UK - The government has said its proposed reforms to the Teachers' Pension Scheme (TPS) will save £5.4bn in long term costs otherwise incurred by continuing improvements in the life expectancy of teachers and lecturers.
A consultation on the proposals was launched yesterday, with reforms to be introduced from 1 January 2007.
They aim to update the defined benefit TPS, which covers teachers and lecturers in England and Wales employed in maintained schools, many independent schools, further education and sixth form colleges, and the post-1992 universities.
Under the new arrangements existing teachers will retain a pension ageof 60 while new entrants will have a pension age of 65.
The government said there would be more flexibility and greater choice over how teachers save and plan for retirement.
There will also be increased options for pension saving outside the mainscheme and over how much tax free lump sum teachers can take on retirement, both from the TPS and the associated Teachers' AVC scheme.
The formal consultation will continue for the next 12 weeks, and parallel review processes are being conducted into the equivalent schemes in Scotland and Northern Ireland.
Schools minister Jim Knight (pictured) said he was confident the proposals met the objectives of long-term affordability and sustainability.
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