A gap between jobs could mean you’re much poorer in retirement
If the employers’ pensions proposals are adopted, then a break in continuity of employment in excess of six months means new entrants to the USS pension scheme will re-enter the scheme on CARE with their final salary element being deferred (i.e. 2.5% cap on uplifting).
On the other hand, there is provision in the proposals to have a break in employment of up to 5 years where you can return to the same employer on your original final salary pension arrangement BUT the decision to allow this is to be at the institution’s discretion (so, for example, PVCs could be allowed to go to research councils and return to their final salaries benefits but career break staff might not be allowed back onto final salary). UCU suspects that this particularly will hit fixed term and hourly paid staff hardest.
- Only employers so far have been consulted, not employees. Your union thinks you should be consulted over your future.
- In a ballot of members in May this year, 96% of voting UCU members voted to reject the employers’ proposed changes, with a similar number backing UCU’s alternative proposals to share costs between employers and staff.
- £627,000 of taxpayers’ money was used to support the employers in preparing and pushing their proposals.
- Some could get up to £127,000 less in pre-tax pension income under the new proposals