Save university pensions, and save the planet

by Dr Neil Davies, Dr Ewan McGaughey, and many more

Save university pensions, and save the planet

by Dr Neil Davies, Dr Ewan McGaughey, and many more
Dr Neil Davies, Dr Ewan McGaughey, and many more
Case Owner
This is a joint effort from many university branches: we believe in fair pensions and a living planet. Its organising group includes Dr Neil Davies, Bristol UCU, and Dr Ewan McGaughey, KCL UCU
20
days to go
£58,345
pledged of £60,000 stretch target from 1,642 pledges
Pledge now
Dr Neil Davies, Dr Ewan McGaughey, and many more
Case Owner
This is a joint effort from many university branches: we believe in fair pensions and a living planet. Its organising group includes Dr Neil Davies, Bristol UCU, and Dr Ewan McGaughey, KCL UCU
Pledge now

This case is raising funds for its stretch target. Your pledge will be collected within the next 24-48 hours (and it only takes two minutes to pledge!)

Latest: Oct. 30, 2021

We've issued proceedings against the USS directors

On Friday, 29 October, we issued proceedings in the High Court, and served notice at the offices of the USS directors. 


Just as we've promised, and with a total failure to adopt any meaningfu…

Read more

We need to save the university pension, and save the planet. This is a grassroots action by academic staff against the trustees and managers of the Universities Superannuation Scheme for breach of their duties: for a third time they're threatening to cut university pensions with a flawed valuation, and a discriminatory plan. Instead of cutting their super-inflated asset manager costs, and divesting from fossil fuels, they are proposing to cut your pension. This must end. We need fair, equal, sustainable pensions for us, for the planet, and for the future.

The problem

There have been two massive strikes since 2018, because USS has proposed to close or cut the guaranteed income pension ('defined benefit') element of the scheme, and instead have a worse lump-sum pension ('defined contribution'). At the depth of the Covid-19 stock market crash on 30 March 2020 they "valued" the pension assets, and said there would be a "deficit" of £14.9 to 17.9 billion for the future. They're using this "valuation" to justify cuts. They are wrong because: 

  • we know that USS conducted its valuation on 30 March 2020, in the Covid-crash, that it assumed 0.0% asset growth for 30 years (even though the fund grew from £66.5bn to £85.3bn by June 2021), and USS managers appeared more worried about being asked "questions" by the Pensions Regulator than putting the interests of beneficiaries first;
  • we know that since 2008 internal asset manager personnel costs at USS have inflated by a stunning 1318%, external adviser costs have tripled, and embedded asset manager fees have been inflating. Reversing these costs would raise at least another £100 million every year. But instead of controlling their costs (which is taking your pension money) the asset managers want to cut your pension benefits;
  • we know that women live longer than men, so if everyone gets a lump sum (DC) pension, instead of an income guaranteed for life (DB), this will mean pensions are more likely to run out for women - on top of the existing 'gender pension gap'. Alternatively, if contributions rise, this will discourage the lowest paid to join the pension, and this will also have a discriminatory impact. USS has published no gender impact or other equality assessment;
  • we know that in November 2020, USS conducted a survey of members' views on divesting from fossil fuels, and found a large majority of members were in favour. Fossil fuels are financially the worst performing assets, and they are burning our planet. But instead of divesting, the USS trustees and managers have failed to even publish the report. On the USS board are 5 trustees appointed solely by the existing board, and they come from JP Morgan, Citibank, HSBC and coal. 

The USS trustees and managers haven't acted in our interests. They're not going to. So we need to take action. 

The solution

We need a democratic pension fund, and we must compel our trustees and managers to act in our interests by law, because it's our money, not theirs.

We are crowdfunding to bring claims against the USS trustees and managers for:

  • (1) failure to act within their powers and negligence, in maintaining the 30 March 2020 Covid-crash valuation date for predicted pension assets, and in assuming 0.0% asset growth above inflation for 30 years, even though the fund grew from £66.5bn to £85.3bn by June 2021;
  • (2) self-serving negligence, by inflating internal asset manager personnel costs by 1318% since 2008, and tripling external adviser costs, and inflating embedded fund manager costs, but proposing to cut beneficiaries' pensions (not USS costs) to respond to the so called "deficit";
  • (3) discrimination, by proposing to cut the defined benefit pension, or raise contributions, and ignoring the disproportionately negative gender and other equality impacts;
  • (4) negligence and failure to act in beneficiaries' best interests, by not divesting from fossil fuels, even though these are causing significant financial detriment: coal, oil and gas are the worst performing asset class, they are destroying the ecosphere, and the beneficiaries of USS have said they want to divest. If we get out of fossil fuels, our pension will not face massive climate risks from bankrupt fossil fuels, it will be healthier, and so will our planet.

What can we do?

Please contribute generously! Please ask everyone you know to do the same. Tweet, email, blog, and together we'll hold the asset managers to account. You can see what we stand to lose on current proposals by putting your salary into the UCU pension proposal modeller. Compared to the losses we face, a contribution to this action is a drop in the ocean. If we all chip in, we can help save university pensions, and the planet.

We need to raise approximately £50,000 for the initial stage of the claim. This will include an application to court to make USS Ltd pay for the cost of a "derivative claim". This means we derive the right to sue the trustee directors and managers for their wrongs to us all in the name of the pension fund corporation. There will then be either an order granting the derivative claim and an indemnity for costs, or a further round of fundraising to press the case forward. We are going to shine a very bright torch on the trustee directors and managers, and hold them to account to the law's full extent for the damage to the pension scheme and to UK higher education. We are going to settle our pension system for good, so that we never need to have a dispute about this again.

Recent contributions

Support the case

Be a promoter

Your share on Facebook could raise £26 for the case

I'll share on Facebook
Update 1

Dr Neil Davies, Dr Ewan McGaughey, and many more

Oct. 30, 2021

We've issued proceedings against the USS directors

On Friday, 29 October, we issued proceedings in the High Court, and served notice at the offices of the USS directors. 


Just as we've promised, and with a total failure to adopt any meaningful change from the USS shadow director or "CEO", Bill Galvin, and the board of directors of USS Ltd as whole, we've launched a derivative claim against them. This is the first time they have ever faced the prospect of personal accountability for the damage they have caused, and we are going to use the law to its fullest extent. 


Our action is to apply to sue them in the name of the company on behalf of all members of the pension. The four claims are:

  • that the valuation of the pension in a stock market crash, and its methodology, is a breach of duty: it's at least a misuse of directors' powers, and failing to take into account relevant considerations of the assets' recovery;
  • that the proposed cuts amount to unlawful discrimination, particularly as they hit women, ethnic minorities and young people the most;
  • that the directors have driven a super-inflation in asset manager and total operating costs at USS in a way that serves themselves, not the company - instead of proposing to cut the pension, they should cut their costs;
  • that failing to divest fossil fuels has caused, and will continue to cause significant financial detriment, and is against the interests of the beneficiaries.


Now the claims will be reviewed in the High Court. We hope for a swift granting of permission to proceed to a trial. Please share the news, and let's change our pension scheme for good!

Support the case

    There are no public comments on this case page.