The Group received an update of the first meeting of the Valuation Methodology Discussion Forum (VMDF) which the Trustee had established to support and inform the development of the 2020 valuation. The VMDF comprised representatives from the two stakeholders and their advisers as well as representatives from USS, including Trustee Directors. The VMDF had covered a lot of ground in its first meeting, including discussions on prudence and risk appetite. The Forum’s work would help inform the Trustee’s discussion document on the valuation which would be published in March. Both stakeholders and the Trustee agreed that the VMDF was a valuable forum. UCU and UUK said they thought the VMDF was looking more broadly and deeply at issues than was the case with previous groups and this was considered beneficial.
The Group discussed the JNC effectiveness workstream which it had commissioned. This workstream comprised representatives of the stakeholders and USS. It would hold a ‘kick off’ meeting on 18 February and would continue to meet with a view to providing an options paper for the Tri-partite Group in March, providing a short update in late February. The Tripartite Group expressed its thanks to all those who had volunteered their time to this workstream.
The Tri-partite Group continued its discussion on sustainability. It was agreed that sustainability was important for ensuring confidence in the Scheme. The Group agreed that sustainability in the context of a scheme like USS had many dimensions. But the group considered the dimensions to be most relevant for USS as: affordability, stability, clarity, adaptability, relevance and viability.
The Group started a discussion on rebuilding trust and confidence and the governance of the Scheme. Each party had set out areas which worked well, areas which worked less well and damaged trust and confidence and measures that could help restore trust and confidence. The Group agreed it would be helpful to continue this discussion at its next meeting.
Future meetings would receive feedback on the results of the employer consultation on the JEP report and the current issues under consideration. In addition, the Group would receive reports of the JNC effectiveness workstream and updates on the VMDF.
The Tri-Partite Group discussed the work of the Valuation Methodology Discussion Forum (VMDF) which had held three meetings. It was noted that the Trustee planned to issue a discussion document on the valuation methodology shortly. Stakeholders emphasized the need for the discussion document and the valuation process to be, and be seen, as collaborative – noting that it is the Trustee’s legal responsibility to set the assumptions. The importance of this document was recognized by all members of the Tri-partite Group.
The Group noted that the JNC effectiveness workstream had held a ‘kick-off’ meeting. This had been a positive meeting. Further meetings were being arranged in order that the workstream could produce an options paper for the Tri-Partite Group.
The Group continued its discussions on a agreeing a common definition of sustainability. It was agreed this should include a clear commitment to the fact that the Stakeholders and the Trustee wanted a sustainable scheme and to define what that means. The Tri-partite Group continued to refine the definition. It was agreed this should include the following features: affordability, stability, clarity, adaptability, relevance, and viability. It was agreed to review the statement further in order to clarify the positions of the Trustee and Stakeholders in the Scheme’s governance arrangements.
It was agreed to return to the question of trust, confidence and governance at a future meeting.
It was agreed that a report on the outcome of the UUK consultation exercise would be given at the next meeting.