MyGlasgow News

By David Duncan, Chief Operating Officer and University Secretary

In November and December we shared updates in MyGlasgow on the Universities Superannuation Scheme (USS) and promised to provide more information as it became available.

The USS is a national pension scheme open to members of academic and related staff in grade 6 and above at the University of Glasgow (as at most pre-1992 HEIs). As previously reported, national negotiations are underway regarding the valuation of the scheme and the related question of future pension benefits. The key issue is how to address the funding shortfall (the difference between the scheme’s assets and liabilities), which is estimated to be in excess of £5bn. Both Universities UK (UUK – the representative organisation for universities across the UK) and the University and College Union (UCU – the recognised trade union for academic and professional support staff in related grades) have submitted proposals to the Joint Negotiating Committee (JNC) on how they think the scheme should be reformed. The JNC is expected to make a recommendation to the USS Trustee Board later in January. The next meeting of the JNC is scheduled for 23 January.

Simultaneously, UCU is balloting its members on industrial action. In response to potential reform of USS pension benefits, UCU is asking its members whether they would support strike action, action short of a strike, or both. The result of the ballot will be known on 19 January.

The University of Glasgow has already made known its position on the valuation and future benefits issues. We would like to retain a defined benefits element to the scheme if possible. We are prepared to support a modest increase in employer contributions. Whatever conclusions the JNC reaches, we want to ensure that contributions and benefits do not have to be revised again when the next triennial valuation takes place in 2020. In addition, the revised arrangements must be acceptable to the Pensions Regulator.

Working Group

We have set up a University-wide working group to prepare for possible industrial action. The working group aims to ensure that our policies are clearly communicated across the University. While fully recognising the right of trade union members to take industrial action, we are concerned to limit any negative impact on students.

Should the local ballot show support for strike action or action short of a strike, we will communicate with potentially affected staff with regard to the arrangements for informing the University on their participation in industrial action. We can confirm that, following discussions with the UCU, the University would withhold pay at a rate of 1/365ths for those participating in this action. The University’s formal position is not to recognise partial performance but we will take a view at a later date on our approach to withholding pay for action short of a strike, should this prove necessary.

In the meantime, we will continue to press for a settlement which:

(a) secures the best possible benefits for staff;
(b) is affordable to employers and employees; and
(c) is acceptable to the Pensions Regulator.

Any industrial action on campus will not change the University’s position. We will maintain positive working relationships with the UCU throughout any action.

Further information on UUK’s perspective can be found via the link.

You'll also find a link to the UCU website and its announcements regarding the valuation issue.

We will share further information as and when it becomes available.

 

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First published: 16 January 2018