UWI pushes pension reform, enters offshore medical university market

The University of the West Indies (UWI) is seeking to reform its pension system, with Vice-Chancellor Professor Sir Hilary Beckles warning that the institution is facing a growing financial crisis due to longstanding pension liabilities.

“We now have to begin this process. The university cannot continue. We are facing a cliff, and if we continue like this, we’re going to fall off the cliff. We must own this,” Beckles told the University Council during its recent meeting—the first in-person session since the COVID-19 pandemic.

The annual meeting, held at UWI’s St Augustine Campus, was chaired by Chancellor Dodridge Miller, who took office in August 2024.

Beckles explained that UWI had implemented pension supplementation three decades ago to attract international academics, with regional governments initially committing to support the initiative.

“It was agreed by the governments that they would provide the supplementation. Well, they have stopped and we have to carry that… UWI has to find millions of dollars to honour that supplementation.”

Although the university has since discontinued the policy and begun a ‘grandfathering’ process to phase out the initiative, the residual costs are “dragging our balance sheet in the wrong direction,” Beckles noted.

He revealed that the Mona Campus had already developed a comprehensive reform plan, which has been endorsed by UWI’s Financial and General Purposes Committee.

“The actuaries have told UWI unless they take a grip of this situation, it will suck the UWI into a ‘dark place’,” he warned.

Having secured approval from regional governments, Beckles said the reform of the pension system will be treated as a top institutional priority moving forward.

In his wide-ranging address, the vice-chancellor also addressed the rising cost of operations, pointing out that regional governments now cover only 48% of UWI’s operational budget. This, he said, highlights the urgency for UWI to embrace a more entrepreneurial model.

He cited several initiatives as evidence of UWI’s innovation pipeline, including a diabetes management shake developed at the Cave Hill Campus and dark chocolate produced at the St Augustine Campus.

Among the most ambitious ventures is the planned launch of a UWI-operated offshore medical school, a move Beckles described as “revolutionary”.

“We’re saying to the market, UWI is coming for its share,” he said. “All of those offshore schools in our region, we are coming to compete and to take our share of the market.” (BT)