‘Constructive talks’ held on USS valuation

Staff walked out across the UK’s higher education institutions in November and December over working conditions and increased contributions to the USS, the second pensions-related strike to hit the sector in three years.

A second report by the Joint Expert Panel appointed to scrutinise the plan’s valuation was released weeks later. Proposals to break the deadlock included a split discount rate and mediated talks between Universities UK, the University and College Union and the scheme’s trustee.

In a statement following the second round of talks on Thursday, JEP chair Joanne Segars said: “The parties held productive discussions, and made good progress, on developing a shared scheme purpose statement for the stakeholders to jointly agree and use.

“It was agreed it was important for the stakeholders’ scheme purpose statement and that currently used by the trustee company to fit together clearly.”

The statements, now published, commit stakeholders to “provide a financially secure future and retirement for scheme members and their families, and support the long-term needs of the higher education sector”.

Meanwhile the trustees pledge to work “with higher education employers to build a secure financial future for our members and their families”.

The three parties also agreed shared principles to be applied to the scheme’s upcoming valuation.

Alongside commitments to co-operation, respect and working within the bounds of law and regulation, the parties agreed to base the valuation on the scheme’s statement of purpose, to be clear and consistent in methodology, and to engage with proposed solutions proactively and early.

The stakeholders also agreed to communciate all stages of the discussions clearly, making adequate resources available to reach all employers and members affected.

“It was agreed that the next meeting would consider the question of sustainability and start to map out how, and by whom, possible governance changes might be addressed,” Ms Segars said.

“It was also agreed the group would receive a report back from the USSL board meeting, which was due to meet on January 22 to consider, among other things, the JEP2 report and the tripartite talks.”