Pensions & benefits

Teachers' Pension Scheme

It is essential for every independent school to consider their participation in the Teachers’ Pension Scheme carefully. As an independent actuarial adviser, LCP is ideally placed to provide unbiased advice to schools on the pros and cons of TPS membership.

With the imposition of substantial increases to TPS contributions from 2019, many independent schools are faced with decisions about what pension and other benefits to offer their teaching staff. There is a significant need for information and advice on this complex topic, and support in implementing any changes.

Our focus is on being well-informed of all the issues and complexities in this changing area, the range of responses from schools, and best practices in implementing changes.

A new option for Independent Schools

When looking at their options for pensions, independent schools may wish to consider phased withdrawal (or the introduction of the “mixed economy”). We set out what phased withdrawal is alongside the pros and cons in this blog.

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Options for independent schools

What are the alternatives to fully exiting?

Almost all independent schools participating in the Teachers Pension Scheme (TPS) have at least asked the question “what should we do about pensions?”. An ever increasing number are exiting the TPS altogether. In this blog we explore the available options.

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We are a leading specialist in the niche area of pensions and benefit provision for teachers

Decision making support

We can help decision makers decide whether the TPS is right for your school and, if not, what other provision could be proposed.

Recognising that many schools will be facing the same set of issues for the first time, we have developed a web-based decision-making advice service to help schools decide whether to propose moving away from the TPS and, if so, what to propose. The service is designed to deliver high quality information and clear advice at a cost to each school that is substantially below that which would be charged on a standalone basis.

Find out more about our decision-making advice service here. Our checklist considers the issues so schools can make a decision with confidence.

We can work with your school on a bespoke basis, considering reward in a holistic manner. Please contact us to discuss your school’s specific requirements.

Consultation support

We can support you through the consultation process, communicating with your teachers with clarity, empathy and honesty. It is vital that your communications are tailored to your common-room so that your teachers are engaged, understand the issues and are brought along with the process.

We can help in many ways, from consultation planning to presentations. Find out more about our consultation support here. Our checklist will help make sure you are ready for what lies ahead.

LCP is currently advising over 70 independent schools in relation to their TPS membership and reward proposition.

Our dedicated and sizable team brings:

A deep understanding of TPS benefits, how the costs of providing them are calculated, the risks associated with these costs going forward and the range of issues relating to future provision.
Experience in structuring alternative pension arrangements and other benefits, and how these compare with TPS benefit provision.
Clear communication to school governors, senior leadership teams, teaching and non-teaching staff.
Market intelligence, in particular how schools are working through key issues and implementing their responses; and how the macro and regulatory environment is changing.
Practical support in managing staff consultation processes including best practice in setting out a suitable timetable, presentation materials and answers to FAQs.
Modelling tools and information to provide to schools as inputs to their business planning and financial modelling of future costs and risks, including assumptions for ranges of contribution rates and costs of benefit packages.