On the go: The University and College Union has written a last ditch open letter urging the fellows of Trinity College at the University of Cambridge to reconsider their withdrawal from the Universities Superannuation Scheme.
The Trinity College Council meets on Friday to confirm leaving the scheme.
In the letter dated May 29, Dr Jo Grady, general secretary-elect of UCU, said Trinity would weaken member security and strain other employers still contributing to the scheme.
“Trinity’s departure gives USS a pretext to downgrade its assessment of the ‘employer covenant’. The practical consequence of this is that if one more similar employer leaves, the scheme will demand higher contributions from those who remain, or significant cuts in the benefits promised to members,” she wrote.
Dr Grady added that fellows face “a stark choice” between overturning the council’s decision and letting it “threaten the sustainability of the largest private pension scheme in the country: a scheme that provides a good, guaranteed retirement income for you and hundreds of thousands of your colleagues”.
She continued: “The sum that Trinity is expected to pay to leave USS – £30m – is a waste. It includes a very large insurance premium. It is twice as much as the amount that would be due to Trinity’s pensioners if the college remained in the scheme, even on the overly cautious assessment of the liabilities that has been roundly criticised by the Joint Expert Panel.”
Dr Grady repeated the warning that Cambridge academics will “greylist” the college if it goes ahead with the section closure, revealed by Pensions Expert on Tuesday.
“Along with many other UCU Congress delegates, I voted to make that boycott UCU’s official policy and will pursue it vigorously as general secretary,” she wrote.
In a statement last week, Trinity College said it anticipated leaving USS by May 31 2019.
Senior bursar at Trinity, Rory Landman, said: “This is 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 also helps to ensure Trinity’s continued and substantial financial support to the whole of Collegiate Cambridge.”
