Thread by @JosephineCumbo

BREAKING: The #USS pension plan has reported a SURPLUS of £1.8bn - nearly 18 months after reporting a £14bn deficit.

The surplus is disclosed in the scheme's June monitoring report published today.

Details to follow

In an email today to university employers, Bill Galvin, group chief of the #USS pension plan said the June surplus "provides a basis from which to start discussions with our stakeholders and advisers about what options might be available should this position prove well-founded"

Galvin #USS chief, said if the #USS Trustee found, via the 2023 valuation, that the overall contribution requirement had indeed reduced, then the JNC "may be able to consider some element of reduction to contributions, enhancements to benefits, or a combination of the two".

In the letter to #USS employers, announcing the surplus, Galvin said 'caution' was required on the June result.

"Firstly, increased uncertainty on forward inflation & interest rates has led to much financial market volatility & care must be taken with any individual reading."

Galvin: "Secondly, it is not clear that the monitoring approach (necessarily a relatively crude approximation) takes full account of expected inflation. The valuation programme will provide the analytical framework for fully informed judgements on these and other issues."

According to today's #USS funding update, the #USS assets grew £11.1bn in the three months to the end of June, to reach £77.6bn.

Responding to the #USS June £1.8bn surplus, #UCU gen secretary Jo Grady said: ‘We have said time and again that USS is an extremely strong pension scheme with excellent long-term prospects. News the scheme is in significant surplus is just the latest vindication of our position."

Grady:"The March 2020 valuation & the devastating cuts UUK forced through were acts of theft from hundreds of thousands of workers. UUK vice chancellors must now make plans to withdraw their cuts, restore benefits & echo our calls for a new transparent, evidence-based valuation"

#USS Employers:“It’s really positive news that the funding position of the scheme continues to show signs of improvement. The recent market conditions together with benefit changes – made as part of the 2020 valuation ...

....and the substantial employer covenant support package have helped to put the pension scheme on a better financial footing. Without these recent reforms, members would be paying at least 11% of pay (up from 9.8%) rising to 11.8% of pay from October 2022 ..

...with all USS participating employers having to find at least the means to pay 23.7% of contributions, increasing to 25.2% from Oct 2022. Financial markets remain highly volatile, and the USS Trustee believes that, given such volatility ...

... it is unable to alter contribution levels or benefits outside of a new full valuation. We therefore want to work collaboratively with UCU to find ways to fast-track the next valuation (April 2023) so it can deliver positive changes for scheme members as quickly as possible..