Thread by @JosephineCumbo

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

Under the proposals the JNC approved today to conclude the 2030 #USS valuation:
1. Scheme members earning up to £40k p/a will see their guaranteed defined benefits (DB) build up more slowly – with a reduction in the accrual rate from 1/75 to 1/85. (Cont)

(Cont) 2- The salary threshold up to which guaranteed defined benefits are built up will reduce from c£60K to £40K per annum. Members earning above the threshold will receive a 20% contribution to their individual DC pension pot (cont)

3. A proposal to cap inflation rises on #USS pensions at 2.5% has been deferred until "at least the next valuation".

Under the #USS pension proposals, approved today, employer and member contributions will be 9.8% of salary for members and 21.6% of salary for employers from 1 April 2022.

Commenting on the vote, Universities UK said the Joint Negotiating Committee’s (JNC) decision secured an "affordable solution to the 2020 valuation and provides a more sustainable platform on which the scheme’s longer-term future can be built". #USS #UCU #UUK

#UUK added that the settlement ensures the continuation of a valuable Defined Benefit element to the sector pensions offer "while sparing both members and employers from the damaging consequences of much higher contributions from April."

#UUK: “Employers would rather the scheme was in a financial position where benefit reform was not necessary. However, without these reforms costs would have risen to unaffordable levels for employers, while increased costs for members would have seen more people leave the scheme"

The pension cuts approved by the #JNC today impact the guaranteed #USS Defined Benefit pension offer. As part of the proposal, members earning above the DB salary threshold of £40K per annum will receive a 20% employer contribution into their individual DC #USS pension pot

NEW: #UUK has just confirmed that the chair of the #JNC cast her vote in favour of the employer's pension cut proposals.

Both #UCU and #UUK had tabled pension proposals.