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Education: Teachers' pension scheme

The education sector includes schools, further education colleges and universities. There is no single form of pension arrangement which covers all of these bodies. A large number of education staff are members of the Teachers' Pension Scheme (TPS), which is a public sector pension scheme. Staff who are not TPS members are those employed by universities established before 1992 (pre-1992 universities) and certain schools, who are likely to be members of private sector occupational pension schemes.

The TPS is a complicated scheme, which has undergone wholesale review on more than one occasion. Most recently, significant changes have been implemented to the benefit structure of the TPS. It is crucial that employing institutions understand the nature of the TPS and that the scheme applies to their staff.

In addition, under HM Treasury’s revised Fair Deal guidance, private sector employers who enter into outsourcing and other partnership arrangements which involve transfers of teaching staff are now able to participate in the TPS, either by entering into a participation agreement, or in the case of arrangements with local authorities, by becoming an accepted function provider.

How we can help

Eversheds Sutherland s' public sector pensions team has extensive experience in relation to the TPS. In particular, the team:

  • advises institutions on the provisions of the TPS and their application to members and employers 
  • advises institutions in relation to compensation on early retirement 
  • acts for institutions in relation to Pension Ombudsman claims 
  • advises institutions in relation to their powers and choices when making staff redundant, or when dismissing high-profile individuals