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Open letter from Southampton UCU Executive Committee to University of Southampton President and Vice-Chancellor regarding the USS Pension Scheme

Dear Sir Christopher

We write with concern as to the recent developments regarding the USS pension scheme.

As you know, nearly a year ago staff here at Southampton took unprecedented action to defend their USS pensions. Since the JEP report and the decisions of UCU and UUK to endorse the JEP’s recommendations, USS has stated that it will now undertake a fresh valuation of the USS pension scheme using March 2018 data. This new valuation requires participating employers to be consulted on the assumptions used to value the scheme’s liabilities

https://www.ussemployers.org.uk/sites/default/files/field/attachemnt/2018-technical-provisions-consultation.pdf

The JEP estimated that if all its recommendations were implemented, current benefits (minus the match) could be secured for 29.2% – 3.2% higher than the current 26%, but substantially lower than the 36.6% previously proposed by USS.

In the new technical provisions, USS states that it is not persuaded of the case for two of the proposals made by the JEP: the postponement of de-risking in the first 10 years and the smoothing of contributions over two valuation cycles. However they also say that, even without implementing these two recommendations, contributions can be as low as 29.7% if they can agree suitable contingency arrangements with the employers.

The USS consultation with the employers finishes in mid-February and we ask on behalf of Southampton UCU members and members of the USS pension scheme here that this University will call for the full implementation of the JEP, including the postponement of de-risking and the smoothing of contributions.

We seek assurances that this University will:

  • call for the full implementation of JEP recommendations;
  • support measures to secure the lowest contributions possible for staff (mindful that pay has not kept pace with inflation);
  • support further work by the JEP to improve the methodology for future valuations which would have the support of all sides.

We look forward to your response and formally request permission to communicate such to our members.

Thank you.

Yours sincerely

Catherine Pope

On behalf of Southampton UCU Executive Committee

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