Changes to the University of Glasgow Pension Scheme (UGPS)
Approximately 2,500 members, and potential members, of the University of Glasgow Pension Scheme (UGPS) were contacted to update them on proposed changes to the scheme. The changes are aimed at strengthening the future security of the fund. Discussions with UGPS stakeholders, including the relevant trade unions, commenced early in 2013. The period for consultation ended on 20 September 2013 and the changes have now been agreed by the University Court.
UGPS is the University's local pension scheme through which the University Court makes available an occupational pension scheme for employees who do not fall within the scope of the 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 would have an impact on the scheme's ability to meet pension payments in the future.
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 agreed changes are as follows:
- The current final salary scheme will be retained for existing members but will be closed 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 when taken from 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 take effect from 1 April 2014.
A series of information roadshows took place in August 2013 to help staff potentially affected by the proposed changes to understand what is planned and to provide an opportunity to raise questions or comment on the proposals. Details of dates, times and venues are below.
If you were unable to attend you can view the UGPS Consultation Slideshow here.
For a list of Q&A giving more detailed information on the changes, including questions raised at the roadshow, follow the link here.