Commenting on UCU’s decision to take
further strike action, a Universities UK spokesperson, on behalf
of USS Employers said:
“Taking university staff out on strike again will not remove the
need to reform USS to ensure it remains affordable for members
and employers. The package of reforms proposed by employers has
now passed the JNC and the USS Trustee Board, and will be
implemented from 1st April 2022.
“February’s industrial action did not achieve the outcome UCU
intended, and data gathered by UCEA suggests turnout on picket
lines was even lower than before, with limited disruption to
students. With news of more strikes and yet another ballot,
reasonable onlookers will conclude the union has an ideological
fixation with strike action and is determined to pursue it, no
matter the cost. Since 2019, an average member of staff earning
£55,000 per annum taking strike action has forgone over £4,800 in
pay deductions, to no avail. Scheme members should ask themselves
whether they are willing to sacrifice even more to pay higher
pensions contributions based on UCU’s unsubstantiated view that
another valuation will yield a better outcome.
“Employers have repeatedly made clear that current contributions
are at the very limit of affordability, and a majority of those
responding to a consultation on UCU’s proposal for higher
contributions rejected it. Recent government announcements
underline the wider financial uncertainty universities are
facing, and with the 2020 valuation now concluded, it is time to
look forward and identify lasting improvements to USS that can be
made ahead of the next valuation.”
ENDS
Notes to editors
- Although the latest funding update provided by the USS
Trustee shows the scheme’s technical provisions deficit has
decreased since March 2020, the Trustee has stated that without
the planned reforms, the deficit would be higher, and that it is
very difficult to reach any definitive conclusions as to the true
direction of travel based on the last few months alone. Even with
full employer covenant support, the USS Trustee has confirmed the
cost of current benefits as c.43% of pay.
- In November the USS Trustee confirmed that ‘there is no silver
bullet’ to the scheme’s funding challenges, in an article
which also draws attention to The Pensions Regulator’s view of
the valuation.
- To secure a final contribution rate of 31.4% of salary,
employers have collectively committed an additional £1.3 billion
of financial support to the scheme, known as ‘covenant support’.
It was only on account of this support that the USS Trustee was
willing to adjust its assumptions, to allow employers to continue
to provide scheme members with a good level of guaranteed defined
benefits at affordable contribution rates.
- All pensions built up to date are safe and protected, and
unaffected by the proposed changes which will come into effect on
1 April 2022.
- In 2021-22 alone, an average HE staff member earning circa
£55,000 per annum (ONS, 2021) and taking the full 10 days of
strikes will have lost £1,506 in strike pay (1/365 x 10) on top
of £3,315 for 22 days of strike action in 2019-20.
