Cutting through the spin on USS #2

This UoN UCU’s response to UoN’s post about USS – UoN text in black, UCU response in red

Reporting latest developments on USS pension, UoN failed to accurately report what happened at JNC and UCU actions. We take this opportunity to rectify information and put some of the statements reported in context.

The Joint Negotiating Committee (JNC) has decided to progress the employers’ proposal for changes to the USS pension scheme to consultation with scheme members and representative bodies.

The decision means that scheme members could avoid significant increases in their contributions, which the USS Trustee has said it would otherwise be required to implement, going up from the current 9.6% to 18.6% of their salary from as soon as April 2022.

USS argued that to keep benefits unchanged, contribution rates need to increase to somewhere between 42% and 57% (cfr. 26% pre-2018 dispute). This is based on a flawed valuation of the scheme in March 2020 (see below) and essentially is a rip off.

Continue reading “Cutting through the spin on USS #2”

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.