A Universities UK spokesperson, on behalf of USS
employers, said: “We will share UCU’s proposal to
complete the 2020 valuation with employers.
“UCU’s suggestion that employers pay 23.7% of salary from April –
an increase of 2.3% and over £200 million more a year – rising to
25.2% next year, is far beyond the mandate employers have given
UUK. No employer has agreed to pay such high costs because of the
damaging impact on teaching, research, the student experience,
and jobs. The increase in member contributions, from 9.8% to 11%
of salary, and then 11.8% of salary next year, will make the
scheme unaffordable for many staff, and undoubtedly increase the
already high drop-out rate among the lower-paid.”
“The union’s proposal does not appear to be a serious attempt to
reach agreement as it doesn’t reflect the views employers have
expressed in consultations. Employers will also question why the
proposal has arrived so late in the valuation cycle – especially
since industrial action has already been taken – and will be keen
to understand why it differs significantly from that previously
briefed to the media by UCU, which proposed benefit reforms to
tackle the scheme’s increased costs.”
“We look forward to a formal discussion through the Joint
Negotiating Committee about both the UCU and UUK proposals with
the hope that an affordable solution can be found.”
ENDS
Notes to editors
- USS is one of the largest private pension schemes in the UK
and is the principal scheme for academic and comparable staff in
UK universities and other higher education and research
institutions. Universities UK
represents the views of 340 higher education employers on USS.
- Employer contributions of 25.2% of salary would cost
employers around £350 million more a year.
- The proposal put forward by UCU represents a departure from
the default cost-sharing arrangements in the scheme – the 65/35
split in costs between employers and members – which we
understand employers are keen to retain when stakeholders cannot
agree a way forward.
- Under UCU’s proposal, the member contribution will rise from
9.8% to 11% of salary in April 2022, and again to 11.8% of salary
in October 2022.
- The latest information published by the USS Trustee indicates
that carrying out a new valuation of the scheme will not result
in an improved financial position, as while the deficit has
reduced, the cost of future pension payments has in fact risen.
