….the full report is here, but this is probably the key section:

Our analysis has highlighted a number of issues arising out of the methodology and
assumptions which we believe should be addressed. Furthermore, since the consultation on the 2017 valuation with employers, there have been a number of developments of relevance to the valuation assumptions. We have examined the impact of all these factors.

On the basis of our analysis we have made a number of recommendations, the overall effect of which would be to reduce the valuation estimates of the future service cost and deficit to the point where the increase is small enough to allow the Joint Negotiating Committee (JNC) to be able to reach an agreement so that the issues currently facing the Scheme can be resolved, recognising that compromise may be needed on all sides.

This thread from the FT’s Josephine Cumbo summarises the main recommendations.

Jo Grady has a useful take on what it all means here.

The IWGB believes:

• some of the recommendations relating to the valuation are to be welcomed as they show that USS have used low valuations as an argument for cutting pensions.
• the non-binding nature of the proposals is problematic
• the suggestion of increased contributions from workers is ridiculous, as this would be a defacto pay cut (especially given the low ball offer on pay)
• and finally that there is clear evidence of mismanagement at USS and UUK from the report, and therefore those responsible need to go.

We’ll be discussing all this at our next branch meeting on 26 September BUT if you have any thoughts please do drop our Education Officer Jamie a line (jamie.woodcock@gmail.com).

Below is copy of a letter from Tim Hall, UCU’s Senate House Branch Chair, updating its members on the issues around pensions and the latest information from the Universities Superannuation Scheme.

Dear Members,

I understand that this is a bit of a long one but I wanted for you all to be as informed as possible so please do take the time to read it.

By now, most of you will have received an email from HR sent on behalf of USS. The email explained what their plan for cost sharing will look like:

Under the 2017 valuation that USS approved in November 2017, contributions will eventually rise by 10.6 per cent from 26 per cent of salary (18 per cent employer, 8 per cent member) to 36.6 per cent (24.9 per cent employer, 11.7 per cent member) in order to retain the status quo.

Why is the cost-sharing rule being implemented in USS?
Members will already know that under its current valuation, USS is in deficit. USS has been claiming for months that it is legally obliged to have a plan in place for dealing with that deficit. But the Joint Expert Panel (JEP) will not make any decisions about the current valuation until September 2018, and the previous plan to recover the deficit by removing the Defined Benefit element of the scheme was left in tatters after strike action by our members: you!

As a result, USS has chosen to trigger a process known as ‘cost-sharing’, although it is better described by the phrase ‘shared contribution increases’. Under Rules 76.4–8 of the scheme, the trustee can require employers and members to increase their contributions to the rate which they deem sufficient. This decision has been made without the pension regulator’s enforcement – they are still happy for UUK, USS, and UCU to resolve this without their intervention.

We must stay vigilant because there are few signs that UUK has abandoned its long-standing goal of transferring as much of the cost and the risk of pension provision onto employees as possible. Prior to the USS dispute, UUK used a manufactured deficit in USS to represent Defined Benefit pensions as unaffordable. The JEP arose out of USS members’ growing appreciation that the deficit was, in fact, illusory, and the reforms which it had been used to justify were not needed. More information on the JEP can be found on the UCU website at this address: https://www.ucu.org.uk/strikeforuss

Pension Contribution Calculator
Here’s a tool that lets you get an idea of how much more you can expect to pay in contributions under this new plan: https://beta.observablehq.com/@scjoss/uss-cost-sharing.

It’s important to note that UniversitiesUK had the option of taking up the extra member increases themselves should they have wished to do so, but turned it down. That would have been possible by a resolution of the JNC. UCU negotiator Sam Marsh pushed for UniversitiesUK to cover the full burden of interim cost sharing, given strike was entirely UUK’s fault and we’ve already lost a lot of money via strike deductions. This seemed a fair compromise. Again, UUK said no – hence it falls to us all.

Now it looks like USS are prepared to listen to a rethink from UUK on their ‘risk-appetite’ (which if you remember, most said they were willing to stay will current level, with some saying they’d be happy with increase – UUK decided to go with the minority of employers and push through a low-risk appetite strategy). This is an area the JEP are likely to comment on. The hope will be that a change to the Test 1 parameter will lead to a resolution to this dispute but it’s important to keep informed.

