USS Employer Consultation response
University of Edinburgh response to UUK consultation on Joint Expert Panel recommendations.
The Joint Expert Panel (JEP) was set up by the University and College Union (UCU) and Universities UK (UUK) to review the Universities Superannuation Scheme (USS) 2017. Its formal report and recommendations are available on their website.
The University of Edinburgh's response can be read below.
The University of Edinburgh welcomes the Joint Expert Panel’s first report and sees this as a constructive way forward. We are pleased to see that the Joint Expert Panel intends to undertake a second phase of work reviewing alternative methodologies that could provide long-term stability to the valuation process and have the support and confidence of all parties. We also agree with the Joint Expert Panel report’s view of the importance of creating space to consider what, if any, longer-term changes to the scheme are necessary. We are mindful that the next triennial valuation is due in 17 months and hope that this second phase can begin shortly given the timeframe for the next valuation.
Response to the three questions
Question 1: Would your institution support the JEP recommendations regarding the 2017 valuation, in overall terms, subject to the acceptance of such a position from the USS Trustee (and tPR as appropriate)?
Question 2: What further information would you need to provide a final view for question 1?
Question 3: Employers currently pay 18% towards the USS scheme, and the mandate agreed immediately following the ACAS discussions was 19.3%. If the recommendations of the JEP were accepted in full by all parties, the outcome would be that existing benefits – minus the employer match of 1% - could be provided at an indicative employer contribution of 20.1% of salary (with a member contribution of 9.1%).
(a) Would you accept employer contributions at that level?
(b) If not, what balance of additional risk, higher contributions and/or benefit change would you prefer to see as an outcome?
Response: Not applicable.
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