University staff starting work now could be as much as £200,000 worse off in retirement under the new proposals for the Universities Superannuation Scheme (USS).

The findings, by independent experts at First Actuarial, also show that lecturers who worked in post-1992 universities, or polytechnics, could lose out on as much as £385,000 if academics were signed up to the rival Teachers’ Pension Scheme (TPS), instead of USS.

The current plans from Universities UK (UUK) will see guaranteed pension benefits from the DB scheme be replaced by a defined contribution scheme where benefits may be variable.

In the proposals, lecturers who started working in 2007 and have 10 years past service will lose out on £131,000, a loss of £6,100 annually, while staff with 20 years past service could lose out on £35,000 by the time they retire in 2027.

The University and College Union (UCU) general secretary Sally Hunt said: “This analysis reveals just how damaging UUK’s hardline plans for the pension scheme would be on an individual basis for people who have planned and saved for their retirement.

“Already offering worse benefits than other schemes available in the sector, these proposals would devastate USS members’ pensions and could create a recruitment and retention crisis as staff jump ship to secure their futures.”

It follows an announcement made by the UCU, on 17 November, that staff of the 50 largest and well-known universities are to be balloted on strike action over the plans, threatening “chaos on campus” if the dispute not resolved.

Hunt added: “I would urge all members to take a look at what these proposals would mean for them and then make sure they vote in the ballot for industrial action.”

The UCU stated that it did not believe the plans had the support of the majority of universities.
Earlier this month, the University of Warwick vice-chancellor Stuart Croft warned that the changes to the USS would have “serious consequences” for affected universities, and called for more “alternative and innovative solutions” to be considered.

The postal ballot opened on Wednesday (29 November) and will close on Friday 19 January.

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