Do you teach in an independent school?? How do TPS changes effect you?

Do you teach in an independent school?


What does leaving the TPS mean for you while you are still working?


There are some fantastic benefits for a teacher working in the independent sector. Small class sizes, well-resourced departments, engaged parents to name a few. However, one of these significant benefits is being removed from an increasing number of independent school teachers.

Due to increased employer contributions many independent schools have decided to exit the Teachers Pension Scheme and instead offer teachers a defined contribution scheme. This will have a severe impact on the size of pension available to these teachers on retirement as well as the timing of their retirement.

According to a FOI request made by the pension provider Broadstone as of March 2021 228 schools had left the TPS or notified the DfE of their intention to do so since the most recent increased employer contributions were announced. To put into context that is 20% of all independent schools that were in the scheme before the increase in contributions and Broadstone state ‘that a clear and continuous direction of travel has been established’ and ‘our expectation is that the total will likely have risen to around 275 or even 300 by the end of 2021’. So if you are an teacher in an independent school who is fortunate to still be a member of the TPS it is likely that this is only going to be for a limited period of time.

Clearly there will be some significant considerations for teachers who are forced to leave the TPS regarding retirement planning but there are some other benefits you will be losing that will have serious consequences while you are still working.

As a member of the TPS you not only receive Death in Service cover of 3 times your salary but also ill health retirement at no extra cost. The majority of new schemes that teachers will be offered do not include this level of cover as standard like the TPS, a detail that many teachers I speak to are not aware of. Clearly this is something that teachers in this position need to give thought and how to replacing this vitally important cover in order to protect family and loved ones.

At The Key Worker Group we are experts in providing advice to teachers in this area so if you would like to have a free, no obligation conversation about your current life insurance and protection situation please get in touch.