If you’re covering the Teachers’ Pension Scheme (TPS) employer contribution rates increase next year, please see the following comment from Simon Rake, Head of Education at Wesleyan Financial Services:
"The news that the Teachers’ Pension Scheme employer contribution rate will be increased next year – potentially to more than 30% – will be a worry for many independent schools and teachers.
"This is the first increase we have seen since 2019, when the rate jumped from 16.48% to 23.68%. This led to many private schools leaving the TPS, with schools either opting out completely or for new staff, with existing staff able to remain members. A freedom of information request by Wesleyan found that 177 private schools planned to withdraw from the TPS in the 12 months after the uplift was announced.
"Thousands of teachers opted for less generous pension schemes and we’d expect that another increase in the employer contribution rate would prompt more schools to look again at whether they can afford to maintain their TPS membership.
"Any alternative to the inflation-proof TPS is likely to be far less generous and affected teachers should carefully consider the implications for their future retirement plans, including consulting with a Specialist Financial Adviser."
For more comments from Wesleyan, contact our PR Manager, Nicola Pledger.