USS pension changes

Puddylove

Hi
I would welcome some advice. I have been working for a Uni since Dec 2009, and paying into the USS since then. I also work PT contracts for the same Uni and pay pension from them too, which buys me extra time.
Today I received an email telling me that the JNC is negotiating the following changes, to rectify a deficit;
The final salary section will come to an end, with accrued rights revalued in the future in line with the Consumer Price Index (CPI) -subject to the existing caps on indexation.
Career Revalued Benefits provided for all from 1 April 2016 in respect of salary up to a threshold of £55,000 (this threshold revalued in the future in line with CPI as explained above)
• A future pension accrual rate of 1/75th of actual pensionable salary for each year of service (plus a 3/75ths lump sum)
• A new defined contribution section of the scheme, providing benefits in respect of salaries above the £55,000 threshold (employer contributions of 12% of salaries above £55,000 to be payable to the defined contribution section)
• Member contributions increased to 8%
• An option to contribute a further 1% of salary to the defined contribution section which would be matched by employers.

What does this mean for me - and what should I do?
Thanks
P x

bouicca21

You've only just caught up with this? The negotiations have been going on for months. Stacks of stuff in the educational press and endless emails from UCU over whether or not a deficit actually exists.

If USS are sticking to what they have stated previously, benefits aquired before 2011 are unchanged. But if you only joined in 2008 presumably this does not amount to a hill of beans.

If you are going to stay in academe, then you have to lump it. You might earn enough to set up a private pension alongside it. You will of course earn far more by not staying in academe, but there aren't many jobs that match up in terms of enjoyment and intellectual stimulation.

Southend1

Take a look at the ucu website and also employers pensions forum. There's a lot of info on both.

Amd while you're on the ucu website, join your union so that you get the info and are able to vote in consultation ballots.

Puddylove

bouicca21 wrote: »

You've only just caught up with this? The negotiations have been going on for months. Stacks of stuff in the educational press and endless emails from UCU over whether or not a deficit actually exists.

If USS are sticking to what they have stated previously, benefits aquired before 2011 are unchanged. But if you only joined in 2008 presumably this does not amount to a hill of beans.

If you are going to stay in academe, then you have to lump it. You might earn enough to set up a private pension alongside it. You will of course earn far more by not staying in academe, but there aren't many jobs that match up in terms of enjoyment and intellectual stimulation.

While I appreciate all responses, I'm not sure you're adding to my knowledge much. :rotfl:

Firstly - yes, I'm aware that the negotiations have been going on for months, but today I received the news from my employer that the changes I outlined are the compromise to be put to USS members.

I know that the figures regarding a deficit are disputed, but in operational terms that makes no difference - it's the USS decision that affects me, not the rationale. Given that there have been endless iterations, I'm not sure that benefits acquired before 2011 will be unchanged, either.

And my pension provision might not amount to a 'hill of beans' to you, but it will be what I have to live on, if I continue with my current employer; we are not all wealthy as I presume you must be.

And no, I don't have to 'lump it' as you put it, as I could opt out and look at alternative strategies, particularly as I am looking to move on; jobs in academia are not necessarily either enjoyable or stimulating contrary to your assumptions.

I was hoping that someone might be able to provide better information, so that I could consider my options, but thanks anyway.


Oh, and I could ask USS - but given that they can't even tell me what my additional payments have done/will be worth/are calculated, I don't rate my chances.

Southend1

Puddylove wrote: »

While I appreciate all responses, I'm not sure you're adding to my knowledge much. :rotfl:

i have pointed you to the sources of all the information available at present

Firstly - yes, I'm aware that the negotiations have been going on for months, but today I received the news from my employer that the changes I outlined are the compromise to be put to USS members.
It's going out for consultation but this IMO will be a formality. Maybe a few tweaks will result but the deal is done. If you were a ucu member you would have received information and the chance to vote in the consultative ballots prior to the agreement
I know that the figures regarding a deficit are disputed, but in operational terms that makes no difference - it's the USS decision that affects me, not the rationale. Given that there have been endless iterations, I'm not sure that benefits acquired before 2011 will be unchanged, either.
benefits accrued up to the point of the scheme changes will be unaffected

