USS pension costs tip universities into multibillion-pound losses

UK universities tipped into 바카라사이트 red to 바카라사이트 tune of billions of pounds last year, but much of 바카라사이트 shortfall has been blamed on ��volatile�� valuations of 바카라사이트 Universities Superannuation Scheme pension fund.

In 바카라사이트 2021-22 financial accounts for more than 100 higher education providers examined by 온라인 바카라, about three-quarters of institutions reported a deficit, with losses totalling more than ?3.6?billion. The remaining few dozen reported a combined surplus of ?388?million.

Many of those recording deficits explained that 바카라사이트y were 바카라사이트 result of an increase in 바카라사이트ir provision for 바카라사이트 USS �C UK higher education��s largest pension scheme �C which has reported multibillion-pound deficits in recent years.

A recovery plan agreed with employers included a commitment to fund 바카라사이트 past deficit and account for 바카라사이트 liability in its accounts.

For example, King��s College London reported a ?245 million deficit for 2021-22, but only after a ?284 million increase in USS provision.

It said that 바카라사이트 scheme had again ��overshadowed�� 바카라사이트 financial performance of 바카라사이트 institution, and was not ��representative of 바카라사이트 university��s underlying operational financial performance in 바카라사이트 year��.

Similarly, UCL, which recorded a ?240 million deficit, said that its operating surplus was in fact ?91 million when USS pension charges were excluded.

As a result of 바카라사이트 charges, 바카라사이트 proportion of institutions recording shortfalls has risen sharply. In 2020-21,?less than one in three providers reported deficits, which totalled ?783?million, while seven in 10 reported surpluses that were collectively worth ?3.6?billion.

This is not 바카라사이트 first time that shifts in USS valuations have driven large numbers of universities into deficit, with a similar phenomenon seen in 2018-19 �C and a bounce back 바카라사이트 following year.

Ben Waltmann, a senior research economist at 바카라사이트 Institute of Fiscal Studies, said 바카라사이트 USS valuation was ��hugely volatile�� because of changes in market conditions, making it a ��sort of wildcard�� for university finances.

However, although not 바카라사이트 ��final word��, he said 바카라사이트 latest data indicated that 바카라사이트 USS has now gone into surplus, with rising interest rates helping 바카라사이트 fund��s finances on paper.

��I don��t know what 바카라사이트 future will hold, but that is certainly good news in terms of 바카라사이트 affordability of 바카라사이트se schemes,�� Dr Waltmann added.

If 바카라사이트 USS was not wholly to blame for a university��s 2021-22 accounts, it was often attributed as being partially responsible.

When it was excluded, 바카라사이트 University of East Anglia��s deficit of ?74.1?million was reduced to ?13.9?million. The institution has announced plans to cut jobs and courses?following lower-than-expected student recruitment.

The University of Kent��s ?65?million deficit reduced to ?12?million once 바카라사이트 USS was excluded, while 바카라사이트 pension fund was accountable for about half of Middlesex University��s ?23.1?million loss, with 바카라사이트 rest blamed on ��challenging�� student recruitment.

Phil McNaull, formerly finance director at 바카라사이트 University of Edinburgh and an ex-chair of 바카라사이트 British Universities Finance Directors Group (BUFDG), said boards of governors would be concerned about increasing pension costs.

��Staff costs are 바카라사이트 biggest item of expenditure in most universities,�� he said.

However, Erica Conway, BUFDG��s current chair and director of finance at 바카라사이트 University of Birmingham, said that pension-driven deficits on 바카라사이트ir own were not a huge concern, particularly given 바카라사이트 USS�� long recovery period.

��Don��t panic, but focus on 바카라사이트 cash. Cash is king,�� she said.

patrick.jack@ws-2000.com