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Joint Expert Panel Proposed

23 March 2018

​Universities UK and the University and College Union (UCU) are proposing to jointly establish a panel of inde​pendent experts to review the Universities Superannuation Scheme (USS) valuation, processes and assumptions and to agree key principles to underpin the future joint approach to the valuation of the USS fund.

 

A spokesperson for Universities UK said:

 

"The proposal for the Joint Expert Panel to examine the current valuation, proposed today under the auspices of Acas, is subject to consultation with union members and USS employers. Pausing benefit reform discussions to get an expert opinion of the valuation is a positive development to build trust and confidence. Support for this process will need to be sought from the USS Trustee and the Pensions Regulator, recognising their statutory responsibilities.

 

"As part of the Acas proposal, UCU will consult its branches and members on ending industrial action.  This would be very good news for students, who want strike action to stop to prevent further disruption to their studies."

 

Acas has proposed the following, which UCU and UUK will now take to consultation with respective parties.

1)         A formally agreed Joint Expert Panel, comprised of actuarial and academic experts nominated in equal numbers from both sides will be commissioned, to deliver a report. Its task will be to agree key principles to underpin the future joint approach of UUK and UCU to the valuation of the USS fund.

 

2)         It will require maintenance of the status quo in respect of both contributions into USS and current pension benefits, until at least April 2019.

 

3)         There will be a jointly agreed chair whose first step will be to oversee the agreement of the terms of reference, the order of work and timescales with the parties. Any recommendations by the group must be based on a majority view of the panel without the use of a casting vote.  A secretariat, jointly agreed by the parties, will be appointed. 

 

4)         The panel will focus in particular on reviewing the basis of the scheme valuation, assumptions and associated tests. It will take into account the unique nature of the HE sector, inter-generational fairness and equality considerations, the need to strike a fair balance between ensuring stability and risk. Recognising that staff highly value Defined Benefit provision, the work of the group will reflect the clear wish of staff to have a guaranteed pension comparable with current provision whilst meeting the affordability challenges for all parties, within the current regulatory framework.

 

5)         The panel will make an assessment of the valuation. If in the light of that contributions or benefits need to be adjusted in either direction, both parties are committed to agree to recommend to the JNC and the trustee, measures aimed at stabilising the fund to provide a guaranteed pension broadly comparable with current arrangements.

 

6)         Alongside the work of the panel both sides agree to continue discussion on the following areas: comparability between TPS and USS; alternative scheme design options; the role of government in relation to USS; and the reform of negotiating processes to allow for more constructive dialogue as early as possible in the valuation process.

 

7)         Support for this process will need to be sought from the USS trustees and the pensions regulator, recognising their statutory responsibilities. Both UCU and UUK will make the necessary approaches to seek this support.

 

8)         Should this process prove acceptable to all parties this could provide the basis for the UCU to consult its branches and members on ending the industrial action currently underway within the sector.


Notes

  1. Universities UK is representing the views of more than 350 higher education employers on USS reform proposals.​

Key Contacts

Gareth Morgan

Gareth Morgan

Media Relations Manager
Universities UK

Clara Plackett

Clara Plackett

Senior Press and Social Media Officer
Universities UK

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