Today, a consultation launched by the USS Trustee shows that the
scheme is on track for full restoration of pension benefits by
April 2024, which follows cuts that were imposed on staff in
April 2022.
Figures included in the consultation demonstrate that not only
can pensions cuts - which saw members lose on average 35% from
their guaranteed retirement income - be restored, but that the
contributions members are required to pay into the scheme can be
reduced.
The turnaround is a vindication of UCU’s position that the April
2022 cuts were flawed, unnecessary, deeply irresponsible, and
demonstrates that UCU members were right to fight and take strike
action to protect and win back their pensions.
Today’s valuation confirmed that scheme’s surplus is now valued
at £7.4 billion, and that the current high interest rates mean
the cost of restoring benefits in full requires an overall
contribution rate of approximately 20.6%. Importantly USS also
addresses future valuation cycles showing stability can be
achieved with joint contributions of 26%.
UCU pressure has also meant that USS has recognised the potential
to uplift benefits from the surplus in recognition of the last
two lost years of benefits.
This is a positive turn that exceeds even the most recent
predictions in May, and could see member contributions lowered to
8% or less, even as little as 6.1%, once agreements between UUK
and UCU about ensuring stability for future valuations have been
concluded.
UCU general secretary Jo Grady has written to the Chair of the
USS Trustee Board to establish if contributions can be done
earlier than April 2024 [link to letter].
Universities UK have pledged to work with the UCU to ensure that
restoration of the scheme and other positive changes are
introduced such as developing an equitable method to restore the
lost value of member pensions, between April 2022 and
restoration, is agreed (previous joint statement)
and will now consult employers following the publication of
today's USS Trustee document.
UCU general secretary Jo Grady said:
“This is yet another step towards the restoration of our members
pensions. I have lost count of the times we were told it would
never happen, we were often mocked by pensions ‘experts’ who
maintained that our campaign and actions were pointless. This is
a lesson, not only to UCU members, but workers in general - if
you are prepared to fight for something then there is always a
chance.
We will now use the coming months to ensure the employers fulfil
their obligations and we see this through to full restoration. At
that moment, our members will go down in history.
This is also good news for the university sector as a whole. If
the employer, through UCEA can now table a proper pay and
conditions offer then we can bring much needed stability to our
sector for the first time in nearly a decade. This is what’s
needed. It is what students deserve and it is what staff
deserve.”
