Cost of restoring USS pension benefits falls further as scheme surplus increases

• Restored benefits estimated to cost just 24.4%, USS data shows  
• USS surplus grows to £5.6bn 
• Employers must now commit to restoring benefits, UCU says 

Striking university staff have called for the reversal of devastating Universities Superannuation Scheme (USS) pensions cuts after new data showed that the cost of restoring benefits has fallen to a new low. 

The data, from the trustee's latest monitoring report published this week, shows that the cost of restoring benefits is estimated as 24.4%, lower than the 31.4% in contributions currently being paid for a package of cuts forced through by employer body Universities UK (UUK) in April this year. 

Under the cuts the average lecturer is set to lose 35% of their future guaranteed retirement income. For those at the earliest stages of their careers, the losses to retirement funds reach hundreds of thousands of pounds. 

USS pension cuts were predicated on a valuation of the scheme conducted in March 2020 as markets collapsed. After recording a deficit of £14.1bn, the scheme has since recovered and according to this week's monitoring report now holds a surplus of £5.6bn.  

The release of the USS data comes after the University of Cambridge's own actuary advisors estimated that restored benefits based on the earlier June 2022 monitoring position, would cost no more than scheme members are currently paying. 

Tomorrow (Wednesday 30 November), UCU members at 67 universities across the UK will take another day of strike action over pensions. The union is demanding that employers revoke the pension cuts and restore benefits. 

If no commitment to restore pension benefits is forthcoming, UCU says industrial action will escalate in the New Year. 

UCU general secretary Jo Grady, said: 'The USS pension scheme is going from strength to strength and there remains no credible reason why benefits should not be restored. Not only is the scheme reporting a significant surplus, but the trustee's own data shows that cuts can be revoked and benefits returned for much lower cost. 

'It is a disgrace that dedicated university staff have been forced to take industrial action to win their pensions back and vice chancellors should be deeply ashamed.  

'On Wednesday, staff will take further strike action at universities across the UK. If there is no commitment forthcoming to restore pension benefits, there will be further disruption in the New Year - our members are going nowhere. The clock is ticking.'