Category Archives: News

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Q&As re USS, answered by UCU National Pensions Official

  1. What effects would the proposed changes to the USS pension have for early career academics?

Early career staff will be the most affected by the changes as they have less built up in the current scheme. They are also more likely to be on less secure contracts. Whatever anyone has built up in the current scheme up to April 2019 will be protected however, going forward under the current UUK proposals they will have no further benefits built up in defined benefit (annual pension linked to salary and service) but will be built up in defined contribution (what you pay is defined but outcome dependent on stock market) which will be a cash sum from which you would have to drawdown until it ran out or buy an annuity (pension) which is very expensive.

2. How do the proposed changes compare to what is happening to pension systems in the private sector, where investment funds are a common pension vehicle even for third sector employers?

Very like private sector pensions in that the build up is in defined contribution but the death in service and ill health will continue to be defined benefit.

3. Do we know in what kinds of investments our pensions will be held in, if the changes go ahead, and do employees have any control over these investments?

Thousands of members already build up a defined contribution pot in USS either as an extra and by taking the ‘match’ as a way of getting an extra one percent from employers or if they earn over £55,500 and all salary over that is pensioned as defined contribution. Currently there are 6 choices for members 2 lifestyles (one ethical) and one other ethical but this would expand.

4. I was wondering if it were possible for USS members to have their contributions paid into TPS. If not now, in the future?

This is an idea we would be happy to explore but it’s not under discussion at the moment.

5. Has the Union produced detailed data of the potential impact on members at different stages of their career i.e. 25, 35, mid-career and say two to three years before intended retiring date?

The First Actuarial report shows the impact on 12 hypothetical members at different career stages:

http://www.ucu.org.uk/media/8916/TPS–USS-no-DB-comparison-First-Actuarial-29-Nov-17/pdf/firstacturial_ussvtps_nodb_29nov17.pdf?utm_source=lyr-ucu-members&utm_medium=email&utm_campaign=members&utm_term=uss-all&utm_content=Your+pension+under+attack

 

Short version:

https://www.ucu.org.uk/article/9093/Overhaul-of-university-pensions-could-leave-staff-200000-worse-off-in-retirement?list=1676&utm_source=lyr-ucu-members&utm_medium=email&utm_campaign=members&utm_term=uss-all&utm_content=Your+pension+under+attack

 

  1. What alternatives are UCU proposing?

Under discussion but will be governed by conference policy

 

  1. In the event that we do go over to a defined contribution pension, why should the university contribution be 18% to our 9%? (8%, it is only 9% with the match which will go)

That amount was based on what was needed to support our defined benefit pensions under the USS. (The employers envelope is 18% (until 2020) out of that is deficit recovery, charges, admin, money to keep the defined benefit paying out assuming the employee contributions are not going in; anything left will go into the individual DC pot and all the employee 8% will go into their individual DC pot. The individual will probably get an option to pay less in, which may be attractive to those who feel 8% is too high.

In 2011 the employers only wanted to pay 10% into a DC pot, the current offer is slightly more but the closed defined benefit section will eat money.)

Now that the money would no longer go to that, the amount they provide needs to be enough for us to have a sensible pension given expected returns. If this is above 27%, then they need to contribute more. Can such a calculation be done to determine what they would need to provide to be used in negotiations?

They don’t think they need to give you enough for a sensible pension they say they won’t contribute more, not can’t, won’t.

 

  1. In the event that we do go over to a defined contribution pension, can we get a non-negotiable guarantee that the universities will indefinitely contribute 18% (or whatever the final amount is) of our salaries into a defined contribution pension? I am concerned since currently the universities pay 18% to our 9% since that it what the USS needed to pay our pension. If the universities are no longer liable to support our pension, what is stopping them from slowly reducing their contribution to our pension?

They only ever promised 18% to 2020 and signaling they will reduce but as the Defined Benefit has no member contributions going in it will be very expensive.

 

  1. In the event that we do go over to a defined contribution pension, what fraction of the contribution will go towards supporting the defined benefit pensions? If this is any number above 0, why should we be responsible for supporting other people’s benefits? (Anyone in now will have benefits building up until 2019 not just other peoples.)

