Teachers' Pension Scheme Explained 2026/27
The Teachers' Pension Scheme (TPS) is a defined-benefit, career-average scheme with one of the highest employer contributions in the UK. Here is how tiers, accrual and tax work — using the same rates as our teacher salary calculator.
How the career-average scheme works
Each year you build up a pension equal to 1/57th of your pensionable earnings, revalued with CPI.
- Accrual: 1/57th of pensionable earnings per year.
- Revaluation: accrued pension increases with CPI each year.
- Retirement age: your State Pension age.
- Tax relief: contributions use Net Pay Arrangement (deducted before tax).
Member contribution tiers 2026/27
Tiers are based on your full-time equivalent pensionable earnings. Our calculator picks the band for you.
| Tier | Pensionable earnings (whole £) | Member rate |
|---|---|---|
| 1 | £0 – £19,073 | 7.4% |
| 2 | £19,074 – £31,371 | 8.9% |
| 3 | £31,372 – £44,290 | 9.6% |
| 4 | £44,291 – £58,290 | 10.2% |
| 5 | £58,291 and above | 11.7% |
Employer contribution: 28.68% of pensionable pay (not taxable).
What counts as pensionable pay
Your basic salary, TLR payments and SEN allowance all count as pensionable pay. London weighting also counts, so Inner London teachers reach higher tiers sooner. Our calculator includes TLR1 (£9,679–£18,830), TLR2 (£5,151–£8,776), TLR3 (£858–£3,592) and SEN (£2,903–£5,802) for 2026/27.
Tax planning for teachers
Run your own numbers
Enter your pay scale, TLR/SEN and region to see your exact tier, employer top-up and take-home.
Open Teacher Salary Calculator