The Teachers’ Pensions Schemes (Amendment) Regulations 2025
These regulations amend the Teachers’ Pensions Regulations 2010, the Teachers’ Pension Scheme Regulations 2014, and the Teachers’ Pension Scheme (Remediable Service) Regulations 2023.
Key changes include updating references to outdated legislation, adjusting members' contribution rates, altering employer payment dates, expanding the definition of "contracting scheme employer," and clarifying the definition of "alternative amount." These changes aim to improve accuracy, clarity, and efficiency within the Teachers’ Pension Schemes while ensuring compliance with current legislation.
The regulations took effect on April 1st, 2025.
Arguments For
Improved Accuracy and Clarity: The amendments correct outdated references and clarify ambiguous definitions within the existing Teachers’ Pension Schemes, reducing potential for misinterpretations and disputes.
Modernization of the Scheme: Updating references to legislation (e.g., Diocesan Boards of Education Measure) reflects current legal frameworks and ensures the scheme's continued relevance.
Enhanced efficiency in employer contributions: The adjustments to employer payment dates streamline administrative processes, potentially saving time and resources for employers and the scheme managers.
Compliance with Statutory Requirements: The amendments ensure compliance with the requirements of the Superannuation Act 1972, Public Service Pensions Act 2013 and the Public Service Pensions and Judicial Offices Act 2022, upholding the legal integrity of the pension scheme.
Fairer and more equitable contribution structures: The changes to member contribution rates while controversial (see arguments against) aim to ensure long-term sustainability and fairness within the scheme.
Arguments Against
Potential administrative burden: Implementing the changes, especially retrospective amendments, might place administrative burdens on employers and scheme managers and increase the risk of errors.
Impact on Member Contributions: The alteration of members' contribution rates could be perceived as unfair, particularly if not adequately explained and justified to the affected members. Concerns might emerge about affordability and its impact on member's take-home pay.
Unintended consequences: The complexity of the pension system means that unintended consequences from the amendments may not be immediately apparent, only becoming clear over time.
Lack of comprehensive impact assessment: The absence of a full impact assessment raises concerns about potentially overlooked ramifications. A more thorough assessment might have identified potential downsides and suggested alternative approaches for mitigating negative effects.
Retrospective application of some changes: While the explanatory notes claim minimal adverse impact and state that retrospective changes are permitted under section 3(3)(b) of the Public Service Pensions Act 2013, the retrospective nature of some changes could be perceived as unfair by impacted individuals who may have made decisions relying on the previous legislation.
The Secretary of State makes these Regulations in exercise of the powers in—
(a) section 9(1) and (2)(a) of, and paragraph 4 of Schedule 3 to, the Superannuation Act 1972 (“the 1972 Act”)1,
(b) sections 1(1) and (2)(d), 2 and 3(1), (2)(a) and (3)(b) of, and paragraph 4(a) of Schedule 2 and paragraphs 1 and 9(a), (b) and (c) of Schedule 3 to, the Public Service Pensions Act 2013 (“the 2013 Act”)2, and
(c) sections 10(1), 11(5)(d) and 19(1) of the Public Service Pensions and Judicial Offices Act 20223.
The Secretary of State has consulted the persons referred to in section 9(5) of the 1972 Act and section 22(3) of the 2013 Act. In accordance with section 22(2)(b) of the 2013 Act, the Secretary of State has laid a report before Parliament.
The retrospective provision contained in these Regulations does not appear to the Secretary of State to have significant adverse effects in relation to the pension payable to or in respect of members of the scheme established by the Teachers’ Pension Scheme Regulations 20144, nor to have significant adverse effects in any other way in relation to members of the scheme. Accordingly, the procedures set out in section 23 of the 2013 Act are not applicable in respect of these Regulations.
In accordance with section 9(1) of the 1972 Act, and section 3(5) of the 2013 Act, these Regulations are made with the consent of the Treasury5.
The Secretary of State created these regulations using powers granted by the Superannuation Act 1972, the Public Service Pensions Act 2013, and the Public Service Pensions and Judicial Offices Act 2022.
Consultations were held, and a report was submitted to Parliament.
The Secretary of State determined that retrospective elements have minimal negative impact on teachers' pensions.
Therefore, the special procedures in section 23 of the 2013 Act were not required.
The Treasury approved these regulations, as required by the 1972 and 2013 Acts.
Citation, extent and commencement 1. These Regulations—
(a) may be cited as the Teachers’ Pensions Schemes (Amendment) Regulations 2025,
(b) extend to England and Wales, and
(c) come into force on 1st April 2025.
These regulations are officially titled the Teachers’ Pensions Schemes (Amendment) Regulations 2025.
They apply to England and Wales and became effective on April 1st, 2025.
Amendment of the Teachers’ Pensions Regulations 2010 2. (1) The Teachers’ Pensions Regulations 20106 are amended in accordance with paragraph (2).
(2) In Schedule 2, in paragraph 17, in sub-paragraph (a), for “Diocesan Boards of Education Measure 1991” substitute “Diocesan Boards of Education Measure 20217”.
