If you’re on a casualised contract worrying about your pension might seem remote, perverse even. For the tens of thousands of staff who endure on fixed-term teaching or research contracts, who worry about where their next funding pot is coming from or who struggle on hourly paid teaching contracts, it’s the lack of job security that causes immediate stress and anxiety.
This is all completely understandable but the reality is that what’s happening to the USS pension scheme is a matter for every member of academic staff working in the pre-92 university sector.
The pension benefits that are available to staff through USS are under an attack that is designed to create greater insecurity in retirement for staff. That might sound extreme but it’s true.
USS is one of the last pension schemes to keep what’s called a ‘defined benefit’ pension structure, whereby you know roughly what you will get in retirement, whether it’s defined by your final salary or your career average salary. In the last 30 years, private sector pensions have almost universally become ‘defined contribution’ schemes that place more risk on individuals and produce lower benefits in retirement.
USS is also a major investor with a portfolio of different investments, including shares in the City that earn income for the scheme. The government’s pensions regulator wants to make sure that USS remains solvent so that its costs never fall on the taxpayer, so it is demanding that USS ‘de-risks’ its investments and raises the contributions being made into the scheme, while cutting the scheme’s liabilities (otherwise known as your pension benefits). That’s why the USS board is insisting on a valuation methodology that artificially creates a big deficit. This provides the justification to call for higher contributions and to cut benefits.
University employers don’t want their contributions to keep rising, so they are putting forward proposals that shift more risk onto you by cutting your retirement benefits.
It doesn’t matter whether you’re in the final salary section or the career average section now, your pension in retirement will be worse as result of these proposals.
If you are on a casual contract you may not even be in the scheme, but it’s still vital to vote for action.
If you want to stay in the sector, build a career and work in a pre-92 university, USS will be your scheme. The employers have imposed highly detrimental changes on USS once already, back in 2011 and the danger is that they will do so again now. And it is improbable to suggest that they won’t come back again.
That’s why the fight for USS is just as much a fight for casualised staff as for the permanent. If casualised staff don’t take action now, the danger is that their future retirements will be even more insecure than their current employment.
The fight for security is one that unites all UCU members. UCU is campaigning against insecurity in employment and we fight with the same vigour for security in retirement.
That’s why we urge all members, whatever their employment status, to stand together and fight for greater security in work and greater security in retirement.
Download and distribute this new leaflet aimed at casualised staff now. Make sure that all members stand together for security in work and security in retirement.
VOTE YES TO ACTION