Teachers’ Pension Scheme Wednesday, 16 January 2019 Teachers’ Pension Scheme Teachers’ Pension Scheme Pension Board, 9 March 2016 Matt Wood Government Actuary’s Department 9 March 2016 Government Actuary’s Department www.gov.uk/gad

Teachers’ Pension Scheme Why do we calculate a contribution rate? A notional ‘pool’ of money Employer contributions Member contributions (9.6% of pay) Level required to pay accrued benefits Benefits paid out Government Actuary’s Department www.gov.uk/gad

Teachers’ Pension Scheme 2012 Results Deficit of £15bn £177bn Employer contribution rate 16.4% of salaries 16 January 201916 January 2019 Government Actuary’s Department www.gov.uk/gad

Teachers’ Pension Scheme Building up the valuation results Results Calculations Assets Liabilities Accrual Assumptions Analysis Data 16 January 201916 January 2019 Government Actuary’s Department www.gov.uk/gad

Teachers’ Pension Scheme What’s the cost cap? Employers cost cap 10.9% Vs Employer contribution rate 16.4% 16 January 201916 January 2019 Government Actuary’s Department www.gov.uk/gad

Teachers’ Pension Scheme Early retirement factors 16 January 201916 January 2019 Government Actuary’s Department www.gov.uk/gad