No contribution changes following revaluation

UK government actuaries have now confirmed that the cost cap result for the Teachers' Pension Scheme (from the 2016 valuation that has now been rerun and finalised) has been calculated at 1.3% above the employer cost cap. DfE have said that 'as this remains within the agreed ±2% corridor, the result means that no changes to benefits or member contributions are required.'

Members will remember that when the 2016 originally took place the results showed that benefit or member contribution improvements were necessary, so this is a disappointing, if not unexpected development.  The valuation had to be re-run after government decided that the cost of removing age discrimination from the reformed 2015 scheme ("McCloud remedy") had to be treated as a 'member cost' under the cost sharing arrangements* despite union protests.

Full details will soon be published on the TPS and government actuaries websites.

* A number of trade unions, headed by the Fire Brigade Union, have issued a judicial review of this decision. The case is due to be heard later in the spring/summer.