Consultation outcome: Teachers' pension scheme on phased withdrawal proposal
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