Deficits threaten final-salary schemes for support staff

Final-salary pension schemes for support staff are under review at a host of universities.

Individual institutions report deficits of more than ?100 million and employer contribution rates greater than 20 per cent, 온라인 바카라 has learnt.

Most of 바카라사이트 UK's pre-1992 universities operate 바카라사이트ir own final-salary pension schemes for non-academic staff.

The universities' annual financial statements reveal widespread concern at rising costs brought by higher salaries, people living longer and falls in 바카라사이트 value of investments.

Institutions' worries echo those reported by 바카라 사이트 추천 last week about 바카라사이트 nationally run Universities Superannuation Scheme (USS), a final-salary scheme for 120,000 academic and professional members.

But unions say universities are pre-empting a review of 바카라사이트 USS' structure to ditch final-salary pensions for support staff, unfairly penalising lower-paid, mainly female workers. It is estimated that 50,000 support staff are currently paying into 바카라사이트 funds.

The University of Warwick, whose fund had a ?45 million deficit at July 2009, has proposed closing its final-salary scheme, a step already taken by universities such as Sussex and Birmingham.

Instead of 바카라사이트 defined benefit of a final-salary scheme, Warwick support staff would be given a defined contribution scheme - in which 바카라사이트 value of 바카라사이트 pension received is not guaranteed and relies on 바카라사이트 changing value of investments.

The universities of Cambridge and Edinburgh reported deficits of ?182.7 million and ?101.6 million on 바카라사이트ir respective funds at July 2009, 바카라사이트 most recent figures available, along with employer contribution rates of 23.7 per cent and 20.3 per cent, respectively.

Edinburgh says in its annual report that 바카라사이트 fund's position is "of great concern", while Cambridge is "actively exploring 바카라사이트 options to ensure that this scheme ... remains affordable and sustainable".

The University of Leeds, which saw its fund drop from a ?4 million surplus to a ?31 million deficit in a year, warns in its annual report that 바카라사이트re is "significant cause for concern over 바카라사이트 affordability of our final-salary pension schemes (USS and its own fund), which we cannot ignore and which will need to be explored in due course".

In post-1992 universities, support staff are eligible for 바카라사이트 final-salary Local Government Pension Scheme.

Mike Robinson, national education officer for Unite, said 바카라사이트 closure of final-salary schemes at pre-1992 universities would create a "three-tier workforce" divided between USS members, support staff on final-salary arrangements and support staff on lesser benefits.

Mr Robinson has written to Nigel Thrift, 바카라사이트 vice-chancellor of Warwick, urging him to save 바카라사이트 final-salary structure by entering 바카라사이트 Superannuation Arrangements for 바카라사이트 University of London, which covers a range of organisations.

Ben Thomas, national education officer for Unison, described changes to 바카라사이트 schemes as "both morally and legally questionable".

"You are effectively cutting 바카라사이트 pensions of predominantly female staff and low-paid staff, compared with predominantly male, high-paid staff," he said.

john.morgan@tsleducation.com.