Members will have received an update from Teachers’ Pensions on the 10th March 2025 indicating a change to member contributions to the pension scheme. INTO responded to the consultation, following internal discussion and agreement with your representatives on Northern Committee.
For all members on M4 of the pay scale and above, this will mean an increase in the amount they pay toward their pension each month. The reason for this change is to ensure that the member contribution yield meets the regulatory target of 9.6%.
By way of illustration potential estimated effect on net pay of these changes has been set out in the consultation as follows:
| Example Salary | Net effect (Annual) | Net effect (Monthly) |
| £30,000 | £0 | £0 |
| £40,000 | -£85 | -£7 |
| £50,000 | -£119 | -£10 |
| £60,000 | -£114 | -£9.50 |
| £80,000 | -£168 | -£14 |
INTO expressed the view that increasing the member contribution by the same percentage across all points of the salary scale would have been more equitable and would have minimised cost to members across the course of their careers rather than focussing solely on minimising costs for the first two or three years at the expense of longer term increased costs.
However, as you will see from the response to the consultation, this was a minority view among the small number of respondents and the Department are progressing with the options as set out in the link above. These changes will take effect from 1st April 2025.
The proposals and findings of that consultation can be read here.
