Nobody downloaded yet

Teachers Pension Scheme Reforms in the UK - Case Study Example

Comments (0) Cite this document
The following cases study "Teachers Pension Scheme Reforms in the UK" dwells on the final salary occupational pension scheme of the public service. It is stated that the Pension Scheme is regulated by the Superannuation Act 1972, which has rules and regulations that provide a legislative framework…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
Teachers Pension Scheme Reforms in the UK
Read TextPreview

Extract of sample "Teachers Pension Scheme Reforms in the UK"

Download file to see previous pages Issues involved in the Teachers Pension Scheme of the UK currently assume a defined benefit scheme of the final salary of teachers. This translates into the fact that retirement benefits, as well as the final salary of individual teachers, is based on the length a teacher has been in service. This has seen a calculation of final salary of retirement benefits based on either the best of a teacher’s salary within the twelve months before retirement or calculated as the best average of any three successive years of salary in the last ten years. However, the union chiefs have taken a stand to demand the reformation of the method that is being used in the calculation of the retirement benefits. The chiefs argue that this method of calculating final salary is unfair, for it only benefits high flyers at the expense of low flyers that are in the same professional groups. Conversely, the government is of the opinion that it is the way to go, and, therefore, rooting for the maintenance of the scheme only that the final salary be replaced by a revalued earning scheme that is career averaged (Lewicki et al, 56). Another issue is the retirement age where it has been noted that life expectancy of people in the UK is on the rise. This means that retiring at 60 results into teachers spending approximately 40% of their lives in retirement as compared to earlier years like 1955 when life expectancy was low (Department of Education, 1). Government ministers demand that the retirement age takes into account the increases in the life expectancy, in addition to, reformation of the normal pension age so that it corresponds with the state pension age. However, the union chiefs are opposed to the increase in the pension age to 65. In terms of contributions, the issue is the monthly contributions to teachers’ pensions. The government is of the view that the monthly contributions be increased and that the contribution levels be tied to the earnings to protect the low aid teachers. However, union chiefs are opposed to this, for this will only function to favor the employers who will have an upper hand in determining the teachers’ pensions. The final issue is the issue regarding returning to work after a teacher retires. The union chiefs root for abatement of teachers’ pension as the government root for a reduction of pension on return with an increase upon retirement. Tactics employed The government minister’s concern is the increasing cost of running the TPS which is purely unfunded. This means that the contributions paid by both employers and employees are the ones used to pay out pension benefits to teachers by the government department (Education Department, 1). Therefore, in a way of raising these funds as well as allowing for saving, the government figured out how they can have teachers themselves contribute to this plan. This was transferred to the monthly contributions teachers make to the TPS. It was, thus, consequential that teacher’s contributions be increased by an average of 3.2 percent that is from 6.4 percent to 9.6% by 2014. This may translate to a person earning forty thousand dollars seeing an increase of up to 64% in the monthly contributions (Lewicki et al, 1). However, this is under the disguise of contributions being dependent on the earnings where the highly paid would contribute more than the low paid. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(Teachers Pension Scheme Reforms in the UK Case Study, n.d.)
Teachers Pension Scheme Reforms in the UK Case Study. Retrieved from
(Teachers Pension Scheme Reforms in the UK Case Study)
Teachers Pension Scheme Reforms in the UK Case Study.
“Teachers Pension Scheme Reforms in the UK Case Study”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Teachers Pension Scheme Reforms in the UK

Pension scheme

...?Finance and Accounting What are defined benefit and defined contribution pension schemes? Compare them from the perspective of a member of a pension scheme. Defined Benefit Pension Scheme The distinction feature of defined benefit pension scheme is in the procedure of payment and the inputs of factors that determines the amount of money that a pensioner will receive. Largely, it is the employer who would commit him or her self to either choosing to pay the employee a defined benefit pension or not. Once selected, the employer pays the employee upon...
6 Pages(1500 words)Essay

Reforms Regarding Easements In The UK

...? Reforms Regarding Easements in the UK Word Count 750 (7 pages) What reforms would you recommend in the law relating to easements? I. Introduction (100 words) Have you walked past a pond, wanting to fish, not sure who owned it? How many times have you walked across a sidewalk wondering if anyone owned it? Here easements will be discussed, which are pieces of shared property. An easement, in English law, is basically defined as being a type of right that one has with regard to land that is owned by someone else. The definition of who holds an easement, what can be done with an easement, and that the law regarding easement and how an easement should be governed should all be analyzed and...
7 Pages(1750 words)Essay


