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USS pensions: more cuts coming ?

The USS pension scheme is the main scheme for academic and academic related staff in pre-1992 universities.  Three of its 10 directors are appointed by UCU.   UCU opposed the closure of the final salary scheme earlier this year.   We did secure some important changes to the scheme to protect members from the worst effects of the closure of the final salary scheme, but it has now ended.

The closure of the final salary scheme was the result of warnings to the USS Board that the scheme faced a huge deficit.   UCU challenged the way the scheme’s assets were valued and members supported strike action to defend the benefits that would be cut for future scheme members.  University of Sheffield UCU have produced a useful account of the events that led up to the end of the final salary scheme.

Now the scheme’s assets are set to be valued again, (for one of the more accessible descriptions of the issues at stake in the valuation process see this post from Mike Otsuka of LSE UCU)  and it is possible – perhaps even likely – that another huge deficit will be discovered and members will have to take further cuts to their benefits and/or increases to contributions.

University of Bath VC Glynis Breakwell has ruled herself out of any discussions with the local branch about USS because she is a paid member of the USS Board.  We have therefore set out to the University’s Director of HR the points we want the University to consider in any representations it makes on the future of the scheme.

For those with the appetite, USS have released a video stream of the meeting of institutions, including Bath University, held on December 1st.

We will keep you informed of any proposals that come forward.

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