All academies have complicated pension arrangements. Through our experience and knowledge of this area we can help your academy understand its responsibilities regarding pension schemes.
All academies have complicated pension arrangements. The teachers’ are members of the Teachers Pension Scheme (TPS), other staff may be members of the Local Government Pension Scheme (LGPS), have separate personal pension schemes, or have no pension provision at all.
Both the TPS and LGPS pension schemes are defined benefit schemes which are more commonly known as final salary schemes. If you read any media comment on these types of schemes then you will be aware that most are in a deficit position and so need significant further funding. This funding will need to come from the employer, which is now the academy, and so there are potentially major expenses facing academies over which they have very little control. There are likely to be further changes to both the TPS and LGPS pension schemes as they move away from the more generous pension based upon final salary to a career average salary.
The number and size of the pension schemes that academy employers are members of creates a great deal of complexity and adds a lot of administrative burden to Business Managers and their teams. Through our experience and knowledge of this area we can help you understand the obligations and commitments created by the pension arrangements. We can ensure that you are able to comply with the legislative requirements and more importantly, understand the impact that the schemes have on your academy, both in terms of the financial commitment and cash flow impact, and how these are disclosed in your financial statements.
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