On the go: Some 23 independent schools are set to become the latest to leave the Teachers' Pension Scheme after a consultation into leaving the scheme was launched by the Girls’ Day School Trust.
It comes only a month after new regulations came into force that allows independent schools to begin a phased withdrawal from the TPS for future employees while allowing existing staff to remain as active members.
As first reported by Tes, the trust has initiated the consultation following 2019’s hike in employer contributions.
“The decision to begin collective consultation on the future of teachers’ pensions was reluctantly reached following a 43 per cent rise in employer contributions to the Teachers’ Pension Scheme” the trust said in a statement.
GDST is currently proposing to leave the TPS and move to a new set of pay and pension options from January 2023. This would include teachers becoming members of the GDST Flexible Pension Plan — the scheme currently available for support staff.
A spokesperson at the trust told Pensions Expert that the “future pension provision for teachers will be discussed as part of the consultation process”.
As previously reported by Pensions Expert, more than one in 10 independent schools participating in the TPS were leaving the pension fund 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.
Industrial action has taken place at numerous independent schools following similar withdrawals.
Cheryl Giovannoni, chief executive of the GDST, said in a letter to teachers: “We appreciate that our teachers’ pensions are a significant part of the overall reward package they receive, and the decision to propose changes to pensions for teachers has not been taken lightly.
“Today, the independent schools sector faces challenging times and many independent schools have already made the decision to leave the TPS, following the substantial increase in costs in 2019.
“We are committed to a full and robust consultation period and want to hear the views of our teachers and National Education Union representatives, and we will consider all feedback received before we make any final decisions.”
Independent schools that opt out of the TPS are entitled to reapply to the scheme if they wish to resume full participation.
