Revealed: 62 private schools withdrawing from Teachers’ Pension Scheme

Personally I'd advise anyone I knew to avoid working at any of these schools...

The schools are named in this article:

https://schoolsweek.co.uk/revealed-62-private-schools-withdrawing-from-teachers-pension-scheme/


Of course if this is copied by more schools, the whole TPS pension scheme which many (incl. your truly) depend on will come under threat...

 

There are around 2,500 independent schools, so 62 is a very small proportion of the total.

They are mostly prep schools and, with a couple of exceptions, little-known private schools. It has always been the case that working in independent schools that do not have a solid financial foundation is a risk. No comfort to the teachers concerned, of course.

 

23.6% employers contribution to a pension scheme up from 16.48% is a big hit on payroll costs which is difficult to absorb. It's like a 7% pay rise.

 

My school have committed to remaining in the TPS. One of the smaller schools locally is on the list. They have been struggling financially for a number of years. The sudden increase in pension contributions would stop them from being a viable business. It will be interesting to see how their decision impacts on their ability to recruit.

 

Is a teacher's pension also increasing by 7%? I think the increase is not funding better pensions so it isn't a pay rise but an increase in fees to run the pension.

 

It's an increase in pension contribution costs which are part of employee compensation. It isn't caused by administrative fees but the cost of pensions paid to already retired teachers.

 

So employer contributions rise every year? Presumably as teachers' pay increases? But teachers' pay has not risen by inflation in recent years so the contributions won't have either. Pensions have risen by CPI which was a result of reneging on them rising by RPI and that is part of the teachers' compensation so it is up to the employers to make sure they are funding their agreements properly. This is an adjustment to do as they said to me they would, it does not make me better off but prevents the employers from making me worse off.

 

That and additional funding so that the scheme can meet its obligations.

Like a cost of living pay rise.

 

Erm ... I may seem a bit of a fascist, but why should private school teachers even be IN the TPS? If they can be in the TPS, then there is no need for private schools, which should be banned. There I've said it!

 

Because they are teachers? Like in the name of the scheme.

You would have to build a lot of new schools (2,500 ?) and recruit a lot of new teachers to replace them.

 

Not like a pay rise at all.

Pension received is dependent on earnings, therefore pension doesn't go up either.

Excellent idea, just watch funding for state schools sky rocket.

 

Employers' contribution to a pension scheme is part of employees' compensation. If the employer bears the cost of increases, it is an increase in compensation. That is why I compared it to a pay rise.

Obviously. Providing 2,500 new schools would be costly.

 

Inappropriately.

Disproportionally so as the new helicopter parents wanting the best for little Tarquin aren't going to put up with peeling paint and requests for loo rolls.

 

I see one of the schools on the list is Jeremy Corbyn's primary school - Castle House School in Newport, Shropshire.

 

It is not true that the contributions go up to pay out retirees. Teaching pensions are paid out of government income. There is no teachers’ pension fund. The increases are just to bring more income into the government but they could be spent on unicorns.

 

No; an adjustment required of employers to meet their obligations. It simply gives me what my employers promised; the onus is on them to meet their obligations. My pension scheme was more generous than that of present teachers because the employers decided to renege on their promises and change the scheme for present teachers.

 

It is always a case of increasing profit.

 

Are they paid according to national teachers' pay agreements?

 

Are academy school teachers?

 

True, but government policy is that contribution rates should be the same as they would be if it were a a funded scheme so that teachers/teachers' employers pay a 'fair market rate' for the scheme benefits.