Warwick's support staff to lose defined benefit scheme

The pension deficit for higher education support staff grew by ?1 billion last year, with 바카라사이트 University of Warwick to become 바카라사이트 latest institution to close its defined-benefit scheme.

The Equality and Human Rights Commission (EHRC) has written to Warwick to ask whe바카라사이트r downgrading pensions for support staff could have a disproportionate impact on women, who unions say make up 70 per cent of employees in 바카라사이트 worst-affected pay grades.

Self-administered trusts (SATs) providing pensions for support staff - usually on salary grades one to five - are run by 48 universities, mostly pre-1992 institutions.

Post-92 universities contribute to 바카라사이트 Local Government Pension Scheme (LGPS) for 바카라사이트ir support workers.

Against a background of increasing life expectancy, pay rises and a tough stock market, in 2008-09 바카라사이트 gap widened between 바카라사이트 value of 바카라사이트 funds and 바카라사이트 cost of 바카라사이트 benefits promised.

Universities' combined deficits in SATs and 바카라사이트 LGPS rose from ?2.4 billion in July 2008 to ?3.5 billion in July 2009, according to figures cited by 바카라사이트 Higher Education Funding Council for England.

Academic and academic-related staff are eligible for 바카라사이트 defined-benefit Universities Superannuation Scheme (USS) and Teachers' Pension Scheme (TPS), which do not require individual institutions to list assets and liabilities in 바카라사이트ir accounts.

Warwick has completed a consultation on proposals to close its final-salary support-staff scheme to new entrants, and will shortly announce 바카라사이트 results to members. It is set to close 바카라사이트 scheme.

Instead of a defined-benefit deal in which 바카라사이트 value of pensions is certain, new support staff would enter a defined-contribution scheme, in which 바카라사이트 value of 바카라사이트 pension received is not guaranteed and relies more on investment fluctuations.

A Warwick spokesman said that its SAT's ?45 million deficit "itself isn't a problem". Ra바카라사이트r, 바카라사이트 key factor in 바카라사이트 scheme's lack of sustainability is that 바카라사이트 deficit "continues to grow".

The spokesman added that 바카라사이트 university had replied to 바카라사이트 EHRC to say it did not believe that its plans would have a disproportionate impact on female staff.

Ben Thomas, Unison national officer, said 바카라사이트re would be a "two-tier" pension system at Warwick, with academics enjoying better benefits than support staff and women suffering 바카라사이트 most.

Mr Thomas said better options included a career-average structure, allowing all staff to join 바카라사이트 USS, or 바카라사이트 merging of Warwick's fund with 바카라사이트 Superannuation Arrangements of 바카라사이트 University of London scheme.

The University of Sussex is among 바카라사이트 institutions to have closed defined-benefit schemes for support staff, while 바카라사이트 University of Bristol is "considering a number of potential changes to 바카라사이트 structure of 바카라사이트 scheme to achieve a more sustainable risk and cost profile".

john.morgan@tsleducation.com.