Teacher Pension Contributions

The 2026/27 contribution tiers

Member contributions are banded across six tiers. The band is assessed on your annual rate of pensionable pay — the full-time equivalent figure for your pay point, including pensionable allowances.

How much do teachers pay into their pension, in total?

Across a full-time classroom career the member pays in five figures a year at the top end but far more typical is the M4 figure: £3,521 a year, or £293 a month. Against that, the employer pays £11,791 — so for every £1 you contribute, roughly £3.35 goes in on your behalf.

The FTE rule that catches part-time teachers

This is the single most misunderstood part of teacher pension contributions. The tier is set by your full-time equivalent salary — what your pay point pays a full-timer — regardless of how many days you actually work.

The cash amount is always a percentage of what you are actually paid — the FTE figure only selects the tier. The rationale is fairness of accrual: part-time and full-time teachers on the same pay point build pension at the same rate per pound earned, so they pay the same rate per pound too. The full mechanics are in the part-time pay guide.

The tier cliff edges

Because the rate applies to your whole salary, crossing a boundary changes your contribution on every pound. The 2026/27 boundaries at £34,289 and £46,158 both sit inside the main pay range, which is why the jump from M1 to M2 costs more than the raw pay rise suggests.

Tax relief: what you actually save

Contributions are taken under net pay arrangements: your pension comes out before income tax is calculated, so you never pay tax on the money you contribute. A higher-rate taxpayer on U3 effectively pays £3,043 for £5,072 of pension saving.

What net pay does not save is National Insurance, which is charged on gross pay before the pension is deducted. This is the practical difference between the TPS and a salary-sacrifice arrangement — set out fully in the salary sacrifice explainer.

Paying in more: AVCs and the 50/50 option

Beyond the tiered contributions there are two ways to pay in more. AVCs — run with Prudential — build a separate invested pot on top of your guaranteed pension; the AVC calculator projects one. The 50/50 section, available in the LGPS but not the TPS, halves contributions for support staff in exchange for half accrual.

Within the TPS itself there is no option to reduce contributions — it is the full tier or opting out entirely, and opting out forfeits the 28.8% employer contribution, which is almost never a rational trade.