UCU demands urgent government action to protect university pensions

The call comes as universities including Southampton Solent, Northumbria, Hallam, Staffordshire and London South Bank have all looked to downgrade staff pension benefits.  

In a letter sent to the Education Secretary and Skills Minister [191kb], UCU general secretary Jo Grady set out three urgent demands for government intervention to address the growing threat to the Teachers' Pension Scheme (TPS) and defined benefit (DB) provision more widely.   

UCU is calling on the government to:  

• rule out any legislative changes that would allow universities to opt out of the TPS, which employers are lobbying for
• stop institutions using fire-and-rehire tactics to force staff out of TPS, and consider sanctioning employers for this anti-worker behaviour
• provide an emergency financial support package to help universities meet TPS contribution costs, similar to support already provided to schools and colleges.  

The union says these measures are essential to stabilise the sector, as more universities move to decimate pension provision under the guise of financial necessity.   

DB pension schemes guarantee a set retirement income based on salary and length of service and are standard in the public and education sectors. Defined contribution (DC) pensions, on the other hand, individualise risk and do not guarantee a minimum income in retirement, as benefits depend on the performance of investments.   

Post-1992 higher education institutions are required under statute, and relevant pension schemes regulations, to participate in DB schemes like TPS.   

UCU general secretary Jo Grady said: 'Ministers recognise that defined benefit pensions are a vital part of employment in higher education. Now they must act to defend them.  

'University employers are accelerating attempts to erode pension security, using the current financial crisis as cover. If ministers are serious about treating higher education as a public good, they cannot stand by while employers strip away the retirement security, and steal the deferred wages, of staff.   

'We need to see a clear government position: no opt-outs from TPS, no fire-and-rehire to cut pensions, and proper financial support to sustain the scheme. Failure to act risks lasting damage not just to universities, but to a nationally important pension scheme.'