Court approves UGPS changes
Published: 20 June 2013
A formal consultation has begun with stakeholders in the University of Glasgow Pension Scheme (UGPS). It follows Court’s approval of proposals to make changes to the scheme aimed at strengthening the future security of the fund.
Approximately two and a half thousand members, and potential members, of the University of Glasgow Pension Scheme (UGPS) are being contacted to update them on proposed changes to the scheme. These are aimed at strengthening the future security of the fund. Discussions with UGPS stakeholders, including the trade unions, started in February this year.
UGPS is the University's local pension scheme, through which the University Court makes available an occupational pension for those employees who do not come within the scope of the UK's Universities Superannuation Scheme (USS). These are largely technical, clerical and operational staff.
For some time, like many final salary schemes, UGPS has been in deficit and if not addressed this will have an impact on the scheme’s ability to meet pension payments in the future.
Last week, the University Court accepted proposals put forward by an expert working group which was tasked to advise on how best to provide a sustainable pension scheme for staff into the future, protecting the generous benefits of existing members at an affordable cost.
The proposals include retaining the current final salary scheme for existing members but closing it to new entrants. The member contribution rate will be increased to 7.5% of pensionable salary.
The ability to take an unreduced pension from age 60 will be removed for future service. Pension accrued in respect of service up to the date of the change would still be payable without reduction if taken before age 60. The normal pension age will be linked to increases to the State pension age. A new defined contribution scheme will be set up for new entrants.
These changes are likely to come into effect early in 2014. They mirror the recent changes to the USS scheme.
The University will enter a formal consultation period with those affected by the changes lasting until September. This will consider items such as transitional arrangements for those nearing retirement.
Staff can write to UGPS – Pensions, Finance Office, University of Glasgow, University Avenue, Glasgow G12 8QQ, or e-mail ugps-pensions@glasgow.ac.uk. The University cannot provide pensions advice.
First published: 20 June 2013
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