Response to consultation on funding the increase in employer contributions for 2019/20 - England only
In January the Department for Education (DfE) launched a consultation to seek views on the DfE’s proposal to provide funding for certain educational institutions for the increase to employer contributions to the Teachers’ Pension Scheme (TPS) in 2019/20, ie from 16.48 per cent to 23.68 per cent (including 0.08 per cent administration charge). The response to the consultation has now been published on GOV.UK website. The response confirms that the funding will be provided to the following institutions:
- mainstream and special maintained schools
- mainstream and special academies (including Alternative Provision, 16-19 academies and free schools)
- maintained nursery schools
- non-maintained special schools
- independent special schools, to the extent they educate children with Education, Health and Care Plans.
- local authority centrally employed teachers
- music education hubs.
The methodology for the payment of the funding has also been published.
As you will see from the consultation response, the DfE is also providing funding for Further Education (FE) colleges and other public-funding training organisations including sixth form colleges, but the DfE will not be providing funding for universities and independent schools. The response also announced that DfE will consider allowing independent schools to leave the TPS via a phased withdrawal, whereby a school could retain its current teachers in the TPS but the scheme would be closed to new teachers joining the school.
The DfE has also published the results of the actuarial valuation of the TPS carried out as at 31 March 2016. The report confirms that the employer contribution rate will increase to 23.68 per cent from 1 September 2019.
|
