With the substantial increase in employer contributions for the Teachers' Pension Scheme in 2019 and perhaps further substantial increases on the way from 2024, those employers who don't have that increase funded by the Government are looking at ways to manage that additional cost.
Some employers are leaving the scheme altogether including around 300 independent schools such as the Girls Day School Trust. Others are closing the scheme to new joiners including 16 independent schools following the introduction of new regulations allowing phased withdrawal for independent schools.
However, employers who don't have access to phased withdrawal are becoming more creative. Staffordshire University has started employing staff in a separate company which does not have to offer the teachers' pension scheme. This isn't a low risk option however, as the trade unions have picked up on this and are now balloting staff for strike action.
Steering a course between the proverbial rock of significant financial costs and the hard place of strike action is not straightforward. If you'd welcome a confidential conversation about this, contact Doug Mullen.
it marks the first time academic staff at a university will have been ‘denied access’ to the nationally agreed teachers’ pension scheme for the sector.