University managers want to phase out final-salary pensions and introduce a pension age of 65 to reduce their costs.

At a meeting yesterday, trustees who govern the ?30 billion Universities Superannuation Scheme called for a rethink on two points.

They queried plans to introduce inflation caps, which were among the most controversial of the changes proposed by employers.

Pensions are index-linked to ensure that their value is not eroded by inflation, but caps would limit these increases.

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Critics said the caps ¨C likely to be raised under revised plans ¨C would slash the value of individuals¡¯ pensions in the event of prolonged high inflation.

The trustees also queried employers¡¯ proposals to place a ban on people rejoining the final-salary scheme after more than six months out. The limit is now likely to be raised to two years.

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Despite welcoming the trustees¡¯ ¡°concessions¡±, the UCU said industrial action was ¡°still likely¡±.

Sally Hunt, the UCU¡¯s general secretary, said: ¡°Much more will need to be done if we are to avoid strike action and widespread disruption in our universities.¡±

The trustees did not contest other major changes proposed by employers, such as the closure of final-salary pensions to new members. It would be replaced by a lower-value career-average scheme.

In addition, the link to the consumer prices index of inflation ¨C a controversial change from the USS¡¯ present link to the higher retail prices index ¨C will remain.

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The trustees¡¯ meeting followed a consultation with affected individuals, which closed on 22 December.

The board of trustees said it had considered the consultation responses and ¡°agreed to put forward some suggested modifications to the principal stakeholders and thereafter formally to the Joint Negotiating Committee¡±. The committee will meet on 1 February.

Brian Cantor, chair of the Employers Pensions Forum and vice-chancellor of the University of York, said the employers supported the trustees¡¯ two revisions.

¡°These modifications address key concerns raised by members while maintaining the overall reforms needed to ensure that USS is sustainable and affordable in the future,¡± he added.

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john.morgan@tsleducation.com