Update from Universities UK on misrepresentation by USS of TPR position on discount rates

17 Jun 2019

Following a number of concerns raised by USS scheme members on the misrepresentation by USS of The Pensions Regulator's position on discount rates, Universities UK has issued the following points to employers:

  • Universities UK was sent a copy of a confidential email sent by The Pensions Regulator to USS on 8 January 2019 in which the Regulator stated that its position on the discount rate had been misquoted in the consultation material issued by USS on 4 January 2019. 
  • Universities UK ensured that the correct position of the Regulator on the discount rate was communicated to employers on 14 January 2019 in an actuarial note from Aon, which employers considered before responding to the USS consultation at the end of February.
  • Despite its objections to the wording used by USS, the Regulator continues to make clear its serious concerns over the deficit and future cost of pensions, as per its letter of 15 May 2019
  • We are aware of the issues raised by Professor Jane Hutton, a USS Trustee. Without the full details it is difficult to comment, although Universities UK has asked the Regulator and USS to keep stakeholders updated on this matter.