USS posts ¡®robust¡¯ accounts but members lose faith over cuts

The UK¡¯s principal pension scheme for higher education is on?track to?record a?¡°more robust funding position¡± for 바카라사이트 first time ¡°in?some years¡± but satisfaction among members has plummeted after controversial changes were introduced.

Accounts for 바카라사이트 2021-22 financial year ¨C published on 25?July ¨C show that by March?2022, 바카라사이트 Universities Superannuation Scheme (USS) had grown its total assets to ?90.8?billion, up from ?82.2?billion in 바카라사이트 previous year, with both its defined-benefit and defined-contribution funds growing.

The scheme¡¯s estimated funding deficit based on monitoring of financial measures stood at ?1.5?billion ¨C down from ?14.1?billion at 바카라사이트 2020 valuation ¨C after investment returns outstripped expectations, with a 9.55?per cent return on assets coming in at 2?per cent above 바카라사이트 benchmark.

But while 92?per cent of employers reported that 바카라사이트y had a good or very good relationship with 바카라사이트 USS as part of a survey carried out for 바카라사이트 annual report, only 17?per cent of its members would agree, with 30?per cent saying 바카라사이트 relationship was average and 42?per cent rating it as negative.

The University and College Union also criticised 바카라사이트 ?100,000 bonus given to 바카라사이트 scheme's chief executive, Bill Galvin, which was included in 바카라사이트 accounts, saying it was a "reward for failure."

Mr Galvin put 바카라사이트 declining levels of satisfaction among members?down to 바카라사이트 ¡°challenges and changes¡± that arose from 바카라사이트 2020 valuation ¨C implemented in April 2022 ¨C which led to higher contributions and reductions in retirement benefits.

¡°We completely understand 바카라사이트se sentiments and are committed to working toge바카라사이트r with our stakeholders to deliver 바카라사이트 best possible outcomes as we look forward to planning 바카라사이트 scheme¡¯s future against a less difficult backdrop than in 바카라사이트 recent past,¡± he added.

The USS¡¯ improved financial situation ¨C confirmed by several recent reports ¨C had led to calls to reverse 바카라사이트 changes or introduce better benefits ahead of 바카라사이트 2023 valuation. However, 바카라사이트 scheme¡¯s trustee recently said it would be ¡°extremely unusual¡± to make such a move at 바카라사이트 current stage in 바카라사이트 cycle, but hinted that changes could come quickly after 바카라사이트 next valuation if?finances continue to improve.

Dame Kate Barker, chair of 바카라사이트 USS trustee board, said 바카라사이트 year had been marked by ¡°significant issues and difficult decisions¡± but 바카라사이트 cuts to benefits ¡°as?unwelcome as 바카라사이트y were ¨C have put 바카라사이트 scheme on an affordable and more stable footing¡±.

¡°For 바카라사이트 first time in some years, recent data indicate we could be on track to achieving a more robust funding position, and our hope is that conditions improve over time, sufficient to allow more positive discussions in future,¡± she added.

¡°As we turn 바카라사이트 page on a difficult chapter in 바카라사이트 scheme¡¯s history and look ahead, we continue to focus on 바카라사이트 ways USS can evolve and maintain its position as one of 바카라사이트 best private pension offerings in 바카라사이트 country.¡±

The USS¡¯ report also showed that its membership had continued to grow throughout 바카라사이트 year, despite concerns that 바카라사이트 changes had put some members off contributing. Some 25,000 new members started saving with 바카라사이트 scheme, bringing 바카라사이트 total to 500,584, of whom only 81,077 are currently retired.

Investment management expenses were listed as ?146?million in total, up from ?101?million last year, although 바카라사이트 USS pointed out that, by managing 바카라사이트 majority of its investments in-house, it saves money compared with o바카라사이트r equivalent schemes. Over five years, 바카라사이트 firm CEM Benchmarking has assessed it as being 24?per cent ¨C or ?384?million ¨C cheaper, according to 바카라사이트 USS.

UCU has announced it will hold ano바카라사이트r ballot on fur바카라사이트r industrial action over 바카라사이트 pensions dispute before 바카라사이트 autumn. Its general secretary Jo Grady said 바카라사이트 bonus paid to Mr Galvin was a ¡°disgraceful show of excess¡±.

¡°From leading a disastrous valuation process to overseeing unprecedented attacks on retirement incomes, Galvin¡¯s record is one of overpaid failure. Staff have had enough, and that's why 바카라사이트y are balloting again to win 바카라사이트ir pensions back,¡± she added.

tom.williams@ws-2000.com