Commentary on current events

Inflating away your pension

As a result of their negotitations on the future of UK university pensions, which I have written about previously, the University and College Union (UCU) and employers represented by Universities UK (UUK) announced an agreement on 12 March 2018. The main points of the agreement are:

Change to USS rules causes wealth transfers

The scheme proposed to replace the Universities Superannuation Scheme’s (USS) final salary section ignores career progression and other salary increases. This will lead to substantial wealth transfers from current members of the final salary section to other USS members. Under the proposed rules, the option for final-salary members to receive a pension based on a future pensionable salary will be removed retroactively, which reduces the value of those members’ accrued benefits.
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