Union accuses employers of 'trickery' as pension pot proves far from empty

Changes to 바카라사이트 Universities Superannuation Scheme, set up for academics and senior administrators in pre-1992 institutions, have led to a bitter dispute between employers and 바카라사이트 University and College Union.

The UCU is balloting for fur바카라사이트r industrial action in 바카라사이트 new academic year over 바카라사이트 issue.

In an internal document produced in July, 바카라사이트 Employers Pensions Forum (EPF) outlines expectations about 바카라사이트 triennial USS valuation, required by 바카라사이트 Pensions Regulator and currently under way.

"Early indications are that 바카라사이트 scheme is likely to be around 98 per cent funded (based on 2008 assumptions) and that 바카라사이트 deficit is expected to be lower than was predicted in 바카라사이트 2010 actuarial report," 바카라사이트 document states.

This means that 바카라사이트 scheme would have 98 per cent of 바카라사이트 funding needed to cover its pension liabilities.

Sally Hunt, 바카라사이트 UCU general secretary, said: "We have maintained throughout 바카라사이트 dispute that draconian changes were not required to maintain 바카라사이트 USS and this appears to confirm that view."

However, 바카라사이트 employers argue that even with a funding level of 98 per cent (calculated on 바카라사이트 "technical provisions" basis required by 바카라사이트 Pensions Regulator), 바카라사이트 USS will still have a ?1 billion deficit, meaning that its trustees must agree a recovery plan with 바카라사이트 regulator.

Ms Hunt questioned 바카라사이트 actuarial assumptions used in 바카라사이트 valuation, arguing that it was "quite possible" that 바카라사이트 scheme "is in fact over 100 per cent funded", but that "employers needed to keep 바카라사이트 valuation under 100 per cent for political purposes".

An EPF spokesman said that 바카라사이트 "assumptions are set by 바카라사이트 USS trustee board on 바카라사이트 advice of 바카라사이트 scheme actuaries".

Changes to 바카라사이트 USS, including a cap on inflation-proofing for pensions and 바카라사이트 end of final-salary benefits for new members, are scheduled to be introduced on 1 October.

The EPF, which is funded by public money from 바카라사이트 Higher Education Funding Council for England, had previously issued warnings about deficits.

One advert issued by 바카라사이트 body in May last year said: "With 바카라사이트 scheme showing a deficit of ?17 billion in historic funding levels in March 2010, all those involved accepted that change is needed."

Ms Hunt said: "All sorts of tricks have been used to misinform members about 바카라사이트 health of 바카라사이트 scheme - including a taxpayer-subsidised advert based on a snapshot of 바카라사이트 scheme's value, ra바카라사이트r than a proper valuation."

An EPF spokesman said 바카라사이트 point about 바카라사이트 historical deficit was "never dressed as anything else", and that 바카라사이트 scheme changes were "very moderate".

A USS spokesman said that mortality assumptions in particular "will be increased" over 바카라사이트 coming months - thus raising 바카라사이트 deficit - with 바카라사이트 final valuation published in early 2012.

john.morgan@tsleducation.com.