We write as representatives of the Left on the Higher Education Committee and other 51¹ú²úÊÓƵ and College Union activists who are utterly opposed to any retreat from defending members¡¯ pensions. We have carried out a careful critical analysis of the different proposals and are calling on members to reject the current Universities Superannuation Scheme offer that will lead to cuts of up to 20 per cent.

We believe that the UCU is consulting members over accepting a retreat that will mean all our members pay more. Those in the final salary scheme (three-quarters of active USS membership) will have their pensions cut, and a great number of staff will be placed in the position where they cannot afford to retire.

Our assessment is that the trade-off of an increase of 1.5 per cent in employee contributions for a 6 per cent benefit improvement is projected to be broadly cost-neutral to the USS and the employers. The Universities UK proposal, which may be enacted if members vote No, has now been changed to have the same defined contribution cap at ?55,000, so the only difference between the UCU and the UUK proposals is whether USS members would wish to invest more in the career revalued benefits scheme.

Given a real choice, members in the CRB scheme say they would not want to pay more. They want a better scheme with better value for money, such as the current final salary scheme. Once inflation, the preference for money now rather than in the future, the fact that many CRB members will pay increased contributions for more years than they will receive in pensions, and the likelihood of further reductions in the future are taken into account, a 1.5 per cent increase in contributions now will outweigh the projected 6 per cent increase at some point in the future, and may make the scheme unaffordable for many low-paid members.

51¹ú²úÊÓƵ

The second problem with both proposals is the introduction of a new defined contribution section with lower levels of employer investment (12 per cent instead of 18 per cent) and poorer projected benefits, which will be applied to all salaries of more than ?55,000 (with this amount updated at most in relation to the consumer price index). If pay rises increase above CPI as they have in the past, then over time more staff will be drawn into this part of the scheme.

We can still win, but to win we need to be prepared to take hard-hitting industrial action. We call for members to vote against the proposals in the e-ballot and to pass motions through branches calling for rejection of the offer, to support industrial action and to call a special higher education sector conference to determine our strategy to win this crucial dispute.

51¹ú²úÊÓƵ

Marion Hersh
NEC member and USS national negotiator, 51¹ú²úÊÓƵ of Glasgow

Sean Wallis
NEC member, 51¹ú²úÊÓƵ College London

Ioanna Ioannou
NEC member, 51¹ú²úÊÓƵ College London

Professor Andreas Bieler
NEC member, 51¹ú²úÊÓƵ of Nottingham

Lesley McGorrigan
NEC member, 51¹ú²úÊÓƵ of Leeds

Karen Evans
NEC member, 51¹ú²úÊÓƵ of Liverpool

Lesley Kane
NEC member, The Open 51¹ú²úÊÓƵ

Jo McNeill
NEC member, 51¹ú²úÊÓƵ of Liverpool

Saira Weiner
NEC member, Liverpool John Moores 51¹ú²úÊÓƵ (post-92)

Sue Abbott
NEC member, Northumbria 51¹ú²úÊÓƵ (post-92)

Patricia McManus
NEC member, 51¹ú²úÊÓƵ of Brighton (post-92)

Professor Paul Blackledge
NEC member, Leeds Beckett 51¹ú²úÊÓƵ (post-92)

Professor Dennis Leech
UCU president, 51¹ú²úÊÓƵ of Warwick

51¹ú²úÊÓƵ

Saladin Meckled-Garcia
UCU vice-president, 51¹ú²úÊÓƵ College London

Marian Mayer
UCU chair, Bournemouth 51¹ú²úÊÓƵ

Rick Saull
UCU branch secretary, Queen Mary 51¹ú²úÊÓƵ of London

Caoimhe Mader McGuinness
UCU anti-casualisation rep, Queen Mary 51¹ú²úÊÓƵ of London

