Universities and lecturers have written to the Scottish Government calling for extra cash to plug a new pensions black hold for the sector.
A joint letter from Universities Scotland and the UCU lecturers’s union highlights “grave concerns” following the proposed amendments to public sector pensions by the UK Treasury.
The changes impact on the Scottish Teachers’ Pension Scheme used by universities north of the Border.
The letter states: “You will know that our organisations have been raising with you and your colleagues our belief in the need for the Scottish Government to make investments additional to the Scottish Budget to support the success of higher education and its contribution to Scotland’s progress.
“The unfunded increase in pension costs faced by Scottish higher education institutions is very difficult to meet from a flat-cash budget settlement.
“We are deeply concerned that this cost will impact detrimentally on students and staff in Scottish universities.”
The letter says universities have now received notification from the Scottish Public Pensions Agency that the employer contribution to the Scottish scheme will increase even more steeply than expected, rising from 17.2 per cent of salary to 23 per cent from 1 September this year.
It goes on to call for the Scottish Government to use additional money from Westminster that is part of the UK-wide Budget process - known as consequentials - to be given to universities.
The letter adds: “Can you confirm that these funding consequentials will be forthcoming and that the Scottish Government is committed to using them to mitigate the impact of increased employer pension contributions for all the sectors affected, including higher education?”
A Scottish Government spokesman said officials were aware of the Treasury changes to public sector pension schemes, including the harmful impact these would have on many universities’ financial positions.
He added: “The Finance Secretary wrote to the Chancellor early this month to press him to meet the full costs of changes to employer contributions to public sector pensions, including the teachers’ pension scheme.
“The Scottish Public Pensions Agency continues to press the Treasury to confirm the extent to which it will provide assistance to address the shortfall in public sector pension schemes arising from these changes.”
The pension changes add to other cuts including to core budgets.
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