On the go: One in four independent schools in the UK have left, or are set to leave, the Teachers’ Pension Scheme, a freedom of information request has shown.
Punter Southall Aspire made the request that revealed a total of 284 out of 1,222 schools have left, citing the rising cost of contributing to the scheme as the main driver.
In September 2019, some 59 schools had left the TPS, and by September 2021 this figure had reached 213, with an additional 12 giving notice.
In August, new regulations came into force that allowed independent schools to begin a phased withdrawal from the TPS for future employees while allowing existing staff to remain as active members.
This is a significant increase from the one in 10 schools that Pensions Expert reported were leaving the scheme in 2019, after it was announced that the TPS employers’ contribution rate would be raised from 16.48 per cent to 23.68 per cent, which began in September that year.
A further contribution review is set for 2022, which Stuart Arnold, senior consultant at Punter Southall Aspire, warned could see even more schools leave the scheme.
This is despite the implementation of any new contribution rate being pushed back to April 2024 as the sector adjusts in the aftermath of the pandemic.
“Costs for this pension scheme are only going one way. It might be a cost some schools are willing to bear but our work tells a different story for many,” Arnold said.
“A pension is a powerful recruitment and retention tool but only if it’s cost-effective, sustainable and fit for purpose. As we have seen from those which have left, there is another way forward for both schools and teachers.”
