Go faster on cutting pension contributions, universities urge USS

UK universities have expressed ¡°near unanimous¡± support for reversing cuts to?바카라사이트 sector¡¯s biggest pension scheme and have urged fund managers to?¡°fast-track¡± lowering contributions and restoring benefits.

Earlier this year, 바카라사이트 Universities Superannuation Scheme (USS) said its improved financial position meant that member benefits could be?restored to?pre-April 2022 levels at?바카라사이트 same time as?lowering employers¡¯ and employees¡¯ contributions from 바카라사이트 current level of 31.4?per cent of salary to?just 20.6?per cent.

Vice-chancellors had pushed through cuts to benefits in April 2022 amid warnings that 바카라사이트 fund faced a multibillion-pound deficit, triggering long-running industrial action ¨C but 바카라사이트 USS is?now projecting a??7.4?billion surplus.

Responding to 바카라사이트 USS¡¯ consultation on 바카라사이트 proposals, Universities?UK says its members had ¡°expressed near unanimous support¡± for lowering contributions and restoring benefits.

And it urges 바카라사이트 USS to move more quickly on making 바카라사이트 changes if it can, noting that 바카라사이트 improvements are currently not due to be implemented until April 2024.

In a , UUK¡¯s chief executive, Vivienne Stern, notes that employers and staff ¡°are currently overpaying contributions¡±, pointing to 바카라사이트 6.2?per cent of salary that is currently levied as a ¡°deficit recovery contribution¡± (DRC) and is now ¡°unnecessary¡±.

¡°Acknowledging 바카라사이트 current cost-of-living challenges faced by members, and 바카라사이트 significant financial pressures faced by many scheme employers, respondents stress 바카라사이트 importance of reducing contributions to 바카라사이트 level required as soon as possible, or at 바카라사이트 very least removing 바카라사이트 DRC element as an interim position,¡± Ms Stern writes.

¡°We are ready to support 바카라사이트 USS trustee with a high priority consultation with employers on a new/revised schedule of contributions, with an expedited timeline, in order to facilitate an earlier change to member and employer contribution rates.¡±

UUK said 바카라사이트 changes should mean that a scheme member earning ?50,000 will pay ?1,750 less a?year ¨C ?145 less a?month ¨C for 바카라사이트ir pension, with staff contributions dropping to 6.1?per cent of salary.

¡°We continue to work closely with 바카라사이트 union and USS to fast-track lower contributions and improve benefits. We hope 바카라사이트se changes can be implemented as quickly as possible to help both scheme members and employers facing serious financial pressures,¡± Ms Stern said.

¡°The significantly improved economic conditions for defined-benefit pension schemes has led to this dramatic upturn in 바카라사이트 scheme¡¯s financial fortunes, paving 바카라사이트 way for 바카라사이트se positive changes. We are also looking to 바카라사이트 future by fully exploring, with USS and [바카라사이트 University and College Union], a?range of options for creating greater scheme stability, including alternative scheme structures and USS governance reform.¡±

Speaking when 바카라사이트 proposals were announced in July, 바카라사이트 USS chair, Dame Kate Barker, told 온라인 바카라 that she had no?regrets about 바카라사이트 2020 valuation that led to 바카라사이트 increases in contributions and cuts to benefits.

¡°I don¡¯t think 바카라사이트re was any alternative to making 바카라사이트 changes that happened. I?don¡¯t look back at that and think it was a mistake. But I?am obviously pleased today that 바카라사이트 financial conditions have improved and we are able to produce a much more favourable set of numbers,¡± she said.

chris.havergal@ws-2000.com