Hundreds of private schools will save tens of thousands of pounds as of next April, thanks to changes to the Teachers’ Pension Scheme (TPS).
All UK state schools, and some independent schools, enroll staff in the TPS, which gives employees a guaranteed income for life in retirement based on years of service and average salary.
Employees pay a set portion of their income to become members of the pension scheme, and their schools must do so too.
Shorts
In recent years, the cost to schools has risen to 28.68 per cent of teachers’ pensionable pay, and while state schools receive money from the government for this, independent schools do not – leading some to exit the scheme and provide alternative pension arrangements.
