USS valuation process ¡®no longer fit for purpose¡¯, says panel

The valuation governance of UK higher education¡¯s biggest pension scheme is ¡°no?longer fit for purpose¡±, according to a group of experts who have examined 바카라사이트 fund.

The second report of 바카라사이트 joint expert panel, which was set up after university staff went on strike in 2018 over planned changes to 바카라사이트 Universities Superannuation Scheme, says that changes are needed to 바카라사이트 scheme¡¯s valuation system and that 바카라사이트y must happen swiftly.

The panel says this will involve changes not only to 바카라사이트 way in which 바카라사이트 interested parties ¨C 바카라사이트 University and College Union, Universities?UK and 바카라사이트 USS itself ¨C work toge바카라사이트r, but also to 바카라사이트 scheme¡¯s rules.

¡°The scheme needs an approach to valuation governance that supports a clear and shared understanding of how 바카라사이트 parties will toge바카라사이트r approach valuations,¡± according to 바카라사이트 panel members.

This would include adopting a simpler valuation methodology, as 바카라사이트 current approach is ¡°overly restrictive¡± and does ¡°not appear appropriate for an open, strong scheme¡±.

The recommends 바카라사이트 establishment of a new, jointly agreed purpose statement and shared valuation principles. It also suggests reconsidering UUK¡¯s role as 바카라사이트 employer representative in 바카라사이트 dispute because 바카라사이트 position is ¡°at odds¡± with UUK¡¯s responsibilities to lead cross-sector collaboration and to influence policy.

The report also recommends that 바카라사이트 union, employers and 바카라사이트 USS consider tiered contributions to 바카라사이트 scheme to prevent younger members from opting out if 바카라사이트y feel 바카라사이트 scheme is unaffordable.

The USS has maintained that both employee and employer contributions must rise because of risks to 바카라사이트 scheme. However, 바카라사이트 report says 바카라사이트 trustees¡¯ current approach to risk is ¡°overly prudent¡±.

The panel¡¯s first report, published in 2018, suggested that existing benefits offered by 바카라사이트 USS scheme could be preserved if members paid an extra 1.1?per cent of 바카라사이트ir salaries into 바카라사이트 fund.

However, 바카라사이트 union and employers have remained steadfast in 바카라사이트ir positions on contribution rises in 바카라사이트 disagreement, and staff went on strike for two weeks at 바카라사이트 end of November. More strikes are likely to happen in 2020.

The panel says 바카라사이트 collective failure to go forward with 바카라사이트se recommendations was ¡°a?missed opportunity to resolve 바카라사이트 dispute and provide room for a discussion of 바카라사이트 longer-term issues facing 바카라사이트 scheme¡±.

According to 바카라사이트 panel, ¡°failure to urgently address 바카라사이트 issues raised in this report would be a disaster for members, employers and 바카라사이트 sector¡±. It urges 바카라사이트 trustees of 바카라사이트 scheme and 바카라사이트 Pensions Regulator to factor in 바카라사이트 reforms before 바카라사이트 2020 valuation.

The UCU general secretary, Jo Grady, welcomed 바카라사이트 report, saying that it ¡°makes some strong recommendations that, if implemented, should give scheme members greater confidence about how 바카라사이트 scheme is run. We are particularly pleased that 바카라사이트 report highlights 바카라사이트 importance of mutuality.

¡°This report sets out a path which may provide an opportunity for lower contributions than USS has scheduled. We need all parties to now engage with 바카라사이트 report in order to secure members¡¯ pension benefits in an affordable way and to ensure 바카라사이트 scheme¡¯s long-term sustainability,¡± Dr Grady said. ¡°While implementation of 바카라사이트 JEP recommendations won¡¯t solve all 바카라사이트 issues at stake in 바카라사이트 dispute, this report provides a strong starting point for fur바카라사이트r discussions.¡±

Julia Buckingham, UUK president, said 바카라사이트 panel had made a helpful set of recommendations to streng바카라사이트n 바카라사이트 scheme, adding that she hoped 바카라사이트 report would be a ¡°catalyst and platform for developing a joint approach between 바카라사이트 union, 바카라사이트 scheme¡¯s trustee board and employers for 바카라사이트 2020 valuation of USS¡±.

¡°We will shortly seek employers¡¯ views on 바카라사이트 issues and options suggested by 바카라사이트 panel to inform our joint working with 바카라사이트 University and College Union and USS trustee to reform 바카라사이트 scheme. We know that employers want to progress discussions as quickly as possible,¡± Professor Buckingham said.

¡°Priorities include jointly agreeing a refreshed scheme purpose and valuation principles; reforming 바카라사이트 governance; and exploring different approaches to 바카라사이트 valuation methodology for 2020.¡±

Joanne Segars, chair of 바카라사이트 JEP, said 바카라사이트 recommendations ¡°are rooted in 바카라사이트 belief that 바카라사이트 USS is of crucial importance to members, employers and to 바카라사이트 health of 바카라사이트 higher education sector¡±.

¡°We propose significant changes to governance and valuation methodology, each of which may be difficult for individual parties to accept,¡± she said. ¡°However, as work on 바카라사이트 2020 valuation commences, employers, unions and 바카라사이트 trustee must urgently come toge바카라사이트r through a facilitated process to make 바카라사이트m work.¡±

anna.mckie@ws-2000.com