The University Superannuation Scheme (USS) has confirmed plans to publish a discussion paper on potential changes to its valuation methodology in March this year.

The trustees have been reviewing the methodology approach since Summer 2019, publishing the initial timeline for the valuation in December last year.

A spokesperson for the USS said: “The review has been wide ranging and considers aspects of the methodology that were proposed by the stakeholder’s Joint Expert Panel (JEP), including dual discount rates.

“The trustee will begin to discuss these issues with employers shortly and expects to publish a document to support those discussions in early March”.

The scheme has also confirmed that the valuation methodology discussion forum will continue to meet throughout March and April.

According to the schemes initial timeline, the trustee is expected to begin consulting with UUK in July this year, issuing the actuarial report with its contribution requirements to the Joint Negotiating Committee (JNC) in August 2020.

The statutory deadline for the valuation to be filed with The Pensions Regulator (TPR) has been set as June 2021, though the schemes' 2017 and 2018 valuations were both filed “well after the statutory deadline had passed”.

Tripartite talks between USS, Universities UK (UUK) and University and College Union (UCU) have also been ongoing since January, with discussions focusing on recommendations from the JEP’s second report and the valuation methodology discussion, according to the JEP's statements.

The ongoing dispute between the UUK, USS and UCU has centred around increasing pension contributions, the sustainability of the USS and concerns over pay and conditions.

The tripartite talks are expected to continue until March, though the UUK recently stated the dispute had reached a ‘stalemate’, with 14 days’ worth of ‘unprecedented’ strike action currently underway by UCU members.

Share Story: