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HEFCE

July 2008/23
Policy development
Consultation

Reponses should be sent to HEFCE by Friday 17 October 2008.


Reimbursement of inherited staff liabilities
Consultation on possible changes to HEFCE policy

This is a consultation on possible changes to HEFCE's policy of reimbursing inherited staff liabilities.

Outcome of the consultation: Next steps and summary of consultation responses


To: Heads of HEFCE-funded higher education institutions in receipt of reimbursement
Principal Finance Officers of local authorities and pension authorities in receipt of HEFCE funding
Of interest to those responsible for: Audit, Finance, Senior management, Governance
Reference: 2008/23
Publication date: July 2008
Enquiries to: Donna Iafrati
tel 0117 931 7357
e-mail d.iafrati@hefce.ac.uk

Executive summary (read online)


Download

Main report

[ MS Word 125K | Zipped Word 44K | Adobe PDF 103K | Zipped PDF 74K ]

Appendix A - Consultation response form

[ MS Word 48K | Zipped Word 8K ]

Appendix B - Categories reimbursed

[ MS Word 151K | Zipped Word 120K ]


Executive summary

Purpose

1.   This is a consultation on possible changes to HEFCE's policy of reimbursing inherited staff liabilities.

Key points

2.   Later in 2008-09, the HEFCE Board will be considering its policy towards the reimbursement of inherited staff liabilities. We wish to consult higher education institutions and those local authorities and pension authorities in receipt of this funding to inform the Board's discussion.

3.   The views being sought relate both to the policy itself and to how any change might be implemented should the HEFCE Board conclude that it wishes to change its policy.

4.   The proposed changes in policy are:

  1. Reimbursement of eligible pension costs would be assessed from 1 April 2009 on an actuarial basis, with the annual values of such reimbursement, along with the timescale over which they were payable, being agreed between HEFCE and bodies in receipt of funding by 31 March 2009.
  2. Salary safeguarding would no longer be eligible for reimbursement after 31 March 2009, although it should be noted that the actuarial calculation described above will include the cost associated with this safeguarded element once the individual retires and this element converts to a pension.

Action required

5.   Responses to HEFCE are invited by e-mail with a signed copy by post, using the electronic version of the response form at Appendix A, by Friday 17 October 2008.