How can we be guaranteed that none of our money is used to support a defined benefit pension? Your money will go into your pot you can see it on the Investment Builder login.  Yes the employer will have to pay a lot to keep the DB section, they have a legal duty to pay out pensions already built up.

 

  1. In the event that we do go over to a defined contribution pension, why should USS be the one to manage it? For whatever reasons, they have shown that they are unable to manage our pensions effectively. I don’t see why we can’t get another company to do it.

Good point one that has been made. However, because it’s so big it can buy investments cheaply and the employer will pay member charges for most options and admin. It is up to the employer not a member what scheme is on offer in a workplace. An employer will only pay in to the one scheme per group of employees so it’s that scheme or no scheme.

 

  1. In the event that we do go over to a defined contribution pension, what happens to our matching 1%? Will this carry on or be removed?

Whatever happens the match will be removed probably around April 2019. Make the most of it.

 

  1. What kind of pensions are the leaders of the UUK on?

UUK and USS staff like UCU staff are all in USS. The Vice Chancellors and such are usually earning too much to pay into a pension there is only so much you can pay in for a lifetime if not they are in USS.

 

  1. What happens if all junior members of the USS simply pull out?

They would love it. It would save employer contributions and not have to provide an alternative, if it is DC it can run as well with 3 people its all about individual pots.

 

  1. If the future accrual of the defined benefit portion of our pensions is set to zero, what does it mean to keep the death and incapability benefit? Do our partners or dependents somehow get our defined benefit pension if we die young? If so, how is that pension calculated?

In the current UUK proposals Death in Service and Incapacity will remain defined benefit in most DC schemes there would be a lump sum. How this would be calculated is yet to be discussed.

 

  1. In the news, I keep hearing that the issue with the USS all comes down to how future risk is assessed and that since universities are long standing institutions, there is no problem in the long run (e.g. https://www.timeshighereducation.com/blog/uss-pension-changes-would-be-disaster-universities-they-are-preventable). Are the universities being unreasonable about this and if so, how can this be remedied? Can we use a 3rd party to give a fair assessment of the risk to be used in negotiations?

We have tried and taken our Actuaries, First Actuarial into meetings. No success.

 

  1. How do the changes affect those who are already drawing a pension?

No change

 

  1. How do the changes affect those who are on a flexible contract and drawing a fraction of their pension from USS?

No change on pension and same impact on pension building up as other members.

 

  1. Re the new pensions scheme, does this work like the Premium Bond system where one gets the capital (i.e. amount invested back) and then any gains on top on date of retirement or is the whole amount at risk and what you get back depends on how the market is doing on the day one retires?

The whole amount is at risk.

News, Uncategorized

Redressing the balance: Employer stances on UUK proposal re USS

We warmly welcome the public statements made in support of staff pensions by Warwick and Glasgow Universities. It is clear that the very detrimental proposed changes are not supported unanimously within UUK, nor do all employers consider the current proposal to be necessary.

 

The current UUK proposal is to move USS from a defined benefits scheme (determined and guaranteed by your ‘career average’ earnings) to a defined contribution scheme (where your money is no longer guaranteed, but dependent on the stock market investments at the point at which you retire).
The VC at Warwick states that he is ‘mystified’ at the stance taken by UUK, and that ‘Whatever happens we will not let the current increasingly conservative approach to USS go unchallenged’:

 

The University of Glasgow has stated that it would prefer to keep a Defined Benefits Scheme and ‘The University believes that its interests are aligned with those of the UCU and that all parties should work together constructively to identify a solution. It is, of course, for members of UCU to decide how they vote in the ballot.’
News, Uncategorized

Your USS vote and TU legislation

You should be receiving your ballot paper later this week.

We understand that there is a large amount of technical language involved with the current UUK offer on USS but at heart this is a very simple dispute: the offer on the table at the moment is detrimental and the only way to change the terms of the offer is if members are prepared to take action.

Due to recent changes in Trade Union legislation we need a 50% turn out at this Branch in order to take any form of action. We are at the point where every vote really does matter.

It is unusual for University managers to communicate with members about potential trade union action during a ballot, as this could be interpreted as trying to influence the vote, but if you receive any communications that you are uncertain of please get in contact.

