Moving abroad is an exciting time which promises to open up many new friendships and opportunities. However, it’s essential to understand the full financial implications and to review insurance, pension and savings arrangements as early as possible – writes Tim Cox, Director of Star Capital Finance.

Expat teachers can often access much needed cash tax-free by transferring their frozen UK pensions to an offshore QROPS

The opportunity to work abroad is both exciting and sometimes a little worrying, as you experience a new social and work environment. Often, the decision to move abroad has to be made quickly and there is not enough time to plan everything properly.

For the fortunate, they will arrive at a school where they already have a well-grooved program that helps new arrivals settle in quickly. This can include everything from helping to open a bank account in the new country, to providing a ‘buddy’ who can help them settle in and answer any queries. Many of the better schools will even go out of their way to provide help with accommodation and understanding the new work environment.

Unfortunately however, some new teachers are left to either sink or swim on their own.

UK pension will cease

Often when teachers move abroad, very little thought is given to what they need to do about their personal financial situation. Many do not realise that their UK pension will automatically stop and they will cease to be a UK resident and therefore not need to pay tax in the UK. Instead, they will invariably end up paying tax in the new country and have very little understanding of how this works. It’s also very likely that the new country will not provide any pension for expat teachers working on short term contracts abroad. Unless teachers make their own arrangements, they may end up with a large gap in their pension planning.

Teachers, like all expats, move away for the excitement, the opportunity to experience different cultures and people and the option to potentially save more. This is, however, not often achieved, as once in the new role, teachers are often too busy to review their new financial situation and years can go by without any planning taking place. This can be disastrous, as with the UK pension frozen and with no new contributions being made, there can be a large gap in their pension planning.

In the past, where teachers have worked abroad in places like the Far East and Middle East, these postings were often only for a few years and were very well paid as they were considered ‘hardship’ postings. Nowadays this is not the case and many head to destinations in Europe and the Far East, possibly remaining there for many years. Some never return to the UK. Salaries in many locations are no better than in the UK, so it’s necessary to stay out of the UK longer to cover the moving costs and to make the posting financially viable.

‘Consider your long-term financial needs’

Clearly a move abroad needs careful financial, as well as logistical planning. Before moving to the new position you need to establish if your new job provides you with medical cover, life insurance and a pension. You also need to work out how you will be paid and whether you need to open a new bank account in your new country. Once these points have been resolved, careful thought then needs to be given to your long-term financial needs. This can only really be achieved by sitting down with an ‘Internationally Experienced Independent Financial Adviser.’

Finding such a person is never easy and it is essential that you find someone who has been recommended by friends or an organisation you can trust. Teachers are fortunate in this regard as they have organisations like the Council of British International Schools (COBIS) to help them. COBIS can vet companies and make sure that advisers have the experience and qualifications to provide valuable help and support to teachers, and advice based on the needs of the teacher concerned.

At the moment there is much concern in the UK around the whole topic of pensions and how the current government is tackling this. Already they have slashed the values of teachers’ pensions and are increasing the retirement age. It is clear that this is just the beginning, as pension schemes like the Teachers Pension (TPS) are unfunded by the government and monies are provided to teachers when they retire through taxes that are paid at the time. Governments around the world are now beginning to understand this is not sustainable and are trying to figure out ways to save money. As the populations in Europe and the US get older and with fewer workers to fund the retirement needs of the elderly, the pension problem will only get worse.

Taking out a ‘QROPS’ could be the way forward

Those moving abroad have the opportunity to do something about this. In fact, for many it could prove to be incredibly financially beneficial. Due to changes in financial legislation brought about by the EU regarding free movement of labour and pensions, an opportunity for expats was created called a ‘QROPS’.

QROPS, short for ‘Qualifying Recognised Overseas Pension Scheme’, gives those who take up residence outside the UK the ability to also transfer their pension out of the UK. Although the scheme has been slow to catch on, it has now become one of the most talked about topics in the expat world. For teachers it means they can write to the TPS, who are then legally obliged to quote them a transfer value.

Once a valuation is obtained, things become more complicated as there are so many different QROP options dependent on personal circumstances. This is where the help of a professional is needed and again, it makes sense to use someone who is recommended.

Taking control

For many, this has been life changing as it has enabled them to access cash earlier than anticipated. This can be helpful in paying off any debts in the UK, helping kids with school/university fees, deposit for a property and many other possibilities. The greatest benefit is probably the ability to take the pension out of the TPS and take control. With what is happening regarding pensions in the UK now, it is clear that the situation will only get worse and that the real value of teachers’ pensions will continue to decline as the government ‘engineers’ cunning ways to reduce this liability which they know they cannot meet.

