Update on proposed USS pension reforms
7 November 2014
I write to provide an update on negotiations between Universities UK (UUK) and University and College Union (UCU) under the auspices of the USS Joint Negotiating Committee (JNC), and provide links to additional information on the proposed reforms submitted by UUK to the USS JNC.
Joint Negotiating Committee
Since the meeting of the last JNC on the 22 October, discussions have continued between both UCU and UUK negotiators. Following the rejection by the USS Trustees of UCU's proposal for a change in the actuarial assumptions upon which the valuation of the deficit was based, UCU have now put forward alternative proposals on benefit structure reform to those put forward by UUK. The UUK proposals and the reasons for them are summarised here.
It is expected that the negotiators will discuss all proposals received at the next JNC meeting on the 13 November. Any proposal will require costing by the independent scheme actuary to assess the financial impact on the funds future costs and to enable the Pensions Regulator an early opportunity to raise initial concerns or observations, on how this addresses future benefit costs and the reduction in the deficit.
In addition to the information on the proposed benefit structure reform (available here), UUK has also published two other documents on its website which USS members should read: Proposed changes to USS - what the changes might mean for you and Changes to USS - Myths, Misconceptions and Misunderstandings.
Nigel Waugh Director of Human Resources