As we regard changes to pensions as an exceptionally serious issue, members are encouraged to ring the TU office on 01483 68 2323. We will be putting aside an hour every Friday, between 10:30 – 11:30, to discuss the UUK offer with members. More technical queries will be forwarded to our National Pensions Official, and we are currently collecting FAQs for her to answer. Please email these queries to: cmaxfield@ucu.org.uk

Surrey UCU is committed to keeping members informed every step of the way, please do not hesitate to get in contact if you are unsure of anything.

News

UUK proposal on USS in a nutshell

We are aware that recent proposed changes to the USS Pension may be difficult to digest. Our National Pensions Official visited our Branch last Friday and plainly outlined some of the issues. You will also have received an all-staff communication from the University today on the current UUK proposal:

UUK proposed that for future service the current hybrid scheme salary threshold will be modified so that there is no further defined benefit accrual. Instead, it is proposed that there will be a “market-leading” defined contributions scheme (through the USS Investment Builder) for all members.

To be very plain, the employer offer currently on the table is to move USS from a defined benefits scheme (determined and guaranteed by your ‘career average’ earnings) to a defined contribution scheme (where your money is no longer guaranteed, but dependent on the stock market investments at the point at which you retire). This means that the employers are intending to move all risk on to you as an employee.

We will also be collating and anonymising your USS related questions for our National Pensions Official to answer, so please forward any queries that you may have to: cmaxfield@ucu.org.uk

UCU will be balloting formally on this issue very shortly, please read UCU updates as they arrive so that you are prepared and informed. Surrey UCU will keep you as up to date as possible.

News

Result of ‘Defend pensions’ ballot of USS members. October 2017

Message from Sally Hunt:
 
I wanted to let you know about the result of the ballot.
 
86.6% of members who voted said they would be prepared to take industrial action to defend USS pension benefits on a turnout of 55.8% of those eligible.

This turnout – if replicated in a statutory ballot – well exceeds the 50% turnout requirement set by the government as the minimum legal requirement.
 
Thank you for your support of the union. Later today, your elected negotiators will begin detailed talks with the employers. No one should be in any doubt about the difficulty of the task they are undertaking on your behalf.
 
Universities UK (UUK), which represents the USS institutions in these negotiations, recognises that institutions have the ability to pay extra in order to safeguard existing benefits. However so far they have said that this is not an option and unless we can change their minds or persuade both UUK and USS itself to adjust their valuation methodology, detrimental change is inevitable.
 
Some employers have even signalled that they wish to move wholly to a scheme in which your pension income will be dependent on what returns if any there are from the investment of your contributions in the stock market – in essence a pension with no guarantees.
 
I hope our ballot result concentrates the minds of your employers. All we want is for them to stand up for staff and help us to protect your interests in the fund rather than look away while benefits are cut.
 
Be in no doubt that I and colleagues will try to solve this difficult dispute but if we need to seek your support for action it is good to know that you are with us in such large numbers.
 

News

Response to valuation of the University Superannuation Scheme

In response to the information circulated by the University recently concerning the valuation of the University Superannuation Scheme, our former Surrey UCU Pension Rep is happy to share his consequent response to the University:

I believe that USS is using the same Gilts plus methodology for valuation which they used in 2014 therefore it is not more optimistic. It is also more pessimistic than USS’s best estimate of future returns on their investments. 

Independent studies, and I believe those of USS’s consultants, have verified that the required funding gap is within the employers ability to pay but may not be in line with employers willingness to pay. It all revolves around how much employers value their employees across the whole range of the salary spectrum.

