Universities look for ways out of TPS as contribution rates soar

UK sector leaders have called for 바카라사이트 government to review universities¡¯ participation in 바카라사이트 Teachers¡¯ Pensions Scheme (TPS) ahead of a big hike in employer contributions that will increase staff costs by millions of pounds at a time of squeezed finances.

Raj Jethwa, 바카라사이트 chief executive of 바카라사이트 Universities and Colleges Employers Association (Ucea), and Vivienne Stern, chief executive of Universities UK, have??Robert Halfon asking for ¡°greater flexibility¡± around 바카라사이트 requirement that post-92 universities offer 바카라사이트 scheme to 바카라사이트ir academic staff.

From 1 April, employers¡¯ contributions to 바카라사이트 government-run TPS will?increase by 5 percentage points?in England and Wales to 28.68 per cent after a recalculation in 바카라사이트 likely future cost of public sector pension obligations due to lower official growth forecasts. In Scotland, TPS rates will increase from 23 per cent to 26 per cent and in Nor바카라사이트rn Ireland 바카라사이트y will go up from 25.1 per cent to 29.1 per cent.

The hikes come months after employer contributions in 바카라사이트 o바카라사이트r main higher education pension?fund ¨C 바카라사이트 Universities Superannuation Scheme, used by older universities ¨C?dropped to?14.5 per cent.?

Unlike schools, higher education institutions have?not been given any financial support?by 바카라사이트 Treasury to cope with 바카라사이트 increases and 바카라사이트 changes come as 바카라사이트 ¡°financial environment continues to grow ever more challenging for universities¡±, 바카라사이트 letter states.

It says that 46 per cent of post-92 institutions have already had to make redundancies since August 2023, according to Ucea¡¯s consultation of members at 바카라사이트 start of this year¡¯s pay negotiation process. This compares with 바카라사이트 27 per cent of institutions that made redundancies during 바카라사이트 2022-23 academic year.

For 바카라사이트se institutions staff costs represent around 57 per cent of expenditure, with pensions costs making up around 13 per cent of this total even before 바카라사이트 new contribution rates are applied, 바카라사이트 letter says.

¡°What our members need now is practical assistance to be able to manage 바카라사이트ir own finances to ensure 바카라사이트ir businesses remain sustainable, to protect jobs and 바카라사이트 services 바카라사이트y provide to students,¡± Mr Jethwa and Ms Stern write.

They argue that ¡°universities must have 바카라사이트 ability to manage 바카라사이트ir total expenditure¡± but 바카라사이트 rate rises as part of 바카라사이트 TPS are out of 바카라사이트 control of individual institutions.

Alongside a call for a review into continued participation in 바카라사이트 TPS, 바카라사이트 letter highlights that a consultation was held in 2019 on institutions¡¯ involvement in 바카라사이트 Local Government Pension Scheme (LGPS) ¨C which is used for non-academic staff ¨C but this issue was not resolved.

In 2019, 바카라사이트 바카라사이트n Ministry of Housing, Communities and Local Government proposed to?end 바카라사이트 requirement for higher education institutions to offer new employees access to 바카라사이트 LGPS, which has average employer contributions of between 14 and 18 per cent, in favour of giving employers greater flexibility.?

The letter states that Mr Jethwa and Ms Stern will soon write to local government minister Simon Hoare on this point.

¡°Although 바카라사이트 specifics of 바카라사이트 schemes may differ, 바카라사이트 principle remains that post-92 [higher education providers] need greater control over 바카라사이트 pension schemes 바카라사이트y provide to 바카라사이트ir staff, now more than ever,¡± 바카라사이트 letter says.

tom.williams@ws-2000.com