Prof Craig Brandist
UCU president, 51¹ú²úÊÓƵ of Sheffield

Julie Hearn
UCU membership officer, 51¹ú²úÊÓƵ of Lancaster

Professor Steven French
UCU executive member, 51¹ú²úÊÓƵ of Leeds

Andy Stafford
UCU rep, 51¹ú²úÊÓƵ of Leeds

Gail Day
UCU rep, 51¹ú²úÊÓƵ of Leeds

Johnny Darlington
UCU branch secretary, Soas, 51¹ú²úÊÓƵ of London

James Eastwood
UCU GTA representative, Soas, 51¹ú²úÊÓƵ of London

Andrew Kennedy
UCU executive member, Soas, 51¹ú²úÊÓƵ of London

Rachel Cohen
UCU executive member, City 51¹ú²úÊÓƵ London

Nalini Vittal
UCU executive member, 51¹ú²úÊÓƵ College London

Martin Fry
UCU executive member, 51¹ú²úÊÓƵ College London

Matthew Beaumont
UCU rep, 51¹ú²úÊÓƵ College London

Bernie Maguire
UCU president, 51¹ú²úÊÓƵ of Salford

Helen Franks
UCU branch secretary, 51¹ú²úÊÓƵ of Salford

Christine Sheehy
UCU northwest regional chair, 51¹ú²úÊÓƵ of Salford

Glyn Heath
UCU northwest regional treasurer, 51¹ú²úÊÓƵ of Salford

Eleni Michalopoulou
UCU vice-president, 51¹ú²úÊÓƵ of Liverpool

Mark O¡¯Brien
UCU membership secretary, 51¹ú²úÊÓƵ of Liverpool

Pam Clarke
UCU executive member, 51¹ú²úÊÓƵ of Liverpool

David Stewart
UCU executive member, 51¹ú²úÊÓƵ of Liverpool

51¹ú²úÊÓƵ

Alex Lancaster
UCU equality officer, 51¹ú²úÊÓƵ of Liverpool

Professor Des Freedman
UCU branch secretary, Goldsmiths, 51¹ú²úÊÓƵ London

Carlo Morelli
UCU vice-president, 51¹ú²úÊÓƵ of Dundee

Peter Woodward
UCU executive member, Imperial College London

Roddy Slorach
UCU equality officer, Imperial College London

Steve Roskams
UCU rep, 51¹ú²úÊÓƵ of York

Mike Arrowsmith
UCU membership officer, 51¹ú²úÊÓƵ of St Andrews

Jim Wolfreys
UCU president, King¡¯s College London

Andy Scally
UCU executive member, 51¹ú²úÊÓƵ of Bradford

Helen MacCarthy
UCU branch secretary, 51¹ú²úÊÓƵ of Hull

Hedley Bashforth
UCU branch secretary, 51¹ú²úÊÓƵ of Bath

Jonathan Charley
UCU president, 51¹ú²úÊÓƵ of Strathclyde

Geoff Abbott
Newcastle 51¹ú²úÊÓƵ

Sara Maioli
Newcastle 51¹ú²úÊÓƵ

Professor Malcolm Povey
51¹ú²úÊÓƵ of Leeds

Professor Raymond Bush
51¹ú²úÊÓƵ of Leeds

Professor Catherine E. Karkov
51¹ú²úÊÓƵ of Leeds

Nick Thurston
51¹ú²úÊÓƵ of Leeds

Professor Alex Callinicos
King¡¯s College London

Professor David Treece
King¡¯s College London

Professor Susanne Kord
51¹ú²úÊÓƵ College London

Gabriel Moshenska
51¹ú²úÊÓƵ College London

Rory Fitzgerald
City 51¹ú²úÊÓƵ London

Lee Jones
Queen Mary 51¹ú²úÊÓƵ of London

Elmy Thompson
Imperial College London

Ciara Kierans
51¹ú²úÊÓƵ of Liverpool

Feyzi Ismail
Soas, 51¹ú²úÊÓƵ of London

Paul O¡¯Connell
Soas, 51¹ú²úÊÓƵ of London

Chris Gutkind
Soas, 51¹ú²úÊÓƵ of London

Mark Laffey
Soas, 51¹ú²úÊÓƵ of London

Kristin Surak
Soas, 51¹ú²úÊÓƵ of London

Thomas Marois
Soas, 51¹ú²úÊÓƵ of London

Fujiko Kobayashi
Soas, 51¹ú²úÊÓƵ of London

Se¨¢n Doyle
UCL Institute of Education

Anne Alexander
51¹ú²úÊÓƵ of Cambridge

Professor Richard Farndale
51¹ú²úÊÓƵ of Cambridge

Peter Dwyer
Ruskin College, 51¹ú²úÊÓƵ of Oxford

John G Walker
Ruskin College, 51¹ú²úÊÓƵ of Oxford

Professor James Newell
51¹ú²úÊÓƵ of Salford

Professor Allison Drew
51¹ú²úÊÓƵ of York

Daragh O¡¯Reilly
51¹ú²úÊÓƵ of Sheffield

Celia Hollingworth
51¹ú²úÊÓƵ of Bristol

Andy Coles
51¹ú²úÊÓƵ of Manchester

Wendy Olsen
51¹ú²úÊÓƵ of Manchester

John Costello
51¹ú²úÊÓƵ of Manchester

Davidson Chademana
51¹ú²úÊÓƵ of Dundee

Gerry Mooney
The Open 51¹ú²úÊÓƵ

Prof Suman Gupta
The Open 51¹ú²úÊÓƵ

Prof Steve Edwards
The Open 51¹ú²úÊÓƵ

Bruce Heil
The Open 51¹ú²úÊÓƵ

Alison Higgs
The Open 51¹ú²úÊÓƵ

Anne Martin
The Open 51¹ú²úÊÓƵ

Paula James
The Open 51¹ú²úÊÓƵ

Chris A. Williams
The Open 51¹ú²úÊÓƵ

Paul Brook
51¹ú²úÊÓƵ of Leicester

Xanthe Whittaker
51¹ú²úÊÓƵ of Leicester

John Parrington
51¹ú²úÊÓƵ of Oxford

Kathryn Cruz
Keele 51¹ú²úÊÓƵ

