More than 50 independent schools are opting to keep membership of the Teachers’ Pension Scheme (TPS) for current teachers, whilst scrapping it for new ones, Tes understands.
The move will “build walls”, “hinder movement between sectors and schools” and “hit younger teachers hard”, the UK’s largest education union has warned.
Government data shows that 22 private schools had told the TPS of their plans to do a “phased” withdrawal of the scheme as of the end of February, but Tes understands the true figure of schools planning such a move stands at over 50.
This is because some schools have not declared their intentions to the TPS yet, and 23 schools within the Girls’ Day School Trust (GDST), which agreed to a phased withdrawal after strike action last week, have not been added to the figures.
Hundreds of private schools have left the TPS after the government raised the rate of employers’ contributions by 43 per cent in 2019. While state schools were covered for the increase by the government, private schools were not.
“Phased” withdrawal from the TPS has been available to independent schools since 1 September 2021 and enables them to allow existing staff to remain as active members of the scheme, but offer new staff an alternative.
Dr Mary Bousted, joint general secretary of the NEU teaching union, said that segregating teachers via the “phased” withdrawal option would ultimately “build walls” between staff members.
Latest figures, obtained by Tes via freedom of information request, show that 22 schools had told the TPS they plan to complete a “phased” withdrawal from the scheme as of 21 February, with 11 having said they planned a complete withdrawal. A total of 1,049 private schools remain in the scheme.
Dr Bousted said the trend towards “phased” withdrawal from the scheme among private schools was “not in the general interest” of the NEU’s members in the independent sector and that it was not for the good of the profession.
She added: “The NEU strongly believes that all teachers, regardless of phase or sector, should enjoy a good pension. The TPS is an integral part of a teacher’s remuneration.
“Segregating teachers on such a key term of employment will build walls. It will damage the attractiveness and unity of the teaching profession as a whole; hinder movement between sectors and schools; hamper a school’s ability to recruit and retain quality teachers; and hit younger teachers hard.”
Teacher-members of the NEU at schools in the GDST first went on strike last month in opposition to the GDST’s plans for complete withdrawal from the TPS.
Strike action ended last week after the GDST agreed to allow current staff to remain in the TPS, but the NEU added at the time that it was concerned about proposals to close the TPS scheme to new teachers.
Barnaby Lenon, chairman of the Independent Schools Council (ISC), said the organisation did not see the trend towards phased withdrawal influencing teachers much in terms of where they choose to work. “There are many considerations other than pension schemes,” he said.
David Woodgate, chief executive of the Independent Schools’ Bursars Association (ISBA), said the ISC and ISBA had lobbied for the “phased” withdrawal option and that it meant some schools could “mitigate unaffordable increases in employer contributions over time” while existing teachers remained within the scheme.
He added: “It is important to stress that phased withdrawal is a long-term option and not feasible for schools that are already managing significant financial pressures.”
