A vice-chancellor has broken ranks to argue that UK universities can afford to contribute more to staff pensions, ahead of an eight-day strike over the issue.

Anthony Forster, vice-chancellor of the University of Essex, criticised Universities UK negotiators for being ¡°not willing to embrace principled compromise in seeking a solution to our pensions crisis¡±. ¡°Continued failure¡± to reach a deal on the future of the Universities Superannuation Scheme ¡°will not only affect the sustainability of our universities, but negatively impact on our ability to recruit and retain global academic and professional services talent in our universities¡±, he said.

Concern about the projected deficit at the pension scheme ¨C UK ÖйúAƬ¡¯s biggest ¨C have led to employee contributions being hiked to 9.6 per cent of salary, up from 8 per cent in April. Employer contributions have increased from 18 per cent to 21.1 per cent.

But, in a for staff and students, Professor Forster says that he felt the trustees of the pension scheme were ¡°being overly prudent in their assumptions, which undervalue assets and overestimate liabilities¡±.

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Professor Forster says that Essex ¡°remain[s] willing to increase employer contributions to the scheme, to sustain critical features of the USS, including defined benefits¡±.

University and College Union members at 60 universities are set to walk out from 25 November to 4 December in disputes over the UCU and this year¡¯s pay offer from the Universities and Colleges Employers¡¯ Association.

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Professor Forster writes: ¡°In 2018 we had a painful and disruptive strike that dragged the parties to the negotiating table. It is a matter of enormous pain and regret that we again find ourselves in a position that the negotiators who represent us ¨C both employers and employees ¨C are not willing to embrace principled compromise in seeking a solution to our pensions crisis.

¡°Should positions remain unchanged, no side will win and the most likely outcome is that a solution will be forced on us by the Pensions Regulator, who has the legal authority to break the pensions deadlock and impose a solution. I have no doubt this will be a profoundly unsatisfactory outcome for those that share our view about USS.¡±

Professor Forster writes that employees should pay a share of increased contributions to protect USS benefits, but that Essex was ¡°concerned about the extra level of employee contributions and the impact this is having on affordability for some staff, especially if they feel forced to leave the USS scheme¡±.

He says that the joint expert panel of UCU and UUK-nominated specialists should ¡°accelerate its work and¡­stake out where the common ground might be for the future¡±, producing a report ¡°prior to the commencement of strike action¡±.

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¡°This might include, for example, differential contribution levels, so that USS members on lower salaries contribute a lower percentage of their pay to the scheme in a manner similar to the Teachers¡¯ Pension Scheme, or smoothing contribution increases over a longer period to ensure that the funding of the scheme reflects the long-term nature of the assets and liabilities of a pension scheme,¡± Professor Forster writes.

He adds that union and university representatives should ¡°return immediately to the negotiating table without preconditions on either side¡±.

Professor Forster also says that Essex will make a ¡°mitigating payment¡± to students who have lectures and classes cancelled as a result of the strike.

A spokeswoman for USS employers said that their position ¡°has been formed following extensive engagement and consultation with the 340 employers in USS¡±.

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¡°The vast majority of employers believe the current arrangement where employers meet 65 per cent of costs and members 35 per cent is fair and reasonable. A higher cost national settlement is not affordable for most employers,¡± she said.

¡°If any employer takes a different view then they can choose to make an additional payment at a local level to offset higher pensions contributions for their staff.¡±

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chris.havergal@timeshighereducation.com