A special meeting of fellows at the University of Cambridge’s Trinity College has supported the decision to leave the Universities Superannuation Scheme, despite the threat of censure from a trade union.
Trinity announced its intention in May to leave the multi-employer plan, the largest scheme in the UK. The move was met with threats of “greylisting”, with academics threatening not “to supervise Trinity students or to engage in other discretionary work in support of Trinity’s teaching and research activities”.
A boycott is our most serious sanction, but Trinity needs to be clear that we are prepared to implement one there
Paul Bridge, UCU
On Friday morning Trinity convened a special meeting of its fellows to discuss the decision, but the governing academics backed the withdrawal by 76 to 43, with the college citing its use of expert advice and stakeholder consultation.
A statement from the college reinforced that leaving USS would allow it to continue to fund grants and other endowment activities.
Trinity highlights small USS role
It also emphasised the college’s minor involvement with USS, employing fewer than 20 of the scheme’s active membership, which sat at 186,245 in March 2017.
To leave the scheme, Trinity will have to honour its exit fee obligations to the plan, which actuaries calculated at 2 per cent of the college’s assets. The statement said this was a small price to pay to eliminate the risk that its vital endowment income might be diverted to funding the last-man-standing scheme.
Rory Landman, Trinity’s senior bursar, said: “This was not a decision taken lightly by the College Council. Following substantial legal and actuarial advice, and bearing in mind our responsibilities as Charity Trustees of Trinity, we believe leaving USS is in the best interests of the college.
“This decision has also helped to ensure Trinity’s continued and substantial financial support to the whole of Collegiate Cambridge.”
UCU prepares extraordinary measures
However, the decision was quickly condemned by the University and College Union, which has bemoaned the loss of a wealthy sponsor as the result of an “overreaction” to a “wholly unlikely scenario”. It pointed out that for the scenario described by Trinity to occur, the rest of the higher education sector would have to collapse, with only Trinity left standing.
Officially censuring the college, the UCU has threatened to boycott Trinity if it does not reverse the decision. This serious measure, only used once before, is as yet undefined but could involve asking members not to apply for jobs, give lectures, attend conferences, help with exams, or write for journals published by the college.
UCU head of higher education Paul Bridge said: “The cost to Trinity’s reputation from a boycott will be far greater than the tiny risk of being left to carry the can for pensions if the higher education sector collapses. Trinity’s overreaction to such an unlikely risk will cost the college millions of pounds and leave it at odds with the rest of the sector when it comes to pension provision.
“A boycott is our most serious sanction, but Trinity needs to be clear that we are prepared to implement one there. The sector needs to work together to deliver high-quality, guaranteed pensions and it is up to Trinity to now reconsider its short-sighted decision.”
