Notices

Calendar

20 May, Saturday. Congregation of the Regent House at 10 a.m. (see p. 530).

21 May, Sunday. Easter Term divides.

25 May, Thursday. Ascension Day. Scarlet Day.

30 May, Tuesday. Discussion at 2 p.m. in the Council Room (see below).

4 June, Sunday. Whitsunday. Scarlet Day. Preacher before the University at 11.15 a.m., Dr Belay Guta Olam, President of the Mekane Yesus Seminary, Addis Ababa (Ramsden Preacher).

8 June, Thursday. End of third quarter of Easter Term.

11 June, Sunday. Trinity Sunday. Scarlet Day.

Discussions at 2 p.m.	Congregations
30 May	20 May, Saturday at 10 a.m.
13 June	21 June, Wednesday at 2.45 p.m. (Honorary Degrees)
27 June	28 June, Wednesday at 10 a.m. (General Admission)
11 July	29 June, Thursday at 10 a.m. (General Admission)
	30 June, Friday at 10 a.m. (General Admission)
	1 July, Saturday at 10 a.m. (General Admission)
	21 July, Friday at 10 a.m.
	22 July, Saturday at 10 a.m.

Discussion on Tuesday, 30 May 2017

The Vice-Chancellor invites those qualified under the regulations for Discussions (Statutes and Ordinances, p. 103) to attend a Discussion in the Council Room, on Tuesday, 30 May 2017, at 2 p.m., for the discussion of:

1. Report of the General Board, dated 8 May 2017, on the establishment of a Professorship of Organic Chemistry (Reporter, 6464, 2016–17, p. 513).

2. Report of the General Board, dated 8 May 2017, on the introduction of a Master of Accounting Degree in the Judge Business School (Reporter, 6464, 2016–17, p. 513).

Dates of Congregations, 2017–18 and 2018–19

15 May 2017

The Vice-Chancellor gives notice, in accordance with Special Ordinance A (i) 2 and the regulations for General Admission to Degrees, that Congregations will be held on the following days in the academical years 2017–18 and 2018–19.

CONGREGATIONS OF THE REGENT HOUSE

(on Saturdays unless otherwise stated)

2017–18:

Michaelmas Term 2017 Full Term: 3 October – 1 December	Lent Term 2018 Full Term: 16 January – 16 March	Easter Term 2018 Full Term: 24 April – 15 June	Long Vacation 2018
2 October (Monday), 9.30 a.m.1	27 January, 2 p.m.	28 April, 11 a.m.	20 July (Friday), 10 a.m.
21 October, 11 a.m.	24 February, 2 p.m.	19 May, 10 a.m.	21 July, 10 a.m.
25 November, 2 p.m.	24 March, 11 a.m.	20 June (Wednesday), 2.45 p.m. (Honorary Degrees)
	7 April, 11 a.m.
		27 June (Wednesday), 10 a.m.2
		28 June (Thursday), 10 a.m.2
		29 June (Friday), 10 a.m.2
		30 June, 10 a.m.2

2018–19:

Michaelmas Term 2018 Full Term: 2 October – 30 November	Lent Term 2019 Full Term: 15 January – 15 March	Easter Term 2019 Full Term: 23 April – 14 June	Long Vacation 2019
1 October (Monday), 9.30 a.m.3	26 January, 2 p.m.	27 April, 11 a.m.	19 July (Friday), 10 a.m.
20 October, 11 a.m.	23 February, 2 p.m.	18 May, 10 a.m.	20 July, 10 a.m.
24 November, 2 p.m.	23 March, 11 a.m.	19 June (Wednesday), 2.45 p.m. (Honorary Degrees)
	30 March,- 11 a.m.
		26 June (Wednesday), 10 a.m.2
		27 June (Thursday), 10 a.m.2
		28 June (Friday), 10 a.m.2
		29 June, 10 a.m.2

Joint Report of the Council and the General Board on payment of a salary supplement for those who for tax reasons opt out of future pension provision: Notice in response to Discussion remarks

15 May 2017

The Council has received the remarks made at the Discussion on 2 May 2017 (Reporter, 6464, 2016–17, p. 517) concerning the above Report (Reporter, 6460, 2016–17, p. 438).

Dr Cowley recognizes the University’s need to be competitive with major peer institutions. The Council affirms the University’s core values and stresses the commitment to examining the possibility of broadening the eligibility of the supplement in lieu of pension (SILP) scheme beyond those affected by the pension tax changes. Dr Cowley’s suggestion that further consideration be given to an opt-out provision for the Cambridge University Assistants’ Contributory Pension Scheme is welcome and will be added to the remit of the Remuneration Working Group, which was established by the Human Resources Committee in October 2016. The Council also acknowledges Professor Anderson’s comments and notes that the possibility of broadening the eligibility of the SILP is also due to be considered by the Remuneration Working Group.

Dr Cowley suggests that since the University’s deficit recovery contribution to the Universities Superannuation Scheme (USS) is only 2.1%, the University should not be paying 12% to those who withdraw from the scheme, but 8.1% to the employee with the other 3.9% paid to USS to pay for future benefits in the career-revalued benefits section. In response, the Council notes that the employer contribution paid to USS by all employers is 18%. This is a blended rate which comprises 15.9% for future service benefits and 2.1% towards the deficit. Included in the 15.9% is an allowance for members who take up the 1% matching contribution to the USS Investment Builder section and an allowance for the expenses of running the scheme. The resultant net rate of approximately 15% is then adjusted to allow for the additional National Insurance Contributions the University must pay for employees who opt out of USS and take the cash supplement, and to allow for other elements of the future service cost (i.e. expenses) that should not be passed to employees. This leads to the proposed supplement rate of 12%, which is cost-neutral to the University and in line with that offered by other universities and therefore enables the University to remain competitive. Further details on how the figure of 12% is arrived at are included in the appendix to this notice.

