Universities UK has put forward a proposal to change the pension benefits for academics to defined contribution from April 1 2019, but has committed "to consider in three years’ time if defined benefits can be reintroduced should the scheme’s funding conditions improve".
The proposal put forward by UUK was agreed by the Joint Negotiating Committee, the formal forum for deciding changes to USS.
The new DC scheme would see employers pay 18 per cent in contributions, with employees having the choice to put in either 8 per cent or 4 per cent. Employers would pay the costs of investment charges, UUK stressed.
The proposal will be consulted on with all members in a 60-day consultation.
