The leader of the biggest multi-academy trust has criticised a move by the government that could stop it offering an alternative pension scheme to its teachers.
Sir Jon Coles, the chief executive of United Learning, said the trust has been told by the Department for Education that the government could ring-fence funding to ensure that it is used for the Teachers’ Pension Scheme (TPS).
Sir Jon said United Learning is clear that this suggestion “has no legal basis”. The trust is now said to be considering its options.
Dispute over teacher pension plan
United Learning has offered teachers an alternative pension scheme whereby staff make lower pension contributions in exchange for more take-home pay.
However, it was reported in the The i newspaper that the DfE has written to United Learning to oppose the plan.
The government has suggested that part of the trust’s funding could be ring-fenced and then could only be accessed to pay for membership of the TPS, it was reported.
Sir Jon said: “We are clear that officials’ threat to ring-fence money for TPS and withhold it has no legal basis.”
The NAHT school leaders’ union has welcomed the government’s intervention.
Tes understands that the government’s position is that it has not blocked the United Learning pension scheme. It has requested a business case from the trust.
Paul Whiteman, general secretary of the NAHT, said: “We are pleased to hear that the government has listened to the arguments we presented and decided to intervene, and we will continue to call out any attempts to weaken or threaten our members’ terms and conditions.”
But Sir Jon claimed that in opposing the alternative pension plan, “unions are not representing their members”.
He added: “In our recent survey, some 25 per cent of staff responding expressed interest in the new scheme. Our original aim was to attract new entrants rather than appeal to existing teachers, so this is remarkably high. Recent EPI research shows this interest is reflected across the profession.
“We will always offer TPS to all teachers. Teachers will be able to move freely between the two schemes annually - for example, joining the higher pay/lower pension alternative if they have high mortgage or nursery costs and rejoining TPS later. All teachers considering a move will be offered free independent financial advice.”
Employers contribute 28.6 per cent of an employee’s salary to the TPS. Members of the TPS are required to contribute 9.6 per cent collectively.
Sir Jon argued last year, when proposing an alternative, that a “growing number of staff are opting out of the TPS because it is too costly for them”.
But the alternative scheme, due to start from April, sparked a backlash from teaching unions, who wrote to Sir Jon to voice “shock and dismay” at the plan.
A recent poll of nearly 6,000 teachers found that 15 per cent would be willing to trade some retirement income for an increase in their current salary.
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