UK universities’ pension funding hole doubles to £6.6bn
Hundreds of thousands of members of the £72bn Universities Superannuation Scheme face the threat of a further rise in their pension contributions after the plan’s managers revealed a funding hole had nearly doubled to £6.6bn.
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About 198,000 active members of the USS, the UK’s largest private sector pension plan, are making monthly payments of 8.8 per cent of their salary towards their pensions, which promise an inflation-proofed retirement income for life.
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These payments are due to rise to 9.6 per cent of salary from October, under a controversial schedule put forward by the USS, and backed by university employers, to address a £3.6bn deficit in the scheme’s finances based on a valuation in March last year.
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