Chamber and committees

The Scottish Government's annual teacher workforce planning process is informed by a statistical model which estimates the number of Initial Teacher Education students required to maintain teacher numbers. The model considers a number of inputs, including projections of the number of teachers retiring.

The Strategic Board for Teacher Education, which comprises a range of key education stakeholders, is also considering issues around the recruitment and retention of teachers in Scotland.

The Scottish Government is committed to protecting teacher numbers, and we are offering local authorities £145.5m in this year’s budget for that purpose. This funding will allow councils to protect teacher numbers in order to support children’s education.

Pensions in payment from the Scottish Teachers’ Pension Scheme are protected against inflation and are adjusted each April in line with the Consumer Prices Index. In April 2023, pensions increased by 10.1% and in April 2024 by a further 6.7%.

The impact of the recent teacher pay settlement will be taken into account as part of the 2024 scheme actuarial valuation. The valuation measures the costs of the benefits being provided and informs the future contribution rates to be paid by employers in order to ensure sustainability.

The Scottish Government has no functions in relation to the changes introduced by the UK Government's reform of public service pensions.

The value of members’ benefits accrued in the Scottish Teachers’ Superannuation Scheme (STSS) are protected by transitional protections on moving to the Scottish Teachers’ Pension Scheme 2015. These protections include a Final Salary Link which provides that members’ final salary pension from the STSS is based on their pensionable salary at the point they finally retire and not at the point they transition to the 2015 Scheme.

The Scottish Teachers’ Pension Scheme (STPS) continues to be an integral part of the remuneration package for teachers in Scotland. A Defined Benefit scheme, it offers the security of a guaranteed income in every year of retirement for all its members. Pensions in payment to retired members are inflation proofed and adjusted each April in line with the Consumer Prices Index. In April 2023, pensions increased by 10.1% and in April 2024 by a further 6.7%.

While Scottish Ministers have executively devolved responsibility for the STPS, they exercise those functions within a reserved framework. The Scottish Ministers must therefore implement policy which reflects UK government primary legislation and any secondary legislation introduced by Scottish Ministers requires HM Treasury approval.

The design of the STPS, including accrual rates and benefits payable from the scheme, are determined by reserved UK Government primary legislation. Scottish Ministers have no powers to vary the accrued benefits payable from the scheme to retired teachers without HM Treasury consent.

The Scottish Public Pensions Agency (SPPA) undertakes the role of Scheme Manager of the Scottish Teachers’ Pension Scheme, on behalf of Scottish Ministers. Scheme members can raise any concerns or enquiries with the SPPA by using the Contact Us page at www.pensions.gov.scot/contact-us or by calling the Agency.

This information is not collected or held centrally by the Scottish Government.

Whilst the Scottish Public Pensions Agency holds information about teachers who are currently contributing to the Scottish Teachers' Pension scheme, individual local authorities and other employers of teachers such as independent schools and further and higher education bodies will separately hold information on the overall percentage of their employees not enrolled in a pension scheme.

There are three early retirement options available to members of the Scottish Teachers’ Pension Scheme who have reached normal minimum pension age:

• Premature Retirement is an option if a member is made redundant or retires in the interest of efficiency. The pension would be actuarially reduced because the member is retiring early and employer must agree to make up the shortfall to the full pension amount. Therefore, there is no impact on the final pension amount the member receives.
• Voluntary Early Retirement is where the member chooses to receives an actuarially reduced pension. The benefits are reduced to take into account the fact the pension will be paid over a longer period of time than a normal retirement pension.
• Phased Retirement allows members to take up to 75% of their pension while reducing their working commitment. To do this, members must reduce their pensionable salary by at least 20% for a minimum of 12 months. Any percentage of pension benefits taken before normal pension age would be subject to an actuarial reduction.

The provisions of the Scottish Teachers’ Pension Scheme allow members to adjust their contribution rates and increase their pension benefits by purchasing Additional Pension or opting for Faster Accrual.

Additional Pension is an amount of extra pension which can be bought in multiples of £250 up to a maximum of £7,000 and can be paid for by additional monthly contributions over a period of 1 to 20 years. Faster Accrual allows members to earn pension at a faster rate than the standard accrual of 1/57 th by making extra monthly contributions. There are three faster accrual options: 1/45th, 1/50th and 1/55th.