And my pension provision might not amount to a 'hill of beans' to you, but it will be what I have to live on, if I continue with my current employer; we are not all wealthy as I presume you must be.

i think Boudicca meant that you couldn't have accrued much pension prior to 2011 due to your start date. I'm sure it wasn't meant as an insult.
And no, I don't have to 'lump it' as you put it, as I could opt out and look at alternative strategies, particularly as I am looking to move on; jobs in academia are not necessarily either enjoyable or stimulating contrary to your assumptions.
bouicca said that you would have to lump it IF you were going to stay in academia. The point being there's nithing you can do to stop the scheme change at this point. The time for that was when ucu sent out the ballot

I was hoping that someone might be able to provide better information, so that I could consider my options, but thanks anyway.

as above, I pointed to all the info I am aware of. I was talking with the registrar of our uni the other day and he confirmed this was the only info available to him at this point too. Not sure what else you're looking for?
Oh, and I could ask USS - but given that they can't even tell me what my additional payments have done/will be worth/are calculated, I don't rate my chances.

There's no info available from USS at the moment because nothing has been agreed formally until after the consultation and redrafting of the scheme rules

bouicca21

Thank you Southend1 that was precisely what I meant.

And as Southend1 says, there just isn't any more information yet. Obviously all members of USS are worried, but at least there is going to be a pension scheme, and I've seen nothing that suggests there will be any change to the right to transfer to another pension scheme if you decide to leave academe.

Puddylove

Ok, I'm willing to accept that there's no more information available, given that I'm well aware of the UCU information etc.

I find USS intensely frustrating to deal with, as they cannot give me a future estimate of benefits or even the calculations used.

For my FT role - fine (although my salary is underestimated by £6k on their modeller) but they take around £100 a month from my PT work, which apparently doesn't count towards final salary, but is mysteriously worth additional days. So I'm in the strange position of paying in monies without any idea if there's any future benefit, nor how it is calculated if so. And yes, I have written to them asking - still no answer.

Hence why I wonder if I should stop at least the PT pension payments and save them instead.

Southend1

Puddylove wrote: »

Ok, I'm willing to accept that there's no more information available, given that I'm well aware of the UCU information etc.

I find USS intensely frustrating to deal with, as they cannot give me a future estimate of benefits or even the calculations used.

For my FT role - fine (although my salary is underestimated by £6k on their modeller) but they take around £100 a month from my PT work, which apparently doesn't count towards final salary, but is mysteriously worth additional days. So I'm in the strange position of paying in monies without any idea if there's any future benefit, nor how it is calculated if so. And yes, I have written to them asking - still no answer.

Hence why I wonder if I should stop at least the PT pension payments and save them instead.

AFAIK all the information you need is freely available on the USS website. If you've looked at it and still aren't sure then you could either wait for uss to reply to your letter or have a chat with your local union rep (you ARE a member right?) - union branches often have a steward who has taken a pensions course. They won't be able to give you financial advice but will normally be able to explain basic scheme rules, signpost you to further information, etc

Puddylove

Southend1 wrote: »

AFAIK all the information you need is freely available on the USS website. If you've looked at it and still aren't sure then you could either wait for uss to reply to your letter or have a chat with your local union rep (you ARE a member right?) - union branches often have a steward who has taken a pensions course. They won't be able to give you financial advice but will normally be able to explain basic scheme rules, signpost you to further information, etc

No, the information is not 'freely available on the USS website as my additional contributions don't come under any of the stated categories.

And no, UCU can't help. There is some sort of agreement between my university, and the USS regarding PT employees - but neither of them can/will give me information.

Compared to the lovely TPS, it's appalling customer care.

ETA USS did reply to my letter - by producing info about my FT role and future benefits, and advising me I could do that myself on their website! Grrrrrrr

kidmugsy

bouicca21 wrote: »

endless emails from UCU over whether or not a deficit actually exists.

Angels and pins.

kidmugsy

Southend1 wrote: »

join your union so that you get the info

When I was in UCU's predecessor, AUT, its efforts on the subject of pensions were abysmal. I'm interested to hear that things have improved.