16 October 2024
UCEA and UCU have jointly written to HM Treasury to highlight the severe impact on HE institutions of the increase in TPS employer contribution rates and the lack of additional funding to meet these costs. The joint letter also identifies the driver of this increase in cost as the reduction in the SCAPE (Superannuation Contributions Adjusted for Past Experience) discount rate set by HMT. Neither UCEA nor UCU believe that the current SCAPE discount rate meets its initial policy objectives, particularly those of fairly reflecting the costs to be taken into account when making employment decisions, reflecting future risks to government income or providing stability in terms of employer costs.
UCEA and UCU have urged the Treasury to undertake a review of the SCAPE discount rate as soon as possible and ideally in advance of the 2024 valuation result. We have reemphasised the financial challenges facing the HE sector and that pension costs need to be tackled as part of any long-term solution.
The letter can be found below:
UCEA and UCU joint letter to the Chief Secretary on the SCAPE rate
ENDS
For further information regarding TPS please contact - Emelda Nicholroy, Head of Pensions Policy or Richard Paul, Senior Pensions Technical Adviser via pensions@ucea.ac.uk
For media enquiries, please contact - Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk) or Marc Whittaker, Communications and Events Manager (m.whittaker@ucea.ac.uk).
UCEA and UCU have jointly written to HM Treasury to highlight the severe impact on HE institutions of the increase in TPS employer contribution rates and the lack of additional funding to meet these costs. The joint letter also identifies the driver of this increase in cost as the reduction in the SCAPE (Superannuation Contributions Adjusted for Past Experience) discount rate set by HMT. Neither UCEA nor UCU believe that the current SCAPE discount rate meets its initial policy objectives, particularly those of fairly reflecting the costs to be taken into account when making employment decisions, reflecting future risks to government income or providing stability in terms of employer costs.
UCEA and UCU have urged the Treasury to undertake a review of the SCAPE discount rate as soon as possible and ideally in advance of the 2024 valuation result. We have reemphasised the financial challenges facing the HE sector and that pension costs need to be tackled as part of any long-term solution.
The letter can be found below:
UCEA and UCU joint letter to the Chief Secretary on the SCAPE rateENDS
For further information regarding TPS please contact - Emelda Nicholroy, Head of Pensions Policy or Richard Paul, Senior Pensions Technical Adviser via pensions@ucea.ac.uk
For media enquiries, please contact - Andy Fryer, Head of Communications and Membership (a.fryer@ucea.ac.uk) or Marc Whittaker, Communications and Events Manager (m.whittaker@ucea.ac.uk).
