Five lessons to remember if your school is considering leaving the Teachers’ Pension Scheme

Over the past five years, school pension costs in England and Wales have increased by 75%, with Scotland experiencing a 50% rise during the same period, meaning many schools are considering leaving the Teachers’ Pension Scheme. These sharp rises are not easily absorbed by most institutions, and with the potential for further increases on the horizon, it’s essential to understand the landscape.

Contribution levels in England and Wales have jumped from 16% to just under 29%, while in Scotland, they’ve risen to 26%. As schools face this reality, the upcoming Teachers Pension Scheme valuation this year, with possible additional increases by 2027, adds another layer of urgency. 

Given these challenges, here are five key lessons we’ve learned from helping schools navigate this complex issue: 

Be open and inclusive 

If you are in a position where you need to consider the future of the Teachers’ Pension Scheme, be open with your teachers about the increased costs facing the school and that you may be forced to look at this.  

Think calendar, not stopwatch 

Almost every school we’ve supported underestimates how long the entire process will take, which is, typically, anything between a year and 18 months. This way, every important aspect is carefully considered. 

Do your homework 

Think through what’s ahead before a consultation starts. It’s very important to have done your homework before you make a proposal. Everyone benefits from spending time preparing, considering all options, and it’s the least your teaching staff deserve. 

Listen carefully 

A consultation is all about listening and encouraging a constructive dialogue. Actively engaging with your employees is crucial when it comes to a successful consultation. Don’t treat it as a tick box exercise. 

Room for compromise 

By all means set out your proposal, but as well as listening, be prepared to give ground if you can. For example, have you considered areas where your school can improve cost-effectively on the current TPS benefits? We can help make sure you have tested every aspect involved.  

Our team has a long history of working with independent schools to navigate the complexities of the TPS and manage the growing risk of rising contributions. 

With the expansion of our employee benefits division, thanks to the merger with Punter Southall earlier this year, we now have even more resources and expertise to offer the high-level support you need. Our consultants are deeply experienced in this specialised area, bringing a wealth of knowledge and insight to assist you and your employees. 

This isn’t just about a rebrand – it’s about highlighting the depth of our experience and demonstrating how we can continue to be a trusted partner for your school, just as we have been for many others. 

And we’ve been able to do so by following one guiding principle: to objectively address the challenges your school faces due to escalating costs beyond your control. 

Now the reintroductions are over, we will be in touch with news, views and updates around this subject. 

Of course, our team is always happy to take you through how we can help in more detail, talk to us. 

Richard Evans – Associate Director