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November 28th, 2017:

Our communication with the Vice-Chancellor regarding Warwick’s response to UUK’s proposals for USS

Southampton UCU sent the following email to the Vice-Chancellor this evening:

Dear Sir Christopher
We write to you again on behalf of our members and all members of staff here in the USS pension scheme. Following the USS Trustees’ adoption of a more conservative approach to the scheme valuation, we understand that Universities UK (UUK) is supporting the closure of the defined benefit element of the current pension scheme.

We would like to know, did the University of Southampton approve the latest UUK proposal before it was put to the negotiators, and if so, will you let us see the costings related to the proposal?

We ask you to put every pressure on UUK to change this decision.

This change, if implemented will have a huge, negative impact on staff here, and in other Universities. The closure of the defined benefit scheme will result in a more cautious investment strategy and will inhibit future funding of our pensions. This will be detrimental for current and future staff, and puts even those already drawing a pension from USS at risk.

This will destroy the future financial security of our staff. Not only that, the reducing of employer DC contributions to 12%, in part to finance alleged historic deficits (which, if they exist, are the employer’s responsibility) represents a huge intergenerational unfairness.

We ask you to stand with Stuart Croft, Vice-Chancellor of the University of Warwick, to defend our pensions, and to endorse his statement with a statement of your own. See: http://blogs.warwick.ac.uk/execteam/entry/which_way_forward/

The valuation of the scheme and the approach to the management of risk are hugely contested. Stuart Croft has called for “more transparency, particularly on issues such as self-sufficiency, mortality assumptions and projections for gilt yields, since these are the building blocks upon which a new greater conservatism has been placed.” Please support his challenge to the current increasingly conservative approach to USS.

We are aware that local competitor universities such as Portsmouth and Bournemouth offer alternative, more attractive pension schemes, and this is damaging the recruitment and retention of staff, and our reputation. The University of Southampton must be able to offer a decent pension to current and prospective staff, and must work to protect the pensions of its retired staff. We urge you to join with other VCs opposed to the USS proposals, and work to defend the future pension benefits of all members of USS.

Sincerely
Southampton UCU Executive Committee