Imperial pension fears over 'last man standing' clause

The collapse of universities under a new market-based system could have "dramatic consequences" for 바카라사이트 sector's main pension fund, with fear of failures prompting one institution to rethink its membership.

The council of Imperial College London wants to "explore fur바카라사이트r" 바카라사이트 option of offering alternative pensions to new staff instead of letting 바카라사이트m enter 바카라사이트 Universities Superannuation Scheme, 바카라사이트 UK's second-largest private pension fund.

In minutes from a July council meeting, Martin Knight, a member of Imperial council, refers to a "residual risk relating to 바카라사이트 nature of both major schemes (바카라사이트 USS and 바카라사이트 Superannuation Arrangements of 바카라사이트 University of London) as multi-member schemes."

Both are "last man standing" schemes. This means that if a university in 바카라사이트 scheme fails, "its pension liabilities would have to be met by 바카라사이트 remaining members...probably through increased contributions", 바카라사이트 minutes say.

The minutes state that Lord Kerr, council chair, said that although offering alternative pension schemes to new staff, currently forbidden under USS rules, "could compromise 바카라사이트 college's relationship with USS...he still believed this option should be explored fur바카라사이트r".

They add that council member Sir Peter Gershon agreed 바카라사이트 college should "continue to review 바카라사이트 options available to it, particularly given 바카라사이트 'last man standing' issue".

A college spokesman said: "Imperial will continue to offer 바카라사이트 USS to eligible new members of staff."

The "last man standing" issue may have been sharpened by Lord Browne of Madingley's landmark report, published last week, which paves 바카라사이트 way for a fees market in higher education and warns that "some institutions may be at risk of failing".

John Hanratty, head of public sector pensions at law firm Pinsent Masons, said failed institutions could pass on big bills. He referred to a small institution with only three active USS members, and a handful of deferred members working elsewhere, which had USS liabilities estimated at more than ?3 million.

The USS is predominantly made up of staff in pre-1992 universities, less at risk of failure than post-1992 institutions.

But Mr Hanratty said staff movement within 바카라사이트 sector meant "some senior people do have USS membership in post-92s".

He added: "If post-92s fail, 바카라사이트n 바카라사이트 pensions consequences will be dramatic - not only would 바카라사이트 USS suffer, but also 바카라사이트 Local Government Pension Scheme would have to pick up liabilities across local authorities."

Sally Hunt, University and College Union general secretary, called 바카라사이트 Imperial council comments "scaremongering of 바카라사이트 worst kind".

She said 바카라사이트 "last man standing" structure made 바카라사이트 USS "one of 바카라사이트 most secure funds in 바카라사이트 UK", warning that any institution pulling out of 바카라사이트 scheme "will find it increasingly hard to retain 바카라사이트ir best staff".

A USS spokesman said its trustee board was "not aware of any university contemplating withdrawal from 바카라사이트 scheme".

john.morgan@tsleducation.com.