2018 valuation

USS must carry out a valuation at least every three years, which includes a detailed analysis of the factors that influence the scheme’s funding position.

Its purpose is to establish, at a particular point in time whether the assets the Trustee holds can reasonably be expected to pay the benefits that members have already built up in the scheme, and how much is needed to continue to provide the current level of benefits in future for members still actively contributing.

With each valuation, the Trustee must make judgements about how various expectations and risks will play out over the long-term and the short-term that could influence the scheme’s ability to pay members’ benefits.

It must also review whether recent experience has met with previous expectations, and respond accordingly.

As well as being a legal requirement, this regular review ensures that the promises that have been made to members are protected.

The 2018 valuation

The last valuation was held as at 31 March 2017 but was only submitted in early 2019 (several months after the statutory deadline had passed).

Over the course of 2018, our stakeholders on the Joint Negotiating Committee – UUK and UCU – appointed a panel to review the 2017 valuation and this resulted in a number of recommendations being made.

These recommendations would (by their very nature) require employers to take on more risks in funding the scheme than they had indicated they were willing to accept for the 2017 valuation.

Furthermore, the panel’s report did not quantify the additional risks involved – or how they might be supported.

As the statutory deadline for completing the 2017 valuation had already passed by this point, the most appropriate way for the Trustee to address such fundamental developments properly was to embark on a new valuation process – as at 31 March 2018 – and this is now well under way.

We’re committed to keeping you informed throughout this process – so we’ve provided links to background information and will post regular updates as the 2018 valuation progresses.

You can find these below and in the links to the right.

Valuation updates

  • The Pensions Regulator's position New
    The Pensions Regulator’s last formal update on its position as regards USS was shared with stakeholders in December. You can read it here or download a copy of the PDF here.
  • Webinar: an update from USS New
    We will be holding a webinar on 22 March, from 2:30-3:30pm, where we’ll provide an update on recent developments on our funding position and contribution rates.
    We’ll also be taking questions from the audience.
    You can register here.
  • The 2018 Valuation: A discussion on the future of USS

Blogs

Films

Member updates