On the go: Soas University of London and its union branch have jointly called for “an evidence-based, moderately prudent valuation as soon as possible” of the £88.8bn Universities Superannuation Scheme.
The statement, tweeted by the University College Union branch on June 2, added that any “positive changes” from the next valuation should be used to improve members’ benefits and not reduce contribution rates from existing levels.
Soas has also demanded that future valuations include the consideration of any potentially discriminatory outcomes from changes made to benefits in April this year.
The statement comes as the USS stated in May that it would undertake a funding review, with the scheme deficit having shrunk from £14.1bn to £1.6bn in two years in an interim monitoring exercise, as of March 31.
“It may be possible for the Joint Negotiation Committee to consider increasing benefits or decreasing contributions, or some combination of both,” USS group chief executive Bill Galvin told members.
Galvin will find opposition from Soas and other institutions, which have spoken out over the timing of the last full USS valuation.
The valuation included the routing of equity markets by the outbreak of the coronavirus pandemic. Markets recovered their losses, while deficit recovery contributions were set at 6.2 per cent against the 2020 valuation.
“Employers should continue to provide enhanced covenant support through the future valuation process,” Soas said in its statement.
“The retention of a defined benefit element of the pension scheme that is affordable for employers and members, sustainable and at a contribution rate that will not discourage employees from participating in the USS pension scheme is a necessary requirement to settle this series of disputes.”
Soas’s call for an assessment over any discrimination follows the introduction of a 2.5 per cent cap on inflation-linked benefit increases that was introduced at the start of the month.
In his note to members, Galvin said that this measure had avoided the scheme’s technical provisions deficit from reaching £3.1bn in a recent snapshot, with future service contributions needing to sit above 36 per cent.
“Any inequalities arising from these [changes] should be addressed under future valuations; any and all future proposals should be accompanied by sector-wide equality impact assessments,” the statement said.