Report for UCU: Progressing the valuation of the USS. 15 September 2017. The First Actuarial report prepared for UCU as a response to the USS’s consultation document, also concludes:  The current employers’ contribution rate of 18% of pensionable pay, of which 15.1% goes towards defined benefits, is prudent. The asset income which is required, in addition to contributions, to pay the benefits in full is low. Indeed, in a scenario of “best estimate” pay rises, the benefits of the USS can very nearly be paid from contributions, without reliance on the assets. We can be very confident that the scheme is not vulnerable to forced disinvestment. We can be very confident that the cash flow in will meet benefit outgo for the very long term, so in the mean time fluctuations of market value or the pension scheme’s balance sheet are of low importance. The break even returns of 1.36% pa real CPI on past service and 1.85% pa real over CPI on future service are well below the expected returns on equities and property. The likelihood that the USS can achieve the break even returns is high. If the actual performance achieved exceeds the break even returns, the funding level will improve. Any funding level could be achieved eventually, given time. The cost of longevity improvements should be partially covered by the link of the USS’s NPA to SPA. At some point, there may need to be an adjustment to the balance of the contribution rate and the benefits to respond to improving longevity, but this point is not imminent. Subject to this point about increasing longevity, the cash flow analysis does not show any need to increase the contribution rate. The employers should be able to regard their current contribution rate as reliable. Making the same point the other way around, there is no need to reduce members’ benefits. Full report: https://www.ucu.org.uk/uss?utm_source=lyr-campaignupdate&utm_medium=email&utm_campaign=members&utm_term=_all-members&utm_content=The+Friday+email:+22+September+2017

Urgent announcement from Sally Hunt: A major university (Southampton) has become the first to publicly call for current USS pension benefits to be wholly replaced by a defined contribution scheme. Forget the pensions jargon. What this means in simple terms is that rather than being based on scheme rules as now, your annual pension will be completely dependent upon what returns your monthly USS contributions can get from the stock market. If other universities follow suit, UCU will need every member to stand together with the union and say NO.

Please also find the following information on USS which may be of use:

Request a replacement USS e-ballot. The ballot to defend the USS pension is currently open. If you haven’t voted please vote now. It’s crucial that we show that members are prepared to defend their pensions so please check your inbox (and junk box) for the unique link UCU has sent you and let UCU know if you can’t find it: https://yoursay.ucu.org.uk/s3/USS

USS Posters: show your support. If you’ve already voted why not put one of the new UCU / USS posters up on your door. Please download here: https://www.ucu.org.uk/uss?utm_source=lyr-campaignupdate&utm_medium=email&utm_campaign=members&utm_term=_all-members&utm_content=The+Friday+email:+22+September+2017

We will keep you updated as and when we receive more details –

 

News

Free UCU Membership to All PGRs

Excerpts from a message from Sally Hunt, President of the University and College Union:

“The future of our profession

During the (recent, Presidential) election, I lost count of the senior staff who approached me to express concern about the fate of the next generation. Locked into exploitative employment with little or no job security, the current model used in …… HE has high expectations of young staff but gives little back to them. They need UCU most, yet their membership density remains low.

With your help, we want to do something about this. Let’s work together and build a trade union culture in low security areas – a culture where the union stands up for staff rights, bargains for better pay and conditions, and helps young staff to get the best out of their careers.

Pushing for better conditions from the bottom benefits both established members and the profession as a whole. We all know that this exploitative employment model is creeping upwards.

Effective from 1 October 2017, if you are a PhD student teaching in HE, ….., UCU will make your union membership free. We think this covers around 70,000 (mostly younger) staff – the majority of whom are struggling at the start of their academic careers.

It is a big offer and valid for four years (or until a more secure job is achieved). We need to remove every possible barrier in the way of young staff joining our union in the hope that positive, valuable, UCU experience will spark a lifetime habit.”

https://www.surrey.ac.uk/doctoral-college/news/free-ucu-membership-all-pgrs

Joining only takes a few minutes: https://www.ucu.org.uk/

Details on UCU CPD can be found here: http://cpd.web.ucu.org.uk/

News, Posts, Uncategorized

Surrey UCU AGM 2017

We are holding the Surrey UCU AGM 2017 on:
 
Date: 4th August 2017.
Time: 13:00 – 14:00.
Location: Room 01 DK 03.

We would warmly welcome new members onto the Surrey UCU committee as we have key roles vacant at present. Surrey UCU also has facilities time (paid time) available for committee members, so please attend the AGM to find out more.

