--- title: Insights | Teachers’ Pension Scheme | Thinking of leaving? description: Thinking of leaving the TPS? Your teaching staff may have some questions they’d like answered. Here’s a handy checklist to help you. image: https://www.puntersouthall.com/hubfs/teachers-staff-meeting.jpg --- - [ Our services ](https://www.puntersouthall.com/our-services) - [ Pensions ](https://www.puntersouthall.com/pensions) - [ Defined benefit ](https://www.puntersouthall.com/defined-benefits) - [ Defined contribution ](https://www.puntersouthall.com/pensions#defined-contribution) - [ SIPP & SSAS ](https://www.puntersouthall.com/pensions#self-invested-pensions) - [ Expert witness ](https://www.puntersouthall.com/expert-witness) - [ Analytics ](https://www.puntersouthall.com/analytics) - [ Numbers for lawyers ](https://www.puntersouthall.com/analytics#numbers-for-lawyers) - [ Data compliance ](https://www.puntersouthall.com/analytics#data-compliance-for-data-confidence) - [ Legal ](https://puntersouthall.law/) - [ Employee benefits ](https://www.puntersouthall.com/service-update-apr-24) - [ Financial planning ](https://www.puntersouthall.com/service-update-apr-24) - [ Insights ](https://www.puntersouthall.com/insights) - [ Blogs ](https://www.puntersouthall.com/insights) - [ Our story ](https://www.puntersouthall.com/our-story) - [ People & culture ](https://www.puntersouthall.com/people-culture) - [ Our people ](https://www.puntersouthall.com/staff-directory) - [ Awards ](https://www.puntersouthall.com/awards) - [ Careers ](https://www.puntersouthall.com/careers) - [ Contact us ](https://www.puntersouthall.com/contact) [![Punter Southall - Animated icon](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/logos/punter_southall_anim_logo.gif) ![Punter Southall - Text logo](https://www.puntersouthall.com/hubfs/raw_assets/public/punter-southall-hc/library/images/client/logos/punter_southall_text_logo.svg) ](https://www.puntersouthall.com/) ** ** ** - [ Our services ** ](https://www.puntersouthall.com/our-services) - [ Pensions ** ](https://www.puntersouthall.com/pensions) - [ Defined benefit ](https://www.puntersouthall.com/defined-benefits) - [ Defined contribution ](https://www.puntersouthall.com/pensions#defined-contribution) - [ SIPP & SSAS ](https://www.puntersouthall.com/pensions#self-invested-pensions) - [ Expert witness ](https://www.puntersouthall.com/expert-witness) - [ Analytics ** ](https://www.puntersouthall.com/analytics) - [ Numbers for lawyers ](https://www.puntersouthall.com/analytics#numbers-for-lawyers) - [ Data compliance ](https://www.puntersouthall.com/analytics#data-compliance-for-data-confidence) - [ Legal ** ](https://puntersouthall.law/) - [ Employee benefits ** ](https://www.puntersouthall.com/service-update-apr-24) - [ Financial planning ](https://www.puntersouthall.com/service-update-apr-24) - [ Insights ** ](https://www.puntersouthall.com/insights) - [ Blogs ** ](https://www.puntersouthall.com/insights) - [ Our story ](https://www.puntersouthall.com/our-story) - [ People & culture ** ](https://www.puntersouthall.com/people-culture) - [ Our people ** ](https://www.puntersouthall.com/staff-directory) - [ Awards ** ](https://www.puntersouthall.com/awards) - [ Careers ** ](https://www.puntersouthall.com/careers) - [ Contact us ](https://www.puntersouthall.com/contact) - ** ** Pension consulting 15 November 2023 [** Back ](https://www.puntersouthall.com/insights/) **Author:** Punter Southall Aspire # Thinking of leaving the TPS? A checklist for schools considering a move  If you’re considering leaving the Teachers’ Pension Scheme (TPS) or its Scottish equivalents (STPS/STSS), you’re probably already thinking of the main reason why: unaffordable contributions, in the face of rising costs across the board. At the same time, your teaching staff may be thinking of reasons they don’t want to leave, or questions they’d like answered.   In our experience working with almost 50 schools, several questions recur frequently.   Here’s a handy checklist to help you answer some of them.  | **Question** | **Response** | | --- | --- | | What kind of scheme is TPS/STPS?  | TPS and STPS are Defined Benefit (DB) schemes. Historically they were ‘final salary’ schemes where the amount of pension you receive is based on how many years you’ve been a member of the employer’s scheme and the salary you’ve earned when you leave or retire.  