MyGlasgow News

The period for consultation on the proposed changes to the University of Glasgow Pension Scheme (UGPS) will come to a close on 20 September. In recent weeks information road-shows have been held by University managers. The events were aimed at helping staff potentially affected to understand what is proposed and to provide an opportunity to raise questions or comment on the proposals.

The engagement process has involved the relevant campus trade unions including Unison, Unite and GMB. Union representatives and University managers have been meeting regularly to liaise on the issue.

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 Universities Superannuation Scheme (USS).  Approximately two and a half thousand members (largely technical, secretarial and operational staff), and potential members of UGPS, have been made aware of the proposed changes and told they could be affected. The proposals are aimed at strengthening the future security of the scheme. Discussions with UGPS stakeholders, including the trade unions, started in February of this year as part of the formation of the proposals. UGPS, like many final salary schemes, has been in deficit for some time and if not addressed this will have an impact on the scheme’s ability to meet pension payments in the future.

The University Court has accepted proposals put forward by an expert working group tasked with advising on how best to provide a sustainable pension scheme for staff into the future, whilst 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 the scheme to any new entrants, with an alternative defined contribution scheme set up for those new staff. The current member contribution rate would be increased to 7.5% of pensionable salary based on these proposals and the ability to take an unreduced pension from age 60 would be removed for future service. Pension accrued in respect of service up to the date of the change would still be payable without reduction when taken from age 60 or over and it is proposed that transitional arrangements are introduced for those aged 55 and over at the date of the change such that the reduction does not apply at all. In future, the normal pension age would be linked to increases to the State pension age.

The changes to UGPS are proposed to come into effect on 1 April 2014.

There is still time to respond to the consultation: you can make your views known by contacting UGPS – Pensions, Finance Office, University of Glasgow, University Avenue, Glasgow G12 8QQ, or e-mail ugps-pensions@glasgow.ac.uk . The University is unable to provide personal pension advice.

First published: 12 September 2013