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Josephine Cumbo Profile picture
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Feb 22 • 4 tweets • 1 min read
NEW: Pension inflation rises to be lower for thousands of early leavers of defined benefit schemes, following Govt move.

More follows:

gov.uk/government/con…
Millions of people in the UK have Guaranteed Minimum Pensions (GMPs).

When an individual leaves a pension scheme early, the GMP they have built up is revalued upwards each year to protect against inflation. The revaluation rate used by some schemes is set by the Govt.
The Fixed Rate Revaluation set by the government is currently 3.5%.

However, the Govt today approved plans to reduce this to 3.25% for those who leave their scheme on or after 6 April 2022. This means a small saving for the scheme but lower increases for the member.
There were only two responses to the Govt consultation on reducing inflation increases, leaving the Govt to assume the "low number" of responses was indicative of general support within the pensions industry for the position set out in the Consultation.

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More from @JosephineCumbo

Josephine Cumbo Profile picture
Feb 22
BREAKING: An industrial dispute over #pension cuts impacting thousands of university sector workers is set to escalate as employer-backed proposals to reduce guaranteed #pension benefits were ratified today.
BREAKING: The University and College Union (UCU) has told #USS university employers to expect more industrial action, including a marking and assessment boycott, after controversial cuts to guaranteed pension benefits were ratified.
NEW: UCU general secretary Jo Grady said University vice chancellors had today chosen to "steal tens of thousands from the retirement income of staff".

"This is a deplorable attack which our members won’t take lying down."
Read 4 tweets
Josephine Cumbo Profile picture
Feb 22
BREAKING: The Universities Superannuation Scheme Joint Negotiating Committee has today formally voted to implement cuts to future #pension benefits for tens of thousands of UK university sector staff.
The JNC - a body which represents #USS employers and members - passed a controversial package of employer proposals which will see members build smaller pensions in future. The cuts are the focus of current industrial action across dozens of university campuses.
I am awaiting confirmation of the JNC vote, and whether the chair cast her vote. #USS
Read 11 tweets
Josephine Cumbo Profile picture
Feb 22
NEW: UK government launches appeal for academics and experts to "support" the independent State Pension age review. gov.uk/government/new…
The UK government is seekig advisers from academia, institutions, think tanks and elsewhere to provide knowledge and experience to the state pension age review.

Those taking part will be subjected to a gagging clause on any info shared as part of the Review.
Experts, academics responding to the appeal will be asked to spend an hour per month in discussion with Baroness Neville-Rolfe, leading the state pension age review, up to August 2022 and a further 5 hours reading or writing over that period.

The role is unpaid.
Read 4 tweets
Josephine Cumbo Profile picture
Feb 21
NEW: The deficit at the UK's largest private-sector pension scheme, the #USS, has been slashed from £14bn in March 2020, to £2.9bn at the end of January this year, as the schemne's assets recovered to pre-pandemic levels. #UUK #UCU

More follows.
A funding update released by the #USS showed the scheme's funding ratio - or plan's assets as a percentage of liabilities - had grown to 97% at the end of January this year from 83% in March 2020 - the timing of the scheme's last formal health check.
#USS published this update on February 16, the day before a Feb 17 deadline for hundreds of employers to respond to a consultation on cuts to #pension benefits, which were based on the scheme's position in March 2020, when its finances were less rosy.

uss.co.uk/news-and-views…
Read 6 tweets
Josephine Cumbo Profile picture
Feb 10
Quick summary of today's key development in the #USS #pension dispute.

#USS said the #UCU compromise proposal - to avert strike action - was 'operationally' viable

BUT

...contributions for members and employers would need to rise, over time, to 13.9% and 29.1% respectively.
#UUK has today launched a consultation with all #USS employers on #UCU’s formal proposal, after receiving costings from #USS.

Under UCU’s proposal, eer contributions wd gradually rise from 21.4% of salary to 29.1% by April 2024. Members rise from 9.8% to 13.9% over same period
In its consultation #UUK will ask employers if they will pay an additional c£200 million annually from April 2022, and an extra £330 million from this Oct and ultimately c£700 million more each year from April 2024 – on top of the current USS pensions cost of around £2bn per year
Read 4 tweets
Josephine Cumbo Profile picture
Feb 10
BREAKING: A potentially significant development today in the UK university #pension disupte.

#UCU says compromise pension proposals - put forward by the union to avert strike action - have been deemed "both viable and implementable" by the #USS pension plan.

More follows:
#UCU submitted alternative #pension proposals to #UUK employers on Wednesday 26 January in a bid to avert industrial action over #pension cuts they had proposed.

Industrial action was due to begin at 44 universities on Monday 14 February.
#UCU said, that after working together with UCU, the #USS Trustee had confirmed the union’s compromise #pension proposals "are both viable and implementable."

Jo Grady, #UCU gen sec, has written to Alistair Jarvis, chief exec of #UUK, urging him to urgently consult employers.
Read 13 tweets

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