Employers enrolled in UK higher education’s largest pensions scheme will be represented by the Universities and Colleges Employers Association (Ucea) from August, with Universities UK (UUK) stepping back from the role.
The move comes after a bitter five-year battle over pensions cuts was finally resolved with UUK and the University and College Union (UCU) eventually agreeing that controversial changes made to the USS in April 2022 should be reversed after less than two years.
In January, contributions were lowered for both staff and employers while benefits were upped in April, adding thousands of pounds to an average member’s final pension and bringing an end to the dispute which provoked 69 days of strike action.
In contrast, a separate dispute over pay and working conditions, in which employers were represented by Ucea, went unresolved last year despite union members staging a long marking boycott that delayed graduations for thousands of students.
The USS switch will therefore cause some unease within sections of the union, which blamed Ucea’s unwillingness to improve on its offer on pay for the prolonged disruption. UCU head office has not commented.
Ucea has countered such claims by saying the pay rise of between 5 and 8 per cent for higher education staff agreed last year was at the limits of sector affordability and it was willing to?negotiate on non-pay-related issues.
A fresh round of talks aimed at agreeing a further pay rise for 2024-25 started in March and?is continuing with no deal agreed after the three planned meetings between the sides took place.
Announcing it will take on USS responsibilities, Ucea said the transfer had been in the works for some time since the publication of a jointly commissioned report by the Joint Expert Panel in 2018 that found that the same body dealing with pay and pensions would be a “more logical structure” and one used in other sectors.
While issues around USS have become much calmer since the cuts dispute was resolved, it remains the case that the volatility of the scheme, which swung from a deficit of ?14 billion to?a ?7 billion surplus?in three years, may prompt more attempts at further changes in future.
UUK and UCU have been working on a governance review as well as looking at ways of making the scheme more stable and Ucea said this work will continue under its stewardship.
The 2023 valuation that confirmed a much rosier picture for USS finances and paved the way for the improvements in the scheme is now in essence complete, Ucea said, but another will be due by 2026.
“This transfer will mean that Ucea will be the lead organisation on pay, pensions and reward for the higher education sector,” Raj Jethwa, chief executive of Ucea, said, in announcing the change.?
“One organisation leading on remuneration and reward will allow for stronger collaboration on workforce policy and thought leadership and the Ucea team will deliver this.”
Vivienne Stern, the chief executive of UUK, said that after “extensive engagement” the boards of both bodies have decided the employer representation role “would be a better fit within the remit of Ucea”.
“The transfer will mean that UUK is better able to deploy our resources, expertise, and political engagement and communications activity on the priorities outlined in our new strategic plan.”