At the moment it is in deficit but with a positive cash flow, which comes, of course, from public taxation. It is the only one of the main public sector pension schemes which is funded in any way. There are now more civil servants on pensions than there are working and the number of retired teachers rose from 445,000 in 2004 to 567,000 in 2010 whilst the number of teachers paying in has remained steady at about 600,000. The teachers' scheme is unfunded so present contributions are paying the pensions of those already retired so, in effect, if the teachers increase their current contributions it will be a pay cut whose savings will help to pay for those currently retired.
http://www.publicfinance.co.uk/news/2010/12/latest-lgps-deficit-forecast-challenged/