A Universities UK spokesperson, on behalf of USS
employers, said:
“We understand that the ballot results may leave students
concerned about the impact that potential industrial action could
have on their degrees. Universities are adept at mitigating the
impact of strikes on student learning, and so prepared for any
further possible industrial action over the coming months.
Universities will put in place a series of measures to minimise
the impact of any industrial action on students, other staff and
the wider community.
“Employer contributions to USS pensions, which rose to 21.6% of
salary in April, are among the highest in the country and at the
very limit of affordability. This contribution rise,
together with the significant covenant commitments made by
employers, lessened the benefit reforms and avoided huge cost
increases for both employers and staff in the last scheme
valuation. This support from employers alongside the effects of
rising interest rates on the scheme explains why USS now appears
to be in better financial shape.
“The USS Trustee will conduct a full valuation scheduled for
March 2023, at which point stakeholders will be able to consider
any improvements to the scheme which could be made in a
sustainable way. However, at this time and in the current
volatile economic climate, the USS Trustee insists that there is
no solid evidence or basis to establish a long-term view of any
substantive improvement in the scheme’s funding position.
“We continue to meet union and USS representatives regularly.
Should UCU decide to take industrial action, unfortunately this
is likely to impede joint working on the next valuation, and
delay much-needed changes such as governance reform of the scheme
and the introduction of lower cost options for members.”
Notes for background information:
- The USS Trustee consists of 3 directors nominated by the
University and College Union, 4 by Universities UK, and 5
independent directors.
- The necessary benefit changes implemented in April 2022 have
helped to put the scheme on a more sustainable footing. Without
the changes in April, staff would be paying much higher
contributions during a cost of living crisis – from this month,
October 2022, a USS member earning £40,000 a year would have had
to pay an extra £480 a year (11% of salary, up from the current
level of 9.8%, rising to 12.5% in April 2023). All USS employers
would have had to make severe budget cuts to find ways of paying
25.2% of salary in contributions, an increase of 3.6%, rising to
26.5% in April 2023.
- The USS employer contribution rose to 21.6% of salary
in April 2022 which is three times higher than the average
employer contribution rate among the FTSE 250 companies, p11,
WTW Defined Contribution
and Savings Survey, 2022
ENDS
Notes to editors
- Universities Superannuation Scheme (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.
