Independent schools could partially opt out of TPS from 2021

Independent schools could partially opt out of TPS from 2021

The Government has confirmed that independent schools can opt for a “phased withdrawal” from the Teachers’ Pension Scheme from 2021 onwards.

Under the DfE’s plans, which will come into effect in spring next year, current teachers in private schools will remain in the current TPS but will allow alternative pension arrangements to be offered to new starters.

The development is in response to a 40 per cent increase in the amount employers have been expected to pay into the schemes since September 2019.

Although the extra pensions cost for teachers in the state sector was picked up by the Government, schools in the private sector had to fund the increase from their own resources.

Following a consultation with the private education sector, pension rules are to be softened, with the Government stating that the phased withdrawal proposal is “likely to result in more teachers at independent schools retaining TPS membership than if the proposal was not implemented”.

As pension rules currently stand, independent schools that seek the Government’s permission to withdraw from the TPS must apply the withdrawal to all staff.

To date, more than 170 private schools have left the TPS, following the rise in pension costs, resulting in incidents of industrial action and fears that staff could leave the independent sector.

Please contact us to find out more about this article

Why not follow us on social media to be kept up to date with our latest industry updates.

Facebook | LinkedIn | Twitter | Instagram 

Independent schools could partially opt out of TPS from 2021
Independent schools could partially opt out of TPS from 2021

Independent schools could partially opt out of TPS from 2021

Haslers’ dedicated team specialises in working with individual academies, Multi Academy Trusts (MATs), free schools and independent schools.

Our team offers expertise in all aspects of auditing, accounting, tax and business support in the education sector.  Our experience of acting for a number of schools, and our in-depth knowledge of the issues facing them, means we can provide specialist, cost-effective advice and services to meet the audit and accounting requirements for free schools and academies both through the start up years and with on-going requirements and responsibilities following opening.