There have been unsuccessful negotiation on pensions, pay and working conditions to try to reach an agreement with universities nationally.
USS (Universities Superannuation Scheme) is the pension scheme used by universities. A pension works by employers and employees paying money into an employees’ pot while they work which employees can then access when they retire. They can either be run in two ways:
- defined benefit in which the pay out each month at retirement is agreed on and employees receive that fixed value each month until they die (unlimited pension value depending on how long you live).
- The other is defined contribution in which the contributions to a pot are invested while the employee works and the proceeds make up the pension at retirement (fixed value of pension pot).
The USS has been running at a deficit for a few years which means it doesn’t have enough money to pay out to retirees. It made reforms in 2016 to run on a hybrid model of defined benefits up until employee salary threshold of £60k. Salaries above that become defined contribution schemes.
This resulted in strike action in 2017 which was inconclusive, and then a second wave of strikes in late 2019 and early 2020 (though the second wave expanded to include the ‘four fights’ outlined below). When the pandemic emerged the strikes/ dispute was called off. Another assessment in 2021 revealed that the USS were in even great deficit which needs to be filled with higher contributions or lower/reduced benefits – employees who are working will have to give more of their salary to the pension pot without an increase in pay out value at retirement or they will get a lower pay out when they retire.
The UCU say that under recent changes since 2011, a typical UCU member will pay around £40,000 more into their pension but receive almost £200,000 less in retirement because of the changes to USS. They say that this will leave them £240,000 worse off. UCU are calling for a stop to the changes outlined above, and for a new valuation of pension fund to be carried out.
UCU’s video on pensions dispute: https://youtu.be/pCShjYlfUjE