Question to the Department for Education:

To ask the Secretary of State for Education, what assessment his Department has made of the potential impact on the Teachers' Pension Scheme in the event that independent schools and private academy trusts withdraw from that scheme.

The Teachers’ Pensions Scheme (TPS) is principally designed and operated to support recruitment and retention of high-quality teaching staff in maintained schools, who constitute the vast majority of TPS members. All maintained schools, including academy trust schools, are required to participate in the TPS for their teaching staff.

Independent schools participate in the TPS voluntarily, with many independent schools already choosing not to participate. Teachers at participating independent schools represent a small proportion of the overall TPS membership.

All public service pension schemes, including the TPS, are subject to actuarial valuations every 4 years. This helps maintain the sustainability of the scheme by taking a fair and reasonable assessment of the current cost of providing pensions into the future and setting contribution rates accordingly. Amongst a wide range of data and assumptions involved, the actuarial valuation process takes account of changes in member numbers.

Any impact from independent schools choosing to cease participating in the TPS will, therefore, be assessed as part of the actuarial valuation currently taking place. This is due to be reported next year. It is too early in the process to predict the impact, but the reduction in future pension benefits being built up will be considered, as will the reduction in contribution income received.