Important information about the "working to contract" action called by the University and College Union (UCU)
UCU is asking its members to take action over the proposed changes to the Universities Superannuation Scheme (USS). Background information on the relevant issues, together with information on this action appear below and via the quick links to the right of this page. The action is scheduled to commence on Monday 10 October 2011.
Even if you are not a member of UCU, this action may have an impact in your workplace. It is therefore important that you are aware of the background to this dispute, which is described below.
This information will be updated as the situation develops.
USS Pensions
Colleagues will be aware of the consultation exercise, which took place in 2010, regarding the proposed changes to USS. A review of USS was initiated in 2008 in order to address escalating costs arising primarily from increasing life expectancy, and to ensure it can remain as a sustainable part of the employment package for the HE sector.
USS was set up in 1974 when a typical member retired at age 65 and drew a pension for between six and ten years. In 2010 a typical member retired at age 62 and is expected to draw a pension for 22 years. While this is undoubtedly good news, it costs a good deal more now to provide this pension than was envisaged back in 1974. Life expectancy is expected to continue to improve into the future. UCU has recognised the need for amendments to USS to ensure that it remains affordable, but has not agreed with the specific changes that have been made.
The changes to the scheme include an increase in member contributions for existing members from 6.35% to 7.5% whilst maintaining final salary benefits calculated as one-eightieth per year of service. New members from 1 October 2011 will join a Career Revalued Benefits section and pay member contributions of 6.5%. The contributions from the employers for both final salary and career revalued benefits sections remains at 16%.
The changes were agreed by the USS Joint Negotiating Committee (JNC) in May 2011 with UCU members in attendance. The USS Board subsequently approved the changes to USS to take effect from 1 October 2011. These changes have now been implemented.
More details of the discussions that have taken place relating to changes to USS can be found on our USS web pages.
The University's position
The University is committed to protecting our academic strengths and resources within the constraints of affordability and to delivering an excellent student experience.
In any dispute situation, the University will encourage resolution, and will continue to place the needs of our students as our top priority.
The University has a duty to remind staff that should the current industrial action escalate to strike action, participants will have their pay deducted for the duration of any strike. Additionally, the University has a duty to remind staff that action short of a strike may also lead to pay being deducted as the University does not accept partial performance of the contract of employment. This is in accordance with the legal framework and also reflects common employment practice.
For further information, please see the University's position on industrial action and our Questions and Answers page.
