Unions have warned that proposed pension changes at the University of Southampton will cause low-paid staff to lose thousands of pounds in retirement.
Unison and Unite highlighted that the proposed changes to the University of Southampton Pension & Assurance Scheme for Non-Academic Staff will hit cleaners, librarians, exams officers, caterers, administrators and other low-paid staff.
The unions argue that there is no need to close the final salary pension scheme at the end of July, which is what the university is proposing. A consultation over the changes opened on January 12 and closes March 13.
Similar changes are being proposed to the pension fund for the university’s teaching staff.
The university wants to replace the DB scheme with a defined contribution plan. The unions say this would mean that 2,000 support staff would need to contribute much more to the pension scheme, yet get out significantly less.
The planned date for the introductions of the DC scheme is August 1, and benefits that members have accrued in the final salary scheme up until July 31 are protected.
Both Unison and Unite, which represent around 700 support staff across the university, are meeting today to consider next steps.
They are offering to discuss their compromise suggestion, which would involve a move to a career average scheme.
Unite regional co-ordinating officer Ian Woodland said: “The university concedes that the proposals will lead to a massive reduction in the pension that its support staff could expect to earn during their future employment. For a typical employee in mid-career, the reduction could reduce their future service pension by two-thirds.”
According to Unison University of Southampton steward Adrian Dolby “morale is low across the university... Now they hear their pension is under attack. This could be the final straw.”
He added: “The scheme being proposed is vastly inferior to the current one. If we can’t persuade the university to back down, staff will be significantly poorer in their old age. This is quite simply unacceptable.”
A spokesperson for the University of Southampton said: “We are one of many UK universities which have been affected by the increasing cost of pensions putting the sustainability of schemes at risk, due to national issues such as increased life expectancy and historically low interest rates.
“In line with other UK institutions and after thorough consideration of a number of options, the university is proposing a change for members of the current Pension and Assurance Scheme for Non-Academic Staff, from a final salary defined benefit scheme to a new defined contribution arrangement. Any existing benefits built up under the DB scheme would remain unchanged.
“We are now providing members with comprehensive information about the proposals and asking them to give their views as part of a two-month consultation period, ahead of a final decision. The university will also now begin formal consultation with recognised trade unions – following several months of informal talks.”
