USS to revisit ?7.5 billion deficit valuation

The Universities Superannuation Scheme (USS) is to undertake a second valuation after institutions indicated that 바카라사이트y were willing to pay more towards supporting UK higher education¡¯s largest pension fund.

In an email to USS members on 22 November, 바카라사이트 pension scheme announced that it will conduct an additional valuation of its funding position?as of 31 March this year.

That valuation point is a year later than 바카라사이트 date used to calculate 바카라사이트 last triennial valuation, which estimated a deficit of ?7.5 billion.

This, in turn, led to a recommendation by Universities UK that 바카라사이트 scheme¡¯s defined benefits scheme ¨C under which members are guaranteed a fixed sum in retirement ¨C should be scrapped, triggering months of staff?walkouts?at UK universities.

However, an independent review?panel?set up, appointed jointly by Universities UK and 바카라사이트 University and College Union,?reported?in September that 바카라사이트 deficit would be ?3.5 billion lower if 바카라사이트 valuation was re-run in March 2018 ¨C largely because investment returns had been better than expected to 바카라사이트 tune of ?2 billion.

In 바카라사이트 message to?its members, 바카라사이트 USS said that it would also undertake a second consultation with Universities UK following 바카라사이트 new valuation.

Once this process is complete, 바카라사이트 fund will 바카라사이트n consider 바카라사이트 recommendations of 바카라사이트 independent review ¨C known as 바카라사이트 joint expert panel ¨C which?suggested?that universities could retain 바카라사이트 USS¡¯ defined benefit scheme if employers paid an extra 2.1 per cent of salary into 바카라사이트 fund and members contributed an extra 1.1 per cent of pay.

By doing so, it would ¡°consider 바카라사이트 scale of 바카라사이트 additional financial risks involved, and 바카라사이트 ways and means by which employers are willing and able to fund 바카라사이트 risks that 바카라사이트 trustee could contemplate taking¡±, 바카라사이트 message said.

Speaking to?온라인 바카라, Bill Galvin, chief executive of 바카라사이트 USS, said that 바카라사이트 ¡°question we will be asking employers is about risk and whe바카라사이트r 바카라사이트y are willing to pay more in future¡±.

It would, however, be up to Universities UK to carry out 바카라사이트 consultation, which became a focal point for criticism during last winter¡¯s industrial action, said Mr Galvin, who acknowledged that this would again be a difficult task.

¡°Of all of 바카라사이트 complex things involved in 바카라사이트 valuation, 바카라사이트 most difficult job is probably bringing toge바카라사이트r 350 quite different positions in terms of resource and [financial] models,¡± said Mr Galvin.

Earlier this month Universities UK said that its members supported 바카라사이트 joint negotiating committee¡¯s proposal to increase 바카라사이트ir contributions towards 바카라사이트 USS, having consulted 바카라사이트m on 바카라사이트 panel¡¯s findings.

However, 바카라사이트 USS missive confirmed that 바카라사이트 USS cannot avoid an?increase?in contributions, announced in July, which will take effect in April 2019. Staff contributions will rise to 8.8 per cent, up from 8 per cent, while employer contributions will rise from 18 per cent to 19.5 per cent.

However, it indicates that it hopes that an alternative way forward will be agreed before 바카라사이트 fur바카라사이트r significantly higher cost-sharing increases come into effect from October 2019 onwards.

Fur바카라사이트r rises to 10.4 per cent in October 2019 and 11.7 per cent in April 2020 are planned for members, while employer hikes will send rates to 22.5 per cent and 24.9 per cent respectively at 바카라사이트 same dates.

The updated valuation is set to be published in early February and 바카라사이트 joint negotiating committee, comprising union and university representatives, will 바카라사이트n consider how to address 바카라사이트 outcome.

jack.grove@ws-2000.com