A school leaders’ union has called for more details on proposed changes to the Teachers’ Pension Scheme (TPS) that could leave grieving family members worse-off. The Department for Education is consulting on a number of changes that could result in some families receiving less money immediately after the death of a TPS member who is claiming a pension. The changes would affect short-term pensions paid to surviving adults and children, and not the full lump sum or long-term pension paid after a member’s death. When a retired TPS member dies, their beneficiary or nominee receives a lump sum known as a “supplementary death grant” – typically five times the member’s annual pension. Spouses and other qualifying partners, and unmarried children up to 23, go on to receive a long-term pension. In the meantime, a short-term pension is paid to surviving adults and children for a limited period – typically three months – “to provide immediate financial support”. These payments are currently calculated using the “annual rate of full retirement earned pension” or “phased retirement earned pension”. But the DfE said this “does not clearly reflect the policy intention, as it does not take into account adjustments that have been made to the pension actually in payment at the date of the member’s death”. It is proposing to amend the wording for short-term pensions for surviving adults and children. This would mean beneficiaries would instead be entitled to “the amount that was in payment to the member at the time of their death”. The DfE acknowledged this “may be a lower amount” than what they would have received under the current system. Information needed The Association of School and College Leaders (ASCL) said more information was needed about the impact on members. Melanie Moffatt, the union’s pensions specialist, said: “The purpose of a short-term pension is for immediate financial support to beneficiaries at the same level of pension that the member was receiving prior to their death. “While we agree that this policy objective will continue to be met following the proposed amendment, we must acknowledge that this change will be detrimental to some beneficiaries. “We would therefore welcome the provision of further data and analysis to support this proposal, to fully understand the scope and potential financial impact.” The change, if approved, would apply only to short-term pensions from 1 April next year. Existing awards already in payment at that date would not be affected. Meanwhile, the consultation also proposes a slight reduction in employee pension contributions from next year, with changes to the banding system governing contribution rates. However, some members whose salaries would fall into a different band could see their payments change more dramatically. The lowest-paid TPS members could be about £500 a year better off. Employee contributions to the TPS were raised slightly in April last year for the 2025-26 year to avoid a shortfall in the pension fund, the first increase since 2015. Contributions rose by 0.3 per cent across the board, except for members in the lowest pay bracket. In April this year, employee contribution rates remained the same, but contribution bands – which dictate the percentage members must contribute based on their salary – were changed slightly in line with the consumer price index (CPI). Lower contributions The DfE now proposes lowering pension contribution by 0.2 per cent for all except the lowest salary band. Source: DfE For those earning £104,414 a year – the lowest salary in the highest band – payments would fall by about £209, or £17 a month. But the threshold changes mean many members will drop into lower tiers. Those earning £35,000, for example, would have fallen into the second tier, with contributions of 8.9 per cent. Source: DfE They instead fall into the lowest tier, where payments have been held at 7.4 per cent. This could equate to savings of about £525 a year, or £43 a month. According to the latest DfE data, across all state-funded schools there are about 38,000 teachers earning between £30,000 and £35,000, and 47,800 on salaries of £35,000 to £40,000. Moffatt described the slight reduction in employee contribution rates as “welcome”. Kate Atkinson, national secretary for school leaders’ union NAHT, also welcomed the proposed reduction, saying it “will provide a small but positive benefit for teachers and school leaders”. “We will be responding to the consultation in full.” ‘Extensive consideration’ The changes are to ensure members continue to collectively contribute 9.6 per cent of their pay towards the TPS, as required by law. A recent revaluation of the scheme found that if it continued to collect contributions at the current rate, it would exceed this. The DfE said it modelled several options, “which included protection of the lowest paid, fairness for all members, ease of member understanding and minimising the administrative burden on scheme employers”. The proposed structure was “finalised following extensive consideration of the options”. If approved, the new pension payments will come into effect from 1 April next year and will run until 31 March 2029. The DfE has already confirmed that employer contribution rates to the TPS will fall from April, from 28.6 per cent to 17.6 per cent. This change will not reduce the value of pensions for current or retired teachers. The consultation runs until 30 October.