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Teachers: Pensions

Answer

The consultation on amendments to the Teachers' Additional Voluntary Contribution (TAVC) arrangements was conducted in accordance with the requirements of the Superannuation Act 1972. Consultees included teacher and lecturer unions, representatives of employer organisations and a wide range of other interested parties, including the managers of other public service pension schemes. The official consultation list contained 86 different organisations at the time of the A-Day changes and the consultation was also placed on the TeacherNet website with an invitation to any individual to respond. From the responses received, the Department concluded that the revised arrangements for the Teachers’ Additional Voluntary Contribution Scheme are currently appropriate for the teaching/lecturing workforce, although, as a matter of course, any further possible changes that could appropriately be introduced are noted for inclusion in a subsequent set of amending regulations.No estimate of the cost of any Teachers' Pension Scheme consultation has been made. Nor have our TAVC providers, Prudential, estimated the costs to them of the implementation of A-Day flexibilities, although they will have incurred some administrative costs. Prudential has not sought to recoup any of these costs from members through any change to the annual management charge that is applied to TAVC contracts. The only exception, because of the significant amount of extra work involved, has been to apply an administration fee to cover costs to process transfers-out of accumulated funds independently from the main scheme for those who have had service after A-Day, although this has affected relatively few members.In addition to the A-Day amending regulations, the Teachers' Additional Voluntary Contribution Scheme has recently been further amended as part of a major review of the teachers' pension package. Both sets of regulations were subject to wide consultation and received overwhelming support from those who responded. All mandatory changes to the IPS required by A-Day legislation have been implemented and there are no plans to undertake another specific A-Day consultation. However a regulatory consolidation exercise is under way which will result in a further consultation taking place within the next 12 months or so. It is not possible to say at this stage whether further permissive changes arising from A-Day legislation will be included within that consultation.

Secondary information

Type

Written question

Reference

131043; 459 c942-4W

Session

2006-07

Subjects

Workplace pensions Teachers

Link

View this Written question on www.publications.parliament.uk