Academics see pension deficits requiring 40% contribution

[leef44]

https://www.bbc.co.uk/news/business-56258460

I'm surprised this has taken this long to surface.

USS pension deficits soaring due to the cost of maintaining defined benefit packages. Universities are always going to struggle to pay for this and now require around 40% contribution between the staff and universities themselves to get them out of a hole.

[xeny]

leef44 said:

https://www.bbc.co.uk/news/business-56258460

I'm surprised this has taken this long to surface.

USS pension deficits soaring due to the cost of maintaining defined benefit packages. Universities are always going to struggle to pay for this and now require around 40% contribution between the staff and universities themselves to get them out of a hole.

Might have given saner figures if they'd not done the valuation last March.

[ellroy]

Would help if the valuations methods were allowed to consider things other than Gilts as the underlying bedrock for the ‘income’ being defined in their calculations and could claim back the 10 a.c.t. on dividends, thanks Winky.

[Mr Whippy]

USS flip flops from panic with looming under funding, to celebration and apparent surplus every other year.
If they panic today and throw in 40pc, in two years there would be outrage that they’re over-funded.
Then if they under fund it and change terms for new entrants, they’ll be protesting at the universities.


It’ll pop at some point and no doubt the public will bail it all out.

But I don’t think it’s today.

[GingerMunky]

Mr Whippy said:

It’ll pop at some point and no doubt the public will bail it all out.

Sadly the same with all public sector pensions. Wish I had one

Now is the time to value your pension fund if you want political leverage for better salary settlement.