In order to gain certain tax advantages a pension scheme can be set up as a trust with the pension fund assets held separately from those of the employer. This is how USS is established, under what is called the Trustee Company, known as Universities Superannuation Scheme Ltd.
Administration of the scheme is carried out at the head office in Liverpool, additionally there is an investment office based in London.
The directors of Universities Superannuation Scheme Ltd are responsible for managing the assets of the scheme and to make sure that benefits are paid in line with the scheme's trust deed and rules.
Universities Superannuation Scheme Ltd has a board of 12 directors:
- Four of the directors on the board of the trustee company are appointed by Universities UK (UUK).
- Three directors are appointed by the UCU of whom at least one must be a USS pensioner member.
- One director is appointed by the Funding Councils.
- A minimum of two and a maximum of four directors are co-opted directors, appointed by the board.
Although the directors have special training for their role, they do not need to be pensions "experts" as they have the support of senior pensions professionals directly employed by the trustee company, and of professional external advisers.
Further details can be accessed here
Additionally they are supported by a series of committees, detailed below:
Audit committee
The audit committee considers and reports on any matter relating to internal control systems, financial reporting arrangements and corporate governance.
It examines management’s processes for ensuring the appropriateness and effectiveness of systems and controls; arrangements to ensure compliance with standards and arrangements under appropriate regulatory systems; oversees the functioning of internal audit and provides an interface between management and the external auditors.
Meetings are attended normally by the following executives of the trustee company:
- Chief executive
- Chief financial officer
- Chief investment officer
- Chief administrative officer
- Head of internal audit
- Compliance officer
- Company secretary who is the secretary to the committee
A representative(s) of the external auditors also attends where business relevant to them is to be discussed. The committee, however, meets with the external auditors without the executives present in July each year.
The formal 'Terms of Reference' can be accessed here
Finance and policy committee
The finance & policy committee (F&PC) considers and reports to the board on any matters relating to the structure and management of USS as the corporate trustee of USS other than those which have been allocated to the investment, audit and remuneration committees.
Meetings are attended normally by the following executives of the trustee company:
- Chief executive
- Chief financial officer
- Chief investment officer
- Chief administrative officer
- Pensions operations manager
- Pensions policy manager
- Head of IT
- Communications manager
- Company secretary who is the secretary to the committee
Meetings are normally attended by a representative from Universities UK. Legal and actuarial advisers are invited to attend as appropriate.
The formal 'Terms of Reference' can be accessed here
Investment committee
The investment committee is established under the rules of the scheme and, subject to the rules, under the articles of association of the trustee company.
It advises the trustee company on all questions relating to the investment of the assets of the fund.
Meetings are attended normally by the following executives of the trustee company:
- Chief executive
- Chief investment officer
- Chief financial officer who shall have responsibility for secretarial matters
- Chief administrative officer
- Compliance officer
- Other investment staff as determined by the chief investment officer
Legal, actuarial and investment advisers will be invited to attend as appropriate.
The formal 'Terms of Reference' can be accessed here
Rules committee
The rules committee is responsible for all aspects of the management of the rule amendment process, and has been empowered specifically in connection with the finalisation of the terms of particular rule amendments. The committee is responsible for matters relating to the meaning and application of the rules, rather than the substance (which is a matter for the joint negotiating committee).
Meetings are attended normally by the following executives of the trustee company:
- Pensions policy manager who shall act as secretary to the committee
Legal and actuarial advisers will be invited to attend as appropriate
The formal 'Terms of Reference' can be accessed here
Advisory committee
The advisory committee is established under the rules of the scheme.
The functions of the advisory committee are to advise the trustee company on the exercise of its powers and discretions (other than those relating to investment matters), on difficulties in the implementation or application of the rules and on any complaints received from members or participating institutions, and any other matters on which the trustee company requires advice.
The committee consists of six members, three of whom will be appointed by UUK and three by UCU and from whom they will appoint one of them as chairperson. A quorum will normally consist of two of the UUK appointees and two of the UCU appointees.
When the committee is considering any matters under stage two of the internal dispute resolution procedures, it will be enlarged by two members, one of whom will be appointed by the UUK directors from their number and one of the UCU directors from their number. If neither of these director members are available, they may appoint an alternate from the board, failing which the board may temporarily appoint a co-opted director.
Meetings are attended normally by the following executives of the trustee company:
- Chief executive
- Pensions operations manager who shall act as secretary to the committee
Legal and actuarial advisers will be invited to attend as appropriate.
The terms of reference for the advisory committee are defined within the USS rules
Joint negotiating committee
The joint negotiating committee is established under the rules of the scheme. The functions of the joint negotiating committee are to approve amendments to the rules proposed by the trustee company, to initiate or consider alterations to the rules and to consider any alterations proposed by the advisory committee arising out of the operation of the rules.
The joint negotiating committee also has powers under the articles of association of the trustee company and under the scheme rules in connection with the appointment of co-opted directors and with the remuneration of directors.
The joint negotiating committee consists of 11 persons of whom:
- five shall be appointed by UUK (individually a “UUK appointee”)
- five by the UCU (individually an “UCU appointee”)
- there shall be one independent member to act as chairman.
Meetings are normally attended by the following executives of the company:
- Chief executive
- Communications manager
- Pensions policy manager who shall act as secretary to the committee
Legal and actuarial advisers will be invited to attend as appropriate
The terms of reference for the joint negotiating committee are defined within the USS rules