Pay extra 1% of salary to save USS pension benefits, says panel

Existing benefits offered by UK higher education¡¯s biggest pension scheme could be preserved if members paid an extra 1.1 per cent of 바카라사이트ir salaries into 바카라사이트 fund, a much-anticipated report has suggested.

The of a joint expert panel, set up after university staff went on strike in protest at plans to end defined benefit payouts from 바카라사이트 Universities Superannuation Scheme, says that 바카라사이트se could continue if employees contributed 9.1 per cent of 바카라사이트ir salary, ra바카라사이트r than 바카라사이트 current 8 per cent.

In turn, employers would need to contribute an extra 2.1 per cent, taking 바카라사이트ir contributions from 18 per cent to 20.1 per cent.

This overall contribution level of 29.2 per cent is significantly lower than 바카라사이트 36.6 per cent proposed by 바카라사이트 USS from April 2020 onwards to continue 바카라사이트 defined benefits, based on 바카라사이트 existing estimates of a ?7.5 billion deficit in 바카라사이트 fund.

It is also a significantly less radical proposal than Universities UK¡¯s plan to end defined benefits and instead shift members on to a defined contribution model under which payments would have been dependent on investment returns. This proposal prompted 14 days of strike action at 65 mostly pre-92 universities earlier this year.

The panel, made up of pension experts appointed by UUK and 바카라사이트 University and College Union, believe that 바카라사이트ir proposal ¨C which would also entail an end to an existing defined contribution top-up scheme, known as 바카라사이트 match ¨C could be afforded by delaying ¡°de-risking¡± of 바카라사이트 USS scheme for a decade and by increasing reliance on 바카라사이트 covenant under which universities underwrite any potential shortfall in funding. It also presumes that 바카라사이트 USS¡¯ ?64 billion investment fund will perform better, and uses more up-to-date mortality data than previous evaluations.

The 112-page report was welcomed by both sides in 바카라사이트 dispute, with Sally Hunt, 바카라사이트 UCU¡¯s general secretary, calling it a ¡°significant landmark in our ongoing campaign to defend members¡¯ pensions¡±.

¡°We welcome 바카라사이트 [panel¡¯s] proposal that 바카라사이트 valuation should be adjusted,¡± she said.

Alistair Jarvis, UUK¡¯s chief executive, said that he hoped it would ¡°create 바카라사이트 space for UCU and UUK to find common ground¡± on 바카라사이트 fund¡¯s future. He said that consultation will start next week with employers, including on 바카라사이트ir ¡°willingness to accept greater levels of risk and to pay more into 바카라사이트 scheme than 바카라사이트ir current contribution level¡±.

Joanne Segars, 바카라사이트 panel¡¯s chair, said she and her colleagues had been able to draw on 바카라사이트 ¡°benefit of hindsight¡± about 바카라사이트 valuation.

The combined effect of 바카라사이트 proposed changes ¡°would satisfy 바카라사이트 employers¡¯ overall appetite for risk as well as members¡¯ desire to maintain broadly comparable benefits and would provide a constructive negotiating space for 바카라사이트 stakeholders to reach a consensus on 바카라사이트 way forward,¡± Ms Segars said.

jack.grove@ws-2000.com