Pay Dispute
If you haven’t been following UCU’s national email communications: following the e-ballot on pay and equality members completed in late spring 2018, UCU members will now be asked to vote formally in a statutory ballot opening towards the end of August and closing in mid-October. The current employer offer is 2%. When taking inflation into account as well, it’s clear that our take-home pay will go down by more than 2% in the next year.

Bill Galvin, Chief Executive of USS, has seen a 31% pay rise over last 2 years. On top of drastic increases to the cost of living and a decade of pay-rises below inflation, we’re getting hit again with increased pension contributions. All this adding up to a hefty pay-cut. The latest imposed pension arrangements amount to a 3.7% pay cut, plus 6.9% loss of potential pay. All of this so university leaders can remove USS (i.e. our future pay) from their financial liabilities. Please bear this in mind when the UCU ballots on their 2% pay offer.

Excellent information can be found on https://ussbriefs.com – A website built and populated with content by UCU members volunteering their time and expertise to keep the rest of us informed.

If you have any questions please email ucu@london.ac.uk.

All my best,

Tim Hall
UCU Senate House Branch Chair

 

This is just a quick summary of the position following the end of the first wave of strikes.

What did the strikes achieve?

It’s important to remember that before the strike action began, we were told that not only were these massive cuts to our pensions inevitable, but that no further negotiations would take place. Defined benefit was dead.

That position has been completely overturned – the employers (via Universities UK) have been forced to return to talks, and to make an offer which retained a defined benefit component.

Furthermore, rather than turning against staff, students have been totally supportive, taking part in demos, pickets, marches and occupations which have hugely helpful in the the campaign.

Role of IWGB members

Your contribution at Senate House has been absolutely crucial – many IWGB members refused to cross the picket line for 14 days and instead stood along their UCU colleagues. Many more took action on some of these days. This included members who are not in USS, acting in solidarity with their colleagues and in recognition that SAUL will be next! Everyone has done what they can – it’s been a really heartwarming experience to be part of the strike and we want to thank everyone who has taken part.

It’s also been a pleasure to support the revitalised Senate House UCU branch – check out their blog here for some really insightful write-ups.

Why was the offer rejected?

This offer would still have left us far worse off – contributions would have risen, the protection against inflation would have been reduced, accruals would be 1/85 rather than 1/75, the ceiling for DB would have fallen to £42K and the direction of travel would have been towards getting rid of DB next time around.

The fact that the deal also seemed to commit staff to rescheduling lectures didn’t go down well either…

However, in addition to this during the strikes something important had happened – staff had started researching the overall pension position, and it had become clear that it was not a question of negotiating over how to plug the deficit, but rather demonstrating that the very idea of a deficit was down to the extremely flawed November 2017 valuation of USS.

It was therefore pointless to start from these false premises – instead, we needed to return to the September 2017 valuation, which showed the scheme to be perfectly healthy, and would save both employers and employees money!

The strike has also thrown up a whole host of questions as too how our universities are run, the excessive role of marketisation, the absurd administrative burdens placed on frontline staff by unaccountable senior management and a general feeling that an entire change of ethos is required.

What will happen next?

UCU have called for 14 more days of strike action in April and May, to be chosen at a local level. As soon as we have those dates we will let you know more – again, your participation will be crucial!

In the meantime, talks between UCU and UUK are likely to resume, and in addition discussions are going on over a new ‘independent’ valuation of USS – we’ll try and keep you posted!

At the same time various actions short of a strike are being carried out, including the resignation of external examiners – https://docs.google.com/spreadsheets/d/1-2elwhGtmSZJI-WA2iIlZr_dmodeiiNMV4pDXrbKhxw/edit

Oh – and thanks to pressure from Senate House UCU strike deductions will now be made over 4 months! If you have any questions about this OR have any issues with HR or management please email dannymillum@iwgb.org.uk!

Further reading

http://www.notesfrombelow.org/article/after-first-wave-strikes-how-can-we-win

https://ucu.london.ac.uk/2018/03/16/a-note-of-thanks/

https://www.jasonhickel.org/blog/2018/3/15/this-isnt-just-about-pensions-anymore-theres-a-revolution-afoot

https://narrativeofastrike.wordpress.com/2018/03/15/narrative-of-a-strike

Twitter hashtags: #ussstrike #ussstrikes #ucustrike #NoCapitulation