BRITAIN’S biggest private pension scheme USS has dumped £80 million of Israeli assets following pressure by University and College Union (UCU) members.

The union’s general secretary Jo Grady hailed the “big win for our members” today.

She said: “This decision is a huge step in the next direction – and a historic win for the Palestine solidarity movement.

“We now need the scheme to pursue full divestment, including dropping holdings in arms companies and entities supplying equipment being used to murder tens of thousands of Palestinians and dispossess many more.

“Cutting ties with the Israeli war machine is not only a matter of ethical and legal obligation, but prudent financial management.

“These are bad investments which are incongruent with scheme managers’ fiduciary duty.

“We won’t stop here as we want full divestment from the companies that are supporting the Israeli government in its genocide in Gaza.”

The Universities Superannuation Scheme (USS) is the country’s biggest private-sector pension fund with more than 500,000 members.

It sold £80m of Israeli assets, “materially” reducing its exposure to Israeli investments including government debt and Israeli currency in the past six months, sources told the Financial Times.

UCU said it had raised concerns with the pension fund about it investing in companies on the UN watchlist of those in breach of international law.

USS was contacted for comment. Its latest annual report, published last month, said it had a “legal duty to invest in the best financial interests of our members and beneficiaries.”

It added that it had reduced its exposure to the Middle East “in response to the financial risks that became apparent.”

The move follows other major global retirement funds who have limited their Israel exposure following pressure from members.