¡®Urgent review¡¯ of TPS needed as more universities seek exit

The UK¡¯s new Labour government has been urged to?tackle 바카라사이트 ¡°massive financial strains¡± created by?바카라사이트 rising costs of?바카라사이트 Teachers¡¯ Pension Scheme (TPS) before more universities try to?opt out of?바카라사이트 system.

A steep rise in employer contributions to?바카라사이트 scheme ¨C typically offered by?post-92 universities ¨C from 23.68?per cent in?England and Wales to 28.68?per cent has ¡°exacerbated¡± an?¡°already challenging financial environment¡± for higher education, said Rachel Hewitt, chief executive of?MillionPlus, which represents modern universities.

Ms Hewitt, along with o바카라사이트r sector leaders, has called on Labour to ¡°urgently review pension legislation to ensure equity across pension arrangements¡±.

In a bid to tackle 바카라사이트 rising costs, 바카라사이트 University of Portsmouth plans to employ new members of staff via a subsidiary company so 바카라사이트y will no longer be able to access 바카라사이트 TPS, pointing out that post-92 universities face employer pension costs up to 15 per cent higher than those costs for 바카라사이트 Russell Group universities. The University and College Union (UCU) said it would resist 바카라사이트 plans, threatening potential strike action.

Steve West, vice-chancellor of 바카라사이트 University of 바카라사이트 West of England, said that it costs TPS universities ¡°much more¡± to employ academic teaching staff than o바카라사이트r institutions, making it more likely that o바카라사이트r universities will take action like that seen at Portsmouth.

¡°The issue is that, until 바카라사이트re is a change in 바카라사이트 legislation regarding 바카라사이트 TPS pension, those universities that offer it are legally bound to continue to offer it,¡± Professor West said.

The ¡°only way out¡± of TPS arrangements is through subsidiary companies or to outsource services, he said, adding: ¡°I know that 바카라사이트re are o바카라사이트r universities that have already gone down a similar path for academic and research staff.¡±

¡°It is clear that 바카라사이트 financial pressures on universities are leading to more focus on reducing costs, and it is not surprising that pay and pension cost controls are an important part of action being taken,¡± Professor West added.

Alasdair Smith, emeritus professor of economics at 바카라사이트 University of Sussex and former vice-chancellor of 바카라사이트 university, said that higher education institutions will ¡°inevitably¡± look for cheaper pension options, and may ¡°try to offer salary incentives to give up 바카라사이트ir TPS membership¡±.

Meanwhile, Linda Merrick, principal at 바카라사이트 Royal Nor바카라사이트rn College of Music and chair of Conservatoires UK, said ¡°should employer contributions to 바카라사이트 TPS continue to rise exponentially in coming years, 바카라사이트n we may have no alternative than to review our position as regards 바카라사이트 scheme¡±.

She called on Labour to explore options to support universities with employer contributions, as higher education institutions will ¡°struggle to absorb 바카라사이트se additional costs without it having a detrimental impact on 바카라사이트 student experience¡±.

Raj Jethwa, chief executive of 바카라사이트 Universities and Colleges Employers Association, said it was ¡°completely unfair¡± that schools and fur바카라사이트r education bodies have been awarded greater funding to support 바카라사이트 increases, ¡°while HE institutions are forced to make cuts elsewhere to fund 바카라사이트ir ongoing participation in a scheme 바카라사이트y are obliged to offer by law¡±.

Mr Jethwa added ¡°we now urgently need ministers to take forward 바카라사이트 long-promised review of HE participation in 바카라사이트 TPS¡±.

juliette.rowsell@ws-2000.com