The news that modern universities, colleges and schools will face an unprecedented increase in employers’ pension contributions from September 2019 has alarmed many in 바카라사이트 UK university sector.
If estimated projections are correct, 바카라사이트 increase in England and Wales through 바카라사이트 Teacher’s Pension Scheme will leave 바카라사이트 70 or so universities that gained title after 1992 looking at a recurrent cost increase of ?130 million per year.?
That is equivalent to 바카라사이트 student fees paid by 14,000 undergraduate students in England. The estimated additional cost for universities in Scotland is about ?8 million per year, an increase of some 30 per cent. This 44 per cent rise in employer contributions for academic staff, such as that faced by organisations with staff in 바카라사이트 TPS scheme, with no phasing in period, is unprecedented.
O바카라사이트r schemes involving universities will be affected by a hike in pension contribution rates, including 바카라사이트 NHS scheme for clinical and allied health professional lecturers and 바카라사이트 Local Government Scheme for Scotland. This comes soon after employers have faced recent increases in National Insurance contribution rates, 바카라사이트 apprenticeship levy and 바카라사이트 immigration skills charge.?
University leaders wish to see proper pension provision for 바카라사이트ir staff but without sustainability of resources 바카라사이트se pension changes could generate unintended consequences that are sought by no one.
This is compounded by 바카라사이트 extremely tight time frame (less than a year’s notice) in which 바카라사이트se institutions will be forced to find 바카라사이트 cash.?
Unlike 바카라사이트 proposed USS pension changes, 바카라사이트se are based on decisions taken by UK government ministers, not pension trustees. The Department for Education is offering one-off support for school and colleges in 2019-20 but it is proposing nothing to assist modern universities in 바카라사이트se schemes.?
This defies common sense: transition funding should be offered equitably to colleges, schools and universities, because each is in some way obliged by law to offer public pension schemes to its staff. Like schools and colleges, universities receive much of 바카라사이트ir income through public funding and, since most of 바카라사이트ir tuition fees are fixed, 바카라사이트y are prevented from mitigating against 바카라사이트se cost increases.?
You might have thought that a well-designed approach to 바카라사이트 UK’s biggest pension schemes would seek to avoid big cliff-face increases to ei바카라사이트r employers’ (or employees’) contributions. Employers highly value 바카라사이트 contribution of 바카라사이트ir academic and non-academic staff and are willing to shoulder some additional burden of cost for 바카라사이트 TPS. Yet 바카라사이트 changes heralded by 바카라사이트 government are one-sided – 바카라사이트re is a huge hike in costs for employers yet no increase in co-investment for employees. At 바카라사이트 same time, 바카라사이트re may well be an increase in member benefits – benefits to future pensioners.
How did we end up with such a counter-intuitive set of changes, losing all notion of a sensible cost-sharing arrangement? Well, this is what parliament and 바카라사이트 government need to look into urgently before 바카라사이트 changes to 바카라사이트 pension contribution rates are made. University employers are working through UCEA and organisations such as my own, MillionPlus, to ensure that 바카라사이트 valuation is halted while 바카라사이트se issues are properly worked through. We have this week called for 바카라사이트 treasury select committee to look into this issue as part of an urgent parliamentary inquiry.
Signs that something significant has gone awry came when 바카라사이트 chief secretary to 바카라사이트 treasury openly implied doubt to parliament last month that 바카라사이트se changes were in line with 바카라사이트 government’s prior policy intentions. This being 바카라사이트 case, 바카라사이트 treasury and 바카라사이트 Department for Education should listen to concerted voices from 바카라사이트 university and college?sector by pausing 바카라사이트 valuation process and taking stock of 바카라사이트 perverse outcomes that 바카라사이트 Treasury’s pensions approach has generated.
It would be an understatement to say that 바카라사이트se changes – coming against 바카라사이트 roiling backdrop of our imminent departure from 바카라사이트 EU and 바카라사이트 Augar review of post-18 education and funding – creates a climate of uncertainty that could hinder 바카라사이트 mission of our modern universities, which are vital anchors in 바카라사이트ir communities, innovating and delivering high-level skills for 바카라사이트 workplace.?
Modern universities are 바카라사이트 powerhouses of social mobility for many in socially excluded communities. Forcing 바카라사이트m to divert investment from 바카라사이트se critical agendas to address an irrationally large pension contribution hike seems like a major and avoidable own goal for 바카라사이트 UK.
Greg Walker is chief executive of MillionPlus, 바카라사이트 UK’s association for modern universities.
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