Understanding the challenges of the Teachers’ Pension Scheme: on the BBC

When the pension scheme your school offers to its teaching staff is featured on one of the UK’s leading financial consumer radio programmes, it’s worth paying attention.

This is where the Teachers’ Pension Scheme (TPS) finds itself, on BBC Radio 4’s Moneybox, which investigated complaints from members about the administration of the scheme.

According to Moneybox, they’d been contacted by teachers frustrated at poor communication and by those waiting up to two years for a cash valuation for their pension, so it can be factored into a divorce settlement.

Teachers’ Pension Scheme delays

The programme pointed out that TPS manages £278 billion of liabilities for two million members, around a hundred of whom have joined legal action over the delay in the valuation process, (technically, cash equivalent transfer value).

And as a bursar, you may be thinking: what does this tiny minority have to do with me and my school?

One answer to this fair question may be: quite a lot because for your teaching staff, the administration of TPS is something neither they, you or we can control.

administration of TPS is something neither they, you or we can control.

Consulting on teachers’ pensions

It’s the reason that either as part of supporting a school through a consultation, or just a general TPS education session, we remind teachers about the importance of checking their TPS history: is it up to date and accurate? Better to identify errors before you retire as they may take some time to correct.

We’re not saying it’s enough by itself for any school to consider leaving TPS. Nor are we saying that the stronger governance oversight you could have over an alternative scheme is, by itself, a reason to change.

What we are saying is that it’s helpful to know what your teaching staff may be going through in this regard and understanding its ongoing impact. Reminding teachers to get to know their TPS benefits and checking records are accurate is vitally important regardless of whether your School remains in TPS, has left or is considering what to do.  

Get in touch if you want to find out more. We’re happy to share our experience with you and your team.