Answers · UK 2025/26

How does the Teachers Pension Scheme work in the UK?

The Teachers Pension Scheme (TPS) 2015 is a career average scheme. You build up 1/57th of your pensionable pay each year, revalued by CPI. Normal Pension Age is 65 for pre-2007 members and 67 for 2015 scheme members. Employee contributions range from 7.4% to 11.7%, with employers paying 28.68%. A teacher on £35,000 for 30 years earns roughly £18,421 per year.

Last updated: 10 June 2026Last reviewed: 10 June 2026How we verify

Full answer

The Teachers Pension Scheme (TPS) moved to a career average revalued earnings (CARE) model in April 2015 for most members. Under the 2015 scheme, each year of service you accrue a pension of 1/57th of your actual pensionable salary for that year. The resulting annual slices are revalued each April in line with CPI, preserving the real value of your accrued pension until you retire. The Normal Pension Age for 2015 scheme members is linked to the State Pension Age (currently 67). Members who were active and within 10 years of their NPA in April 2012 retained their final salary (career average for teachers pre-2015) benefits under transitional protections, though the McCloud remedy has affected how those transitional years are calculated. Employee contribution tiers for 2026/27 are: 7.4% on earnings up to £32,135; 8.6% on £32,136-£43,259; 9.7% on £43,260-£51,310; 10.2% on £51,311-£67,610; and 11.7% above £67,610. Employers contribute 28.68%. Worked example: a teacher earning £35,000 per year for 30 years accrues 1/57 x £35,000 x 30 = £18,421 per year (in today's money, before revaluation uplift). Commutation is available at a 12:1 ratio (£12,000 lump sum for every £1,000 of pension surrendered). There is a death in service lump sum of three times pensionable pay for active members, plus a survivor pension. Teachers who returned to service after a break should check whether they have a "break in service" in their record affecting the Career Average or Final Salary calculation. The annual allowance charge applies in the same way as other defined benefit schemes -- use your pension input amount from the TPS annual statement to track against the £60,000 annual allowance.