UCU has produced a briefing note on the latest USS valuation.
The USS valuation is not a wholly objective process. It is based on a set of assumptions and projections in relation to the elements which contribute to the cost of providing pensions over the next 40 years or so.
The USS board will agree its approach to the valuation on 17 November. From discussion with USS officers and the scheme’s actuary, it seems that USS will base its valuation on unnecessarily conservative accounting assumptions about the health of the pension fund. The effect of this is to artificially inflate the size of any problems and make USS look less ‘funded’ than it is. It also creates a retrospective justification for the employers’ reforms, railroaded through the scheme earlier this year.
UCU‘s own actuarial advice indicates that the scheme’s assumptions are ultra-conservative. If they are changed even slightly, the fund looks healthier. Further, this bolsters the case that there is room to enable a negotiated settlement that preserves the attractiveness of the scheme.
The General Secretary has now written to the USS board setting out our challenge to the proposed assumptions underpinning their approach to the valuation.
Read the union’s full briefing note for members here: USS valuation: UCU briefing note
Read the General Secretary’s letter to the USS board here: General Secretary’s letter
[...] changes to these assumptions produces a healthy valuation. You can read more on this here: http://defenduss.web.ucu.org.uk/2011/uss-valuation/. Also, a reminder that all USS members are being called to take one day’s strike action alongside [...]
[...] You can read more on this here: http://defenduss.web.ucu.org.uk/2011/uss-valuation/ [...]