The price of security - UCU proposals are also a significant cut
In previous posts here and here I showed how to calculate the cost of making up the loss of benefits under UUK's proposed changes to USS using HMRC's method for valuing contributions to a defined benefit pension scheme, and the effects of the proposed changes on scheme members. UCU have tabled an alternative set of proposals in advance of the negotiations as ACAS tomorrow (Monday 5th Macrh) and here I have modelled their effects on member similarly. The UCU proposal UCU's proposal is focused on keeping the defined benefit (DB) element of the pension, which is crucial for USS members to be able to predict what their pension will be with confidence and to avoid the pitfalls of managing drawdown from a pension fund since individuals don't know when they themselves will die, but a large fund like USS can rely on actuarial estimates of longevity to determine how long their members will live as a population. Thus the UCU proposal retains defined benefits up to the ...