USS pensions - University responds to UUK consultation
In September the Joint Expert Panel (JEP) which was established in May 2018 to review the Universities Superannuation Scheme (USS) 2017, issued its formal report along with a series of recommendations. You can read the report in full here.
Employers were invited by Universities UK (UUK) to respond to the recommendations made by the JEP and asked to do so by 30 October.
The response of the University of Glasgow has now been submitted to UUK as follows:
1. Would your institution support the JEP recommendations regarding the 2017 valuation (see Table 2 – page 10), in overall terms, subject to the acceptance of such a position from the USS Trustee (and TPR as appropriate)?
In overall terms, yes.
2. What further information would you need to provide a final view on Q1?
In due course it would be helpful to:
a) Hear the views of the TPR and the Trustee
b) Have more information on the level of risk inherent in the JEP’s recommendations
c) Understand the level of deficit funding assumed in the recommendations
d) Have more information on any additional conditions the Trustee might apply.
3. Employers currently pay 18% towards the USS scheme, and the mandate agreed immediately following the Acas discussions was 19.3%. If the recommendations of the JEP were accepted in full by all parties, the outcome would be that existing benefits – minus the employer match of 1% - could be provided at an indicative employer contribution of 20.1% of salary (with a member contribution of 9.1%).
a) Would you accept employer contributions at that level?
b) If not, what balance of additional risk, higher contributions and/or benefit change would you prefer to see as an outcome?
Does not apply.
Dr David Duncan
Chief Operating Officer and University Secretary
First published: 16 October 2018