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?

Will staff strike do you think @Notellinganyone ?

@Elthamjohn . Interesting question. We have very strong NEU reps. Historical reason is that previous head was total narcissist and refused any communication with unions which led to a vote for official recognition which we won. However, we are pragmatic and it may just not be sustainable. Union reps all in mid 50s and are keen for younger teachers to take over but no one wants to. Last time we acted v fast but suspect it may be different this time.

Good luck @Notellinganyone Brilliant that you have strong reps.

It has now happened to us, I am sorry to say. And it is every bit as ghastly as I feared.

What, a "consultation"? I'm sorry. Ours was beastly.

OK, we got The Email today. Being selfish, it's good for me; not so sure about younger colleagues.

Current TPS members can stay in... but if they do, they will miss out on the first 3.6% of any cost-of-living increase next year, to pay for that.

Or they can opt out into the APTIS DC scheme, in which case school maintains current level of employer contributions, and staff get full c-o-l increase.

TPS closed to all new starters.

No consultation needed, as no change to anyone's contracts.

I think we got away very lightly. The Governors read the room; another local school is preparing for a strike.

I don’t know as much as I should about pensions so I am sorry if this is a stupid question but if the new DC scheme matches current employer contributions, how is that any more affordable for the school?

It isn't!!! But they can keep control of the rate if/when the TPS increases even further.

Context; two of our 'rival' schools have had, or are about to have, strikes over this. In a shrinking market, I think that our Governors want to be "the one indie that avoided strikes" which sounds good to applicants' parents.

No future increases, which is predicted/expected.

Understood. Thank you.

@ThanksItHasPockets - In addition to avoiding any future increases in the employer contribution, they save money for new staff. They will not be enrolled in TPS and will instead be enrolled in a defined contribution scheme, which will be significantly cheaper than TPS.

I’m sorry, I don’t understand. Why does DC make it cheaper for the school if the employer contributions are currently the same?

Yes, in my school's case, it wouldn't be cheaper. Sorry to muddy the waters, as we've been discussing at least three different schools here. The more I think about it, the more I think that we've been offered a good deal at my place. I'll stay in TPS as I'm near retirement, even if it means missing the next pay-rise, but those who opt out aren't being penalised anywhere near as much as in many other places.

@ThanksItHasPockets , the school contribution is currently 23.6% but rising to 28.6% soon (1st April). 5% is a massive increase for school budgets.

The school is almost certainly only maintaining the current level of contributions for existing employees opting out of TPS, not for new starters.

Ahhh, now that is a very interesting point, and the documents sent to existing staff don't mention this. Some of us have already flagged up to SLT that currently live job ads mention TPS membership...

I hope the TES stop being allowed to suggest that salaries are ‘competitive’ in places where the TPS is not being offered.

Actually, I wish that the TES would insist on publishing salary range for advertised jobs. Private schools can really mislead new recruits.

Do they mislead on term length, class sizes, behaviour SEN and lack of pupil discipline too? It’s up to applicants to ask and get answers. Or with 20% vat looming they might be glad of a job when parents cannot afford private schools.

Salary can be competitive (what ever that means) regardless of pension. To include pensions the wording would be about the overall package, which is rarely talked about in job interviews.

My school pulled out of TPS a few years ago. Both existing and new staff on 23 % employer contribution. So it varies hughly school to school. Which does make job hunting harder.

We're well into 'consultation' with a particularly poor offer on the table

I am so sorry @Sewingmachine1 . Do you have the independent financial advisors coming in? And will you take industrial action?

I am not sure that many teachers would find it difficult to get ‘a job’ @TizerorFizz outside teaching. You may be aware that there is a recruitment and retention crisis in the uk.

Enrolment in the TPS is a professional standard. And there is a pay scale in the maintained sector, against which the term ‘competitive’ refers.

So the TES allowing the word ‘competitive’ on its adverts is misleading if the school is paying less than the maintained sector and/or doesn’t offer the TPS.

@Elthamjohn we had financial 'guidance' sessions, which were focused on how your family finances were set up and how you would compensate for the loss of TPS. They weren't there to advise or compare the schemes.

I think industrial action is inevitable.

That sounds appalling. I hope you can get a new job that has the TPS. Schools have been so opportunistic in this.