One benefit for those teachers who can take advantage of QROPS when they move abroad is that it locks in the current value of their pension NOW, before this amount is further reduced by government meddling. For those with significant pension pots, it also enables them to hand down any balance to loved ones when they die, rather than leaving it to the government, which is what happens if the pension stays in the UK.

This article was written by Star Capital Finance (SCF) who is supporting members of COBIS and work closely with them in helping to provide teachers with the kind of advice discussed above. SCF also regularly attend COBIS conferences and speak at various events to highlight key financial issues of concern to teachers. SCF offer teachers free impartial advice either before or after moving abroad. They can be contacted via email: t.cox@scfinance.cz or phone: +420 731 375 850

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With over 90 schools in more than 40 countries around the world, the Council of British International Schools (COBIS) fosters an active and vibrant network which promotes good practice and helps to reduce the elements of risk for anyone considering moving overseas to live and work. Colin Bell, COBIS Executive Director, took time out to tell us more about the organisation, and what it does.

So firstly, what is COBIS and what does it actually do?

COBIS is a global membership association of quality British schools worldwide and this year the association is celebrating its 30th year. The association, which is a constituent member of the Independent Schools Council (UK) supports school heads, teachers, support staff and governors by offering conferences, training courses, guidance and professional networking opportunities. COBIS is committed to representing ‘Brand UK’, promoting quality assurance by providing formal British accreditation to British Schools overseas. A COBIS accredited school has undertaken an inspection approved by the DfE (UK); this provides quality assurance for pupils, parents and members of the school workforce.

What are the main benefits of membership for British schools?

Well, where do I start? The main benefit is being part of an active and vibrant network which directly serves the needs of member schools worldwide. Benefits include representation to the British Government, educational bodies and the corporate sector, access to information about trends and developments in the UK and international education, professional development, support for good governance, CRB checks for overseas staff and of course formal British accreditation.

What kind of institutions are members and whereabouts are they?

COBIS has member and affiliate schools in each of the five continents worldwide, with large schools of over 1,500 pupils, to smaller schools with less than 100 pupils. Some schools are cross phase, others are linked to international consulates and embassies, and all cater for a mix of host country pupils and overseas nationals. Overall there are over 45,000 pupils being educated in the COBIS network with large number of school leavers returning to the UK to continue studies at university level. COBIS schools are based in major cities including Beijing, Ho Chi Minh, Sao Paulo, Abu Dhabi, Prague and Ulaanbaatar. When looking to work in a COBIS school the world is your oyster…

What are some of the main issues for these schools and how does COBIS help?

British Schools overseas enjoy being part of a professionally supportive network which enables them to share good practice covering a wide range of areas including curriculum development, pupil assessment, expansion of school buildings, professional development and, of course, links with the British Government, education and corporate sectors. The COBIS network has many ‘experts’ in the field and requests for support and advice are always met with many ready, willing and able responses. COBIS is also proud to work with over 60 corporate supporting members; each of these have their own areas of specific expertise. For example Eteach is always available to offer recruitment solutions for COBIS schools. 

What’s the significance of COBIS for those thinking about working overseas as teachers?

Moving overseas to teach at an international school can be a daunting task. However by choosing to work in a COBIS school, candidates can be assured that their institution has been quality assured and COBIS member/affiliate status has been awarded following a robust membership application process which focuses on pupils, staff, curriculum, examinations, school finances, employment contracts, facilities, inspections and policies including pupil safeguarding, child protection and health and safety. All COBIS schools have agreed to work in accordance with the COBIS code of ethical practice which again helps to reduce the elements of risk connected to moving overseas to live and work. Also, such is the reputation of COBIS schools, teachers will find the transition back to the UK a simpler route as curriculum knowledge and pedagogy can be developed via quality professional development opportunities.  

Representatives from Eteach have recently returned – enthused – from the COBIS conference in Prague. There are several pieces on the Eteach blog relating to this. What went on, and how was it for you?

The conference was excellent – judging from the evaluations we certainly addressed the theme ‘Moving Good Schools to Great Schools’. Lots of stimulating key note speakers and workshops which really engaged delegates. The conferences are such a delight to be involved with, as the energy and quest for knowledge is infectious. It’s great to meet colleagues from COBIS and non-COBIS schools and to be able to create a learning environment for international school staff which enables them to interact, have fun, enjoy a new city and of course sample some fine dining: the COBIS Gala Dinners are always special, and this one was no exception. We are already planning the next COBIS Teachers’ conferences in Madrid and Prague next academic year. Further details are on the COBIS website.

You have your annual conference coming up in London in 7-9 May for heads, governors and members of school senior leadership teams. What will the main highlights be?

