Why are we striking and working to contract? An update from a local UCU member.

As you will know, changes to the USS scheme were imposed on October 1.  UCU and the employers' representatives will meet in the December Joint Negotiating Committee to establish a working group to consider future changes to the scheme.  A preparatory meeting was scheduled to be held in November with a JNC paper on "Changes to Pension Tax Rules" on the agenda.  Whilst this is unlikely to be of interest to most UCU members, the impact of the tax law changes is a £18000 hit on the average VC salary, so the employers' representatives may be keen to amend USS rules to lessen the blow on high earners.  Meanwhile, all USS members have been saddled with scheme changes that are disadvantageous when compared to the current proposals for public sector pensions (including TPS, which applies to many UCU members in post-1992 institutions).  The key disadvantages are these:

• Pensions based on contributions made after October 1 are to be uprated by a capped CPI.  To refresh your memory of the cap, pensions will increase with CPI up to 5%, but if CPI exceeds 5% then the pension increase will be 5% + half of the excess, with an absolute limit of 10% (which would be reached if CPI got to 15%). This capping is peculiar to USS and is not proposed for public sector pensions.  It is not a feature of the recommendations of the Hutton Report.
• Capping will also affect the accumulation of revalued earnings in the CARE section of USS (i.e. as enjoyed by anyone joining after October 1).  In contrast, in the public sector schemes revaluation is to be at the rate of growth of average earnings, which historically is better than CPI, let alone the USS-capped CPI.
• The annual pension payable in the CARE section of USS is revalued earnings divided by 80.  In the public sector they will be divided by 60.  USS members will get a lump sum, which is not part of public service schemes, but this effectively leaves the divisor at 68 - considerably worse than the public sector equivalent.

The net effect is that USS pensions are likely to be much worse than those available in the public sector schemes.  Our employers' representatives argue that this is necessary to ensure the long term viability of USS.  UCU believes that the changes go beyond those necessary to maintain viability and instead are aimed at reducing employers' costs in the longer term, to the detriment of members.

Our employers are refusing to negotiate further on this imposed "solution" - make sure you join with us on the 30th November to get the employers to return to the negotiating table and negotiate a fair resolution to this dispute - and a fair pension for academics and academic related staff.