More private schools leave Teachers’ Pension Scheme
335 private schools have left, or announced they plan to leave, the Teachers’ Pension Scheme (TPS) since 2018, with expectations that the contribution rate could rise to 30% of salary by next April, Pensions Age has reported.
The statistic has been revealed following a freedom of information (FoI) request from workplace pensions specialist Punter Southall Aspire.
This is an increase of 51 private schools from a previous FoI request by Punter Southall Aspire in October 2021, which found that 284 private schools had left or planned to leave the TPS.
Of the 335 schools, 116 are planning to leave on a phased withdrawal basis, which means currently employed staff remain in the scheme, while the scheme is closed to new recruits.
In the same freedom of information request, the Department for Education revealed that 13 schools had joined the TPS.
Punter Southall Aspire employee benefits principal Caroline Gaines said. “We know teaching staff are vital to the success of independent schools and schools need to retain and recruit by offering good-quality benefits if they are leaving or considering leaving TPS.
“We have been helping schools by thoroughly reviewing all the options available with the governors to ensure any decision is carefully considered. We then help demonstrate the value of an alternative pension and benefit structure can deliver to teachers while helping manage the school’s future costs.
“A school should not assume its teachers are experts in pensions. Information and education for everyone is key to ensuring any proposed change is fully understood to allow for meaningful consultation.
“We have helped schools take control of financial uncertainty while trying to support them in maintaining staff morale with a meaningful alternative pension and benefits package.”