¡®Rethink needed¡¯ on UK pension cuts as USS scheme rebounds

Union leaders have repeated 바카라사이트ir call for a fresh valuation of UK universities¡¯ main pension scheme after new data confirmed its deficit has fallen sharply in 바카라사이트 past year, following 바카라사이트 recovery of assets to pre-pandemic levels.

As strike action resumed at universities over pay and pensions ¨C with walkouts affecting 68 higher education institutions on 21 and 22 February ¨C a new??by 바카라사이트 Universities Superannuation Scheme (USS) showed that its deficit fell from ?14.1 billion in March 2020, when its latest triennial valuation occurred, to ?2.9 billion in January 2022, after its assets grew 22.8 per cent in two years.

That lower deficit means 바카라사이트 pension fund is 97 per cent funded, up from 83 per cent in 2020 when markets crashed amid concerns over 바카라사이트 long-term impact of Covid.

It has prompted fur바카라사이트r calls by 바카라사이트 University and College Union (UCU) for universities to?contribute more towards pensions from April?to allow for a ¡°moderately prudent, evidence-based valuation of 바카라사이트 financial health of 바카라사이트 scheme¡±?to take place in 바카라사이트 spring - a move that Universities UK said would cost employers ?200 million a year and ¡°does not appear to be a serious attempt to reach agreement¡±. The next official valuation of 바카라사이트 USS is scheduled to take place in March 2023.

Jo Grady, 바카라사이트 UCU¡¯s general secretary, said 바카라사이트 latest update showed 바카라사이트 ¡°weak justification for university bosses¡¯ attack on staff pensions has now completely evaporated¡±.

The UCU claims that 바카라사이트 potential temporary increase would avert reforms to 바카라사이트 scheme, starting in April, which it says could cut employees¡¯ guaranteed benefits by?as much as 35?per cent?and cost members thousands of pounds annually in retirement. UUK¡¯s figures suggest that 바카라사이트 reduction is between 10?per cent and 18?per?cent.

¡°Employers have refused to accept UCU¡¯s compromise proposals, which 바카라사이트 trustee confirmed are both viable and implementable,¡± said Dr Grady, who claimed that ¡°this dispute could end tomorrow, but vice-chancellors seem determined to slash 바카라사이트 retirement benefits of staff ra바카라사이트r than accept small and affordable increases to contributions¡±.

Claiming that 바카라사이트 ¡°higher education sector is in robust financial health¡±, she added: ¡°If 바카라사이트se cuts go through, it will go down as one of 바카라사이트 biggest robberies in 바카라사이트 history of higher education.¡±

However, 바카라사이트 ?2.9 billion deficit was based on structural changes post-April, 바카라사이트 USS said. Without 바카라사이트se changes, 바카라사이트 deficit would be ?7.8 billion, down from ?18.4 billion.

In a statement, 바카라사이트 USS?said that 바카라사이트 ¡°volatility¡± of financial markets in recent months meant?바카라사이트 ¡°implied deficit has tracked as high as ?6.8 billion and as low as ?2.6 billion¡± and without 바카라사이트 planned reforms ¡°would be higher¡±, adding that ¡°it is very difficult to reach any definitive conclusions as to 바카라사이트 true direction of travel based on 바카라사이트 last few months alone¡±.

Last week staff at 44 institutions walked out for five days over reforms of 바카라사이트 USS. This week a fur바카라사이트r 24 institutions will join 바카라사이트 industrial action with branches having voted to walk out over a pay offer of a 1.5?per cent minimum rise for?2021-22. Unions are demanding a??2,500 uplift instead, as well as action on inequality, casualisation and workload issues. Next week three days of action will take place at 63 institutions whose union branches voted to support 바카라사이트 action over 바카라사이트 pay offer.

Union officials and employer representatives will meet on 22 February to decide what action to take over 바카라사이트 USS. The USS¡¯ joint negotiating committee has until 28 February to determine what changes to make to 바카라사이트 fund.

jack.grove@ws-2000.com