Your school and the Teachers’ Pension Scheme
Supporting and advising private and independent schools across the UK
We have years of experience working closely with many schools across the UK, providing ongoing support and specialist advice around the Teachers’ Pension Scheme (TPS), other staff pensions and wider employee benefits.
Both schools and teachers have seen their payments into the scheme rise to their highest levels ever. However, for most teachers this doesn’t result in a more generous pension because members have been moved onto a career average basis for future accumulation, rather than final salary.
In addition, some teachers also saw contributions increase due to TPS salary band level adjustment and wage inflation. As a result, they paid more without any corresponding increase in pension benefit.
While every school is unique, those operating primarily as charities or trusts may feel greater pressure to manage the rising costs associated with the TPS.
Secondsight has been working with us for more than a decade. We greatly value the consultancy support provided, in that it serves to guide us through the oft complex nature of pensions. Throughout our relationship, Secondsight has proven reassuring, comprehensive and professional. This has enabled us to take prompt and effective action where required. We have also welcomed their support in ensuring that our member communication is clear and informative. We commend them for the service they offer.
— Lord Wandsworth College
Why do independent schools need pension advice and state schools don’t?
Government pays the contributions of state schools, with the exception of academy schools, into the Teachers’ Pension Scheme (TPS) but independent schools have to find the contributions for teachers from their fees. In England, Wales and Northern Ireland, these currently stand at approximately 29 per cent and 26 per cent in Scotland. This financial pressure means private schools often seek pension advice to manage this risk.
1. Getting ready: Preparing for a TPS review.
2. Navigating the process: Expert tips for TPS consultation.
3. Beyond implementation: maximising your pension scheme.
Professional partnerships = successful consultations
We strongly believe pension and benefit advice, as well as legal advice, are equally critical in the successful delivery of change, and we regularly work alongside lawyers to help deliver compliant and engaging consultation communications.
A pension is a long-term investment. The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Pension income could also be affected by interest rates at the time benefits are taken.
Pension savings are at risk of being eroded by inflation.
The tax treatment of pensions in general and tax implications of pension withdrawals will be based on individual circumstances, tax legislation and regulation, which are subject to change in the future.
The value of your investment can go down as well as up and you may not get back the full amount invested.
Past performance is not a guide to future performance and should not be used to assess the risk associated with the investment.