USS warns of ‘complex’ issues in response to JEP report
On the go: The Universities Superannuation Scheme has welcomed reform proposals put forward by an independent panel, but has warned that the issues are “complex” and may take some time to resolve.
The £68bn pension fund’s oversight board was responding to the second report from the Joint Expert Panel, set up in 2017 in an effort to resolve a dispute between staff and employers about the valuation of the scheme.
The JEP put forward a number of “interlocking recommendations”, including setting up joint bodies within the USS to increase the involvement of Universities UK – which represents employers – and the University and College Union in the operation of the scheme.
However, in a statement the trustee board said it was “critically important to maintain a degree of separation of duties so as to avoid conflicts of interest and ensure that the trustee can continue to fulfil its statutory, regulatory and fiduciary obligations”.
The USS board added that “issues relating to governance, decision-making and divisions of duty are complex and some can be addressed more readily than others”.
Sir David Eastwood, chair of the USS trustee board, emphasised that the trustees were keen to work closely with UUK and UCU to resolve the long-running dispute, which has led to nationwide strike action by university staff.
He said: “The JEP’s latest report to stakeholders is ambitious in its scope. We stand ready to work with UUK and UCU as they consider carefully the recommendations they wish to take forward.
“We welcome the suggestions aimed at increasing trust and understanding across the scheme, its members and its stakeholders.
“Our purpose is to work with higher education employers to build a secure financial future for our members and their families and, ultimately, to protect the valuable pension promises being made. This remains our sole focus.”
The trustee board said the timetable for completing the valuation – which will be based on data as of March 31 2020 – was “challenging”, but it would “work steadfastly” with the union and employers during the process.