The Teachers’ Pensions Regulations 2010 are updated by replacing the reference to the 'Diocesan Boards of Education Measure 1991' with the 'Diocesan Boards of Education Measure 2021' within Schedule 2, paragraph 17(a).
Amendment of the Teachers’ Pension Scheme Regulations 2014 3. The Teachers’ Pension Scheme Regulations 20148 are amended in accordance with regulations 4 to 8.
Regulations 4 through 8 modify the Teachers’ Pension Scheme Regulations 2014.
Amendment to regulation 185 (members’ contributions) 4. In regulation 185, in the table, for column 2 substitute—
| Column 2 | Members’ contributions rate |---|---|---|---|---| | 7.4% | 8.9% | 9.9% | 10.5% | 11.6% | | 12% |
Regulation 185's table, specifying members' contribution rates, is revised.
A new column 2 is substituted, listing updated contribution rates.
Amendments to regulation 196 (payment by employers to scheme manager) 5. In regulation 196, in paragraph (4)—
(a) in the opening words, for “7” substitute “15”;
(b) in sub-paragraph (a), for “8th” substitute “16th”.
Regulation 196, paragraph (4), is amended.
The number '7' is replaced with '15', and '8th' is replaced with '16th', likely changing the date by which employers must contribute to the scheme.
Amendments to Part 1 of Schedule 1 (general) 6. (1) In Chapter 2 of Part 1 of Schedule 1 (Fair Deal transfers)—
(a) in paragraph 4, for the definition of “contracting scheme employer” substitute—
““contracting scheme employer” means an employer mentioned in any of the following paragraphs, who is a party to a Participation Agreement—
(a) paragraph 2(3)(b) (establishment providing further education constituted by an amalgamation of establishments),
(b) paragraph 9(c) (governing body of a school maintained by a local authority),
(c) paragraph 9(d), excluding institutions providing higher education only (institution providing further education, or further education and higher education, maintained by a local authority),
(d) paragraph 10 (academy)9,
(e) paragraph 13 (special school not maintained by a local authority)10,
(f) paragraph 14, excluding institutions providing higher education (governing body of an institution within the further education sector to which grants are made)11, or
(g) paragraph 24 (institution for the further education and training of disabled persons);”;
(b) in paragraph 6(a)—
(i) omit “with a contracting scheme employer”;
(ii) for “fair deal transfer date” substitute “Fair Deal transfer date”.
(2) The amendments made by paragraph (1)(a) and (b)(i) have effect from 14th November 2024.
Schedule 1, Part 1, Chapter 2 (Fair Deal transfers) is amended.
The definition of "contracting scheme employer" is broadened to include various further education establishments.
Additionally, references to "contracting scheme employer" are removed from paragraph 6(a), and 'fair deal transfer date' is reformatted for capitalization.
The changes in (1)(a) and (b)(i) are retroactive to November 14, 2024.
Amendment to Part 2 of Schedule 1 (service pensionable without election) 7. In Part 2 of Schedule 1, after paragraph 22 insert—
“22A. Teacher employed by the National Institute of Teaching12.”.
A new paragraph (22A) is added to Schedule 1, Part 2, specifying that teachers employed by the National Institute of Teaching are eligible for a pensionable service.
Amendment to Part 3 of Schedule 1 (service pensionable on election) 8. In Part 3 of Schedule 1, in paragraph 26(a), for “Diocesan Boards of Education Measure 1991” substitute “Diocesan Boards of Education Measure 2021”.
Schedule 1, Part 3, paragraph 26(a) is updated to replace the reference to 'Diocesan Boards of Education Measure 1991' with 'Diocesan Boards of Education Measure 2021'.
Amendment of the Teachers’ Pension Scheme (Remediable Service) Regulations 2023 9. The Teachers’ Pension Scheme (Remediable Service) Regulations 202313 are amended in accordance with regulations 10 and 11.
Regulations 10 and 11 amend the Teachers’ Pension Scheme (Remediable Service) Regulations 2023.
Amendment to regulation 13 (deferred choice decision to be made by M) 10. In regulation 13(5)(b), for “paragraph (3)” substitute “paragraph (2)”.
Regulation 13(5)(b) is corrected; the reference to 'paragraph (3)' is updated to 'paragraph (2)'.
Amendments to regulation 19 (meaning of “alternative amount”) 11. In regulation 19—
(a) in paragraph (1)(a), for paragraph (i) substitute—
“(i) where the initial amount was determined under section 29(2) of WRPA 1999 in relation to a percentage value to be transferred from the initial scheme, the amount that would have been determined had the remediable relevant benefits been secured in the alternative scheme and the same percentage value been applied under section 29(2) of WRPA 1999 on the valuation day;”;
(b) in paragraph (3), omit the definition “relevant percentage value”.
Regulation 19 is amended.
Paragraph (1)(a)(i) is rewritten to clarify the calculation of the 'alternative amount' and 'relevant percentage value' is removed from paragraph (3).