1. 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

2. 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

3. Teachers’ Pension Scheme
2012 Results
Deficit of £15bn
£177bn
Employer contribution rate
16.4% of salaries
16 January January 2019
Government Actuary’s Department

4. Teachers’ Pension Scheme
Building up the valuation results
Results
Calculations
Assets Liabilities Accrual
Assumptions
Analysis
Data
16 January January 2019
Government Actuary’s Department

5. Teachers’ Pension Scheme
What’s the cost cap? Employers cost cap 10.9% Vs Employer contribution rate 16.4%
16 January January 2019
Government Actuary’s Department

6. Teachers’ Pension Scheme
Early retirement factors
16 January January 2019
Government Actuary’s Department