Reading fhrough the Joint Expert Panel report and it is quite bruising for the #USS, #UUK and Pensions Regulator.
Key comments from the Executive Summary of the JEP report to follow:
Firstly, on the Trustees’ use of 3 tests to help assess contribution affordability. The Panel thought the Trustees gave “too much weight” to “Test 1” which was not being used as a “stop and check” reference point but “constraint” on benefit design and investment strategy. 1/
The Panel said that “insufficient weight” was given to the fact that USS was a large, open scheme that was cash flow positive. The “strength and diversity” of the HE sector appeared not to have been taken into account “in some areas”. 2/
The Panel reckoned that by giving the strength and diversity of the sector a greater weight, the Trustee and employers may be able to agree a larger “risk envelope” or appetite. (Essentially the Panel disputes the sector is as risky as judged). 3/
The Panel said the way employers’ risk appetite had been applied (by the Trustees) through “Test 1” had contributed to the adoption of “strong risk aversion”. This comment is really about the judgement of the Trustees. 4/
On the unilateral right of the Trustee to set contributions ( subject to consultation)the Panel said “clearly the process needs to be managed more effectively.” 5/
On the Regulator, the Panel said tPR appeared to have taken an approach to the valuation that “does not fully take account of the specifities of USS”. These included the very long-term nature of the scheme; it is cash-flow + & “last-man standing 6/
The Panel said the “framing and context” of questions asked of university employers, as part of the the consultation on the 2017 #USS valuation, produced “misleading results”. The outcome appeared to be “inconsistent with many employers’ wishes” said the Panel. 7/
Fairly damning criticism on the UUK’s consultation process with the 350 university employers it represents. The Panel said the consultation timeframes were sometimes “very short”. It was “debatable” whether employers were able to give “fully informed” answers to imp questions. 8/
USS also came in for criticism from the Panel over the “large volume” of information it had put on its website on the 2017 valuation which was “extremely technical and complex” in language and content. This had likely contributed to falling member confidence in the scheme. 9/
The Panel said there was no formal mechanism for involving #USS members in the valuation process. This was relevant given cost-sharing when additional contributions were required. Responses to the JEP report from USS / TPR / UUK to follow, for completeness of thread. 10/
USS response: “There may well be areas where our opinion and understanding differs from that if the Panel but we will want to reflect on the report in due course.” Full response: uss.co.uk/how-uss-is-run…. 11/
UUK response: “We hope that it (the JEP report) will create the space for UCU and UUK to find common ground to conclude the 2017 valuation.” universitiesuk.ac.uk/news/Pages/Res…. /12
Pensions Regulator: “We note the publication of the report & await responses from the universities, union & scheme trustee. More analysis now needs to be done to fully understand the implications of the proposals on the l-t affordability of the scheme.” /13
UCU response: “This first report is a significant landmark in our ongoing campaign to defend members’ pensions.” ucu.org.uk/article/9632/U…
At GP surgery today, an elderly patient with walking stick arrives at reception, and asks “who am I seeing today pls?”. Receptionist responds you are seeing “X” - only first name given to patient. “X” is listed on doctors on duty” board in the surgery reception. 1/
/2 the elderly patient then noticed a computer monitor - which allows patients to “self check in” to their appointments. He shuffles over to the monitor and starts to check in. At this point, I intervened to say the receptionist has checked him in. He seemed confused.
Having overheard the conversation between the elderly gent and receptionist, I figured out that “X” who the man was to see was not a doctor but a physician associate (PA), a non doctor doing frontline GP work at the clinic, /3
I asked #USS a number of questions about the handling of the cyber attack on Capita in March (the business processed pension admin for #USS).
Around 470,000 #USS members have been advised to assume their data was stolen in the Capita hack.
A number of #USS members have told me they had not received voucher codes for the free Experian ID theft protection service offered by #USS after the Capita hack, confirmed on May 11. Data likely stolen during the hack included #USS member names, date of birth and NI numbers
It has now been 8 weeks since Capita first disclosed it had been hacked.
A #USS member has reported suspicious activity on her credit file following the Capita data breach. The #USS member signed up to the free ID theft service offered by USS to 470000 members whose data was put at risk by the Capita cyber hack in March.
The #USS member - a professor - got in contact with me to raise her concerns about the #USS breach. Upon signing up to the free Experian service, she discovered three online betting companies had made credit checks on her on May 15 - she did not recognise these companies.
She subsequently discovered an online gambling account had been opened in her name - without her knowledge - with at least one of the companies. She is dealing with this. No direct evidence of a link with the Capita data breach but the timing is neat.
Late night drama in the Dutch parliament where Oppositions senators have been attempting to block major reforms which will see the Defined Benefit system move to a riskier Defined Contribution model. The changes will see tens of millions of DB pensions converted to DC.
Historic moment in the Dutch parliament as Senators vote on major reforms which will sweep aside the defined benefit pension system for all workers - public and private.
The Dutch parliament has made history by voting in support of a massive change to the pension system, which will see tens of millions of workplace DB pensions converted into defined contribution plans.
This is a massive shift for the Dutch pension system.
NEW: The giant #USS pension plan has surged further into the black, reporting a £7.6bn surplus at the end of March.
In 2020, the scheme reported a £14bn deficit.
The £7.6bn suprlus for the #USS pension plan, with more than 400,000 members, was identified thru
routine monitoring at March end.
The #USS is currently undertaking a full valuation of assets and liabilities. The valuation date is March 31, the same as the monitoring report.
On the swing to a £7.5bn surplus from a £14bn deficit three years ago, Bill Galvin #USS chief said the signs were "very encouraging" for the current valuation.
BREAKING: USS, the UK's biggest private sector pension plan, confirms data for 470,000 members may have been hacked during cyber attack on Capita, in March.
More to follow
USS, the pension scheme, has just published a message for members stating that personal details, including names, date of birth and National Insurance number may have been compromised during the Capita cyber attack.