The two remarks below were made by Cambridge UCU members Dr. Iza Hussin (POLIS) and Prof. Sarah Colvin (MML) at the Discussion of the Universities Superannuation Scheme that took place on Tuesday 20 March at Lady Mitchell Hall. The Discussion was called following a campaign that gathered the signatures of more than 500 members of Regent House (the university governing body), many of which were collected by union members on the picket lines.
The statement read by Dr. Hussin was co-signed by a number of colleagues, including University Equality Champions, and the statement by Prof. Colvin signed by Gender Champion for the School of Arts and Humanities, Dr. Clare Chambers (Philosophy). The names of these co-signatories were left off the record of the Discussion published in the University Reporter. This repost, with their permission, is intended to set the record straight.
If you would like to help campaign on the issues raised below, come to our Gender Pay Gap, Pension and Equalities meeting on Tuesday 17 April, 2.30pm in the Outer Parlour, Pembroke College (map).
Dr I. R. B. M. Hussin (Department of Politics and International Studies and Pembroke College):
Deputy Vice Chancellor:
I am a Lecturer in Politics and International Studies, and I make these remarks in my personal capacity. I also make this statement on behalf of my colleagues, Dr Surabhi Ranganathan of the Faculty of Law, Dr Mónica Moreno Figueroa of the Department of Sociology, and Dr Kamal Munir of the Judge Business School, these last two University Race and Inclusion Champions, who could not be present today.
I wish to make three points, informed by my experiences as an early career academic, a supervisor of doctoral students, and a participant in University, School, Departmental and college efforts to improve equality and diversity, including through internal processes such as Athena Swan certification, and through the recruitment of new colleagues and students.
First: Proposed changes to USS undermine the University’s equality and diversity work. Efforts to support equality and diversity have emphasised the need to provide better opportunities for women, ethnic minorities and other groups historically under-represented in higher education. My colleagues and I, across the University, have worked to recruit students and colleagues whom we believe will make important contributions to their fields, and who will model a University that reflects values of equality and diversity. Proposed changes to the USS put the University as an employer at a profound disadvantage compared to post-1992 institutions whose employees are on the Teachers’ Pensions Scheme. More importantly, these changes to the USS constitute a pipeline to precarity across the sector, one which places historically under-represented groups in higher education at further disadvantage throughout their academic lives, and beyond. In this, we share common cause with higher education institutions across the UK, from which our students come, and to which they will turn for future employment.
Second: The shift to defined contributions exacerbates existing USS inequalities. It is important then, for us also to turn our attention to the question of possible inequalities within the USS pensions schemes. The shift from pension calculations based on final salaries, to those based on career averages, has already been demonstrated to structurally disadvantage women and other members of under-represented groups who share a protected characteristic such as race, age, pregnancy and maternity, religion or belief, sexual orientation and disability. In the current scheme, these already constitute structural inequality along the lines of gender, minority ethnicity, and early career status. Research shows that in the current scheme, the use of career average salary as a basis for pensions is particularly problematic for early career researchers, for women and those who have caring responsibilities, and for those working in lower pay grades within our universities. The gender pay gap, for example, is already projected to become an even larger gender pension gap: the European Parliament reported in 2017 that while women in Europe earn an average of 16% less than men, women’s pensions are on average 40% lower, in Europe and in also the UK. Changes of the type proposed by the UUK, including the shift to defined contributions and a lowering of the salary cap, will have a further detrimental effect on these categories of university workers and further exacerbate these issues.
Third: Our commitment to equality and diversity requires thorough and transparent assessment of the differential impact of USS changes. Regardless of our position on the current unprecedented industrial action, I hope we can agree that they have sparked off a national conversation about university, and other, pension schemes. Moreover, I believe we are in common agreement that there needs to be greater transparency within these schemes, the UUK and the USS. Given these facts, I would like to call upon the university, firstly, to be more explicit about the presence, and workings, of such inequalities, and secondly, to press for their mitigation in its negotiations with the UUK on pensions.
Deputy Vice-Chancellor: The University’s commitment, and its legislated duty, to uphold equality requires more clarity and transparency on the ways in which pension provision is an equal pay issue. Demonstrable change and improvement in our equality objectives requires clear commitments to systematically addressing inequalities in pay, opportunity, and treatment of students and staff.
 http://www.legislation.gov.uk/uksi/2011/2260/made; http://www.ucea.ac.uk/en/publications/index.cfm/eprgpgr
Professor S. J. Colvin (Faculty of Medieval and Modern Languages and Jesus College):
I speak today in my role as University Gender Equality Champion for the Arts, Social Sciences, and Humanities, and with fourteen years of experience in a professorial role at four UK universities.
Two ideas are repeatedly invoked to defend the proposed changes to the USS pension scheme. The first is the ‘last man standing’. The metaphor of the lone male must be treated with caution because it distracts from the fact that this is about pro-market reforms that will affect women disproportionately. The second is that already accrued USS benefits are secure: this tells us that the longest-serving and highest-earning members of the scheme, predominantly men, will be least adversely affected. Most adversely affected are members on temporary, part-time, and precarious contracts, and those who take ‘career breaks’ such as maternity leave; predominantly women.
This University has a very significant gender pay gap. Women are paid far less than men over the course of their careers. They are disproportionately represented in the lowest pay quartile where men are disproportionately represented in the highest pay quartile.
Deputy Vice-Chancellor, this University has made a strategic commitment to reduce the gender pay gap. But the proposed pension changes exacerbate its effect.
The pension situation is already one of gender injustice. In 2011 the shift from final salary pensions to career average impacted hardest on women. Under the final salary scheme it was in theory possible for women to catch up with men by the end of their careers (even though in practice the gender pay gap is most shocking at professorial level; and it is worth noting that according to the organization Black British Academics, less than a quarter of one per cent of professors in the UK are black women).1
Under a career average scheme a woman who catches up by the end of her career will still have a smaller pension than her male counterpart. Women who are unable to contribute towards their pensions during maternity leave and carers’ leave, or who contribute less when working part-time, bring their career average earnings down still further.
A shift, as now proposed, from Defined Benefit to Defined Contribution would make women disproportionately worse off yet again. The Changing University Cultures project has been working with UUK on sector-wide guidance for creating cultural change and has supported our own high-profile Breaking the Silence campaign. That project has now ended its work with UUK specifically because ‘pensions are a key equalities issue’. Changing University Cultures noted in its letter to UUK that:
while women have a smaller pension than men in any system, and BAME women are even more adversely affected, this is exacerbated in defined contribution schemes […]. DC schemes also fail to offer the maternity coverage that DB schemes do. Universities UK cannot claim to be working towards equality and diversity in the sector while pursuing pension reforms which are antithetical to that agenda and we cannot in good faith work with Universities UK on equality and diversity issues under these conditions.2 [emphasis added]
The shift from Defined Benefit to Defined Contribution is part of what are called ‘pro-market pension reforms’. To quote from recent published research on pensions, the shift is:
likely to result in greater income inequality between older women and men, and between those who have had an intermittent or low paid employment history and those with an advantaged position in the labour market […] the emphasis on financialised provision in pensions is creating new forms of gender inequality, and new forms of gendered insecurity. The complexity of women’s life courses is not reflected in gendered retirement provision norms. […] Pension penalties arising from earlier caring roles will continue to be magnified, creating increasing income disparity among women in older age according to their employment, partnership status and care history.3 [emphasis added]
Deputy Vice-Chancellor, I call upon the University to clarify and consider as a matter of urgency how a shift to Defined Contribution, or any cuts to Defined Benefits, will affect women differently.