Academic common room
Rocket1982 · 09/09/2016 12:52
I recently went to a presentation by USS about the pension changes. I found out that for those previously on the final salary scheme, where one year's contributions generated 1/80 final salary, that benefits accrued before April 2016 are "locked" but not locked to the final salary, but to salary in April 2016! So I paid into the USS for 7 years on the assumption that I would end up with 7/80 of my final salary, and I only get 7/80 of my salary more than 30 years before I retire! This is obviously very disadvantageous, and progressively more disadvantageous for people the further they are from retirement age.
I just wondered how much awareness there is about this change? I had no idea before the meeting, but I have to admit, I usually tune out of anything to do with pensions.
Closetlibrarian · 09/09/2016 14:41
Quite a lot of awareness, at least at my institutions. The Unions (USS, etc) also kicked up a big fuss about this (I think there was also action-short-of-a-strike) in response to the changes.
WalterFlipstick · 10/09/2016 23:18
Yes, there was an assessment boycott at the end of 2014 but the employers came back with slightly improved proposals and we caved in
I am in about the same career stage as the OP and we came off worst I think. Part of the problem I suspect is that the demographic of UCU members skews closer to retirement. If you have 20 or 30 years' final-salary service already, and are not expecting your salary to go up much more before you retire, then locking the "final" salary doesn't matter so much to you.
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