We look forward to seeing you there!
News, Uncategorized

Brexit Meeting: Candidate Letter

Following our Brexit Meeting  on  Wednesday 10th May, we have sent the finalised Brexit letter below to the following General Election candidates requesting a response. We will publish responses here as they are received (please click on the candidates name if hyperlinked):

Candidates standing in Guildford:

Candidates standing in Surrey South West:

 

26th May 2017

 

Dear xxx,

We are writing to you as a prospective Member of Parliament for the Guildford constituency. In this letter, we would like to express a consensus regarding the impact of Brexit on higher education. We ask you to join us in supporting your local university, the University of Surrey, in protecting freedom of movement for both students and staff. We ask you to campaign for the right to remain for those working or studying in the higher education sector.

Currently, official net migration figures include international students. This inflates the apparent number of immigrants, thereby stoking the anti-migrant atmosphere that has emerged in the current political climate.

Our international students make substantial contributions to our University, such as the diversity they inject into the teaching and learning environment we have on campus.

The surveillance of international students to ensure visa-compliance has been delegated to University staff. In addition to its troublingly xenophobic implications, such immigration policing diverts valuable time and attention away from providing education. A candidate who is forthcoming in, not just refraining, but actively challenging xenophobic rhetoric would unquestionably win favour with the thousands of people we represent.

To protect the interests of those students who have come to the University from elsewhere in the EU, we advocate guaranteed, home-rate tuition fees and a reciprocal open approach, including visa-free access.

There have been reports of universities losing academic expertise in the wake of Brexit. While affected by consequences of the UK parliament, EU Nationals are not permitted the franchise. With neither the franchise nor the guaranteed right to stay, it is easy to understand why many feel uncomfortable working and studying in Britain.

International expertise at Surrey allows students to learn from the best in their fields, while exposure to a diverse body of students allows staff members and postgraduate teaching assistants to hone their communicative skills and introduces them to different perspectives on their taught subjects.

As well as ensuring that the University continues to benefit from international talent, it is imperative that the University remains able to secure research funding in the absence of the research programmes we enjoy because of existing EU sources. Such EU programmes as Erasmus+ provide financial support for our students and staff to study, train, work, or volunteer abroad.

A decline in EU teaching staff is especially concerning in light of the Teaching Excellence Framework (TEF) being introduced by the Government. This is because such a decline will almost certainly lead to further reliance upon casualised contracts. Given how far teaching workloads exceed any basic hourly metric, any increase in such insecure employment conditions would place even greater strain upon academic staff, to the detriment of teaching, research, and studying alike.

Lastly, both domestic and international workers at the University should retain the current levels of protection they enjoy under EU law, such as those relating to working time, parental leave, and health and safety.

We therefore ask you to reply and add your support to the following seven propositions:

  1.     The removal of international students from official net migration figures.
  2. The guaranteed continuation of home-rate tuition fees and visa-free access for EU students as part of a reciprocal agreement.
  3. The guaranteed right to stay for EU staff and students who currently reside or study in the UK, with freedom of movement unrestricted for those who come to work or study from the EU.
  4. Extending the franchise to EU nationals residing in Britain to vote in National Elections.
  5. The securing of alternative sources of university funding other than raised tuition fees.
  6. The continued support of Erasmus+ and other EU research funding.
  7. The continued protection of the employment rights currently provided by EU law.

Please be advised that your reply will be publicised alongside those from the other election candidates. We ask you to kindly respond by the 2nd June 2017 in order for us to circulate candidate responses.

 

Yours sincerely

 

Surrey UCU Committee

Surrey Unite Committee

Surrey Unison Committee

News

University of Surrey Post-Brexit Meeting

Dear Members,

We invite you to our next event: Post-Brexit Meeting, Wednesday 10th May 15:00, LTE.

Our UCU Branch Secretary, Dan Davison-Vecchione, will be chairing the meeting.

All staff and students at University of Surrey are warmly welcome to attend this event.

This event is designed to bring together the staff and students at University of Surrey who may have worries related to Brexit and its implications. There will be an opportunity for open discussion for all those attending, as well as an exploration into potential joint action to support the EU staff and students that are part of the University of Surrey community.

Speakers include:

Professor Vince Emery, University of Surrey Senior Vice-President

Douglas Chalmers, UCU Vice-President elect / UCU President of Scotland

Tai Ademola, University of Surrey SU Vice-President

Neil Jones, Unison Branch Chair, University of Surrey