The DfE has published the outcome of the valuation of the Teachers’ Pension Scheme, and it has been confirmed there is a need to increase the employer contribution rate by 5% from April 2024.
It is understood that there will be additional funding available in 2024/25 to cover the increase, with the employer contribution rate set to increase to 28.6% for the period April 2024 – March 2027. The Department has stated that it will provide additional funding for the financial year 2024/25 for mainstream 5-16 schools, high needs settings, further education settings, and eligible early years providers. Additional funding in future years will be looked at as part of the spending review rounds.
The announcement acknowledges that the result means “independent Schools that participate in the Teachers’ Pension Scheme will be faced with additional costs that aren’t funded.”
Further details on the valuation result are available here.
We will publish further information as the details become available.