The consultation into the Teachers’ Pension Scheme closes on November 3rd, 2019. If you can, and you are interested, you should express your views on the scheme that runs your pension.
What is the consultation seeking to explore?
The Department for Education wants to explore the rule for independent schools who are currently required to be part of the Teachers’ Pension Scheme. The consultation seeks to explore if there should be more flexibility for independent schools, allowing them to opt-out if necessary.
Independent Schools have the choice to opt-out of the scheme now. However, if the school opts out, then all members in the school become deferred members. Under the proposal, even if the school leaves the scheme, current participants can remain an active participant.
If the Government funds your school, then you will not be affected by this proposal. It is mandatory for schools with central funding to participate in the Teachers’ Pension Scheme.
What is the reason for this change?
Independent Schools, by their nature, have independent finances. Therefore, the recent increases in contribution costs to the Teachers’ Pension Scheme increased the burden on the budget of schools. Some schools are choosing to opt-out because of this price increase. So, the hope is that these changes will allow teachers to remain active, even if their school elects to opt-out.
What now?
Even when consultations close, your ability to have a say does not disappear. If you miss the deadline for the consultation, remember you are within your rights to send an email to the Department for Education on the issues that concern you.
The content in this article was correct on 22nd October 2019. You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on your Teachers’ Pension Scheme. Please use the contact form below to arrange an informal chat with an advisor and see how we can help you.
