Pensions Committee – Terms of Reference and Membership

Governance reporting line: Council

Document owner: Governance Services/Group Financial Controller

1. Origin and Purpose

As a committee of Council, to help frame responses to all consultations from the USS, PASNAS, and other appropriate University Group Pension schemes, trustee or employers' representatives about the valuation or governance of (or proposed changes to) those Pensions schemes after taking due consideration of the view of the executive, and on the basis that:

  • any consultations determining benefit reform or valuation pricing will be put to Council for determination. 
  • when time allows, other responses drawn up by the Group on significant policy issues or questions of principle will be put to the Council for determination; but that
  • otherwise, the Group itself will determine responses, subject to the further approval of the Chair of Council and the Vice-Chancellor.

To formulate advice and inform the Pensions strategy on any other Pensions matters referred to it by the Council or the relevant executive lead.

2. Responsibilities and activity

2.1 In considering and making recommendations on the various matters above the Pensions Committee, whilst recognising that it is reporting to the University’s Council, should consider the direct and indirect interests of the various stakeholders in the pension’s schemes and participating universities, the members of schemes and current and future generations of students and researchers.

2.2 To consider and report on the proposals for:

  • benefits reform and
  • valuation pricing, covenant support and sustainability and the impact on the University of Southampton Group.

2.3 In reporting on the proposals for benefit reform and associated impact, to have specific regard to the following:

  • the assumptions underlying the valuation of the scheme’s assets and liabilities.
  • the proposed benefit changes and their impact on the University’s workforce, finances and its share of the deficit.
  • the implications for investment strategy resulting from the proposed benefit changes.
  • the legal basis for the proposed benefit changes and if appropriate, what further information might be requested from trustees relating to future benefits on assumptions and alternatives to what has been proposed.

2.4 Based on the views of the Pension Committee from its consideration of the issues covered in section 2 above, to provide recommendations to Council.

2.5 To explore what alternative options are available to the University to mitigate any impact arising from pensions reforms and the risks/issues/benefits associated with these alternative options.

2.6 Other

  • To carry out task and finish projects as from time to time be identified by Council, as appropriate.
  • To take external advice to assist with any aspect of the Committee’s work for any such period the Committee see fit.

3. Reporting arrangements

The Committee will report to the Council.

4. Constitution and Membership

University Treasurer (Chair)

Chair of Council

Chair of the Remuneration Committee

One further independent member of Council (Dame Madeleine Atkins until July 2027)

One co-opted external member with relevant pensions experience (Mr Martyn Ryan until July 2028)

5. Quorum and frequency

5.1 Quorum

Quoracy is a minimum attendance of 1/3 of the membership plus 1 person, one of which must be the Treasurer or Remuneration Chair. 

5.2 Frequency of meetings

The Committee shall meet flexibly to address the timescales of pensions consultations; this will be ad hoc and short notice on many occasions.

6. Resources

Secretariat to be provided by Governance Services.           

7. Terms of Reference review

Date of last review: April 2026

Date of next review: July 2027