Do USS employers really bear an extra £1.3bn every year?

Michael Bromwich explores UUK’s arguments about increased sponsor costs for USS

clock • 9 min read
Michael Bromwich is a professor at LSE
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Michael Bromwich is a professor at LSE

Universities Superannuation Scheme (USS) sponsors have claimed they are bearing extra costs of £1.3bn per year following the 2020 valuation, but their method of calculation seems incorrect, with what is calculated seemingly not “cost” and the likely costs and consequences perhaps overstated.

This note looks at only one aspect of the revised scheme for the 2020 valuation the claim that actions agreed by the employers to strengthen the covenant (the financial strength of sponsors) involv...

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