The current USS valuation is challenging. The issues we have had to address are not unique to us, or the Higher Education sector. They are much broader issues about future economic growth, future investment returns, and how they influence the ability of employers to underwrite pension promises.
In October 2016, USS launched USS Investment Builder, the new defined contribution section of the scheme. One year on, we take a look at how it has performed, and how our members feel about it.
Guy Coughlan - Chief Risk Officer In order to put a price on providing a promised £1 of pension for each year in retirement through the USS Retirement Income Builder, we’re effectively trying to predict the future.
Much has been written about USS’s investment performance recently, with some suggesting it is the reason the scheme is facing some difficult decisions – so I want to set out some facts to address this.
USS is the biggest pension plan in the UK by assets. Nevertheless, we are not immune to the substantial challenges of manufacturing retirement income in a world where the future looks more uncertain; these are well rehearsed, both for individuals and for scheme sponsors.