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Teachers: Pensions

Volume 481: debated on Monday 20 October 2008

To ask the Secretary of State for Children, Schools and Families what the value was of public sector pensions for teachers in each of the last five years; and what the cost to the public purse was of providing such pensions in each year. (228431)

The gross expenditure against the Teachers’ Pension Scheme for the last five years are as follows:

Gross (Cash basis, £ billion)

2002-03

4.205

2003-04

4.428

2004-05

4.747

2005-06

5.099

2006-07

5.471

The value of contributions received for each year are as follows:

£000

Employer contributions

Employee contributions

2002-03

1,423,301

1,066,384

2003-04

2,387,386

1,131,657

2004-05

2,559,263

1,161,826

2005-06

2,679,792

1,205,950

2006-07

2,781,716

1,269,720

The increase in the contribution rate on 1 April 2003 reflected a change in the way the scheme was financed with pensions increase (i.e. the inflation increases in the value of pensions in payment) now reflected in the total contribution rate paid by members and their employers rather than being met separately by the Exchequer.

The contribution rate for employers and employees during the period 2002-03 to 2006-07 are as follows:

Percentage

Period

Employer rate of charge

Employee rate of charge

1 April 2002 to 31 March 2003

8.35

6

1 April 2003 to 31 December 2006

13.5

6

1 January 2007 to present

14.1

6.4