Five questions employers must answer in university pensions row

In a ballot last month, 96% of UCU members voted to reject the employers' proposed changes, with a similar number backing UCU's alternative proposals to share costs between employers and staff while protecting benefits for all.

The union has always recognised some changes are needed in order to ensure the stability of the pension fund and to protect members' benefits but fears the employers plan to ignore the overwhelming views of ordinary USS fund members.

UCU general secretary, Sally Hunt, today asked the employers to answer five key questions raised by staff during the union's consultation: 

1. Can you confirm that your proposals would mean a loss for a new starter lecturer of more than £120,000 when set against the benefits enjoyed by existing staff?
2. Do you accept that existing staff who are made redundant, take a career break or reach the end of a fixed term contract will lose their right to a final salary pension if they return to the sector?
3. Do you agree with the 2007 report commissioned by university finance directors which said that cutting pension benefits would impact on recruitment and retention of high quality academic and academic-related staff? 
4. Are you prepared to attend urgent negotiations aimed at creating stability and security for USS members?
5. Do you agree to put both your and UCU's proposals to a ballot of all USS members before any changes are made?

Working from the evidence available of what the scheme needed, UCU proposed an increase in members' contributions, along with an increased retirement age for new entrants and a cost-sharing mechanism should future increases be required. The employers rejected the union's proposals and said they want to introduce a career average earnings scheme to replace the current final salary scheme.

UCU says that move would see a typical new starter lecturer lose £127,000 from their pension compared to the existing benefit package. The two sides are due to meet again on Wednesday 7 July - more than a month after UCU announced its pension ballot result and invited the employers to urgent talks.

UCU general secretary, Sally Hunt, said: 'UCU has made affordable and credible proposals which would protect benefits and secure the future of the pension fund. The employers' proposals have been rejected by 96% of those affected yet their response to my public invitation to urgent talks was silence. They seem determined to create a two-tier system which would damage recruitment and retention of university staff and lead, inevitably, to a further attempt to reduce benefits for existing staff to the lowest common denominator.

'USS members deserve answers to the five questions I have put today and I hope the employers will now seriously engage in the process of securing our pensions rather than seeking to ape the coalition government's attack on our colleagues in public sector pension schemes.'

A full Q&A on the changes can be found at www.ucu.org.uk/usschanges and further details on the difference for a new starter on the career average scheme, compared to the final salary scheme can be found here: USS changes - key questions