A mass meeting of UK university sector workers is to be held today to discuss industrial action over #pension reforms.

This week, the University and College Union (UCU) warned industrial action was "inevitable" over cuts to retirement benefits for members of the #USS scheme.
The UCU claims proposed reforms to #USS pensions, put forward by university employers, will see a typical lecturer receieve abot a third less in retirement income. ft.com/content/19eb45…
On Tuesday, university employers, represented by Universities UK (UUK), voted to implement a set of #USS proposals that will reduce member benefits, but they say will help avoid steep increases in contributions required to fill a scheme deficit of £14bn-£18bn.
UCU says proposals it has drawn up would have delivered higher benefits in return for lower contributions than those put forward by employers.

This proposal was not put forward at a meeting of the Joint Negotiating Commitee, an advisory body to the #USS scheme, on Tuesday.
The #USS pension row is intensifying as other issues around the university sector remain unresolved, including health and safety post Covid, the casualisation of the workforce, pay and workload.

One insider described the challenges facing the sector as a "perfect storm".
USS Employers, which represents university members of the #USS said:

“We hope UCU will choose not to ballot for industrial action, given USS’s formal assessment of the scale of the scheme’s deficit means no change is not an option."
#USSEmployers said its proposals for pension reform were the "only formal alternative to unaffordable contribution rates.”

"The upcoming member consultation on the UUK package is important and open – and could lead to the proposals being amended."
#USSEmployers:

"Employers will still consider alternative benefitstructures and formulations, provided they are viable, affordable and implementable.”

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More from @JosephineCumbo

3 Sep
BREAKING: The #USS pension scheme has today agreed to take forward proposals that will lead to #pension cuts for hundreds of thousands of university sector workers.

Statement from the #USS trustee to follow:
The USS trustee today confirmed that subject to a two-week consultation with UUK – #USS members will contribute 9.8% of salary from 1 October 2021 and employers will pay 21.4%.

That is an increase of 0.2% and 0.3% respectively on current rates.
From 1 April 2022, the way future #USS benefits are built up is also set to change said the #USS.
Under the JNC’s resolution, DB pensions promised to members in future will build at a slower rate. DC benefits will be offered in respect of salary over £40,000 (currently £59,883)
Read 13 tweets
3 Sep
NEW: The UK government has issued a statement on the prospect of industrial action on University campuses over cuts to staff pensions. #USS #UCU #UUK

The statement comes ahead of a mass meeting of university union members this afternoon to discuss industrial action.
A Department for Education spokesperson said:

“While government has no direct role in the #USS pension, we strongly encourage all sides to reach an agreement that delivers good value for students, staff, and providers so that the prospect of industrial action can be avoided”
The Dept for Education added that higher education providers that offer the #USS pension are autonomous and responsible for the pension provision offered to their staff.
Read 4 tweets
1 Sep
NEW:University employers say they will still consider "alternative benefit structures and formulations", provided they are "viable, affordable & implementable".

The statement comes after the UK university sector union warned industrial action over pension cuts was "inevitable" Image
NEW: Proposed cuts to pension benefits for hundreds of thousands of UK university sector staff will see a worker earning under £40k p/a with 12% less retirement income, according to UUK, the university employer body.

This estimate assumed inflation does not rise above 2.5%.
UUK says the alternative to its pension proposal may see members subjected to steep increases in their #pension contribution rates from 13.6% and 18.6% of salary (compared with 9.6% now) – which would hit take-home pay and may price many out of the scheme.
Read 6 tweets
7 Apr
BREAKING: Pension benefits for hundreds of thousands of academics and higher education staff are to be made less generous under proposals to stave off "unaffordable" contribution rises under plans set out by Universities UK.

Details to follow.
Universities UK today proposed a package of measures to the control costs of #pension contributions for 340 employers and 200,000 active members of the #USS pension scheme, which had an estimated deficit in March 2020 of £14bn to £18bn.
In March, USS said that combined contributions from both employers and scheme members would have to rise from the current 30.7% of salary to up to 56%, to fill the deficit which was estimated at to £18bn in 2020, sharply up from £3.6bn in 2018.
Read 13 tweets
22 Jan
NEW: UK tax authorities have deregistered 770 #pension schemes which were being used for "pension liberation" activity since 2014, a Treasury minister has confirmed.

More to follow
In the United Kingdom, "pension liberation" typically occurs when a saver is hookwinked (by a confidence trickster) into believing they can access their pensions before the age of 55, without the standard "early access" penalites applied by HM Revenue and Customs.

2/
A UK parliamentary inquiry into pension scams has raised issues about the role of HMRC ( the tax authority) pursuing victims of #pension liberation scams for substantial tax debts.

The tax debts are for early access, which occurs during the pension liberation scam.

3/
Read 7 tweets
21 Jan
The 2017 Review of Automatic Enrolment proposed the removal of the lower band on which pension contributions are calcuated so earnings from the first pound were counted.

Currently, only earnings above £6420 are considered pensionable.
The ambition, as set out in the 2017 automatic enrolment review, was to remove the lower earnings band by the "mid 2020s".

In its AE review published today, the Government gave no further commitment on the timing of this change.
The Dept of Work and Pensions said it would "pay close attention to the impact and costs of making changes" and consider the optimal approach on implementation in the light of the impact of the Covid-19 pandemic and our overall focus on the economic recovery".
Read 4 tweets

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