Sixty-two private schools have told the government this year they plan to withdraw from the Teachers’ Pension Scheme ahead of a huge rise in employer contributions. The amount schools will have to pay into the scheme will rise by 40 per cent from September. The Department for Education has said it will only fund this increase for state schools until the next spending review, leaving private schools warning the increase could force them to close or raise fees. Schools Week reported in April that at least 10 private schools were considering leaving the scheme, but it has emerged the actual number is six times greater. In response to a freedom of information request last month, it’s been revealed a total of 62 private schools notified the DfE of their intention to withdraw from the scheme since the pension rise announcement. Julie Robinson, chief executive of the Independent Schools Council, said the “first preference” for schools would be to remain in the TPS “where possible and if affordable”, but warned they were facing “significant cost increases” under the planned changes. “Schools take issues around affordability very seriously and are acutely aware of the sacrifices families make when choosing an independent education.” An exodus of private schools from the scheme could leave state schools facing further pension hikes. Kate Atkinson, a pension expert at the National Association of Head Teachers, previously told Schools Week the current contributions from private schools were helping to cover a predicted £1.7 billion black hole in the scheme. The new figures show between September 1, 2018 and March 31, just four schools said they would be quitting the scheme. However, between April 1, 2019 and July 25, 2019, another 58 did the same. Figures for the number of private schools withdrawing from the TPS are not published annually. But another FOI request has revealed that 181 schools left the scheme between 2010 and January 2019 – the equivalent to 20 a year for each of the nine years, suggesting the new figures show a large rise. Private schools are not obliged to join the TPS, and need government permission to do so. However, they are free to leave whenever they want by writing to the education secretary. At that point, all teachers are withdrawn. Currently, private schools must have either all staff in or all staff out of the TPS. Eleven of the 62 schools on the list are run by the Alpha Plus Group, which confirmed in April it planned to withdraw its 21 schools and colleges from the scheme. In June, teachers at St Edward’s School in Oxford went on strike over the private school’s plans to exit the teacher pension scheme in September 2020. A spokesperson for St Edward’s told Schools Week at the time that the increase in contributions was a “huge financial burden which cannot simply be absorbed without it having a severe inflationary impact on the fees parents pay.” The government is considering allowing private schools to have a “phased withdrawal” from the TPS, meaning current teachers could remain in the scheme but it would be closed for new entrants. Of the 360 private schools that responded to the DfE’s pension consultation, 185 indicated their school could leave the TPS and 57 said their school could close as a result of the rise. In June, the Association of School and College Leaders said the “answer cannot be to withdraw from the TPS. Instead, employers should make every effort to make savings elsewhere in order to continue to offer access to the TPS.” The 62 private schools withdrawing from the Teachers’ Pension Scheme Avenue House School, Ealing St Christopher’s School, Devon The Croft Preparatory School, Warwickshire Witham Hall School, Lincolnshire Abercorn School, Westminster Arnold Lodge School, Warwickshire Birchfield School, Shropshire Boundary Oak School, Hampshire Brooke Priory School, Rutland Castle House School, Telford and Wrekin Cheam School, Hampshire Chepstow House School, Kensington and Chelsea Claires Court School, Windsor and Maidenhead Cricklade Manor Prep, Wiltshire Dolphin School, Wokingham Falcons Preparatory School for Boys, Richmond-upon-Thames Falcons School for Girls, Wandsworth Great Ballard School, West Sussex Greenbank School, Stockport Hanford School, Dorset Hatherop Castle School, Gloucestershire Heathfield Knoll School, Worcestershire Heywood Preparatory School, Wiltshire Highfield and Brookham Schools, West Sussex Hilden Grange School, Kent Holme Grange School, Wokingham International School of London (Surrey), Surrey Luckley House School, Wokingham Marymount International School, Kingston-upon-Thames Mead School, Kent Park School, Bournemouth Pembridge Hall School, Kensington and Chelsea Plumtree School, Nottinghamshire Plymouth College, Plymouth Portland Place School, Westminster Prince’s Mead School, Hampshire Redhill High School, Pembrokeshire Rookwood School, Hampshire Rupert House School, Oxfordshire Rydes Hill Preparatory School, Surrey Sandroyd School, Wiltshire Scarborough College, North Yorkshire Sinclair House School, Hammersmith and Fulham St Anthony’s Preparatory School, Camden St Anthony’s School for Girls, Barnet St David’s Prep, Bromley St Edward’s School, Reading St Edward’s School, Oxfordshire St Faith’s at Ash School, Kent St Peter’s School, Northamptonshire Sunningdale School, Windsor and Maidenhead The Falcons School, Hounslow The Firs School, Cheshire West and Chester Thetford Grammar School, Norfolk Twyford School, Hampshire Westonbirt School, Gloucestershire Westville House School, Bradford Wetherby Kensington, Kensington and Chelsea Wetherby Preparatory School, Westminster Wetherby School, Kensington and Chelsea Wetherby Senior School, Westminster Wychwood School, Oxfordshire
Juia 7 February 2021 How will this affect me, as I’ve been in the TPS for 19 years and am hoping to retire at the end of August 2022. Will I gain any benefits by joining a personal plan set up to start in September 2021. Please advise.