Again, the programme includes talks and seminars on developments in British and international education and gives delegates an opportunity to meet and listen to leaders of education. Speakers include Nick Gibb MP, Schools Minister, Marin Davidson, Chief Executive of the British Council and all six DfE approved inspectorates responsible for Inspecting British Schools Overseas.

Highlights also include being able to introduce new COBIS school members and corporate members to one another. We are also delighted that this year the COBIS Patron, HRH Princess Alexandra KG GCVO will be joining us at the annual reception to help celebrate the COBIS 30th anniversary year. Again, the conference is open all: non-members are welcomed. For full details and delegate booking forms, please visit the COBIS website  for the latest information.

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Walking, skiing, water – sports and beautiful countryside: Switzerland has plenty to boast about. Is it all snowboarding and celeb-spotting though? Eteach spoke to Christine Knight at the Haut-Lac International Bilingual School to find out what life’s really like for teachers coming to live and work in the country.

What’s the big attraction of Switzerland for UK teachers looking to work overseas?

Switzerland has a certain appeal based on its international reputation: cleanliness, efficiency, winter sports, low crime-rate, home to international organisations and big corporations as well as celebrities and the wealthy. It also has a number of excellent universities and, more familiar perhaps to those working in education, the famed Swiss boarding and finishing schools.

The big advantage of living in Switzerland is the variety of outdoor pursuits – walking, skiing, water-sports and the beautiful countryside that can be so easily explored by car or public transport. The public transport in Switzerland reaches into the most remote corners of the country with a network of distinctive yellow post-buses (the modern version of the stagecoach) in the mountains and majestic steamers on the lakes.

What kind of lifestyle can teachers expect?

The Swiss standard of living is high and commodities and services are expensive. However, the remuneration for teachers from abroad is commensurate with the location and employees can expect to have a better lifestyle and somewhat more disposable income than in the UK. Even though it is not part of the EU, Switzerland is part of the European economic region and has various reciprocal agreements with Great Britain and other EU countries, so pension rights, for example, are preserved.

The bureaucracy and paperwork associated with getting established in Switzerland can be tedious and frustrating, but once this is out of the way, life settles to a fairly orderly pace. There may still be some surprises looming – the closure of many offices and shops over the lunch period, quite strict adherence to Sunday as a day of rest and the quirks of house rules if living in an apartment block, for example.

Anyone contemplating coming to work in Switzerland should plan a visit in advance to explore the area and find a place to live. Furnished apartments are quite hard to come by and a substantial part of any employee’s salary will be spent on rent, particularly if a parking space is required as well in a ‘central’ location. However, this is generally still a better option than moving house contents across borders, which can be costly and complicated. Similarly, buying a second hand car locally is preferable to trying to bring one into the country.

Although English is widely spoken, most signs, public information panels and instructions on official forms tend to be written only in one or more of the four national languages – German, French, Italian or Romansch. A good working knowledge of the language of the region into which one is contemplating moving is a definite bonus and allows greater independence. Except in the big cities, English language entertainment is rare and films are often dubbed (with one showing in the original version generally integrated into the daily cinema schedule).

Could you tell us a little about your school and the nearby area?

Haut-Lac International Bilingual School is situated in St-Légier/Vevey at the eastern end of Lake Geneva in the foothills of the Alps. It is relatively new (founded in 1993), but became quickly established and now provides an education for about 650 boys and girls aged 3-18. A holistic approach to learning and an international outlook are important elements of the school’s philosophy and bilingualism (French-English) is promoted at all levels.

There are plans for the building of new primary school premises to match the excellent, up to date facilities of the secondary school campus which was opened in 2004. Class sizes vary between 16 in the primary and 22 in the secondary section and students follow the International Baccalaureate Middle Years Programme from age 11, leading to the Diploma Programme in a wide ranging number of subjects in preparation for university entrance.

Please tell us about the students.

This day school is non-selective and the majority of students are drawn from the international community residing in the area. At the present time, 40+ nationalities are represented with approximately 25% being Swiss. The students are genuinely respectful, impeccably behaved and highly motivated. There are many whose mother tongue is not English or French but language support is available and differentiation by the teachers addresses this challenge.

What do you look for in new teaching recruits and what would your advice to applicants be?

New additions to the teaching staff should not only be fully qualified in their respective fields, but also bring to the school commitment and enthusiasm that extends beyond the classroom. A willingness to participate fully in the life of the school, which still maintains the family atmosphere on which it was founded, is a pre-requisite.

