The Teachers' Pension Scheme (TPS) will be given £940m of government funding in an aim to ensure it remains "among the most generous in the country".
Following a consultation, the Department for Education yesterday (11 April) announced it will fully cover the increase to pension contributions required from state-funded schools and colleges in 2019/20.
The consultation followed a regular four-year review of public-sector pension schemes - but also concluded no funding would be granted on behalf of a handful of universities and independent schools also in the scheme.
It comes after the Treasury last September announced plans to raise employer contributions to the TPS from 16.5% to 23.6% of salary after revised actuarial calculations, including a change to the discount rate.
Based on the government's own calculations, around 70 universities - which are required by law to participate in the TPS - will be required to fund £142m of contributions over the next year.
The universities participating in the TPS are those formed after 1992 but the government said "state schools and further education colleges were in high levels of need for additional support" and the judgement had to be "finely balanced".
Education secretary Damian Hinds said: "The TPS is, quite rightly, one of the most generous pension schemes in the country. It's one of only eight guaranteed by the government because we believe it is important that we continue to offer excellent benefits to attract talented teachers."
But Universities UK chief executive Alistair Jarvis said he was "disappointed" at the government's conclusion.
"This is effectively a stealth tax to boost the Treasury's coffers," he added. "It represents annual cost increases of an estimated £142m for around 70 post-92 universities across the UK from September.
"Ultimately, this will have to be paid for by diverting funding from other priorities. [The] announcement in England is bad news for university students, staff and communities that benefit from universities.
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