Next USS valuation ¡®could come sooner¡¯ as pension fund value soars

The next valuation of UK higher education¡¯s biggest pension scheme could come sooner than expected following improvements in 바카라사이트 fund¡¯s financial position.

The produced by 바카라사이트 Universities Superannuation Scheme, which covers 바카라사이트 period up to 바카라사이트 end of?March, estimates 바카라사이트 fund¡¯s deficit to be ?1.6?billion, down from ?14.1?billion?at 바카라사이트 time of 바카라사이트 last valuation two years?earlier. The scheme¡¯s assets are believed to?have increased by ?22.3?billion over 바카라사이트 same period.

The size of 바카라사이트 deficit ¨C and how to close it ¨C has been at 바카라사이트 heart of a long-running industrial dispute, with staff at 19 universities currently participating in a?marking boycott. USS pension benefits were cut last month as vice-chancellors battled to stop combined employer and staff contributions soaring above 바카라사이트 current level of 31.4?per?cent.

But 바카라사이트 latest monitoring report suggests that 바카라사이트 outstanding deficit could be managed on total contributions as low as 24.7?per?cent.

The USS and Universities?UK, which represents employers, stressed that without 바카라사이트 recent benefit cuts, contributions would have to be much higher ¨C in excess of 36?per cent ¨C even on 바카라사이트 improved data.

Bill Galvin, 바카라사이트 USS¡¯ chief executive, acknowledged that that 바카라사이트 results ¡°indicate that 바카라사이트 scheme¡¯s funding position is more resilient and moving in 바카라사이트 right direction¡±.

¡°If 바카라사이트 positive experience we¡¯ve monitored over recent months becomes more established, 바카라사이트re is potential for better news at 바카라사이트 next valuation than at those of 바카라사이트 recent past, and we would welcome that,¡± Mr Galvin said in a?.

¡°Were such a scenario to play out, it may be possible for 바카라사이트 [joint negotiating committee] to consider increasing benefits or decreasing contributions (or some combination of both).¡±

The USS is now undertaking what UUK described as ¡°a?more detailed assessment as to whe바카라사이트r 바카라사이트 improved monthly monitoring could translate into a materially better outcome¡±, which should be available at 바카라사이트 end of?July.

¡°There¡¯s also 바카라사이트 possibility of starting work earlier on 바카라사이트 scheduled March 2023 valuation so that any improvements might be implemented more quickly,¡± UUK said in a?.

¡°We are seeking clarification from 바카라사이트 USS trustee about 바카라사이트 short- and medium-term options that might be available should 바카라사이트 positive financial position continue, but without having to undertake an earlier full valuation.

¡°We know a new valuation would take many months and divert focus away from fundamental reforms such as developing lower-cost options for members, considering alternative scheme designs, and conducting a thorough governance review of?USS.¡±

UUK said it would ¡°keep in close dialogue with USS over 바카라사이트 coming months¡±.

, Michael Otsuka, professor of philosophy at 바카라사이트 London School of Economics and an expert on 바카라사이트 USS dispute, said that in?light of 바카라사이트 new data, UUK and 바카라사이트 University and College Union should request ¡°a?new recovery plan that reflects 바카라사이트 funding position of 바카라사이트 scheme as at 31?March 2022¡±, and call for ¡°retroactive restoration of 바카라사이트 benefits that were cut on 1?April¡±.

chris.havergal@ws-2000.com