Since April 2022 future accrual is now on the Career Average Revalued Earnings basis where the amount of pension you receive is based on your earnings in each year of active membership ‘revalued’ annually until when you retire.    | | What kind of new scheme are you proposing?  | To replace TPS/STPS we want to introduce a Defined Contribution (DC) scheme. This is a type of pension where contributions from the employer and employee are paid into a fund which is invested and then converted into a pension, often in the form of an annuity.  | | How does the new scheme compare to TPS/STPS?  | A new scheme can be set up with benefits that mirror those available via TPS/STPS, including associated employee benefits above and beyond the pension.  | | It can’t be as good as TPS/STPS… | We can design our new scheme and the associated benefits to suit our staff. If there are key additional benefits that we/you find valuable then those can be budgeted for.  | | …so why are you moving?   | Employer contributions under TPS are currently 23.68% of salary (23% for STPS*) and will rise to 28.6% from April 2024,  which makes them unaffordable for many schools, including us. With other cost pressures also increasing, finding a suitable alternative to TPS/STPS is an urgent priority for us.  | If you’re thinking of a move away from TPS or its Scottish equivalents ahead of the increases to contributions, [get in touch](https://www.puntersouthall.com/contact). We’ve worked through this process with many other schools and would be happy to help you.  [![Get in touch](https://no-cache.hubspot.com/cta/default/5894561/a8bf4fd6-2978-487b-9c52-a1f995676557.png)](https://cta-redirect.hubspot.com/cta/redirect/5894561/a8bf4fd6-2978-487b-9c52-a1f995676557) --- *STPS contribution increase still to be announced at date of publication in November 2023  Share [** ](mailto:?subject=Thinking%20of%20leaving%20the%20TPS?&body=https://www.puntersouthall.com/insights/thinking-of-leaving-the-tps-checklist) [** ](http://twitter.com/intent/tweet?text=Thinking%20of%20leaving%20the%20TPS?&url=https://www.puntersouthall.com/insights/thinking-of-leaving-the-tps-checklist) [** ](http://www.linkedin.com/shareArticle?mini=true&url=https://www.puntersouthall.com/insights/thinking-of-leaving-the-tps-checklist) [** ](https://www.facebook.com/sharer/sharer.php?u=https://www.puntersouthall.com/insights/thinking-of-leaving-the-tps-checklist) [** Back ](https://www.puntersouthall.com/insights/) ### Get in touch today At Punter Southall, we have a team of highly skilled risk, compliance and legal experts with deep in-house practical experience. Get in tough if you would like a friendly chat with one of us. Get in touch** - LATEST UPDATES ## You may also be interested in [Pension consulting ](https://www.puntersouthall.com/insights/my-top-pointers-for-any-school-that-has-left-tps-or-used-phased-withdrawal) - 7 December 2023 [My top pointers for any school that has left TPS or used phased withdrawal](https://www.puntersouthall.com/insights/my-top-pointers-for-any-school-that-has-left-tps-or-used-phased-withdrawal) [Read article](https://www.puntersouthall.com/insights/my-top-pointers-for-any-school-that-has-left-tps-or-used-phased-withdrawal) [Pension consulting ](https://www.puntersouthall.com/insights/teachers-pension-scheme-are-you-staying-or-going) - 18 October 2023 [As more independent schools leave the Teachers’ Pension Scheme, are you staying or going?](https://www.puntersouthall.com/insights/teachers-pension-scheme-are-you-staying-or-going) [Read article](https://www.puntersouthall.com/insights/teachers-pension-scheme-are-you-staying-or-going) [Pension consulting ](https://www.puntersouthall.com/insights/teachers-pension-scheme-can-you-afford-not-to-take-action) - 19 June 2023 [Teachers' Pension Scheme - can you afford not to take action?](https://www.puntersouthall.com/insights/teachers-pension-scheme-can-you-afford-not-to-take-action) [Read article](https://www.puntersouthall.com/insights/teachers-pension-scheme-can-you-afford-not-to-take-action) - ###### INSIGHTS #### Subscribe to updates Where we share what we’re thinking about and what conclusions can be drawn on everything from the work we do to the world around us. 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