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The ABC of USS – a guide to the jargon that surrounds our pension scheme

UCU University of Leeds Branch Posted on by

A is for Assets, but also for Assumptions. In the Universities Superannuation Scheme pension (USS), the assets are held as investments, mostly in stocks and shares but also partially in Gilts (see ‘G’) and in other asset classes. The USS pension scheme assets are currently valued at around £78bn and were posted at around £68bn in the last published scheme accounts.  Assumptions. These are the factors that drive a valuation (see ‘V’), and help to define the technical provisions (see ‘T’).  The assumptions include the discount rate (see ‘D’), future inflation, salary growth and life expectancy. Most University leaders will usually only cite life expectancy, as that is the one that most people think they understand straightforwardly (see ‘M’ for mortality assumptions). In the 2014 valuation, the assumption of salary growth was 20% over three years to 2017. It was in fact 6%, but that is one factor that drove the argument from some employers for the closure of the final salary Defined Benefit aspect of the scheme (see ‘D’). B is for Benefits. Your benefits are the pension you receive in retirement. It’s not so much a ‘benefit’ as, in fact, money you have earned, deferred salary, which is … continue reading

A response to the second JEP report

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The second report of the JEP arrived last Friday, and it’s a crucial document within the context of the current dispute over the USS pension scheme. Again, it vindicates the positions that UCU has adopted in relation to both the governance of the scheme and the valuation methodology. You can read the document here, and it contains a useful executive summary (pp. 7-12) and a summary of their conclusions (pp. 120-1). The JEP was established last year as part of an agreement between Universities UK (UUK) and UCU to pause the dispute after a historic fourteen days of strikes across the country. Its first report of September last year addressed the 2017 valuation that was central to the onset of the industrial action. It offered a series of recommendations for adjustments to that valuation. The panel now state that ‘the failure to collectively go forward with these recommendations was […] a missed opportunity to resolve the dispute’. This second report focusses on the scheme governance and key principles that should inform future valuations. The panel urge both UCU, UUK and USS to work together swiftly to embed these recommendations into the 2020 valuation process, which begins in a matter of weeks. On … continue reading

Applying to the Hardship Fund – Scenarios

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UCU Hardship + Fighting Fund Scenarios: Members who will experience financial difficulty as a result of strike deductions have access to two sources of assistance from the union:  UCU Fighting Fund, administered by UCU HQLeeds UCU Hardship Fund, administered by Leeds UCU officers The two funds operate slightly differently. Leeds UCU has designed our local hardship fund to complement and extend available support.  The following scenarios illustrate the ways in which our Local Hardship Fund and UCU Fighting Fund work together, and should help members resolve most queries they have about these schemes. Please also read the wording of the [motion] we passed at the 3 December General Meeting which explains how the UCU Fighting Fund and the Local Hardship Fund work. Additional guidance (to be taken in conjunction with advice on this page) is [here] and [here]. What can I claim from each fund? Remember we have designed our local Hardship Fund to complement the UCU Fighting Fund.  UCU Fighting Fund:  UCU Fighting Fund for members earning under £30k: The UCU Fighting Fund allows members who earn under £30,000 per year (gross) to claim the sum of up to £75 per day, for the second and subsequent days of … continue reading

Local Hardship Fund

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At our General Meeting on 3 December we unanimously passed a motion revising the rules for our local Hardship Fund to allow us to provide greater support to members facing financial difficulties due to pay deductions for striking. The local Hardship Fund will work alongside and in addition to the UK-wide Fighting Fund. Members should apply to the Fighting Fund for support initially, except where claiming for days of strike action not covered by the Fighting Fund (day 1 for those earning less than £30,000 gross annually, days 1 and 2 for those earning more than £30,000 gross annually). The local Hardship Fund will the supplement the UK-wide Fighting Fund, or provide support where the UK-wide Fighting Fund cannot. The new rules mean that the Hardship Fund: Will comply with the appended guidance from UCU to ensure continued solvency of the branch, and that the branch is able to continue to meet all its usual commitments for and on behalf of members; Will be managed by local branch officers a panel of at least three elected branch officers, including the Treasurer; Will prioritise members in precarious, low paid work, as per national and local priorities; Will also prioritise members who … continue reading

Two responses to the recent Gryphon editorial on our strike

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From the picket lines this week, two committee members offered polite responses to an editorial in the Gryphon newspaper that addressed the causes of the current industrial action. Dr Laura Loyola-Hernández offered a response covering the chief aspect of the aspect: the four fights. Dr Mark Taylor-Batty offered one on the issue of USS. We reproduce them both here. Four fights: A letter to my students On Monday we were meant to learn about feminist decolonial research but instead I will be striking. I would love nothing more than to be teaching you. I did not come to this decision lightly. I haven’t come across anyone striking that is not worried about their students, specially those that are in vulnerable positions. But as we have heard across picket lines nationwide: our working conditions are your learning conditions. I write this as a response to the editorial letter in the latest edition of The Gryphon. I find in the arguments a reflection of wider debates happening on the picket line. Many of the conversations have concentrated around pensions. Yes, we are trying to fight to save our pension scheme but this is only one of two disputes. The second is about FOUR connected … continue reading