Universities and unions to renew talks over USS
On the go: Employers, trustees and trade unionists will reopen discussions over the Universities Superannuation Scheme following the publication of an independent report into the plan’s valuation processes.
Disagreement about who should shoulder the burden of rising pension costs led to eight days of strike action across many UK universities, beginning in November.
But the publication earlier this month of a second report by the Joint Expert Panel – the independent group appointed to review the scheme’s valuations – has led the arguing groups to renew talks.
JEP chair Joanne Segars will host the discussions, as part of a package of recommendations made in her report.
The paper also called for a dual approach to USS valuations, using a different discount rate for past and future accrual.
Senior members of the organisations, including Alistair Jarvis, the chief executive of employer representative Universities UK, University and College Union general secretary Dr Jo Grady, and USS Group chief executive Bill Galvin, will attend the talks.
Dr Grady said: “The second JEP report stressed the importance of all parties coming together to shape the 2020 valuation and to tackle issues of governance with the scheme, and I look forward to getting on with the talks in the new year. If we are to avoid further serious disruption at universities over the USS, then all parties need to work on these key issues.
“Members have made it clear that they have little confidence in the scheme at present and that they should not be made to pick up the cost of extra contributions arising from previous valuations. We need to address those concerns and look at how to deliver a fairer and more sustainable valuation process.”
Mr Jarvis said: “There is a strong desire from all parties to work closely together on the future direction of the scheme. We look forward to developing a joint approach between the union, the trustee and employers to consider and respond to the recommendations from the JEP’s second report, alongside the 2020 valuation of the USS.
“Priorities include jointly agreeing a refreshed scheme purpose and valuation principles, reforming the governance, and exploring different approaches to the valuation methodology for 2020.”