08.07.10
1994 Group comments on outcome of the Joint Negotiating Committee meeting on USS Pension Scheme
Commenting on yesterday’s recommendation from the Joint Negotiating Committee, Paul Marshall, Executive Director of the 1994 Group said:
“The pressures on universities’ funding are such that the current employer contribution rate is up to the limit of what is affordable and changes are needed to ensure the sustainability of all the major pension schemes operating in Higher Education but it is the USS that is facing the most immediate challenges. This is an opportunity to ensure the scheme’s future for the next 35 years. These changes are the minimal requirements to retain the scheme and make it affordable and attractive. They also provide for an excellent defined benefit scheme for new members.”
“Employers have been in negotiations with the UCU for almost two years. UCU’s proposals were welcome but their minimal changes do little to improve the long-term sustainability of the scheme. USS has a funding deficit and there is a strong expectation that this will only get worse unless the issues are addressed as a matter of priority.”
Notes to Editors
1. Following a meeting yesterday (7th July), the Joint Negotiating Committee (JNC)1 with Sir Andrew Cubie as its independent chairman, decided to accept a package of proposals put forward by the employers. These proposals now form the recommendation from the JNC that is to be considered by the USS Trustee Board at its meeting on 22 July 2010. A full statement is available at: www.uss.co.uk/news/Pages/StatementfromUSSfollowingthemeetingoftheJointNegotiatingCommittee.aspx
2. The Universities Superannuation Scheme (USS) is the second largest private sector pension fund in the United Kingdom and the principal pension scheme for UK universities, acting for 395 universities and academic institutions. It has in excess of £28 billion in assets as of December 31 2009, and approximately 265,000 members. USS currently has approximately 10% of its assets allocated to alternative investments, with a target to grow this allocation to 20% over the medium term. Within alternative investments, USS has made sizable commitments to private equity fund managers and is also making investments directly into private equity transactions, since 2008, USS has made eight direct investments, averaging £15million each.
3. The 1994 Group represents 19 of UK's leading student-focused research-intensive universities. It was established in 1994 to promote excellence in university research and teaching. www.1994group.ac.uk 12 of the top 20 universities in the Guardian University Guide 2011 league tables published on the 8th June 2010 are 1994 Group members. 7 of the top 10 universities for student experience are 1994 Group Universities (2009 National Student Survey). In 17 major subject areas 1994 Group universities are the UK leaders achieving 1st place in their field (THE RAE subject rankings 2008). 57% of the 1994 Group's research is rated 4* 'world-leading' or 3* 'internationally excellent' (RAE 2008, HEFCE).
4. The 1994 Group represents: University of Bath, Birkbeck University of London, Durham University, University of East Anglia, University of Essex, University of Exeter, Goldsmiths University of London, Institute of Education University of London, Royal Holloway University of London, Lancaster University, University of Leicester, Loughborough University, Queen Mary University of London, University of Reading, University of St Andrews, School of Oriental and African Studies, University of Surrey, University of Sussex, University of York.