University pension scheme to carry out financial review after record walk-outs this year

The Universities Superannuation Scheme (USS) pension plan has announced it will yet again review its funds after thousands of members protested having been told their benefits were too expensive.

Last time the USS carried out a review, less than a year ago, it found a £7.5bn gap in its finances sparking the longest strike among UK university staff seen for decades.

Academics walked out in February and March over plans to end their defined benefit pension schemes, which universities said they could no longer afford.

In September an independent panel found flaws in the 2017 review, and criticised the USS, the Pensions Regulator and Universities UK, which represents 350 universities around the country.

It said the scheme was in a better financial position than the USS had suggested, suggesting defined benefit pensions could continue with less expensive contributions than initially proposed.

In a statement, the USS today said employers had indicated they were willing to pay higher contributions and take on more risk to let this happen, provided the USS give them more information on mitigating this risk.

But Bill Galvin, USS chief executive, lower contributions after the new valuation, was still not guaranteed and depended on employers being willing to take on investment risk.

“It is possible that employers could come to us as a co-ordinated group and say that we understand the risk that contributions might have to go up if things do not go as planned,” said Mr Galvin.

“But then we would have to look at what arrangements the employers might be prepared to put in place to support the scheme, in case things do not go as expected.”