Following the closure of one of the UKs largest final salary pension schemes in 2016, the Universities Superannuation Scheme (USS) has one of the largest deficits.
The Universities Superannuation Scheme (USS) Changes
Following the closure of the final salary section of the Universities Superannuation Scheme (USS) on 31 March 2016, changes have been implemented. Universities Superannuation Scheme (USS)
Benefits are now accrued on the basis of Career Average Revalued Earnings (CARE) and not on a final salary basis. This method of calculating benefits is designed to provide generally lower pensions than traditional final salary schemes. That is why Lord Hutton thinks they are a good idea to cut the government's rising bill for pensions in the public sector. Universities Superannuation Scheme (USS)
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The Universities Superannuation Scheme (USS) In The News (Click The Links To Read More)
‘Very Strong’ Turnout On Day One Of UK University Pensions Strike
The University and College Union described support as “very strong” on the first of 14 days of strike action over changes to the UK’s biggest higher education pension scheme. Staff at 65 universities walked out on 22 February over plans to scrap the element of the University Superannuation Scheme that guarantees a certain level of pension income in retirement, a move that the UCU claims would leave the typical lecturer almost £10,000 a year worse off in retirement, compared with the current terms. Universities Superannuation Scheme (USS)
University Bosses Seek Fresh Solutions To Pensions Row As Strikes Continue
University leaders are begging for fresh solutions to the nationwide lecturers’ strike over changes to pensions. An open letter published today by Universities UK, which represents vice-chancellors, invites members of the pension scheme to come up with new ideas on how to resolve the stalemate. Universities are divided over the strike, with 15 vice-chancellors seeking peace talks with the lecturers’ union, UCU. Universities Superannuation Scheme (USS)
University Staff Could Lose Half Their Retirement Income
The proposal to close the Universities Superannuation Scheme (USS), the biggest private defined benefit (DB) scheme in the country, could leave staff with only half of their retirement income, a London School of Economics (LSE) professor has argued. Michael Otsuka, professor at the LSE department of Philosophy, Logic & Scientific Method, and pensions representative at the University and College Union (UCU), has analysed the proposed changes to the scheme. He concluded that members will only receive between 50 to 75 per cent of the current benefits. Universities Superannuation Scheme (USS)
Overhaul Of University Pensions Could Leave Staff £200,000 Worse Off In Retirement
Staff in some of the UKs most elite universities will see the value of their retirement income drop by as much as £200,000, if hardline proposals from universities are brought in. Analysis by independent experts First Actuarial shows that a lecturer starting work today could be £208,000 worse off over the course of their retirement under the new proposals for the Universities Superannuation Scheme (USS). Universities Superannuation Scheme (USS)
Which Way Forward For USS?
Posting an article on the University of Warwick’s website, vice-chancellor Professor Stuart Croft said closing the Universities Superannuation Scheme (USS) to future accrual would have "serious consequences" and alternative approaches should be explored. Universities Superannuation Scheme (USS)
UK University Staff Consider Strike Action Over Pensions
The union representing tens of thousands of staff at UK universities has warned of “chaos” on campuses after surprise plans were unveiled to replace their guaranteed pension benefits with riskier retirement plans. The warning of strike action came after Universities UK, which represents 350 university employers, said it would stop offering staff traditional “defined benefit” pensions, which offer a certainty of income in retirement. Universities Superannuation Scheme (USS)
Important Pension Update
University College Union (UCU) general secretary Sally Hunt has issued an important update to members in the Universities Superannuation Scheme (USS) which sets out the employers' “alarming proposals for the future of the scheme”. Suggesting the proposals would mean the effective end of USS as we know it, Sally reports it’s 'the worst proposal I have received in twenty years of representing university staff'. Universities Superannuation Scheme (USS)
UUK Reforms ‘Will Cut USS Pensions By Up To 40 Per Cent’
New academics at the UK’s older universities will see their pensions slashed by about 40 per cent if proposed reforms to the sector’s largest pension scheme go ahead, a new analysis shows. Under proposals put forward by Universities UK earlier this month, which would end the current system of defined benefit pensions for about 190,000 higher education staff now paying into the Universities Superannuation Scheme, those just beginning their careers would be hit hardest, according to a report by First Actuarial that was commissioned by the University and College Union. Universities Superannuation Scheme (USS)
USS Pension Changes Would Be A Disaster For Universities, But They Are Preventable
The changes to the Universities Superannuation Scheme that Universities UK proposed on Friday will substantially alter the nature of academic employment in the pre-92 universities and will damage higher education irrevocably. Universities Superannuation Scheme (USS)
University Finances Face £17.5bn Pensions Squeeze
Universities face a new blow to their finances after the main pension fund deficit soared to £17.5bn. The Universities Superannuation Scheme now has the largest pensions deficit of any UK pension fund after it increased by £9bn last year. One expert said student fees may have to rise or be diverted from teaching. Universities Superannuation Scheme (USS)
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