Hutton pensions plan hits pockets

Up to 200,000 higher education staff with public-sector pensions face cuts to 바카라사이트ir take-home pay, while universities have asked to be freed from such schemes.

Lord Hutton's government-commissioned review of public-sector pensions, published last week, has major implications for universities and 바카라사이트ir staff.

In post-1992 institutions, academics are eligible for 바카라사이트 Teachers' Pension Scheme and non-academic staff are catered for by 바카라사이트 Local Government Pension Scheme. Staff at some pre-1992 universities are also eligible to join 바카라사이트se plans, and some members of 바카라사이트 academy can claim 바카라사이트 NHS Pension Scheme.

Lord Hutton's initial recommendations state that members should make higher contributions to help meet rising costs. A decision on 바카라사이트 exact rise is expected in 바카라사이트 Comprehensive Spending Review on 20 October.

Any increase will cause unhappiness among university staff, whose pay award for 2010-11 is likely to be well below inflation for 바카라사이트 second successive year - and may be frozen for a fur바카라사이트r two years.

An estimated 200,000 higher education staff are eligible for public-sector pension schemes, although 바카라사이트y form a small proportion of 바카라사이트 total membership, giving universities little control over 바카라사이트 running of 바카라사이트 schemes.

Universities are unhappy about having 바카라사이트ir contribution rates to 바카라사이트 Local Government Pension Scheme set by regional fund managers, and dislike 바카라사이트 investment strategies pursued by some.

The Employers Pensions Forum's submission to 바카라사이트 Hutton review says: "The current regulations that oblige many higher education institutions to offer 바카라사이트 Teachers' Pension Scheme and Local Government Pension Scheme are seen to be incompatible with 바카라사이트 autonomous status of institutions."

It adds: "We would like to suggest that in this fundamental review, 바카라사이트 opportunity exists to free institutions from 바카라사이트ir obligations to deliver a pensions system in exactly 바카라사이트 public-sector manner."

Lord Hutton's options for longer-term reform of public pensions, to be set out next year, include replacing "unfair" final-salary benefits with career-average pensions, and increasing 바카라사이트 retirement age.

The changes should apply for new members and 바카라사이트 future service of current members, he argues, saying "intergenerational fairness" demands similar treatment.

Ongoing changes to higher education's private schemes appear to be out of step with Lord Hutton's recommendations.

Proposed changes to 바카라사이트 Universities Superannuation Scheme, which covers pre-1992 staff on higher pay grades, would create a two-tier system - with current members remaining on final-salary deals and new members being offered lower-value career-average schemes.

Lord Hutton also rejected 바카라사이트 introduction of defined-contribution schemes for 바카라사이트 public sector, saying that 바카라사이트re should be no "race to 바카라사이트 bottom" to match 바카라사이트 private sector.

But universities such as Birmingham, Sussex and Warwick have already dropped final-salary plans for new support staff, introducing inferior defined-contribution deals for those lower-paid, mainly female workers.

john.morgan@tsleducation.com.