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TDSB teacher job vs private school salary

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  • Jul 3rd, 2020 2:33 am
[OP]
Jr. Member
Nov 23, 2014
172 posts
39 upvotes
East York, ON

TDSB teacher job vs private school salary

I’ve got a friend who is a teacher at a private school. They got asked to provide references for TDSB, so assuming they will get hired to be a supply teacher.

I wanted to compare what is a better option financially and otherwise in switching to TDSB. The private school provides no pension, uses an old tdsb salary grid, basic health coverage which teachers pay in to monthly, and 10 vacation days but nobody really takes it.

Is anyone out there a teacher that can help me financially compare the benefit of the pension and what it’s worth? Essentially if the salaries are similar, what would be the other financial factors in comparing the opportunity?

I am guessing the pension is what I need to factor in the most. How do I assess the value of it? Need to account for what I put in today to contribute at tdsb while working and what I get back out?

The person has been teaching for about 7 years already. Assume early 30’s.

They would also likely be supply for a year and maybe two years before they get LTO and then full time.
6 replies
Jr. Member
Sep 16, 2008
175 posts
21 upvotes
You get credit 2% of your best 5 years average salary for every full year of work. So if you teach for 25 years (eg. age 35 to 60), you get 25*2 = 50% of your average of best 5 years salary as a pension.
So if many years from now, you retire at a time when teacher salaries are closer to 130k (assuming current a low 1% growth per year for the next 25 years), then you will get a hefty pension of 65k annual based on my scenario.

Eligible to retire with unreduced pension when you reach 85 factor (age + years of work).
Deal Addict
Jan 9, 2010
2607 posts
2359 upvotes
Some private schools are part of the pension plan, although I suspect that these are also the better paid (ie. more renowned) ones.
You must contribute to the plan if you're qualified as a teacher and employed in any of the following ways:

in any capacity:
by a board of education
by a designated private school or designated organization
https://www.otpp.com/members/cms/en/res ... oyers.html
Sr. Member
Jan 29, 2020
504 posts
476 upvotes
All reputable private schools (UCC/Branksome/BSS/St Andrews etc) provide access to the teacher's pension plan, with competitive salaries. Main advantage is that every student has passed an entrance exam, lower ESL, less students with special needs. The learning happens faster because the kids are playing at a higher level. The school year is usually shorter by a few weeks. Problem children can be asked not to return, they don't cause problems for years and years. It's not that the kids don't have problems, the drugs are there only higher end ones. But there are not big social problems of the kind you find in government schools, where some kids are not teachable/coachable. There are not resource/budget issues because the customers are not price sensitive, we were paying $70k per year.

There was no evidence of a lot of teachers moving to government schools when our kid was at one of the schools I mentioned. Teachers spent their whole careers there and seemed happy.
Deal Addict
User avatar
Mar 29, 2008
3867 posts
1021 upvotes
moofur wrote: Some private schools are part of the pension plan, although I suspect that these are also the better paid (ie. more renowned) ones.
https://www.otpp.com/members/cms/en/res ... oyers.html
Cashforlife wrote: All reputable private schools (UCC/Branksome/BSS/St Andrews etc) provide access to the teacher's pension plan, with competitive salaries. Main advantage is that every student has passed an entrance exam, lower ESL, less students with special needs. The learning happens faster because the kids are playing at a higher level. The school year is usually shorter by a few weeks. Problem children can be asked not to return, they don't cause problems for years and years. It's not that the kids don't have problems, the drugs are there only higher end ones. But there are not big social problems of the kind you find in government schools, where some kids are not teachable/coachable. There are not resource/budget issues because the customers are not price sensitive, we were paying $70k per year.

There was no evidence of a lot of teachers moving to government schools when our kid was at one of the schools I mentioned. Teachers spent their whole careers there and seemed happy.
+1. Plus it seems like the professional development opportunities like courses are better. Downside may be having to deal with parents that are a little too involved!
[OP]
Jr. Member
Nov 23, 2014
172 posts
39 upvotes
East York, ON
Cashforlife wrote: All reputable private schools (UCC/Branksome/BSS/St Andrews etc) provide access to the teacher's pension plan, with competitive salaries. Main advantage is that every student has passed an entrance exam, lower ESL, less students with special needs. The learning happens faster because the kids are playing at a higher level. The school year is usually shorter by a few weeks. Problem children can be asked not to return, they don't cause problems for years and years. It's not that the kids don't have problems, the drugs are there only higher end ones. But there are not big social problems of the kind you find in government schools, where some kids are not teachable/coachable. There are not resource/budget issues because the customers are not price sensitive, we were paying $70k per year.

There was no evidence of a lot of teachers moving to government schools when our kid was at one of the schools I mentioned. Teachers spent their whole careers there and seemed happy.
Thanks, from what I understand, the big differences are, in times like this, there is a frozen salary, no raise this year. They might use a TDSB grid that is a bit old (not a big deal). The pension they provide is like $4k a year free, which is nice, but this seems to be the big gap compared to TDSB, in which you are likely paying 5-10k in each year as a cost, but getting 50-60k at age 65+.

If you assume regular compensation is the same, the only difference is the pension, with TDSB, its guaranteed 50k+ a year from 60 to 85, with private school,they basically put 4k in your rrsp each year.

Would you switch just for the pension? If you do the math, it adds up to a lot.
Deal Addict
Nov 13, 2013
3821 posts
2373 upvotes
Ottawa
Well you can value the pension based on what they put it which seems reasonable though maybe it is worth slightly more if you consider they are taking the risk. It also might be worth less as it is more restricted than straight cash you put in your own RRSP. Importantly the pension contributions are based on the average person. So straight up it is worth substantially more to the typical woman. If you have a family history of living a long time and are healthy and active it's worth again more to you. I know quite a few people who collected these big pensions for only a few years never receiving even in straight dollars what they paid in. Meanwhile an uncle was common law with a woman half his age when he died and she is collecting something for life. If that is much value to him I don't know. His kids would have probably preferred he was investing as all his savings was his pension and only a spouse can get that.

All that to say You can't make some huge valuation bases on the millions you estimate you will collect in todays dollars.

Sure private school weeds out troubled kids but I wouldn't say this they are always easier to teach at. My dad was a teacher and I know he always said he wouldn't even wanted to teach at our affluent public school where the parents were involved and constantly complaining. I imagine private school is worse and the administration even less on the side of teachers in these disputes.

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