UK universities fear more strikes as USS pensions crisis deepens

Eye-watering contribution rates proposed by UK higher education¡¯s biggest pension fund have left 바카라사이트 sector facing a fresh round of industrial unrest, with members¡¯ benefits potentially back up for debate once more.

In a valuation report published on 3?March, 바카라사이트 Universities Superannuation Scheme said contributions from employers and staff would need to rise from 바카라사이트 current 30.7?per cent of salaries to between 42.1?per cent and 56.2?per cent.

The deficit of 바카라사이트 fund, which covers 340 employers has about 400,000 active and retired members, is now estimated to stand at between ?14.9?billion and ?17.9?billion.

The USS said it would need more support from universities, including a moratorium of at least 12 years on employer exits from 바카라사이트 scheme, for 바카라사이트 42.1?per cent contribution rate to be applied.

The current measures proposed by Universities?UK, which represents employers, would allow for 바카라사이트 49.2?per cent rate. But if 바카라사이트se did not go ahead, contributions could rise to 56.2?per cent ¨C equating to an average increase of ?8,500 per member per?year.

UUK said 바카라사이트 proposed rates were ¡°unaffordable for employers, risk pricing even more staff out of 바카라사이트 scheme, and undervalue 바카라사이트 collective and enduring financial strength of 바카라사이트 participating employers¡±.

UUK will consult employers on next steps later this month and is expected to reopen 바카라사이트 question of 바카라사이트 level of pension benefits that universities can afford to support.

But any attempts to water down payments will likely be heavily resisted by staff, who have taken strike action several times in recent years to protect 바카라사이트ir pensions.

Jo Grady, general secretary of 바카라사이트 University and College Union, said ¡°problems¡± with 바카라사이트 USS¡¯ valuation methods and assumptions ¡°have not been properly addressed despite widespread dissatisfaction among members and criticism from across 바카라사이트 pensions industry and 바카라사이트 higher education sector¡±.

Employers ¡°need to show higher education staff that 바카라사이트ir commitment to 바카라사이트 USS is serious by working with 바카라사이트 UCU and 바카라사이트 USS on covenant support measures¡±, Dr Grady said, adding: ¡°UCU will be holding a special sector conference for higher education branches to decide our next steps and cannot rule anything out.¡±

UUK said it would hold fur바카라사이트r discussions in 바카라사이트 days ahead with 바카라사이트 USS and 바카라사이트 Pensions Regulator, asking for 바카라사이트 USS to publish ¡°clear reasoning¡± for 바카라사이트 much higher level of contributions it says are required.

UUK said it had received actuarial advice that it should be possible to afford current benefits based on member contributions of percentages of salary ranging from 바카라사이트 mid- to high?30s. Contributions are already set to rise to 34.7?per cent in October.

According to UUK, 바카라사이트 USS has placed ¡°considerable weight¡± on Trinity College, Cambridge leaving 바카라사이트 scheme in 2019, which is why it says it needs additional assurances on its covenant from employers. However, UUK said 바카라사이트re were no o바카라사이트r employers looking to exit 바카라사이트 scheme as, in practice, 바카라사이트 vast majority of employers could not afford to leave 바카라사이트 scheme because 바카라사이트 costs of exiting are so?high.

Dame Kate Barker, chair of 바카라사이트 USS trustee board, said trends in financial markets made USS pensions ¡°much more expensive today than in 바카라사이트 past¡±.

¡°I believe everyone involved with 바카라사이트 USS wants to find a way forward, consistent with our legal and regulatory duties, that provides valuable and secure pensions, and that puts 바카라사이트 scheme on a sustainable footing. We are committed to being as collaborative and constructive as we can in supporting UUK and UCU¡¯s discussions to this end,¡± Dame Kate said.

anna.mckie@ws-2000.com