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David Rowley
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UK universities started nationwide strike action last week. Why? David Rowley explains why the dispute is far from a typical disagreement about public-sector pensions. The University Superannuation Scheme (USS) is at the heart of the first in a series of battles between unions and government over proposed cuts to public-sector final-salary pension schemes. Ten years ago an employer closing their final salary scheme to new entrants could expect a muted response from employees. Since then a steady drip of closures has made those still lucky enough to have a final-salary pension aware of what is at stake. For employers the dawning realisation has been of the open-ended costs they are liable for. The biggest of these is longevity. World Bank figures show that a child born in 1974, when the USS opened, usually lived until 72.5 years old, while a... Continue reading
Posted Mar 30, 2011 at Research Blogs
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Mar 30, 2011