Academies face a ticking time-bomb that is the treatment they face by the LGPS scheme they are members of.
Inheriting a deficit is one thing but facing an increased employer contribution rate – that is imposed by the Scheme and not agreed – will have cashflow implications. An increase of just 1% carries a monetary value that could mean future redundancies or a reduction in money to resources for teaching and learning.
This month sees the next tri-annual valuation and next March, academies will find out its new contribution rate. It is vital that academies seek advice on any proposed increase to the employer contribution rate and to ensure fair treatment from the LGPS. Don’t ignore this element whatever you do.