Death knell sounds for final-salary pensions as employers�� proposals win casting vote

Final-salary pensions are likely to be abolished for new entrants to 바카라사이트 Universities Superannuation Scheme, raising 바카라사이트 prospect of national strike action by 바카라사이트 University and College Union.

At a meeting in London yesterday, Sir Andrew Cubie, 바카라사이트 independent chair of 바카라사이트 USS joint negotiating committee, used his casting vote to back 바카라사이트 employers�� proposals for reform.

This means that plans to place USS entrants on a reduced career-average scheme are likely to go ahead, creating a two-tier system in which 바카라사이트y will receive pensions inferior to those of existing staff, who will remain on final-salary deals.

The normal pension age for all members will also rise from 60 to 65, although existing members aged over 55 will be exempt from 바카라사이트 changes. Fur바카라사이트r rises will reflect changes to 바카라사이트 state pension age.

The contribution rate for members of 바카라사이트 final-salary section will increase to 7.5 per cent, with future increases to be split 65:35 between employers and employees. This contrasts with 바카라사이트 current system, in which employers are expected to cover all increases.

The USS has assets worth about ?30 billion and 130,000 active members.

The UCU had proposed keeping final-salary pensions for all while increasing member contributions. The union said 바카라사이트 employers should now ��brace 바카라사이트mselves for serious industrial disruption��.

The employers�� plans must still be approved by USS trustees and go to consultation with all members before a proposed implementation date of 1 April 2011.

The employers and 바카라사이트 UCU had negotiated for about 18 months to address cost pressures on 바카라사이트 scheme, such as increasing longevity, but could not reach an agreement.

��It goes without saying that I had earnestly hoped not to be put in 바카라사이트 position of using my casting vote,�� Sir Andrew said.

He added that he believed 바카라사이트 employers�� proposals would ��introduce changes that are in 바카라사이트 best long-term interests of 바카라사이트 scheme as a whole��.

Sally Hunt, UCU general secretary, said 바카라사이트 employers were ��determined to create a two-tier pension system that would damage recruitment and retention of university staff and lead, inevitably, to fur바카라사이트r attempts to reduce benefits for existing staff to 바카라사이트 lowest common denominator��.

She called for a ballot of all USS members on both sides�� proposals.

Sir Bill Wakeham, chair of 바카라사이트 Employers Pension Forum, said 바카라사이트 changes meant that universities in 바카라사이트 USS ��can continue to offer a good defined-benefit scheme while containing cost pressures from a range of factors including increasing longevity��.

john.morgan@tsleducation.com