1. Even more pressure on independent school pensions

This is a challenging time for independent schools. VAT added to fees, increased national insurance contributions, and falling school rolls means even more uncertainty.

Most teachers have historically been part of the TPS (Teacher's Pension Scheme), the public sector ‘defined benefit’ (DB) pension, but even here, with costs rocketing in recent years, the move to a career average for most means less generous retirement savings, while schools and teachers continue to pay even more in contributions.

Schools know there's no easy answer, but they can tackle the ballooning TPS bill by consulting on a competitive alternative for all their people.

Questions to consider:

Is a full exit from the TPS or its Scottish equivalents the best solution for your school?
Firstly, can your school afford to continue with the current pension arrangement?
Is a full exit the only potential outcome you could consider?
Could Phased Withdrawal or a ‘hybrid’ approach work better for you and your teachers?

Storm clouds ahead...

Even before the pandemic, independent schools in Scotland, England, and Wales were facing significant financial stress from all sides, making cost management vitally important.

The soaring cost of a DB pension to staff has to be one of the first areas to consider - as our gathering storm clouds indicate.