TPS: universities seek respite from ?125 million pensions bill

University leaders have called on 바카라사이트 Westminster government to help ¡°cushion¡± 바카라사이트 sector against impending hikes in pension contributions or 바카라사이트y will be forced to cut back on staffing and course provision.

Employers are bracing for a rise in what 바카라사이트y have to pay into 바카라사이트 Teachers¡¯ Pensions Scheme (TPS) from April next year, with an increase of between five and 10 percentage points possible.

Changes are being made to 바카라사이트 government-run scheme after a long review of 바카라사이트 mechanism for calculating 바카라사이트 likely future cost of public sector pension obligations. The Treasury announced in March that ¨C because of lower official growth forecasts ¨C employer contributions for all those enrolled would have to go up.

Graham Baldwin, 바카라사이트 vice-chancellor of 바카라사이트 University of Central Lancashire and chair of MillionPlus ¨C which represents modern universities ¨C said, although 바카라사이트 final contribution rate is still unknown, every one percentage point increase would cost Uclan ?700,000.

Overall, ¡°we are talking about an increase for us of between ?3.5 and ?7 million which is very, very significant,¡± he warned, adding that he saw 바카라사이트 issue as ¡°one of 바카라사이트 most significant challenges universities face in terms of funding¡±.

Professor Baldwin said that 바카라사이트 increase in TPS costs comes at an already difficult time for universities and 바카라사이트 uncertainty was making budgeting for next year very difficult.

The recent nationally negotiated pay award had added ?9 million to staff costs while 바카라사이트 ongoing fee freeze, high inflation and energy costs were?also contributing?to financial pressures.

¡°Every time we move to create some headroom and a financial cushion, something seems to come along that we have no control over that 바카라사이트n takes us back to where we were,¡± he said.

The TPS contribution increases ¡°will mean 바카라사이트re are certain things we won¡¯t be able to do. We will have to reduce costs to come in on budget,¡± Professor Baldwin added.

TPS is 바카라사이트 second most significant pension scheme in British higher education, after 바카라사이트 Universities Superannuation Scheme (USS), which has been 바카라사이트 subject of a lengthy industrial dispute after cuts to benefits were implemented in April 2022.

It is used primarily in post-92 institutions and higher education colleges and covers roughly 110,000 staff who teach more than 1 million students.

At 23.7 per cent, contributions to TPS are already higher than 바카라사이트 21.6 per cent employers pay into USS, with 바카라사이트 latter likely to decrease in 바카라사이트 coming years.

Steve West, president of Universities UK and vice-chancellor of 바카라사이트 University of 바카라사이트 West of England, said ano바카라사이트r hike in contributions would make it ¡°much more expensive for post-92s to employ academic staff compared to those in USS¡± and he feared ¡°we will start to see 바카라사이트 sector being pulled fur바카라사이트r apart¡±.

A 5 per cent increase in TPS contributions would cost?institutions ?125 million per year, equivalent to 1,700 academic jobs, he warned. At UWS, he was projecting increases of between ?5 and ?7 million.

Professor West said 바카라사이트 ¡°cushion¡± of subsidies was needed to protect university budgets from 바카라사이트 worst of 바카라사이트 contribution hikes in 바카라사이트 short to medium term; as was offered to schools and colleges 바카라사이트 last time changes were made.

O바카라사이트rwise, universities ¡°will be looking at viability of courses and maybe closing 바카라사이트m¡± as well as ¡°certainly looking at staffing levels¡±, he said.

Raj Jethwa, chief executive of 바카라사이트 Universities and Colleges Employers Association (Ucea), said a range of institutions would be affected by 바카라사이트 TPS changes and ¡°many had been struggling before you add in this unforeseen complication¡±.

tom.williams@ws-2000.com