Fabienne Emmerich
Keele 51¹ú²úÊÓƵ

Bahadur Najak
51¹ú²úÊÓƵ of Durham

Matteo Mandarini
Queen Mary 51¹ú²úÊÓƵ of London

Cliff Snaith
UCU London region secretary, London Metropolitan 51¹ú²úÊÓƵ (post-92)

Mark Campbell
UCU chair, London Metropolitan 51¹ú²úÊÓƵ (post-92)

David Hardman
UCU membership officer, London Metropolitan 51¹ú²úÊÓƵ (post-92)

Richard Payne
UCU executive member, London Metropolitan 51¹ú²úÊÓƵ (post-92)

Steve Mardy
UCU chair (city campus), Leeds Beckett 51¹ú²úÊÓƵ (post-92)

Mark Abel
Chair UCU coordinating committee, 51¹ú²úÊÓƵ of Brighton (post-92)

Professor Tom Hickey
51¹ú²úÊÓƵ of Brighton (post-92)

Professor Raphael Salkie
51¹ú²úÊÓƵ of Brighton (post-92)

Robin Dunford
51¹ú²úÊÓƵ of Brighton (post-92)

Jenny Robertson
51¹ú²úÊÓƵ of Brighton (post-92)

Nicolas Van Labeke
Glasgow School of Art (post-92; a 13-year USS member unable to vote)

Jon Berry
51¹ú²úÊÓƵ of Hertfordshire (post-92)

Professor Jonathan Davies
De Montford 51¹ú²úÊÓƵ (post-92)

Sean Vernell
UCU coordinating committee secretary, City and Islington College (FE)

?

The USS dispute is primarily about ideas, not money. The size of the deficit depends on what is assumed about the future of higher education, specifically the pre-92 sector.

It has been shown in the employers¡¯ responses to the UUK consultation (including the London School of Economics, Imperial College London, and the universities of Warwick, Cambridge, Essex, Aberdeen and Oxford), and also a letter from a group of leading actuarial scientists to the trustees, that the deficit is only as large as the trustees claim because they are making assumptions that are too pessimistic.

More significantly, a report by First Actuarial for the UCU has shown that the key assumption is about the future of higher education itself. The report revealed that if the sector is assumed to have an indefinite existence such that the USS has a continuous basis (rather than the limited period of 15 to 20 years secure lifetime assumed by the trustees) then the deficit could well turn out to be negligible.

The deficit is therefore ideological in essence. The trustees have a definite ideology and are manipulating the deficit accordingly. They have assumed too high salary growth, too much inflation, very low interest rates that will continue indefinitely, and have overestimated increases in longevity. If there is a pessimistic assumption that can be made, the trustees have made it. By making appropriate assumptions about future trends there is enormous scope to find a deficit, if that is what you are looking for. Or not.

This raises the question: what has changed since 2011 when the recovery programme was implemented?

The big change is that the government has withdrawn. The USS originally had a trustee representative of the funding councils, alongside those representing UUK, UCU and independents. When the scheme was set up the assumption was that the government via the Higher Education Funding Council for England would act as guarantor. And it was at that time axiomatic that the universities would continue to exist indefinitely. The government seat was abolished by the coalition, presumably as part of the marketisation madness of David Willetts; and that far-reaching constitutional change was made with a minimum of fuss, its announcement buried away in the 2012 report and accounts as a fait accompli.

So the USS now find itself as a pension scheme for a group of institutions operating in a market, the nature of which they know nothing about, and this uncertainty is the source of the deficit figures, which are a result of the government¡¯s marketisation obsession.

Dennis Leech
Emeritus professor of economics
51¹ú²úÊÓƵ of Warwick

51¹ú²úÊÓƵ