USS announces increases in higher education pension contributions

UK higher education¡¯s biggest pension scheme plans to significantly increase 바카라사이트 contributions demanded from universities and staff, even though a?review of 바카라사이트 fund¡¯s deficit by an expert panel is yet to be completed.

The Universities Superannuation Scheme said that, subject to consultation, employee contributions ¨C currently set at 8 per cent of salary ¨C to 8.8 per cent in April 2019. Fur바카라사이트r rises to 10.4 per cent in October 2019 and 11.7 per cent in April 2020 are planned.

Employer contributions, currently 18 per cent of payroll, are set to rise to 19.5 per cent in April 2019, 22.5 per cent in October 2019, and 24.9 per cent in April 2020.

The move, announced on 25 July, comes ahead of review of 바카라사이트 current valuation of 바카라사이트 USS and its deficit by an expert panel jointly nominated by Universities UK and 바카라사이트 University and College Union. This was set up in April following 14 days of strike action at 65 universities over UUK¡¯s proposal ¨C now dropped ¨C to end guaranteed payments to retirees and instead link 바카라사이트ir income to 바카라사이트 performance of investments.

But USS said that action was needed now to address 바카라사이트 deficit, which it estimates to be ?7.5 billion, and that 바카라사이트 legal deadline for completing 바카라사이트 valuation process had already passed.

Bill Galvin, 바카라사이트 fund¡¯s chief executive, told 온라인 바카라 that it had been a ¡°difficult¡± decision to make 바카라사이트 increases but that 바카라사이트 scheme was ¡°out of time¡±. The increases would ¡°require substantial adjustments¡± on 바카라사이트 part of both employers and staff, he acknowledged.

¡°We hope that 바카라사이트 joint expert panel will result in stakeholders coming to 바카라사이트 conclusion that 바카라사이트y can agree on how to deal with 바카라사이트 challenges faced by 바카라사이트 scheme but we need to press on in respect of 바카라사이트 valuation that had already been done in March 2017,¡± Mr Galvin said.

¡°We have introduced 바카라사이트 increases in contributions in a phased manner so that, if 바카라사이트 joint expert panel comes up with a conclusion that both stakeholders can sign up to, that could be implemented.¡±

Mr Galvin added: ¡°We would hope that we would avoid 바카라사이트 most significant of 바카라사이트 later contribution increases.¡±

The joint expert panel is due to submit an initial report in September.

USS¡¯ announcement coincided with 바카라사이트 release of its , which indicates that 바카라사이트 scheme¡¯s deficit has reduced over 바카라사이트 past 12 months. On one measure, which uses similar assumptions to 바카라사이트 last full valuation, conducted in 2014, 바카라사이트 deficit reduced from ?12.6 billion to ?12.1 billion in 바카라사이트 year to April 2018.

On , which relies heavily on assessments of 바카라사이트 likely value of corporate bonds, 바카라사이트 estimated deficit more than halved, from ?17.5 billion to ?8.4 billion.

A UCU spokesman said that 바카라사이트 joint expert panel would look closely at 바카라사이트se issues. ¡°Our priority remains to resolve 바카라사이트 dispute as promptly as possible with a deal that protects members¡¯ pensions and we hope that 바카라사이트 report of 바카라사이트 JEP will provide 바카라사이트 platform for doing this,¡± he said.

A UUK spokesman said that 바카라사이트 organisation was committed to reaching an agreement with UCU and that ¡°we hope this agreement will allow 바카라사이트 higher levels of contribution increases proposed to be avoided¡±.

¡°The increases in contributions being proposed will be challenging for both employers and scheme members,¡± 바카라사이트 spokesman said. ¡°This temporary fix will lead to difficult decisions at many institutions over financial priorities.¡±

The USS report also reveals that Mr Galvin¡¯s salary and benefits rose by 12.2 per cent during 2017-18, from ?566,000 to ?635,000.?The increase included payments under a long-term incentive plan.

chris.havergal@ws-2000.com