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?

@Phineyj I think it's 45 days. SLT are trying to downplay/ignore the existing staff representative body, so we might have to go for statutory union recognition if anything happens.

You are probably right. I'll check. We managed to get it extended, arguing that it was unreasonable to include a two week half term as part of the days.

Yep 45 days if more than 100 employees. Think we got it extended to 60 but it was made clear that was voluntary on their part.

The NEU are recommending 90 days for a meaningful consultation, I think.

They wouldn’t be able to withdraw us before April, I wouldn’t have thought.

www.wilsonbrowne.co.uk/guides/guide-to-changing-terms-and-conditions/

They can recommend all they like. Law is half that and quite a few caveats too.

You'd be surprised (or perhaps not) to realise what a ruthless management can get away with legally.

This is the flip side of the UK's "flexible labour market".

I know this is worst-case scenario, but, if individuals don't agree to a contractual change, they would need to be given a term's notice, is that right?

Also, if the school goes for Phased Withdrawal (TPS isn't offered to new staff), presumably there is no contractual change for existing employees, and technically no need for a consultation? Thoughts?

Is that what fire / rehire is for @PrivateSchoolTeacherParent

I also wonder about phased withdrawal - I don’t think they do need to consult on that.

My DH’s school are going through at the moment. No consultation as they are retaining TPS alongside putting in a DC scheme. If someone chooses to stay in then they don’t get a pay rise until costs are level with non-TPS staff.
The school are contributing 20% as well as life insurance so pretty generous.

Actually the car park that my daughter goes to is full of pretty normal cars. There's the odd Porsche, but it's not full of BMWs, mercs etc

That’s interesting @Tearsofthemushroom

Is the 20% the increase in employer contribution or is it the employer contribution for a dc scheme.

Is the life insurance for TPS holders of would that be for people taking the DC scheme?

🙈

That is the employer contribution into a DC scheme. The employee will pay in the same as into TPS so approximately 30% pension contributions per year which is huge

Just had a quick google and education is the most generous sector and averages out at 9.3% of earnings.

Yes, but I think if you look at real wages, they've dropped significantly. Except for senior management.

Heads’ salaries shock me @Phineyj. How can they justify salaries of £200 000 + when they are taking teachers out of the TPS?

Are head teachers on £250000 going to get a final salary pension scheme based on that salary too or not?! Plus many also get a free house and significant discounts for their own DC?

https://schoolsweek.co.uk/the-academy-trust-ceo-pay-outliers/#:~:text=Moynihan%20nets%20£455k%20salary,predicts%20given%20his%2051%20schools.

“The Harris Federation’s Sir Dan Moynihan, the country’s highest paid leader on £455,000, earned 60 per cent more than the £284,000 wage the model predicts given his 51 schools.”

So it is state academies that are the real shocker although this person does arguably have big responsibilities etc. but out earning the PM so significantly when it is a “state” job — errhmmm

Education is big money business for some. Atom Learning 500% growth in 2 years. I doubt they are going to end up paying much tax.

How much does the PM earn @Araminta1003 ?

The current PM is entitled to about £167,000 for his job as MP
and PM plus free housing at Downing Street and Chequers.

Of course in reality, Rishi’s private side income is much higher. However, the above is what the state pays him.

Headteacher salaries in private schools have exceeded inflation in the past five years in many schools. Teacher salaries have rarely been above inflation in recent years - not even close!

@Elthamjohn - but are the head teacher salaries definitely also going to benefit from the final salary pension scheme? Because if not, they are just taking cash upfront and the rest, is deferred cash into a pension. Because that is the key question - do you want a higher salary now plus alternative pension or lesser salary plus TPS? If TPS contributors are going to eg 30 per cent that is still a big extra cost/raise- or am I misunderstanding?

https://bwd10barnettwaddingham-live-4d8d2562916-81f9e7d.divio-media.net/filer_public/b9/a8/b9a8be2b-1d1d-4f12-bea9-dcdb87d8ac59/21052019_briefing_whichschemeforexechead_v1.pdf

You need to be actually teaching to qualify. I guess there may be some heads who just teach a bit…. To qualify….

That is a really good question @Araminta1003 . I would think that a Headteacher would qualify for the TPS, but can see why an Exec head might not. But perhaps I am wrong.

I think there might also be something about ‘topping out’ of your pension, for people on very high salaries.

I just think Head’s salaries went up inexplicably in the last ten years to quite extravagant amounts, while teacher salaries didn’t keep up with inflation. It seems greedy - I do see your point, though.

Has anyone had any announcements about TPS this week? We are, thankfully, still in.

We’ve got a three line whip briefing in February and I’m pretty certain that it’s going to be the announcement of exit from TPS.