Pensions in private schools: TPS withdrawal

[Elthamjohn]

Has anyone gone through this? I am really worried that my school might be about to leave the TPS, and I just don’t know where to begin…

Would they offer an alternative? What have other schools done? How do you understand what a good deal is compared to the TPS?

There’ve been a few independents around me that have withdrawn from the TPS and there’s been no noticeable increase in adverts for them. I don’t think the TPS is its current form is going to last much longer in reality, given the numbers lots of teachers at retirement age and less at the lower end plus the pressure on school budgets. They’ll probably play around with it again at some point. We’ve certainly noticed a different mindset with younger members of staff, they’re not fussed by pensions - they think they’ll be working into long into their seventies anyway, so it’s all about work life balance and more pay now. It’s those of us in our forties/fifties that are more bothered.

At the moment all state schools and that includes academies can’t choose to leave the TPS by law.

Yes fair point, it does depend on age. I'd second the advice of getting a professional financial advisor to give some advice. OP make sure it's an advisor you pay for rather than one that's ostensibly free but motivated by financial kickbacks on products they sell

@androidnotapple Have you asked if they would use ‘fire; rehire’ if you refuse?

The offer where you make up the difference out of your pay sounds like a bad deal - it will cost you ££ £££s in lost earnings over a career.

Thank you @Phineyj . It is so beneficial to read the reflections of people who have gone through this.

The ‘we will lose the TPS in the long term, anyway’ isn’t much of a compelling argument when most independent schools do still have the TPS, and so does the maintained sector.

I suspect that even those at the beginning of their career would benefit from enrolling in the TPS - it is historically part of the design of teacher pay. Without it, we are cutting remuneration to the point where no one will be able to justify a career in teaching. It just won’t pay enough.

… and those schools that have seen no difference in recruiting will never know who isn’t applying and what calibre of candidate they have missed.

Or employers are being dishonest at the point of recruitment - this is quite widespread (as happened to someone upthread). Why would you ask ‘do you have the TPS’ at interview? It is such a given that you would.

I'm a parent not a teacher! I'm definitely not in favour of withdrawal from the scheme as the best teachers will gravitate towards schools which are part of it.

When the GDST were going to withdraw from the scheme teachers went on strike, parents were up in arms and they had to back down.

I helped lead a push back at a previous school which was proposing leaving TPS. We brokered a compromise where the difference between the current and future employers' contributions could (optionally, temporarily) be covered out of teachers' pay.

They were planning fire and rehire. They were quite open about that.

At least one colleague was lied to (he felt) when he asked about TPS at interview.

As pp said, it wasn't a great deal, but we calculated was better than going to DC before absolutely necessary. Our calculations suggested an average older member of staff would lose £10k a year on retirement.

The atmosphere was horrible. I left over it eventually and experienced direct personal unpleasantness.

I did learn a lot about pensions!!

Wesleyan didn't charge me for a one to one online advice session and didn't try to sell me anything. I was very impressed with them, at least.

@Phineyj I am so sorry that you went through that.

I am also sure that your experience is not isolated in the sector. I hope parents read here about what you went through, and learn how much bullying is going on these days in these very expensive schools.

Thank you for the tip on Wesleyan, too!

Has anyone left the profession entirely because of TPS withdrawal? Is the Civil Servicd pension comparable?

The first school I was at threatened to 'fire and rehire'. They were completely open about that that's where it would end up if people refused to sign the new contract. It was all quite heavy handed and there were intimidating 1:1 meetings for staff that did not immediately sign. It was unpleasant and stressful. The unions did get involved but the school was difficult about recognising their involvement.

It's true that DB schemes do offer slightly more flexibility but the risk of how they perform remains on the individual compared to a DC scheme like the TPS. For most people, an alternative pension will not be as good as the TPS- it just won't.

The majority of independent schools are still in the TPS but I am sure more will consult on withdrawing. It will definitely be a factor for me in my next career move. It is a key part of teacher remuneration as far as I am concerned.

The gdst is a phased withdrawal. No new teachers can join the TPS, but current teachers can stay in the TPS but have to pay any difference in employer contribution rate by taking a lower pay rise.

Make sure you are in a union and have a union rep at school.

This has been a helpful thread. I'm looking to move from the state sector to inde in central London. I'd assumed that as a new joiner I'd have no chance of getting a role with TPS so I'd just have to negotiate upfront to ensure salary compensated for that.
Is there any chance I'd find a school still in TPS in central London ? (Primary).
From reading this thread I'm thinking that I'd be better taking a job where they've already left, if there's a good deal in place, rather than going somewhere still in and risking the stress of the withdrawal process and the uncertainty of the new deal.

@Allfourwalls How big was your pay award this summer?

What will happen at the GDST now that the 5% increase has been confirmed?

I wouldn’t take a job anywhere without the TPS!

Most schools still have it. It isn’t a given that we will all lose it, either - many schools can afford to keep it.

… but it really isn’t true that you get paid better as compensation for giving up your TPS. It seems that the reverse is true. The best paying schools still have the TPS.

Those that have removed it or do phased withdrawal are paying different salaries depending on who is in or out, and seem to be the meanest with pay awards. In those places, governors have learned what they can get away with.

Interesting, thank you @Elthamjohn. So TPS or bust. Yea, it would seem odd to go and work for a school with shareholders and take a pay cut.

Any TPS increase is going to cripple state school budgets which are already stretched beyond belief. Something will have to give and it’s likely to be DB pension schemes.

The government is subsidising this most recent increase for state schools @LittleBearPad

Funding, even!

DH's school has just done this, giving established staff an option to remain in TPS.They offered IFAs but I am not sure it was much use. Luckily he's a maths teacher, close to retiring, and do could do the sums himself, so is choosing to leave TPS. But lots of younger staff are shafted and those that joined from the state sector within the last few years are very aggrieved. I am not sure how their recruitment going forwards will pan out.

There's way more staff to strike in the state sector, and most schools are struggling to replace staff who leave. I'm not saying tps will stay forever but you have to bear in mind that the state sector has just won a pay rise with only one union striking.

There are also private schools where industrial action has delayed the switch in pension schemes but long term I can't see how staying in tps is affordable for most private schools.

For this year or for the ongoing costs?

I went on strike over a year ago for 3 days. It was crushing and I don’t want to do it again. We pushed leaving TPS back to the next increase, which we now know is in April, so will have to start another consultation next week. New joiners are already out. I am hoping they will not use fire and rehire this time as it did not go down well with the parents. My advice would be make sure your union reps are on the WhatsApp groups for independent school reps as there are numerous messages a day about this.
The message that comes from SLT and governors is basically you need to accept this for the good of the school. It’s fine to have a worse retirement and you are very selfish for wanting to stay in TPS…..
I’d love to go back to state and secure my pension but there are very few primary jobs advertised in my area. I am also 50 and expensive on paper.
Good luck.

What makes you think they are better?