
Schools proposing to leave TPS
FAQs for members in Independent schools proposing to leave the Teachers’ Pension Scheme.
We will support members opposing any proposal to remove teachers’ membership of the Teachers’ Pension Scheme (TPS).
The increase in the employer contribution to the Teachers' Pension Scheme (TPS) in September 2019 has seen a sizeable number of independent sector school employers withdraw from the scheme. Since 2020 Covid-19 has exacerbated the situation.
NEU members in over 60 independent schools have successfully defeated their employer’s proposals to deprive them of the Teachers’ Pension Scheme.
Defend your TPS | Oppose Fire and rehire | Resources for your campaign
Member success comes from early collective union response backed by the possibility of industrial action. Others have learnt the hard way that action cannot be left until the end of a consultation that can be just a tick-box exercise. Some members have found their loyalty no defense against fire and rehire practices.
If you are in the TPS, with no mention of leaving, it is still useful to be aware of the issues, though no action may yet be required.
There is a growing trend amongst employers to resort to the draconian practice of sacking staff and then re-employing them on worse terms and conditions. This is known as Fire and Rehire.
NEU members have faced this unacceptable threat in many employment scenarios. For members working in the independent sector, the use of ‘fire and rehire’ tactics has become the default position for employers trying to take away their Teachers’ Pension Scheme.
The NEU believe that ‘Fire and rehire’ practice should have no place in employee relations in the 21st century. It is a draconian practice that British Airways had to drop after it was hauled in front of the Transport Select Committee.
Condemnation from political sources include Jacob Rees Mogg: “Fire and rehire tactics shame businesses. Our great capitalist, market economy depends on decency and trust. It is nothing without it”
The NEU supported Barry Gardiner’s private members’ bill seeking to outlaw this pernicious practice. Sadly, the bill did not muster sufficient support to become law. However, it did win the moral argument, moving public and political opinion to oppose this pernicious practice. Prime Minister Boris Johnson said: "Using threats of firing and rehiring is completely unacceptable as a negotiating tactic. We expect companies to treat their employees fairly.” (BBC report October 2021)
A recent Freedom of Information Request made by the NEU member confirms that the vast majority of independent schools who were in the TPS remain in the TPS.
There are currently 952 independent schools in the TPS. Since September 2019, 274 schools have left. A further 41, including 26 using phased withdrawal, intend to leave. 17 new schools have joined!
You can see a list of all independent schools in each category.
Model letter for teachers to send to Governors, opposing withdrawal from the TPS.
Model letter for independent teachers seeking meaningful consultation on TPS with governors.
In the event that there is a future lockdown of schools, use this model to request a postponement of consultation.
FAQs for members in Independent schools proposing to leave the Teachers’ Pension Scheme.
Shaun Murtagh-Howard, NEU National Council Independent Sector, provides some practical and successful campaigning ideas and tips
Why defined benefit schemes are worth fighting for
You can download an illustrative comparison of likely loss if members are moved to inferior pensions schemes away from TPS.
The NEU believes that meaningful consultation is:
Consultation is not meaningful if:
NEU members have heard a wide range of self-serving, and bogus, employer arguments for why they should agree to surrender the TPS. Some are scaremongering, others downright dishonest.
Here is a list of some common disinformation.
Local on-going support: contact your local NEU regional office.
Pension advice: contact the pension team pensions@neu.org.uk
Financial advice: for personal financial advice, NEU members can receive a free, no-obligation initial consultation from Lighthouse, either on a one-to-one basis or at a school NEU members’ meeting. More information: Lighthouse.
The NEU is very disappointed that the Government has agreed to the proposal to allow a so-called “phased withdrawal” from the TPS was announced.
The Government has announced, following consultation, that from Spring 2021, independent sector employers will be able to deny TPS membership to new teachers, while continuing to offer it to existing staff. The current rules require an independent sector employer who elects to join the scheme to offer TPS membership to all eligible teaching staff
This new option will impact on employers’ decisions to leave or remain in the scheme. Some members may think this is a way in which their own pension might be saved. However, the NEU does not believe that this decision is in the general interest of our members in the independent sector, given that moving school may now lead to loss of TPS membership. Nor do we believe that it is for the good of the profession.
The NEU strongly believes that all teachers, regardless of phase, or sector, should enjoy a good pension. The TPS is an integral part of a teacher’s remuneration.
We are concerned that the decision will further undermine the TPS in the independent sector. Some employers will be emboldened to withdraw in the belief that staff opposition will be less in that their own pensions will be protected.
Segregating teachers on such a key term of employment will build walls. It will damage the attractiveness and unity of the teaching profession as a whole; hinder movement between sectors and schools; hamper a school’s ability to recruit and retain quality teachers; and hit younger teachers hard.
In making the decision on how to respond to an proposal from your employer to leave the TPS, we call on members to consider the bigger picture and, wherever possible, robustly resist proposals to leave the scheme, either in one fell swoop or by phased withdrawal.
You can read the full decision here: Teachers' Pension Scheme: independent schools phased withdrawal, consultation response