Thread by @MikeOtsuka

Employers have gone a long way towards undoing the damage of their earlier responses to the 2017 valuation. But there remains one large piece of unfinished business, which is revealed by the following statement in USS's recent Q&A with members👇. 1/

Here 👆#USS is referring to employers' greater conservatism than #USS regarding risk in their response to a February 2017 consultation on 'Methodology and Inputs for the 2017 Valuation'. 2/

See this blog 👇on how the current #USS crisis traces to employers' rejection of #USS's proposed growth in reliance in line with general salary, which has given rise to the 'de-risking' of the portfolio which is now driving contribution rates up. 3/
medium.com/@mikeotsuka/uu…

Especially given that such acceptance is in line with the general approach to the valuation JEP articulates, it is therefore important that employers make clear that they now accept #USS's proposed growth in reliance on the covenant in line w/ general salary growth. 4/

Only then will members have assurance that #USS's call for higher contributions to retain current benefits does not trace to greater conservatism w/r/to investment risk on the part of employers in comparison with #USS. 5/

I therefore hope @ucu will call on @UniversitiesUK @USSEmployers to confirm that they now accept growth in reliance of the covenant in line with general salary growth. 6/

See here👇for an earlier thread on this topic. 7/7

https://twitter.com/MikeOtsuka/status/1120221453268471808

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