Pension cuts prompt fears of two-tier pensions at UK universities

New UCU analysis has revealed that staff at some of the UK’s most selective universities will have pensions up to 36% worse than their colleagues at other universities if the radical proposals for USS pensions are forced through.

UCU’s analysis by shows how staff at so called ‘new’ universities who are members of the Teachers’ Pension Scheme would take home up to almost £20,000 more a year in retirement than colleagues at Russell Group institutions who belong to USS.

You can read UCU’s press release here.

The analysis has been picked up by Times Higher Education and the Financial Times (registration required or click here).

Career profile Current annual USS pension Pension under new proposals TPS equivalent Annual difference between current USS pension and TPS Annual difference between new USS scheme and TPS
Lecturer:
Age 40, joined scheme at 25, retires at 68 on salary of £45,954
£33,231 £27,978 £38,758 £5,527 £10,780
Lecturer started later:
Age 51, joined scheme at 36, retires at 68, final salary of £45,954
£25,235 £22,299 £27,606 £2,371 £5,307
Senior (snr) lecturer:
Age 40, joined scheme at 25, retires at 68 on salary of £54,841
£39,657 £32,316 £46,253 £6,596 £13,937
Snr lecturer started later:
Age 50, joined scheme at 35, retires at 67 on salary of £54,841
£28,392 £22,767 £30,785 £2,393 £8,018
Professor:
Age 40, joined scheme at 25, retires at 66 on salary of £75,000
£46,050 £33,604 £52,821 £6,771 £19,217