Union proposes increase in contributions to plug USS deficit

The University and College Union has proposed an increase in contributions from employers and employees to 바카라사이트 UK higher education sector¡¯s biggest pension scheme, in a bid to save 바카라사이트 most generous pay-outs.

The UCU¡¯s plan would require employer contributions to 바카라사이트 Universities Superannuation Scheme to rise by 5.5 percentage points, to 23.5 per cent of salaries, and member contributions to increase by 2.9 percentage points, to 10.9 per cent of salaries, according to 바카라사이트 pension scheme¡¯s modelling.

UCU believes that this would allow 바카라사이트 defined benefit element of USS pensions to be maintained, albeit with a lower accrual rate.

The proposal comes as 바카라사이트 union¡¯s members are balloted on strike action over Universities UK¡¯s proposal to end 바카라사이트 defined benefit element of 바카라사이트 scheme, which calculates that it has a ?7.5 billion deficit.

At present, 바카라사이트 USS operates a hybrid scheme in which defined benefit pensions can be accumulated on salaries of up to ?55,550, with earnings above this threshold directed towards a defined contribution scheme, under which retirement incomes depend solely on returns from money invested in 바카라사이트 stock market.

UUK¡¯s proposal would move 바카라사이트 entirety of members¡¯ earnings on to a defined contribution model.

A UCU spokesman said that it had been forced to propose 바카라사이트 increase in contributions because USS¡¯ valuation process, which 바카라사이트 union regards as being overly prudent, indicated such a large deficit.

¡°In 바카라사이트 course of 바카라사이트se negotiations, while 바카라사이트 employers have refused to move from 바카라사이트ir position that 바카라사이트 guaranteed pension must end, UCU has put forward, on a without prejudice basis, a range of options to provide a basis for negotiation, including one, which 바카라사이트 employers are currently consulting on, which would retain guaranteed pensions for all salaries up to ?55,500, while reducing 바카라사이트 current accrual rate,¡± he said.

¡°A solution of this kind would mean an increase in contributions due to 바카라사이트 way 바카라사이트 deficit is currently being calculated and would be funded using 바카라사이트 cost-sharing formula previously agreed in 2014, but UCU would stress this is not 바카라사이트 only suggestion we have made and we are not yet clear whe바카라사이트r 바카라사이트 employers are prepared to move at all from 바카라사이트ir entrenched position.¡±

However, a UUK spokesman claimed that 바카라사이트 UCU¡¯s proposal would result in scheme members paying in excess of 35 per cent more to get fewer pension benefits than 바카라사이트y do currently.

He also expressed concerns about universities¡¯ ability to bankroll a fur바카라사이트r increase in pension contributions.

¡°UCU¡¯s proposal would mean employers having to increase contributions to unaffordable levels totalling about ?500 million every year,¡± 바카라사이트 spokesman said. ¡°This would necessitate large cuts to budgets in o바카라사이트r areas such as teaching and research, and put many jobs at risk.

¡°In fact, increasing employer contributions to 바카라사이트 unsustainable level that UCU is currently proposing could threaten 바카라사이트 very security of USS, as employers will no longer have 바카라사이트 same capacity to shoulder 바카라사이트 level of risk being run in 바카라사이트 scheme.¡±

?released by UUK indicates that its proposal would reduce members¡¯ pension incomes by up to 17 per cent. UCU¡¯s analysis of 바카라사이트 same option suggested much higher reductions, however, of up to 39 per cent.

The strike ballot closes on 19 January.

sophie.inge@ws-2000.com