Excessive Prudence? Valuations and the Universities Superannuation Scheme

08 Dec 2014

Information session on Tuesday, 9 December (1-2pm) in MBS West 3.101 organised by MBS Directorate for Social Responsibility

The present plans to end final salary pensions within the USS scheme are highly contentious. The reason for initiating these plans is a valuation process which suggests that USS will fail to meet its obligations. The valuation process is based upon a large number of assumptions, which if varied would lead to different valuations. A number of authorities have suggested that USS is being “excessively prudent” in those assumptions and hence producing over-pessimistic valuations. This position was first argued publicly in a letter to Times Higher Education on 23 October, and the phrase “excessive prudence” is taken from the Universities UK response of 2 December to USS’ consultation.

The aim of this information session is to explore some of these valuation processes and explain how staff pensions might change. Intergenerational equity will also be explored. The session is open to all members of USS across the University.

We do hope that you can join us for this timely and informative event.