22 August 2023
TPS contributions of 30% from April 2024?
Contributions on the rise - can you afford them?
Insights
03 April 2023
Graeme Bell
View all blogsTPS contributions are on the rise
One of the key drivers behind the actuarial calculation of employer’s contributions into the Teachers’ Pension Schemes is the discount rate for valuing the scheme's liabilities. The lower that rate, the higher the liabilities - and therefore the higher each School’s contribution. Following a Government consultation on the methodology behind the calculation, named SCAPE, it's now been reaffirmed as being based on the Office for Budget Responsibility’s forecast of long-term GDP growth. Accordingly, the new SCAPE discount rate for the 2020 valuation is reducing by 0.7% p.a. from 2.4% to 1.7%. This will have a significant effect on the output of the valuation, and the revised employer contributions applicable from April 2024. At Punter Southall Aspire we'll support our Independent Schools clients on their planning around the changes, to help them react accordingly. |
If you and/or your governing body would like to explore any of the above further, or want to discuss your school’s particular circumstances, just get in touch. |
Tags |
The new rate will have a significant effect on the employer contributions applicable from April 2024
More from our blog
22 August 2023
| Graeme Bell
Contributions on the rise - can you afford them?
14 July 2023
| Nick Frankland
‘Big is good, small is bad'?
19 June 2023
| Graeme Bell
Significant pension contribution increase expected next year. With 12–18 month ...
We're always happy to help.
If you have a query for us, just fill out the short form and we'll be in touch.