Teachers' Pension Scheme - England and Wales

Image caption, The scheme is the third largest public sector scheme in the UK

Teachers and lecturers in some 2,422 schools, academies, further education colleges and "new" universities (the former polytechnics) and others in England and Wales.

Two.

As of March 2009 there were 612,000 active members, 423,000 deferred members, and 567,000 pensioners and dependents.

It is a final-salary scheme, based on a 1/60th accrual rate with a normal pension age (NPA) of 65, offering a pension of two-thirds of final salary.

For those who joined before 1 January 2007, the NPA is 60 but the accrual rate is 1/80ths plus 3/80ths lump sum, offering a pension of half final salary.

Employees pay 6.4% of their salaries and employers pay 14.1%.

Image caption, The current average pension is 拢10,000

The scheme was last fully valued as of 31 March 2004.

Since then, from 1 January 2007, the scheme has had a standard contribution rate of 19.75% and a supplementary contribution rate of 0.75% - 20.5% altogether.

Unfunded. It is paid for out of general taxation, not an underlying investment fund.

As of 31 March 2004, liabilities (the notional stock of assets needed to pay the accrued pensions) were 拢166.5bn.

By 31 March 2010 the liabilities had risen to 拢224bn.

In March 2010 it was 拢10,000.

Image caption, New recruits since January 2007 now have to work to 65 for a full pension

Yes. From 1 January 2007 a variety of changes were made including:

1) a NPA of 65 for new recruits.

2) a 1/60th accrual rate and an improvement in the death in service lump sum from twice salary to three times, plus pensions for partners.

Uprating in line with inflation will be changed from relying on the retail prices index (RPI) to the consumer prices index (CPI) in line with the recent government announcement.

Source: Department for Education.