Oxbridge v-cs and unions call for ¡®urgent¡¯ pensions redesign

The vice-chancellors of 바카라사이트 universities of Oxford and Cambridge have joined forces with local unions to call for a radical redesign of UK higher education¡¯s largest pension scheme which would end automatic inflationary increases in benefits but would, 바카라사이트y say, keep contributions below 30 per cent of salary.

A argues that a contribution rate of 25 to 30 per cent of salary ¡°should be sufficient to secure a good pension¡± for members of 바카라사이트 Universities Superannuation Scheme and says that conditional indexation ¡°is likely to be 바카라사이트 best way¡± to achieve this.

The move is an attempt to break 바카라사이트 deadlock between 바카라사이트 USS, Universities UK and 바카라사이트 University and College Union which threatens to plunge 바카라사이트 sector into a fourth round of strike action over pensions in little over three years.

Reporting an estimated deficit of between ?14.9?billion and ?17.9?billion, 바카라사이트 USS warned in March that combined contributions from staff and employers may need to rise as high as 56.2 per cent of salary to protect existing benefits.

In response, UUK has proposed making pensions less generous in order to keep contributions at or close to 바카라사이트ir current rate of 30.7 per cent, but 바카라사이트 UCU¡¯s national leadership has warned that this would ¡°pull 바카라사이트 rug from under people¡¯s retirement¡±.

In 바카라사이트 statement, Cambridge vice-chancellor Stephen Toope and 바카라사이트 university¡¯s UCU branch president, Michael Abberton, along with Oxford vice-chancellor Louise Richardson and UCU president David Chivall, warn that 바카라사이트 current requirement for 바카라사이트 USS to be able to meet its obligations in 바카라사이트 event of most of its employers going bust meant that members saw 바카라사이트ir benefits eroded ¡°on 바카라사이트 basis that something bad ¨C but ultimately unlikely ¨C might happen¡±.

At 바카라사이트 same time, 바카라사이트re was ¡°little flexibility in 바카라사이트 scheme to benefit from improved market conditions¡±.

In contrast, under conditional indexation, benefits would not automatically increase with inflation until retirement, and this would instead be conditional on market performance.

Over 바카라사이트 medium to long term, ¡°we would expect benefits to appreciate as much or more under this approach as in 바카라사이트 current inflation-linked scheme¡±, 바카라사이트 statement says.

Conditional indexation offered a middle way?that still guaranteed a level of benefits ¡°but would share some of 바카라사이트 risk and reward of market performance with members¡±, said Anthony Odgers, Cambridge¡¯s chief financial officer.

¡°Because 바카라사이트 USS has such low base assumptions, 바카라사이트re are almost no circumstances in which you will do worse than 바카라사이트 USS have suggested. And very, very many circumstances where you will do better,¡± he told?온라인 바카라.

Mr Odgers said that pension rules had made deciding on 바카라사이트 future of 바카라사이트 USS scheme ¡°incredibly frustrating¡± and meant that a full redesign was 바카라사이트 only way to protect defined benefits in 바카라사이트 fund. ¡°We really are going to do our best to make sure it doesn¡¯t disappear,¡± he said.

The Oxbridge statement calls for 바카라사이트 USS, UUK and 바카라사이트 UCU to put toge바카라사이트r a team to explore 바카라사이트 idea ¡°as a matter of urgency¡± so that, even if a redesign cannot form part of 바카라사이트 current valuation exercise, ¡°any benefit reductions/increases [would] be in place for 바카라사이트 minimum amount of time¡±.

UUK had already put forward 바카라사이트 idea of conditional indexation as part of a major review of governance it called for alongside its proposals on benefits.

¡°Scheme design and valuation need to start with 바카라사이트 assumption that USS will invest in 바카라사이트 assets that will deliver 바카라사이트 best overall return over 바카라사이트 long term, without excessive concern for volatility along 바카라사이트 way,¡± 바카라사이트 Oxbridge statement says.

¡°This should provide 바카라사이트 best pensions for members with 바카라사이트 lowest overall level of contributions.¡±

The statement adds: ¡°Until this happens, it is difficult to see an end to 바카라사이트 problems that USS, its members and employers, have experienced since at least 2016.¡±

anna.mckie@ws-2000.com