There is no “financial shortfall” in the Universities Superannuation Scheme (“Strike looms as universities seek end to USS defined benefit deal”, News, 17 November). What we have is a ludicrous valuation methodology said to be “prudent” but, in fact, misleading because it is based on investments in gilts, which represent only a minority percentage of USS investments. Most of the investments are in equities and properties and these have performed well, growing at a rate of 12 per cent per annum over the past five years.
The USS Report and Accounts 2017 gives a best estimate fund valuation of £8.3 billion, up from £3.5 billion in 2014. The USS makes more money each year than it pays out and is forecast to do so indefinitely far into the future. Universities UK needs to oppose the USS’ daft valuation methodology, otherwise unnecessary chaos looms.
By the time that I retire, there will be no pension left, but strike we will. There isn’t any financial shortfall, just ridiculous projections that have been called into question by respected economists.