...? How far the reforms introduced by the last labour government enhance or detract from the rule of law, democratic accountability or the sovereignty of parliament in the U.K. The last few years has seen United Kingdom undergoing a series of insightful constitutional changes. During the tenure of the Labour Party from 1997-2010, many constitutional reforms were introduced in UK. One criticism that has been bought against the Labour party’s reform agenda is that it was not well-synchronized and there were no definite set of guiding principles behind it but it is already clear, going by the impact of this change over the last decade that the British democracy has changed for...
6 Pages(1500 words)Essay

Health Reforms in the U.S. and UK

...Health Reforms in the U.S. and UK Table of Contents Table of Contents Introduction 2 Access to Health Care2 Health Quality Criteria 3 Liberation of Health Care Systems 5 Effective and Efficient Technology in the Health Sector 7 Efficiency and Equity in the Health Sector 9 Conclusion 10 Introduction UK and US health reforms concentrate majorly on societal welfare (Great Britain 2012, p. 78). Both nations consider effective and efficient healthcare a necessity to all citizens. As such, every step towards its improvement should be implemented. The countries’ governments have indeed stated that the marginalised group of the society lacks proper healthcare due to the...
9 Pages(2250 words)Essay

Reforms in Competition Policy in the UK

...before it. This was the reason why it established a Competition Pro Bono Scheme. The purpose of this scheme is to ensure that only the cases that are valid legally are received by the Office of Fair Trading. As such, the scheme acts as a sort of platform where legal advice can be dispensed. (Annual Review of European Community Affairs, 1999) Conclusion The passing of the competition policy act has brought about a lot of changes in the sector as it acted as a platform for more reforms. The UK parliament has passed laws that favour fair competition. In 2000, it passed the enterprise bill that was meant to deal with merger and to ensure that these were...
5 Pages(1250 words)Essay

Appropriate Adult Scheme in the UK

...Critically evaluate attached ment with regard to the current use of appropriate adult scheme in the uk Considering northern Ireland's commentson using 'trained' appropriate adults and the system currently used in the u.k (untrained) considering PACE. Relating to Appropriate Adult Hodgson outlines that one problem facing the police' reporting is that there is a difference between the police' call that only four percent of the incarcerated juveniles and mentally incapacitated needed appropriate adults as compared to the other reporting group that says that there should have been around fifteen to twenty percent of the total jailed juveniles or mentally retarded that needed an appropriate adult to...
6 Pages(1500 words)Essay


...Regulator: progress in establishing its new regulatory approach : report. London, TSO. DIAMOND, P. A. (2005). Reforming public pensions in the US and the UK. London, London School of Economics and Political Science. HILL, M. J. (2007). Pensions. Bristol [England], Policy Press. Great Britain and Great Britain. 2013. Improving governance and best practice in workplace pensions: Sixth report of session 2012-13. London: Stationery Office 2013 Great Britain and Great Britain. 2012. Government response to the consultation improving transfers and dealing with small pension pots. London:...
11 Pages(2750 words)Essay

UK Banking Sector Reforms

...A CRITICAL EVALUATION OF THE REFORMS THAT HAVE TAKEN PLACE IN THE UK BANKING SECTOR OVER THE LAST NUMBER OF YEARS Introduction The banking sector falls under the financial institutions division. The sector provides a range of vital services. These services include intermediation between borrowers and savers, payment services, and financial advice to both potential and current investors Michael Collins, Money and Banking in the UK (Routledge 2012). The services provided by the banking sector are supportive in the allocation of capital and production of goods. Each of these services is essential to the well functioning of the economy. These financial services are timeless. However, the...
23 Pages(5750 words)Dissertation

Buisness Ethics: The Ethical Dilemma of Solidarity Fund Pension Scheme

...Key Learning……………………………………………………………………………………………………………..9 Reference…………………………………………………………………………………………………………………10 Summary This paper discusses and analysis the ethical dilemma that the Solidarity Fund pension scheme, a large pension fund operated by the Quebec federation of labour (QFL), found itself in following gross misconduct by Gildan Company, a Company that the Solidarity fund had heavily invested in. The Gildan Company’s exploitation of its workers was blatant form of unethical behaviour in business, and for that reason the Solidarity Fund had to take a decisive action against the Gildan Company, although the Solidarity Fund benefited enormously from the partnership that it had...
7 Pages(1750 words)Case Study

Education and Pension Policy of The UK the market rather than as hybrid market/political entities conceals the extensive state role in private sector pensions. The state has had an enduring historical influence on private sector pension structures. What does UK experience teach us about the viability of privatization in the sphere of pension policy. Basic pension de-indexing was followed by more ideologically driven phase two reforms. Despite reassurances in 1984 to Parliament by the Secretary of State for Social Services that the governments pension policy review purpose was not intended to question the pension structure,...
30 Pages(7500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Teachers Pension Scheme Reforms in the UK for FREE!

Contact Us