Ideally, candidates should have previous experience and be familiar with the International Baccalaureate Programme if they are joining the secondary school. However, this does not preclude the exceptional, motivated candidate having neither from applying. Some of our very best appointments have been NQTs, and not those who consider themselves ‘gifts to the educational world’! Prospective members of staff, both academic and non-academic, who are looking for an ‘easy’ posting should think long and hard before taking up an appointment. Nothing less than 100% involvement and dedication to the school and its students are expected. Work in an international school in Switzerland is both intensive and challenging, but at the same time extremely rewarding.

What else should teachers considering a move to Switzerland think about?
As with any posting to a new country, preliminary research not only about the school, but also about the country, is essential to make a smooth transition. Culture shock happens even within Europe and an open mind and a sense of adventure are indispensable to make the most of the experience. Those who have already been expats in Africa or the Middle East, for example, should expect to be more self-reliant in matters pertaining to their life outside of school and at least a solid basic knowledge of French is most certainly an asset.

You can view current posts at Haut-Lac International Bilingual School following this link

If you represent an international school, or if you’ve taught overseas, and would like to be interviewed for this series, please contact us.

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What’s the value for teachers taking on an international post? What does Africa and Kenya in particular have to offer? What do employers really look for in new recruits and what are the most common mistakes candidates make when applying for a job? We spoke to Robert Blake, Head of Peponi House School in Nairobi, to find out…

What do you think is the value for teachers of taking on an international post, particularly in Africa?

There is no doubt that working in an International School or in a British Curriculum school outside the UK broadens one’s horizons. Not only do you experience living in a different country as opposed to a fleeting visit on holiday, but you are also exposed to different cultures, languages and climates. There is always a healthy mix of ethnic backgrounds in these schools and teachers very quickly learn a great deal, not just about others but about themselves as well. Speaking to colleague Heads, a sizeable majority see overseas experience as a big plus on a candidate’s CV as it shows a willingness to try new ideas and a sense of adventure.

What are the major plus points about living and working in Kenya?

Kenya is, to many people, the most beautiful and diverse country in the world. From the glaciers on Mount Kenya to the coral-fringed coast, Kenya has one of the most varied ranges of habitats in the world. Watch ‘Niko Na Safaricom’ on YouTube to see what makes Kenya so special.

The children are wonderful to teach. They work hard and they play hard. First rate academics are coupled with top class sport in the best possible climate, where children are outdoors most of the time and where the pressure to own the ‘right’ phone or wear the ‘right’ clothes has yet to filter through. There is very little petty crime while graffiti and vandalism are almost unheard of.

Teachers are still held in the highest regard, which is very refreshing.

And the negatives?

Security can be an issue as incidents such as car-jackings can be serious, although they are uncommon. The post election violence in 2008 was very unpleasant indeed and broadcast all over the world. Things are much more settled now and the referendum last year, which ushered in a new constitution, went smoothly and peacefully.

Tummy bugs (often caused by dehydration) are common and there is always the risk of something more unpleasant such as malaria. (Hospitals are very good, however). If you don’t like creepy crawlies, you probably shouldn’t be looking for a job in Africa.

Power cuts and pot holed roads are annoying, while bureaucracy can be stifling. But then again, name a country where bureaucracy is not stifling.

The cost of living has risen sharply in the last few years but the inflation rate has recently come down. Even so, a teacher’s salary goes a lot further here than it does in the UK.

Could you tell us a little bit about your school and the nearby area?

Peponi House started 25 years ago with a handful of pupils. There are now 320 children in the school, starting at age 6 and moving on after Year 8, when they are 13.  There are equal numbers of boys and girls and over 40 nationalities are represented. All children are day pupils and the vast majority live within 15 minutes of the school. The school follows the British curriculum and older pupils take the Common Entrance exam in Year 8. As one of ten IAPS schools in Kenya, we adhere to the ethos of the best prep schools, with a wide range of sports and extra-curricular activities as well as the academic excellence that one would expect from an IAPS school.

The school is in Lower Kabete, a leafy suburb of Nairobi. There is a rural feel to the school although we are a few minutes’ drive from excellent shops, bars and restaurants – but with the Great Rift Valley less than an hour away by car.

Is it easy for teachers from the UK to adjust to the curriculum you teach?

Yes, very much so.

What kind of lifestyle can teachers expect, living in Kenya?

Most people adjust very quickly to life out here. The school day is very busy and during term time teachers are very focused on what they are doing. However, opportunities exist to explore the country at weekends and during school holidays, which are the same as those in UK. If you shop for imported goods in supermarkets, stay in luxury lodges in the game parks and fly back to UK every holiday, your salary won’t go far. However, a little prudence goes a long way and the climate is perfect: 12 hours of daylight every day of the year, temperatures in the twenties (Centigrade) and at 5,500 feet above sea level, very little humidity.

