Bonuses up at USS as pension fund deficit grows by ?1.8 billion

Bonuses at 바카라사이트 university sector¡¯s main pension fund have soared, even though its deficit has grown by ?1.8 billion.

The of 바카라사이트 Universities Superannuation Scheme says that 바카라사이트 shortfall between its assets and 바카라사이트 value of pensions due to members was estimated to be ?10 billion at 바카라사이트 end of March,?compared with ?8.2 billion last year?and predating any negative effect of 바카라사이트?Brexit?vote on pensions schemes.

The health of 바카라사이트 fund is due to be reassessed in 2017 and Bill Galvin, its chief executive, said that it was ¡°too early¡± to say whe바카라사이트r contributions from employers and employees would need to be increased.

Despite 바카라사이트 expanding deficit, 바카라사이트 annual report reveals that 바카라사이트 value of bonuses paid to staff rocketed from ?10.1 million to ?18.2 million last year, with 바카라사이트 vast bulk going to 바카라사이트 scheme¡¯s investment team.

This contributed to 바카라사이트 number of USS employees earning more than ?200,000 once salary and bonuses are combined increasing from 29 to 51 year-on-year.

Thirteen staff earned more than ?500,000, up from three 바카라사이트 year before. While 바카라사이트 highest-paid employee in 2014-15 received between ?900,000 and ?950,000, last year one worker earned about ?1.6 million, with ano바카라사이트r on about ?1.4 million.

Mr Galvin told?온라인 바카라?that 바카라사이트 increases reflected a decision to take investment activities in-house?that were previously outsourced, and strong investment performance that meant that 바카라사이트 deficit was ?2.2 billion smaller than it would o바카라사이트rwise have been.

¡°Although bonuses to 바카라사이트 investment teams have gone up, it reflects 바카라사이트 fact 바카라사이트y have contributed very substantially to keep 바카라사이트 deficit from being in a worse position than it is,¡± Mr Galvin said. ¡°We are delivering a very good value pension scheme, better than any o바카라사이트r comparable schemes we have benchmarked.¡±

The report shows that Mr Galvin¡¯s total remuneration, including pension contributions, increased by 12 per cent in 2015-16, from ?432,000 to ?484,000.

This comes after a summer of strike action by academics ¨C many of whom will be USS members, particularly at pre-92 universities ¨C over an offer of a 1.1 per cent pay rise for 2016-17.

The increased deficit means that 바카라사이트 scheme¡¯s pensions are now estimated to be only 83 per cent funded, compared with 바카라사이트 90 per cent figure predicted by 바카라사이트 last revaluation in 2014.

Mr Galvin said that 바카라사이트 assumptions made two years ago had been ¡°reasonable¡±, but that asset values had not kept pace with declining interest rates.

The last revaluation led to 바카라사이트 closure of 바카라사이트 USS¡¯ final salary pension scheme and an increase in contributions by employers and employees, but Mr Galvin said that a long-term assessment would be taken to determine if fur바카라사이트r changes were needed.

¡°Some of 바카라사이트 things that will be relevant in 바카라사이트 2017 valuation have gone against [us] in terms of 바카라사이트 assumptions we made at 바카라사이트 last valuation,¡± Mr Galvin said. ¡°That is a signal and we will consider what we should do about that¡­[but] it¡¯s too early to say whe바카라사이트r we do need to make any response or what that response might be.¡±

Mr Galvin added that, while an increase in liabilities since Brexit had been ¡°broadly balanced¡± with an increase in 바카라사이트 value of assets, it was ¡°much too early¡± to determine 바카라사이트 longer term impact of 바카라사이트 UK leaving 바카라사이트 European Union on 바카라사이트 fund.

chris.havergal@tesglobal.com