Teachers want more flexibility in their pension plans, EPI finds
It found that a ‘sizeable’ proportion of teachers would prefer more flexibility in their pension plans, with 15% of teachers willing to trade 20% of their pension income for a 10% salary increase
The Education Policy Institute (EPI) has found that teachers prioritise immediate salary increases over retirement benefits, while a “sizeable” proportion of teachers would prefer more flexibility in their pension plans.The EPI collaborated with Teacher Tapp to survey nearly 6,000 teachers to find out what they want from their compensation package and how valuable the current Teachers Pension Scheme was to them.
It found that a “sizeable” proportion of teachers would prefer more flexibility in their pension plans, with 15% of teachers willing to trade 20% of their pension income for a 10% salary increase.
In addition, teachers were found to value a 10% increase in their retirement income only as much as a 6% increase in their current salary.
Younger teachers, particularly those in their 20s, were two-thirds more likely to trade pension for salary than teachers in their 50s.
Almost one in five teachers in their 20s would prefer a compensation package with a 10% salary increase, even if it meant switching to a DC pension and losing 20% of their retirement income.
Meanwhile, teachers who were financially struggling are a quarter more likely to want to trade pension entitlement for salary than teachers who are financially comfortable.
In light of these findings, the EPI recommended to the government that schools should be allowed to offer pension options and alternative arrangements to their staff, alongside the TPS, should they wish.
It said the government should also investigate the possibility of providing flexibility within TPS, and review the TPS with recruitment and retention in mind.
The institute noted it “may be that, as with schemes such as the civil service pension scheme, there is room to offer more flexibility within the TPS and make teaching a more attractive profession to more people”.
Finally, the EPI said research should be conducted into the likely impact and consequences of various policy options, with the “goal of offering a set of schemes that promote recruitment and retention, while still ensuring retirement security for teachers”.