Cutting through the spin on USS

Reporting a Russell Group statement of principles for the USS pension scheme (5 July 2021), UoN management referred to:

… UUK alternative proposals to maintain USS as a hybrid Defined Benefit/Defined Contributions scheme with no increases in contributions to the scheme by members, backed up by employers offering further, stronger covenant support measures.

Is this the whole truth? No.

It’s spin.  “Maintain USS … with no increases in contributions … by members” fails to point out that the UUK proposals will lead to a much worse scheme for members.

This is how UUK, supported by management at the University of Nottingham, wants to cut your pension:

  • now, your pension grows by 1/75th of salary for every year you work; UUK proposals would cut this to 1/85th – cutting pensions by 12%
  • now, every pound you earn up to £59,800 adds to the secure defined benefit element of your pension; UUK proposals would cut this threshold to £40,000
  •  now, inflation can’t erode the buying power of your pension unless it exceeds 5%; UUK proposals would cut this protection to 2.5%

To see what impact these proposals will have on your pension, visit the modeller provided by UCU here.

UUK represents the interests of employers in USS negotiations. UCU represents the interests of everyone who is eligible to join USS. UCU opposes these damaging UUK proposals.