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A leading head teachers’ union is calling for urgent intervention from the Department for Education (DfE) to address what it characterizes as the “failing” Teachers’ Pension Scheme.
The National Association of Head Teachers (NAHT) has cited a multitude of issues plaguing the scheme, which serves two million members, including significant payment delays that have resulted in financial hardship for many.
Speaking to BBC Radio 4’s Money Box, the union expressed its “shock” at the volume of members seeking assistance.
The DfE has acknowledged the frustrations caused by the ongoing issues and stated that it is working closely with the scheme’s administrators to expedite a resolution.
The Teachers’ Pension Scheme, encompassing members throughout England and Wales, stands as one of the largest retirement programs in the United Kingdom.
While day-to-day operational management is outsourced to Capita, the DfE retains overall responsibility for the scheme’s governance.
However, in a letter obtained by Money Box, the NAHT articulated “serious concerns” regarding the scheme’s administration, highlighting substantial delays in pension payments to members.
The letter further detailed excessively long wait times for telephone inquiries, inadequate communication from pension scheme personnel, and a backlog of unanswered and unresolved queries and complaints.
Describing its membership as “deeply dissatisfied,” James Bowen, assistant general secretary of the union, asserted that the Teachers’ Pension Scheme is demonstrably failing teachers and school leaders.
“It’s simply unacceptable,” he stated, urging the department and the pension scheme to “get to grips” with the existing problems and expedite the resolution of outstanding queries.
“We need to see strong leadership from both the Department for Education and the Teachers’ Pension Scheme,” he emphasized.
“Alternatively, increased staffing and resources may be necessary to address the overwhelming demand currently facing the scheme.”
Joanne Hurst, a retired head teacher with a 40-year career in education, meticulously planned her retirement over the past two years.
She was scheduled to receive a lump-sum pension payment on September 1st, intended to pay off her mortgage. Additionally, she anticipated her first monthly pension payment in mid-September, but has yet to receive any funds.
Ms. Hurst reported that this situation has had “a significant impact” on her finances, resulting in lost interest and requiring her to draw funds from other sources to meet her obligations.
“This has also negatively affected my mental health and well-being, as I worry about when the money will finally arrive,” she told the BBC.
She added that her attempts to obtain information from the pension scheme have only exacerbated her stress.
“Each time I contact Teachers’ Pensions, I receive different, and often conflicting, advice,” she explained.
“I find it appalling and grossly unfair to individuals who have dedicated their entire working lives and contributed to the system.
“This is not a charitable handout; it is an entitlement earned through our contributions.”
Mr. Bowen of the NAHT attributed many of the problems to a 2018 legal ruling that found younger members of government schemes were effectively discriminated against.
The judgment prompted the government to revise public service pension schemes, including the methodology for calculating pension valuations.
In March, Teachers’ Pensions stated that it had been awaiting government guidance, which had been delayed “to ensure consistency across all public service pension schemes and prevent the need for recalculations.”
Mr. Bowen stated: “I have no doubt that this is a significant contributing factor, but it does not fully explain the situation.
“I believe a shortage of capacity within the scheme, coupled with the aforementioned issues, has created the current predicament.”
In a statement, the DfE said: “We understand that this has caused frustration and are continuing to work closely with Teachers’ Pensions to resolve this issue as soon as possible,” adding that people can check the TPS website for updates.
Capita apologized for the delays and said active discussions were continuing to address the increase in the number of enquiries being made to Teachers’ Pensions.
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