What is this campaign about?
Pensions stand to fall by 35% for members who have recently joined the scheme. Use this modeller to see how much you would lose under the current proposals. Furthermore, the employer is proposing to cap the inflation rate our pensions increase by at 2.5%. Inflation is predicted to reach 7% this year, devaluing our pensions sharply.
This is all being done to service a ‘deficit’ based on a valuation carried out at a historically bad time for the markets. Since this valuation stocks have recovered, and new evidence shows no deficit. A new valuation is clearly needed.
At present the employer is suggesting a pause of three years on the inflation cap. This just kicks the problem down the road. UCU are proposing a sensible, affordable short-term rise in contributions so that a new valuation can be carried out. This will help ensure that future disruption over our pensions will not be necessary. Read more here.
What does this mean for our local members?
Since 2016 our pensions have been changed from a final salary to a career average scheme, a cap on defined benefit payments at £60k, and continued increases in employer and employee contribution rates.
Current proposals would further undermine the value security of our pensions by leaving it open to market fluxuations.