Punter Southall Aspire is advising more than 30 independent schools on alternatives to The Teachers’ Pension scheme (TPS) which is becoming increasingly costly for organisations to offer.
Experts predict pension contributions could go up to 30 per cent from 2023 from their current level of 23.68 per cent. Some sources have suggested that negative interest rates could take contributions as high as 35 per cent. David Woodgate, chief executive of the Independent Schools’ Bursars Association, told the Times Educational Supplement that more than 200 schools have already left the TPS and another 150 are set to do so.
Punter Southall Aspire CEO Steve Butler says: “The unwelcome reality is that the changing pension landscape gives independent schools little independence when it comes to managing the costs of their scheme and the retirement plans of their staff. Many are now seeking guidance on how best to proceed in relation to pension provision.
“In recent years, we’ve worked with housing associations facing the same kind of threat from a collective pension scheme. We’ve also helped companies deal with mounting defined benefit pension costs. Now we’re working with schools to offer them a way forward from the one-size-fits-all, unwieldy scheme in which they currently find themselves.
“We help schools assess the position they are in in relation to the contributions they already pay for existing members and the benefits they will receive when they retire. At the same time, we scope the best solution for staff for future pension savings.”