Teacher's pension tier changes from 1 April 2024

Teacher's pensions operate using tiers, where employees' contributions are based on their earnings.

From 1 April 2024 the thresholds on these tiers are changing. When you process from this date, you need to assign your employees the correct tier, and set your employer contributions.

Tiers

The number of tiers and employee contribution rates haven't changed. The thresholds for each tier and Employer contribution rates have changed. If you'd like to view the tiers, click the following options:

• Tiers for 31 March 2024 and before >

  Tier	Pensionable pay for Eligible employees from	Pensionable pay for Eligible employees to	Employee contribution rate	Employer contribution rate (including 0.08% administration levy)
  1	£0.00	£32,135.99	7.4%	23.68%
  2	£32,136.00	£43,259.99	8.6%	23.68%
  3	£43,260.00	£51,292.99	9.6%	23.68%
  4	£51,293.00	£67,979.99	10.2%	23.68%
  5	£67,980.00	£92,697.99	11.3%	23.68%
  6	£92,698.00	And above	11.7%	23.68%

• Tiers from 1 April 2024 >

  Tier	Pensionable pay for Eligible employees from	Pensionable pay for Eligible employees to	Employee contribution rate	Employer contribution rate (including 0.08% administration levy)
  1	£0.00	£34,289.99	7.4%	28.68%
  2	£34,290.00	£46,158.99	8.6%	28.68%
  3	£46,159.00	£54,729.99	9.6%	28.68%
  4	£54,730.00	£72,534.99	10.2%	28.68%
  5	£72,535.00	£98,908.99	11.3%	28.68%
  6	£98,909.00	And above	11.7%	28.68%

Apply the new tiers

Processing

Thresholds for Teachers pension schemes aren't built in to Sage 50 Payroll legislation values. To operate this pension scheme, you must have a pension scheme set up for each tier, and manually assign the correct tier based on employees' earnings.

You need to change the Employer contribution rates before you process a pay run with a process date of 1 April 2024 or after. Find out how >

Reports

If you subscribe to the Pensions Module, you can download tiered pension packs. These include teacher's pension reports that help you check the correct pension tier for your employees. 

We're updating our teachers pension reports for this change. When they're available to download, you can find them on our Tiered pensions - Teachers, NHS and local government pensions guide.