You may be a little lighter in your salary after April 1st, 2019. The contribution rates for your Teachers’ Pension Scheme are going to increase by 2.4%, which is a significant sum each month. This is in-line with the 2.4% rise in the Consumer Price Index in September 2018, which is directly linked to a teachers’ pension.
Here are the expected member contribution rates.
|Eligible Employment from 1 April 2018 – 31 March 2019||Annual Salary Rate for the Eligible Employment from 1 April 2019||Member Contribution Rate|
|Up to £27,047.99||Up to £27,697.99||7.4%|
|£27,048 to £36,410.99||£27,698 to £37,284.99||8.6%|
|£36,411 to£43,171.99||£37,285 to £44,208.99||9.6%|
|£43,172 to £57,216.99||£44,209 to £58,590.99||10.2%|
|£57,217 to £78,022.99||£58,591 to £79,895.99||11.3%|
|£78,023 and above||£79,896 and above||11.7%|
Although at the highest salaries, with the most significant contribution percentage, the changes will be less than a thousand pounds over a year, this is still a considerable sum. You may wish to consider the impact on your incomings and outgoings to ensure you continue to feel financially secure.
The content in this article was correct on 28th March 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on the teachers’ pension scheme. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.