension Scheme pay?

Since April 2022, all teachers now contribute to the career average scheme, but you may have built up benefits under the old final salary scheme that was in place before 2015. 

In this case, part of your pension will be from the old scheme and part will be from the new scheme. 

Career average scheme

Under the career average arrangement, the pension you get is based on your pensionable earnings each year while you are a member of the scheme. 

Every year, you’ll accumulate a pension worth 1/57th of your pensionable earnings, including overtime. This will then be increased by the rate of inflation plus 1.6%. 

It will all be added together throughout your career, and this amount will be the annual income you'll receive when you retire.

A worked example

John’s earnings for his first year as a teacher are £30,000. He will earn a pension for this year of: £30,000 x 1/57th = £526.

This will then be increased by the rate of inflation plus 1.6%. If, for example, that is a total of 3.6%, an extra £19 will be put into John's pension pot, so it will be worth a total of £545 at the start of the following year.

John's salary is increased to £32,000 in his second year. He'll earn a pension for that year of £32,000 x 1/57th = £561.

This is added to his existing pension pot, giving him a total £1,106 a year after two years. This amount will then be increased in line with inflation. 

Final salary scheme

If you were part of the old final salary scheme, and joined before 1 January 2007, your pension is 1/80th of final pensionable salary for each year of 'reckonable service.' 

So if your final salary is £30,000 and you were part of the scheme for 20 years, your pension will be £30,000 x 20 / 80 = £7,500 a year.

If you were part of the old final salary scheme, and joined after 1 January 2007, your pension is 1/60th of final pensionable salary for each year of 'reckonable service.' 

So if your final salary is £30,000 and you were part of the scheme for 20 years, your pension will be £30,000 x 20 / 60 = £10,000 a year.

What happens to your Teachers' Pension if you have a break in service?

It depends when the break was and which scheme you were covered under.

If you were a final salary scheme member with a normal pension age of 60, and had a break in service of more than five years with a return date on or after 1 January 2007, your pension age remains at 60 for the service before the break. It is 65 for the service after the break.

What happens to your Teachers' Pension when you die?

If you die while in service

Under the rules of the career average scheme, a death grant worth three times your final full-time equivalent salary (at your date of death) will be paid if you die while in service.

A pension worth 37.5% of your pension will also be paid to your widow, widower, civil partner or unmarried partner.

If you die after retiring

Your surviving spouse, civil partner or unmarried partner will receive your full pension for three months. 

After that, they'll be paid an income until they die, worth 37.5% of the pension you've earned up to the date of your death.

If you die within five years of starting to draw your pension, a 'supplementary death grant' will also be paid. This is worth five times your annual pension at the date of death, minus any pension that you had already received. 

If you die after leaving the scheme but haven't reached pension age

If you die after leaving pensionable employment and have two or more years of pensionable service, the death grant payable depends on which pension arrangement you were in when you left service.

If you were in the career average arrangement it’ll be your accrued pension multiplied by 2.25.

If you were a member of the old final salary scheme, it's worked out as 3/80 x average salary x reckonable service.