Dame Kate Barker, chair of the Universities Superannuation Scheme (USS), is to step down from her role next year as part of senior leadership changes at the top of the UK’s largest pension scheme.
Additionally, Sarah Bates is to step down as chair of USS Investment Management, the pension scheme’s wholly owned investment subsidiary. Bates has led the board since 2021 and has been a director since 2013.
She will leave her role at the end of this year to be replaced by Rita Bajaj, following a handover period. Bajaj’s appointment is subject to regulatory approval.
In a statement, USS said the chairs’ exits had been planned out to “carefully sequence the handovers”.
“After a challenging decade of deficits and a procession of market shocks, USS has had a sustained and material surplus since 2023, the current member contribution rate is the lowest in the scheme’s history, and we have a long-term investment strategy focused on supporting greater stability.”
Dame Kate Barker, USS
Dame Kate has served on USS’s board since 2020 and took over as chair the same year. She said that leaving the role next year once the current valuation cycle is complete would allow the next chair “the maximum amount of time to establish themselves” before the 2029 valuation.
“After a challenging decade of deficits and a procession of market shocks, USS has had a sustained and material surplus since 2023, the current member contribution rate is the lowest in the scheme’s history, and we have a long-term investment strategy focused on supporting greater stability,” Dame Kate added.
A successor is currently being sought through a “considered and comprehensive appointment process”, and an announcement is expected early next year, USS said.
Bajaj has held a number of senior investment and financial services roles throughout her career, including at Invesco, Royal London Asset Management, and State Street. She also worked on asset management supervision at the Financial Conduct Authority.
She now holds several board positions, including chairing Columbia Threadneedle’s investment fund business, as well as similar roles at Fidelity and Wesleyan.
Bates said: “It has been a privilege to have been a part of USS’s journey since 2013. In that time, the scheme has almost doubled in size from £40bn of assets under management to £80bn, evolving from a significant investor to the universal owner it is today.”
Bajaj added: “I am delighted to be joining the USS Investment Management board and look forward to building on Sarah’s legacy in successfully implementing the trustee’s investment strategy, being a responsible steward of the scheme’s assets, and delivering on our promise to members.”
