It has been said several times on this thread that TPA pensions are self-sustaining. I am skeptical about this, so does anyone have any non-propaganda evidence?
Given that teacher contributions are lower than industry standard, how is it that the TPA investors are able to do so much with it, that other financial brains are not?
I suggest that the TPA scheme will only be self-sustaining one those who are under the old gravy train system have largely died off. I suggest that the TPA has been overly subsidised, not anywhere near self-sustaining. There is no such thing as a free lunch.
I think that, for teachers, a career average is probably better than final salary. It will allow older teachers to gear down towards the end of their careers. Long term teachers have quite static salaries (the raises all happen in the first seven years of their careers, assuming they stay main scale, but still relatively early in the scheme of things for promoted teachers). Obviously this all ignores the affect of fluctuating inflation rates. I do think there is a lot to be said for the final salary model, but whichever system it all comes down to contributions.
If teachers think they can get a better deal on their pensions, they can always take out a private pension.