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Created: 20 January 2015 | Last Updated: 09 November 2015 | Printer Friendly Version Printer Friendly Version | Make Text Smaller Make Text Larger |

Pensions Update - January 2015

The Scottish Government is finalising the introduction of the new Scottish Teachers' Pension Scheme which will take effect from 1 April 2015. 

There have been three public consultations on technical changes to scheme regulations and there is currently a further consultation on contribution rates from 1 April 2015.

Following a scheme valuation the employers’ contribution rate from 1 September 2015 will be 17.2%, rising from the current 14.9%. 

New Scheme 

The EIS is currently producing an information leaflet for members setting out the detail of the new scheme design. You are reminded that the main features of the new scheme are:

  • A Career Average Revalued Earnings Scheme (CARE) in which pension accrues based on actual salary in each year of service. This replaces the final salary scheme, in which pension is based on final salary. 

  • An accrual rate of 1/57. Currently, the Scottish Teachers’ Superannuation Scheme has an accrual rate of 1/80 (with a lump sum) or 1/60 with no lump sum.

  • There is no scheme retirement age. The retirement age is to be set by the UK Parliament directly linked to your state pension age.

Transitional and Tapered Protection

The UK Government agreed to provide full protection of current scheme provisions to those who were within 10 years of their NPA on 1 April 2012 and tapered protection for those within 13.5 years of their NPA on that date. Our leaflet will set out full details on how this will affect this group of members. All other teachers will join the new scheme from 1 April 2015. [Top of page]

Pension Pots

Service in current scheme (NPA60 or NPA65) will be protected moving forward. After joining the new scheme a teacher, on retirement, will have two pension pots. Service under final salary rules will be calculated on the actual salary at retirement and service under CARE arrangements will be calculated separately. [Top of page]

Scheme Governance

As part of the new arrangements moving forward there are improved governance arrangements. This will require the establishment of a Scottish Teachers Pension Scheme Board and we have agreed with Scottish Government that there will be 6 places for teachers’ unions and a Scheme Advisory Board which will have places for all recognised teachers’ unions. To support the governance arrangements we have agreed a constitution across the recognised teaching unions. [Top of page]

Working Longer and Early Retirement Working Group

During scheme discussions it became clear that a significant cohort of teachers who are in NPA60 scheme were facing working to 66, 67 or even later. Under pressure from EIS Scottish Government ministers agreed to establish a working group to look at mechanisms which would mitigate the impact of working later. This group has had an inauspicious start. 

After an initial meeting COSLA withdrew and progress was limited thereafter. However, COSLA has agreed to re-join the group and a further meeting will take place in mid-February. Scottish Government has also undertaken to look at the impact of staff working later across all public services. The EIS is keen to progress work across both groups.

A detailed leaflet outlining the changes will be available from mid-February.

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