Forced out of the TPS

FrustratedTeacher

We're not really sure about things when it comes to pensions, however, our employers (school) no longer want us to be in the Teachers Pension Scheme (the additional costs involved for them) and want us to take Personal Pensions instead. We have basically been told this will happen regardless of whether we want this to happen or not. Is our employer allowed to do this?

We are also slightly wary as we are not being allowed to bring spouses or outsiders into any meetings between the potential Personal Pension provider and us ahead of the intended change.

Any help would be appreciated!

xylophone

You are employed as a teacher in an independent school?

https://www.vwv.co.uk/news-and-events/blog/school-law-brief/teachers-pensions-options-schools

https://neu.org.uk/proposed-increase-employers-contribution-tps-independent-sector-members

Are you a member of a union?

FrustratedTeacher

Yes, an independent school and yes a member of a union.

zagubov

You'd have to pay a fortune into a personal pension to achieve the same benefits. Some people on threads here have calculated it would need a third of your income. The amount of life insurance alone you'd need would be huge. Absolutely, talk to your union rep.

Have you logged into the TPS website and run the modellers to check how much in benefits you've currently earned?
Are you close to your NRA?
Have you been paying extra into your pension?

You also need to survey the job market. Especially if you're a STEM subject teacher, you may well find you're in demand elsewhere. There's no way I'd put up with such a change.

It may be time to consider a move to the state sector, but you need to see what you're jumping into. Time spent in reconnaissance is never wasted.

xylophone

Yes, an independent school and yes a member of a union.

See second link above.

What does your union have to say about the matter?

Ultimately, your employer can withdraw from TPS but must provide a pension scheme.

Are members of staff prepared to leave and find a job at an independent school remaining in TPS/a state school?

Brynsam

FrustratedTeacher wrote: »

We're not really sure about things when it comes to pensions, however, our employers (school) no longer want us to be in the Teachers Pension Scheme (the additional costs involved for them) and want us to take Personal Pensions instead. We have basically been told this will happen regardless of whether we want this to happen or not. Is our employer allowed to do this?

Almost certainly, provided they follow a proper consultation process. Might be worth having a conversation with them and seeing if they would allow you all to continue in the TPS if staff are willing to help meet the cost of doing so. The benefits are so substantial, especially for older staff, that it could be more than worth offering to do so.

FrustratedTeacher

The first communication we received on this proposed change stated that contracts will be terminated and re-issued in the event there is no agreement reached. We take it from this that we have no choice.

xylophone

https://community.tes.com/threads/my-school-is-thinking-of-leaving-the-teachers-pension-scheme.785816/

You are not alone, although that is not much comfort.

Thrugelmir

FrustratedTeacher wrote: »

We're not really sure about things when it comes to pensions, however, our employers (school) no longer want us to be in the Teachers Pension Scheme (the additional costs involved for them) and want us to take Personal Pensions instead. We have basically been told this will happen regardless of whether we want this to happen or not. Is our employer allowed to do this?

Similar situation which has faced the private sector since Gordon Brown's raid on DBS pension schemes in 1997. Yes, an employer can opt out of the TPS. They'll continue to contribute to a pension scheme for you.

Suspect the issue is that as the TPS is unfunded. Employers are burdened with a higher current active employee contribution to help fund the historic fund deficit. A contribution level which may possibly increase in the future.

zagubov

The state schools are bigger but there are fewer of them. They need good staff more than your school does. Let your employer attract what they can with whatever tempting Pension Scheme they replace your TPS with.

I'm sure if they're providing a definite need they'll find the funding for the scheme.

A problem with independent schools is they'd like competition to be on their terms. I remember one online forum had to warn indy schools to stop talking to each other about what fees they could charge their students as it interfered with anti-competition and cartel legislation.

It's about time the unions told the schools what fees to charge so they could keep their high-value staff. The point of unions is to unite the workforce when the employers try to play divide-and-conquer to squeeze money out of their employees.

AnotherJoe

In effect you are getting a big pay cut. I'd seriously consider moving jobs.