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?

I agree that we are probably only about 10 or so years away from another restructuring of the TPS. It seems to me, particularly after COVID, that governments foresee a gradual withdrawal of face-to-face teaching and a greater use of virtual and pre-recorded lessons. Less teachers coming in to the profession is going to make it very difficult to keep paying the pensions of all those retired teachers.

Well, perhaps they're not, you'd be surprised at the amount of unqualified teachers that are teaching in independent schools.

Elthamjohn - the old civil service pension is very much comparable with TPS but was recognised around 20 years ago to be unaffordable/unsustainable so was changed. It’s still a defined benefit scheme and pretty good - just not necessarily as good as the one you’re used to.

Very interesting to see that the general understanding of the GDST strike action is that the schools backed down.

GDST agreed that staff could either stay in the defined benefit TPS OR switch to their new defined contribution Flexible Pension Plan. Staff already in place were grandfathered in to TPS if they wished but all new staff have to join the FPP and TPS is not available to them.

I'm not surprised they're pulling out. 24% employer contribution is crippling to any business. And it's increasing. If independents lose their charity status (which they should), then doubt any of them will continue with TPS.

DH took his 2 years of non-TPS pension contributions when he retired from the independent sector in cash and then has TPS for the rest. His school was an early adopter of TPS exits unfortunately.

The state sector pays better, is more secure, has TPS but shorter holidays. Unless you are within a couple of years of retirement age, it's a no brainer to move.

I've just seen a job advert for a state school that says how much employer contribution they will pay- sort of implies they don't intend to pay more.

https://jobs.dorsetcouncil.gov.uk/teaching-delta-education-trust-middle-leader-ks3-provision-harbourside-at-the-quay-school/47877.job

I don’t agree with this. I taught secondary for 27 years. They need to mix and interacct with peers and tutors.

The amount of mental health issues caused by lockdown learning in teens was unreal. How do you teach practical subjects online?

You could probably do a bit more self directed learning without going as far as lockdown. AI will also make a huge difference

I think lockdown showed that online learning doesn’t work for most kids. AI or not.

Yes 100% online doesn’t work. But that’s not the only option.

Oh, I don't agree with it either. The independent I worked in during COVID raved about how good their online provision was, leading to a full scale roll out of tech- enabled lessons that has had dire consequences. But both Microsoft and Google are heavily marketing their classroom software packages now and independent schools are signing up to some pretty expensive contracts. As most state schools can't afford the initial outlay for the hardware, I predict that it will be 'gifted' to them as part of an even more expensive contract.

Teachers boasting on twitter about using AI to plan their lessons are being quite short sighted about the trajectory of the profession.

I wish that there was some way that staff in independent schools could collectively challenge TPS withdrawal within the sector.

The message should be clear that we value the TPS and regard it as a non-negotiable part of the deal of being a teacher.

At the very least, ‘fire and rehire’ should be roundly condemned and always challenged.

They can fight all they like, if there's no money there's no money...

There is always money, called fees. If you believe the governors, parents can’t afford an increase in fees. Of course, there are some who make sacrifices to go but just look in the car park at drop off time. It isn’t full of old bangers.

That is where the businesss case / accounts come in.

It isn’t always the case that there is no money.

There are also whopping headteacher salaries in the independent sector - which are the only example in the sector of wages massively outstripping inflation - in some cases, several times over.

… and capital expenditure! Naff marketing campaigns, buildings and refurbs that cost a lot but then turn out to be too hot / too cold / not fit for purpose.

New SLT teams. Severances for the last lot. Office refurbs and PAs for them. Expansion of marketing and development teams.

And hoarding a 10% surplus, where you never previously kept reserves.

It's difficult to remember these are not schools. They are businesses that provide an education service.

In most cases they are Trusts. They might operate according to business principles, but they are first and foremost schools.

Many of the 335 schools who have left or plan to leave TPS are prep schools, they don't have large cash reserves or assets they can sell, most of the fees income goes out on salaries and pension contributions. The employer contribution rate is expected to increase to 30% according to an article by Pension Age (if you Google how many independent schools have left TPS it comes up). The increase isn't sustainable and younger members of teaching staff don't seem to mind either way.
The Govt will meet the state sector increase.

But will the state sector keep the tps for much longer?

I can't see any government abolishing the TPS or any other public sector pension scheme. It would be too costly politically for very little gain. Its cost is a drop in the ocean in terms of total government spending.

If there is the kind of business case you describe (as in, they would have to close if they didn’t), then the union wouldn’t let you take industrial action.

I wouldn't guarantee that. In the recent GDST strike mentioned by others on this thread, the union thoroughly misrepresented GDST's finances, claiming they were healthy when GDST were running a 7-figure deficit on unrestricted funds (which is where pension payments come from). Many of the union's statements implied that GDST should spend restricted funds on pension payments, which would be illegal.

Independent school staff have never struck me as being particularly unionised @prh47bridge .

What was it that brought the unions into the GDST situation?

The NEU has over 32,000 members in 1,700 schools and is recognised in over 120 schools. Other unions such as NASUWT also operate in this sector, but I don't have any figures for them. I understand the prospect of schools leaving TPS and changes to pay and conditions precipitated by the pandemic has led to increased union membership.

I think lots of teachers in independent schools are union members because of the legal advice and support a union can provide, which is just as pertinent (if not more so!) when teaching in a private school. Teachers in independent schools might well be less inclined to be active in their union in terms of policy changes etc. but as pay and conditions in some independent schools are being eroded, like TPS withdrawal, I think that is changing.

There is a perception that teachers in private schools get an easy ride: longer holidays, more pay, smaller class sizes, fewer behavioural issues and SEND. Some of that is true: smaller classes and longer holidays- but it needs to also be counterbalanced by a longer working day and in some schools, weekend working. In my experience, behaviour concerns and SEND are increasing across the board in schools. And parents in private schools can be extremely demanding.

I think for many teachers in private schools, the independent sector no longer definitely offers advantages over the state sector. A lot depends on the individual schools and management teams and it is unquestionable that except in the very wealthiest independent schools, teachers in the independent sector are often doing worse in terms of their overall pay and conditions compared to colleagues in the state sector. For some teachers, the perceived benefits of their own independent school will mitigate against this disparity in remuneration (particularly if they are the second income earner in their family). However, for others, they are starting to have to think long and hard about where their interests might best be served in the longer term.

Which union works best with the independent sector @Fayrazzled ? I would have said ATL, but they don’t exist anymore.