What would your advice be for someone contemplating teaching overseas and in Kenya specifically?

Be bold! Do not expect UK salaries and do not expect to get the same deal everywhere. Some schools will offer what on the surface may be a very good package but investigate carefully – what are the pluses and minuses? Look at the school’s website and prepare questions for your interview. Think carefully about what you want to teach and then see what is available – you do not want to be in a wonderful country doing a job that you don’t like.

As far as Kenya is concerned, balance the package on offer with the opportunities that are available. Nairobi is a bustling, cosmopolitan city while the coast can be incredibly hot and places up-country can be remote. If you love heat or if you want to be well away from the City, choose a school that is outside the capital. The Kenyan IAPS schools are first class and are very highly regarded.

Is there a lot of paperwork involved for someone coming over to teach?

Not really. The schools themselves do the paperwork but teachers must supply the right documents as soon as they are requested. Make sure that you can lay your hands on the original certificates for your degree and teaching qualifications. Keep a stack of passport photographs to hand and it is also worthwhile making sure that from the UK, you have a current CRB form.

As a recruiter, what do you generally look for from candidates? And how do you interview people for vacancies from overseas?

Potential teachers must have the right qualifications, while experience of working in a prep school is a huge advantage. People who can show that they are flexible and are prepared to work hard get to the top of my list, as do those with more than one string to their bow. If you can play the piano, coach sport, lead field trips and direct a school play, for goodness’ sake say so.

Write your CV and letter of application with great care. Spelling and grammatical mistakes will ensure that your application goes in the bin. Show that you have done your homework – you should know where the school is and what sort of school we are.

Get the name right. If I get an application addressed to the Head of another school, what does that tell me?

Tell your referees that you are applying for jobs, so that they won’t be surprised when a reference request comes their way. Your current employer should always be a referee.

I will always interview face to face where possible. I interview candidates here and in the UK but it might not always be possible, in which case I would ask for an interview using Skype or some other audio-visual platform.

Try not to time waste. Apply for jobs that you are qualified to do and that you want to do. I do get some unusual applications from time to time, most of which begin To Whom It May Concern. Horrid! One in particular sticks out, in response to an advertisement for a Head of Geography: “As a mechanic with the City Hoppa Bus Company…” I’m sure he was a lovely guy, but not quite what I was looking for…

Anything else you’d like to add for teachers who are perhaps considering living and working overseas?

Do not be afraid to take the first step. By joining the School and Regional Talent Pools on Eteach, schools can access your CV regardless of whether they are currently recruiting or not. You never know, you might be just the person that they are looking for.

The Daily Telegraph reported last week that applications for teacher training courses have risen by more than a third, amid fears of job shortages because of the recession. And it seems record numbers are applying to teach maths and science.

The Telegraph reported that applications for teacher training courses are up by more than 10,000, after the new Lib-Con Government said that funding for front-line teachers would be protected.

“It is believed that the majority of the extra applicants are from ‘career changers’ attempting to break into the profession from other jobs”, said the paper.

The Training and Development Agency for Schools (TDA) says that record numbers of candidates have been applying to teach maths and science; its figures show that applications are up by 40 per cent and 33 per cent respectively, although the Agency also stresses that there’s still an urgent need for high quality science and maths teachers, with around 6,000 required each year.

“Move into teaching was one of the best decisions of my life”
The TDA points out that the quality of the incoming maths and science teaching pool is also high, with 53 per cent of those enquiring about teaching since the start of the current recruitment cycle (September 2009) having a 2.1 or better. More encouraging, it says, is that these top quality graduates are moving on to application stage. The latest available figures from TDA for 2007/08 show that 91 per cent of postgraduates on a teacher training course have a 2.2 or better, and 59 per cent have a 2.1 or better.

“Making the move into teaching was one of the best decisions of my life. I’ve progressed to be Head of Physics in just a few years and hope to rise further as I become more experienced,” said Frances Wing, who is Head of Physics at Nonsuch Girls Grammar School in Sutton. “It’s great to see that there is a rise in people wanting to teach maths and science given how vital these subjects are in giving future generations the skills they need to succeed.”

Science and Maths “key to economic prosperity”

TDA Chief Executive Graham Holley said that the increasing appetite for teaching maths and science is really encouraging.

“However, there is still a huge job to do in getting high numbers of quality teachers into these priority subjects. I’d urge anyone thinking about becoming a teacher to begin the process today. Good quality science and maths teaching will be key to our future economic prosperity,” he said.

See also our earlier post: Teaching: “A first class career with second class perceptions”