Dear Colleagues,

After thirteen days of industrial action by UCU I wanted to write with an update on where the dispute currently stands.

The USS pension trustee has determined that the 2020 valuation of the USS pension scheme has been concluded. With the process at an end, the Trustee has moved to implement the changes. We have been transparent and balanced in the responses we made to UUK during this process, sharing our responses with local UCU colleagues on each occasion, the details of which you can find in our emails of 11 February 2022 and 29 November 2021. 

You may recall that in 2019 we initiated a number of working groups with local UCU to progress the issues of casualisation, EDI and workload. Key details on this can be found in our email on 29 November 2021. Even though some of the matters remain challenging, we continue to have constructive dialogue and have made good progress.

In terms of pensions, there is conflicting information about the impact on individuals of the changes under enaction. My colleagues are working with local UCU in an attempt to agree a definitive commentary of what these changes mean for colleagues. I really do appreciate why the claims and counter-claims of this dispute have been unhelpful, and strongly encourage you to use the USS benefit modeller to understand your personal position. I do though want to make one point that I hope is uncontroversial and offers some reassurance to those worried about their future retirement – benefits accrued to date will remain unchanged, and whilst it is true that the defined benefit element (the part of the scheme where employees and employers pay in for a guaranteed return based on salaries) of the USS pension scheme will reduce for everyone under the proposed changes, this will be countered by an expansion of the defined contribution element (the part where employers and employees pay into your individual pension fund, that fund is invested and generates a pension on retirement). 

Loughborough University’s employer’s financial contribution to USS is increasing to 21.6% of employees’ salaries. Staff opt-outs of the scheme are around 13% which is a significant concern. This is unfortunate because, despite the changes, this remains a good scheme. 

I know that all colleagues are deeply concerned by the further impact on our students for action planned for 21^st-25^th March. I wish this was not happening.  UCU have now called for a new valuation of the scheme. The University has repeatedly stated our support for an appropriately prudent, new valuation at the earliest opportunity – thirteen days of strike action haven’t altered this commitment. There is by no means any guarantee that a new valuation will produce a better result. We are though supportive of considering the restoration of some member benefits ahead of reducing contribution rates.

Given our work locally on casualisation, equality and workloads, and given our existing alignment with what are now some of the key UCU demands on USS pensions, I am at a loss as to what further strike action is intended to achieve. All it will deliver is disruption for our students and loss of pay for striking colleagues. 

For colleagues who choose to take strike action next week, your pay will be deducted by 1/365th for each day of strike action. Deductions will be taken from your May salary. You will be asked to report your strike action to a nominated person in your school or service and you should do so without delay. We have also agreed with UCU that we will maintain your pension contributions for the days on which you are on strike. This means your employee contributions will be deducted as normal and the University will continue to pay its contributions on your behalf. If you do not wish this to happen, please contact payroll@lboro.ac.uk.

Professor Nick Jennings
Vice-Chancellor