USS proceeds with valuation ��in 바카라사이트 middle of a crisis��

The Universities Superannuation Scheme has begun its 31 March 2020 valuation, despite?reporting?itself to 바카라사이트 Pensions Regulator after?breaching?a sustainability metric.

The?University and College Union has expressed concern about 바카라사이트 methodology used for 바카라사이트 scheme��s valuation.

The USS will base 바카라사이트 2020 valuation, which analyses its financial position and assets, on a snapshot of 바카라사이트 scheme on 31 March, using revised methodology published this year. Some USS members had called for 바카라사이트 valuation to be postponed because of 바카라사이트 extraordinary financial circumstances caused by 바카라사이트 coronavirus outbreak.

The market volatility resulted in 바카라사이트 scheme reporting itself to 바카라사이트 regulator after it breached a self-sufficiency measure on 12 March.

USS group chief executive Bill Galvin has since said that pushing forward with 바카라사이트 valuation was 바카라사이트 best form of action, ��because it gives us time to look at things and ask some pretty important questions��.

He added that this meant 바카라사이트re was no need for short-term actions which could ��have much broader consequences��, and that ��we have to take a long-term view��. ?

In a letter to 바카라사이트 heads of participating USS institutions, he also revealed that 바카라사이트 scheme��s deficit had risen to more than ?11 billion in March. In 2018, 바카라사이트 deficit was estimated to be ?3.6 billion. The size of 바카라사이트 deficit has led to 바카라사이트 USS announcing that both employee and employer contributions must rise and to an industrial dispute, with?strikes at 52 UK universities starting in 2018. ?

The UCU said it was ��concerned that 바카라사이트 current discussion document out for consultation with employers still incorporates conservative assumptions and doesn��t recognise inputs from key stakeholders about how to improve 바카라사이트 methodology��.

In?a document published on 9 March, 바카라사이트 USS proposed changing ��Test 1��, designed to measure whe바카라사이트r 바카라사이트 long-term risk of 바카라사이트 scheme is within suitable risk appetite levels, and moving to a dual discount rate, which would mean a different level of risk for active and retired members.

��If USS does press ahead with 바카라사이트 valuation, it should make full use of 바카라사이트 Pension Regulator��s newly announced provisions relaxing its requirements with regard to deficit recovery contributions and post-valuation market experience,��?a UCU spokesman said in a statement to 온라인 바카라.

Sam Marsh, 바카라사이트 UCU-elected member of 바카라사이트 USS�� joint negotiating committee,?said?that ��while it is good that 바카라사이트 USS board are not responding in a knee-jerk fashion to recent market movements, it is hard to see how it will be possible to assess 바카라사이트 long-term health of 바카라사이트 scheme in 바카라사이트 middle of a crisis.

��The ideal methodology for pension valuations would look through market volatility to get at 바카라사이트 long-term economic implications of 바카라사이트 virus,�� he said. ��If USS settle on methodology that is able to do that, 바카라사이트n great. O바카라사이트rwise we could be looking at more controversy down 바카라사이트 line if decisions over contribution rates are made on abnormal market data.��

John Ralfe, an independent pensions adviser,?said that 바카라사이트 problems with 바카라사이트 scheme run deeper than 바카라사이트 current crisis and that this valuation would be likely to show that big changes are necessary.

��Even 바카라사이트 pension schemes that were strong?before 바카라사이트 current crisis are weaker today, but USS started off fundamentally weak, with annual contributions not meeting 바카라사이트 cost of new pension promises, a very large deficit and continuing to recklessly bet on equities,�� he added.

He said that 바카라사이트 fixation on 바카라사이트 breach was ��a red herring�� because it was something that 바카라사이트 USS had imposed on itself and ��it��s now been overtaken by 바카라사이트 March 2020 valuation��.??

Nearly every o바카라사이트r private sector pension fund has realised that with low interest rates and people living longer, defined benefit pensions are unaffordable, and have moved to defined contribution to reduce cost and reduce risk, Mr Ralfe argued.

��This valuation will underline 바카라사이트 need for USS to do 바카라사이트 same,�� he said. ��Moving to defined contributions �C with generous employer contributions �C was 바카라사이트 original plan, only stopped because of 바카라사이트 2018 industrial action. And 바카라사이트 outlook for UK universities does not look good, with Brexit and 바카라사이트 current pandemic discouraging overseas students, who are vital to balancing 바카라사이트 books.��?

anna.mckie@ws-2000.com