The Council notes that in calculating the level of the proposed salary supplement to be provided to employees who opt out of USS, the University used an approach that is consistent with that adopted by USS when calculating the contribution rate paid by employers. Under the approach used by USS, a single contribution applies to all employers regardless of the salary profile of their employees, which represents the overall cost of benefit provision covering career-revalued benefits (CRB) below the salary threshold, defined contribution (DC) benefits above the threshold, and deficit contributions.

The Council acknowledges that, in the very short term, USS loses out on contributions of 3.9% of salary above the threshold in respect of individuals who take the supplement. This is true for all institutions where a supplement is offered. The effect of opt-outs will be factored into future valuations and very modest additional contributions are expected to be required. However, under the USS contribution model (where all employers pay a single rate) this would be in the form of a very small addition to the overall employer rate rather than a 3.9% contribution in respect of individual opt-outs.

In summary, the proposed 12% supplement rate takes into account the practicalities of USS’s contribution structure, is cost-neutral for the University, and is not expected to be detrimental to USS over the longer term. It also provides a simple solution and is in line with the supplements paid by the University’s competitors.

Dr Cowley comments on a number of wider issues pertaining to the University’s remuneration policies and practices. Many of these issues are under consideration by the Human Resources Committee, and its working group. As a member of the Human Resources Committee, Dr Cowley makes a valuable contribution to these deliberations.

Dr Cowley observes that for assistant and academic-related (grades 1–11) staff, each year about 6% receive a contribution increment (CI), while for those on grade 12 about 20% receive a contribution increment biennially, which is about 10% a year.

The Council notes that these figures are correct, but that they do not include single contribution payments (SCP) to which assistant and academic-related (grades 1–11) staff also have access and which provide an additional 4.2% a year. When contribution increments and single contribution payments are added together they equate to an annual increase of 10.3% (in line with grade 12). Grade 12 staff are not eligible for single contribution payments. Furthermore, staff at grade 12 (and 11) do not receive service increments, and this is an explanatory factor in the proportion of staff receiving contribution increments at this level.

Dr Cowley states that a higher proportion of two- and three-increment awards are made under the grade 12 scheme compared to the contribution reward scheme for grades 1–11, where the majority of awards are for one increment. In the Council’s opinion, this is again related to contribution increments being the only means of salary progression for staff in grade 12, as they do not have access to service increments. Through the development of a People Strategy, the University is reviewing its contribution reward mechanisms to ensure they support reward and retention strategies and that these are supported by appropriate governance mechanisms.

The Council notes Dr Cowley’s remarks about transparency and agrees that the Council’s decisions should be communicated promptly, and that there was a failure to do so in this case. In light of Dr Cowley’s remarks on the thirty-day period within which a representation may be made under Statute A IX 1, the Council will give consideration to the framing of that time limit.

The Council is submitting a Grace (Grace 5, p. 529) for the approval of the recommendations of this Report.

Appendix

Clarification has been requested as to the basis upon which the salary supplement was calculated. A detailed explanation is provided below.

A supplement of 12% is proposed because it is considered to be cost-neutral to the University. The University actuary has also provided preliminary calculations to confirm the cost-neutral salary supplement rate for the CPS pension scheme and others administered by the University.

The baseline figure for the USS salary supplement calculation is the employer contribution rate which is 18%. This is a blended rate which comprises 15.9% for future service benefits and 2.1% towards the deficit. Included in the 15.9% is an allowance for members who take up the 1% matching contribution to the USS Investment Builder section and an allowance for the expenses of running the scheme.

This can be seen in the simplified calculation set out below:

Cost-neutral salary supplement	=	Employer’s full USS contribution rate		(a)
		Less	Employer’s USS deficit rate	(b)
		Less	Employer’s salary sacrifice NI saving	(c)
		Less	Employer’s increased NI costs	(d)
		Less	USS expense allowance and match	(e)

The result of the above calculation is then adjusted to allow for Employer NI contributions at 13.8% if paid as a salary supplement.

Cost-neutral salary supplement	=	18%		(a)
		Less	2.1%	(b)
		Less	8% x 0.138	(c)	(= 1.1%)
		Less	1/1.138	(d)
		Less	1%	(e)

This leads to the agreed supplement rate of 12%, which is also in line with that offered by other universities and so would enable the University to remain competitive.

Building works at 5 Latham Road

15 May 2017

The following Notice is published to advise the University of works which are not considered to be ‘a substantial alteration’ within the meaning of Statute F II 3 and therefore do not require a Report but are nevertheless considered by the Committee responsible for giving an Expenditure Approval to be of interest or consequence to members of the Regent House and others (Reporter, 6259, 2011–12, p. 498).

The Vice-Chancellor’s Lodge at 5 Latham Road will be vacant for a short period during the 2017 Long Vacation pending the arrival in Cambridge of the new Vice-Chancellor. The Resource Management Committee, on the recommendation of its Space Management and Minor Works Sub-committee, has authorized a minor works project to undertake remedial works including asbestos removal and enhanced thermal insulation, together with a number of operational improvements. In light of the Lodge’s role as a venue for formal University events, these improvements include reconfiguration of part of the ground floor to provide commercial catering facilities separate from the domestic kitchen and appropriate toilet facilities for visitors. In addition to this minor works project, a number of essential maintenance works will be executed over the same period, including extensive roof repairs, some external redecoration, and boiler replacement.

The estimated cost of the minor works project is £698,000 and is to be funded by the University’s Minor Works Fund and Buildings Maintenance Fund. The work is expected to commence on site in June 2017 and to be completed by September 2017.