Pensions Contributions Update January 2012

Imposed Contribution Increases 2012 (2013 and 2014*)

*The Scottish Government is still to consult on the Proposed increases for these years.

The contribution increases for April 2012 have been imposed.

The across the board flat contribution rate (currently 6.4%) will be replaced by a tiered system with the highest earners paying a higher percentage contribution rate

Employers' contribution rate will remain unchanged.

It should be noted that the tier relating to part-time teachers will be based on the full time equivalent salary and not on actual salary earned. Details of increases are attached here .

The Association's Position

The SSTA is totally opposed to the introduction of a tiered contribution rate

The SSTA is totally opposed to any“cash grab” by the UK Government since the increased contribution is to be absorbed into general Government revenue rather than used to fund current pensions.

The SSTA predicts that opt-out rates will increase (in particular those in part time employment who may feel that they can no longer afford to be part of the scheme)

Published on 19 January 2012 - Pensions
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