USS consultation to start in September

16 July, 2010

The University Superannuation Scheme (USS) is to launch a consultation into changes to its final salary scheme, in September.

The consultation follows proposals from USS on changes to employees’ retirement age and contributions, which were recently accepted by USS’s Joint Negotiating Committee. It has yet to be approved by the USS Board, which will be approached on the 22 July.

The changes include an increase in normal retirement age to 65 and an increase in employee contributions to 7.5% of salary for the final salary scheme. A career average scheme will be introduced for new entrants.

Opposition to the proposal has been voiced by the Universities and Colleges Union which last month threatened the "graetest industrial dispute" ever if the changes are forced through.

Tony Bruce of the Employers Pensions Forum, a body representing pension provision in higher education institutions said of the move: “this is a massive, complicated exercise to which considerable resources will be devoted to ensure that every individual member has an opportunity to express a view on the proposed changes.”

The consultation will take in around 400 employers, and 130,000 active members.