How does my pension work?

Your teacher's pension

Your pension is a defined benefit.

In the UK there are two main types of pensions - defined benefit and defined contribution. The Teachers' Pension Scheme is a defined benefit scheme. This means that the amount of pension you build up in the Scheme is based on your salary and how long you've paid into the Scheme. It provides a guaranteed income for life.

In comparison a defined contribution scheme provides a pension based on how much you contribute, how those contributions are invested and the success of those investments.

Your teacher's pension is one of only eight schemes backed by the government and is one of the key benefits of a teaching career.

How does your pension build up?

You pay in

You pay in contributions each month, based on your salary. The amount you pay in will change as your earnings change. You can find the latest contribution rates on our website.

2. Your employer pays in

Each month you pay in, your employer also contributes to the cost of the Scheme.

3. You build up a ‘pot’ each year

As part of the career average scheme you accrue (build up) benefits each year based on 1/57th of your annual pensionable earnings. This is added to your ‘pot’. Find out more about this with our factsheet.

4. This gets revalued each year

We revalue the total ‘pot’ each year to keep it up to date with increases in prices. As long as you’re active in the Scheme we’ll add on an extra 1.6% too.