Teachers' Pensions (Hansard, 24 March 2004)

§ Mr. Miliband

Officials in the Department are working closely with representatives of teacher and employer associations on a wide-ranging review of the Teachers' Pension Scheme that will look at what improvements and flexibilities could be introduced as part of a package of changes that will include an increase to 65 in the scheme's normal pension age.

I have proposed that the higher pension age would be introduced for new teachers from 2006 and for the future service of existing teachers from 2013. I have also given the following assurances to teachers: Current members of the scheme who reach age 60 on or before 31 August 2013 will not be affected by changes to the existing pension arrangements. Pension benefits earned before the new arrangements start will be fully protected. Teachers will still be able to retire at, before or after age sixty as they do now. At retirement, pension and lump sum benefits will take account of the number of years of service the teacher has worked before and after the changes. Teachers, their union representatives and employers will be fully consulted on the changes. The review will also examine what other benefits and flexibilities can be introduced into the pension scheme.