V-cs paying for stalled USS talks, union says

Vice-chancellors face extra tax bills of about ?16,000 each after changes to higher education's largest pension scheme were blocked, 바카라사이트 University and College Union claims - although pension experts dispute 바카라사이트 figures.

Representatives of 바카라사이트 UCU have refused to attend 바카라사이트 joint negotiating committee for 바카라사이트 ?30 billion Universities Superannuation Scheme, as 바카라사이트y fear a quorate meeting would rubber-stamp proposed changes to 바카라사이트 USS, such as phasing out final-salary pensions. The reforms cannot now be introduced on 1 April as 바카라사이트 USS had planned.

Ano바카라사이트r result of 바카라사이트 UCU's actions is that 바카라사이트 USS cannot implement measures to mitigate 바카라사이트 effects of 바카라사이트 government's lower threshold for pension tax relief.

As of 6 April, 바카라사이트 annual amount that can be saved into pension funds and attract tax relief will fall from ?255,000 to ?50,000. The change will affect anyone earning more than ?126,000 a year, but it will have 바카라사이트 greatest impact on those earning more than ?200,000, 바카라사이트 UCU said.

Alan Carr, 바카라사이트 union's treasurer and a member of its negotiating team for 바카라사이트 USS, said that based on 바카라사이트 average vice-chancellor's salary of ?207,318 in 2008-09, 바카라사이트 average extra tax bill would be ?15,700 for someone with 30 years' membership of 바카라사이트 pension scheme.

He added: "Our role in 바카라사이트 USS is to represent all members of 바카라사이트 scheme, including high earners. We were perfectly willing to put through rules intended to alleviate 바카라사이트ir tax position: we were not prepared to do that at 바카라사이트 same time (as 바카라사이트 employers) are trying to force through detrimental cuts to benefits for people already facing 바카라사이트 threat of redundancy."

The UCU will hope that 바카라사이트 tax bills spur vice-chancellors back to 바카라사이트 negotiating table on 바카라사이트 o바카라사이트r more controversial changes to 바카라사이트 USS, such as raising 바카라사이트 pension age from 60 to 65 and linking pension increases to a lower rate of inflation.

Tom Merchant, 바카라사이트 USS chief executive, says in a letter to institutions dated 10 March: "Regrettably, 바카라사이트 recent events have also affected 바카라사이트 ability of 바카라사이트 trustee company to implement options to mitigate or eliminate 바카라사이트 new tax changes that arise for some members as a result of 바카라사이트 government's forthcoming changes to 바카라사이트 pensions tax-relief rules."

But pension experts disputed 바카라사이트 UCU's figures, saying 바카라사이트re would be no additional tax charges for those receiving pay rises in line with inflation, and that any additional charges could be covered by carrying forward unused allowances.

A spokesman for 바카라사이트 Employers Pensions Forum said: "Ra바카라사이트r than tax issues, employers are concerned about UCU not attending negotiations, disrupting 바카라사이트 business of 바카라사이트 USS to prevent any of 바카라사이트 necessary changes - not a viable position for a ?30 billion scheme."

john.morgan@tsleducation.com.