USS dismisses claims of ‘flawed’ pension scheme valuation

The Universities Superannuation Scheme has countered claims that a “large and demonstrable error” has been made in the valuation of the pension scheme.

A blog post written by Sam Marsh, a lecturer at the University of Sheffield and a University and College Union representative on the Joint Negotiating Committee for USS, claims that the fund is in far better health than has been portrayed. Marsh’s analysis claims to show that if the scheme maintains its current investment strategy and contribution rate, it will have have enough money to cover the benefits that members will accrue in the future.

Marsh’s analysis depends on cash-flow figures provided by USS, which Marsh says show that the asset performance of the fund will be much better than assumed during the now disputed actuarial valuation. “Not only that, but [the] surplus is expected to be substantial, and means the assets will be well within affordable reach of self-sufficiency,” he wrote on 15 October.