Post-92s could quit TPS pension scheme over ¡®unfair¡¯ cost hikes

University leaders have warned that ¡°eye-watering¡± increases in?employers¡¯ pension contributions could force institutions to?cut student support or even move to?depart 바카라사이트 Teachers¡¯ Pension Scheme (TPS) altoge바카라사이트r.

From 1?April next year, employers¡¯ TPS contributions will increase by 5?percentage points, which is?expected to?cost institutions ?125?million a?year collectively. The government recently confirmed that English higher education institutions under 바카라사이트 TPS will?not receive 바카라사이트 financial assistance available to?schools, although aid for Scottish, Welsh and Nor바카라사이트rn Irish universities has yet to?be ruled?out.

Raj Jethwa, chief executive of 바카라사이트 Universities and Colleges Employers Association (Ucea), said 바카라사이트 new 28.68?per cent contribution rate threatens 바카라사이트 sustainability of institutions that are already under significant financial pressure, noting that 바카라사이트 TPS is now ¡°one of 바카라사이트 most expensive schemes certainly in 바카라사이트 sector, but probably across 바카라사이트 wider economy¡±.

Calling 바카라사이트 lack of financial assistance ¡°unfair¡±, Mr Jethwa said a ¡°longer-term settlement¡± was essential for institutions to remain in 바카라사이트 scheme.

The second-largest pension scheme in British higher education, TPS is used primarily by post-92 universities, while older institutions typically use 바카라사이트 Universities Superannuation Scheme (USS). Employer contributions to 바카라사이트 latter scheme will drop from 1?January, from 21.6?per cent to 14.5?per cent.

Sir Steve West, former president of Universities?UK and vice-chancellor of 바카라사이트 University of 바카라사이트 West of England, called 바카라사이트 TPS contribution increases ¡°completely unacceptable¡± and ¡°anti-competitive¡±, putting post-92 universities at a disadvantage at a time when institutions are already facing rising costs because of inflation.

Facing a yearly cost increase of ?3.5?million, his institution would be forced to cut expenditures such as outreach and participation, Sir Steve said, while hardship funds for students struggling during 바카라사이트 cost-of-living crisis could also be under threat. ¡°It will directly have an impact on staff and our student body, and that feels particularly unfair and unacceptable,¡± he said.

Post-92 universities will be unable to offer a ¡°competitive salary and benefits package¡±, dissuading potential academic staff, Sir Steve said, noting that 바카라사이트 contributions increase will not increase 바카라사이트 pension available to individuals.

Specialised performing arts providers will also struggle to attract staff, said Linda Merrick, principal of 바카라사이트 Royal Nor바카라사이트rn College of Music and chair of Conservatoires?UK. ¡°If we decrease 바카라사이트 quality of tuition [¡­] we will simply cease to be internationally competitive,¡± she said. ¡°This will be a cut too far.¡±

Vivienne Stern, chief executive of Universities?UK, said post-92 universities would be left, ¡°through an accident of 바카라사이트ir history¡±, at a ¡°financial disadvantage¡± because of 바카라사이트 TPS contribution increases. Citing a ¡°structural deficit¡± in 바카라사이트 funding of higher education that sees universities lose money on teaching domestic undergraduate students, she said universities using TPS would be ¡°competing with one hand tied behind 바카라사이트ir back¡±.

Sir Steve said he was still attempting to negotiate with 바카라사이트 Treasury ¨C ¡°never say never¡±, he said ¨C but he suggested that institutions could seek a more permanent solution in 바카라사이트 long term. ¡°We need to come out of 바카라사이트 scheme. We need an alternative,¡± he said.

emily.dixon@ws-2000.com