Question to the Department for Education:

To ask His Majesty's Government what assessment they have made of the impact of any changes to employer contributions for the Teachers’ Pension Scheme on universities

Work on finalising the 2020 valuation of the Teachers’ Pension Scheme (TPS) is still ongoing and the department expects to be able to publish the outcome in late summer.

There are several policy decisions and scheme-based assumptions still to be determined that could affect the final outcome, which means it is not possible at this stage to accurately assess the likely impact on scheme employers. Following His Majesty’ Treasury’s (HMT) announcement on 30 March 2023 of the government’s response to the consultation on the methodology for determining the discount rate to be applied in the valuation of public service schemes, it is expected that the contribution rate for the TPS will need to rise. That is why HMT has committed to continue discussions with the department on the impact for TPS employers in the higher education sector.

The Department is working with HMT and the actuary for the TPS, the Government Actuary’s Department, to progress the TPS valuation as quickly as possible. Regular updates will continue to be provided to the groups representing employers and members.