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Employers in @USSEmployers who maintain that we must find a way to operate within the costings of the valuation:
Please bear in mind how prohibitively expensive it would now be to switch over to 100% DC pension pots!
(tagging @SEBuitendijk, @leedsucu) 1/5 https://twitter.com/Sam_Marsh101/status/1381562397664628739
Please bear in mind how prohibitively expensive it would now be to switch over to 100% DC pension pots!
(tagging @SEBuitendijk, @leedsucu) 1/5 https://twitter.com/Sam_Marsh101/status/1381562397664628739
We must instead find a way to make DB work. The most promising way can be found in this blogby former @USSEmployers actuary @kevinwesbroom. 2/5
https://twitter.com/MikeOtsuka/status/1382582369358639104
by former @USSEmployers actuary @kevinwesbroom. 2/5https://twitter.com/MikeOtsuka/status/1382582369358639104
The 'more immediate' approach to which he refers is conditional indexation of DB, which @AonRetirementUK discusses in Section 3b of their latest paper. 3/5
https://www.ussemployers.org.uk/sites/default/files/field/attachemnt/USS%2031%20March%202020%20valuation%20-%20Aon%20report%209April2021.pdf
https://www.ussemployers.org.uk/sites/default/files/field/attachemnt/USS%2031%20March%202020%20valuation%20-%20Aon%20report%209April2021.pdf
. @USSEmployers, however, appear to be steering employers away from conditional indexation, on grounds of employer refusal to countenance even a tempory increase in their contributions by +2.6 from 1 Oct while we sort this out. 4/5
Instead, @USSEmployers have chosen to steer employers onto another path. But that way lies madness! 5/5 https://twitter.com/MikeOtsuka/status/1381265865509863424
5/5 https://twitter.com/MikeOtsuka/status/1381265865509863424
More on why it would make no sense for @USSEmployers to push for DB scheme closure and a move to 100% DC under the current valuation. https://mikeotsuka.medium.com/why-it-makes-no-sense-under-the-dual-discount-rate-for-any-uss-employer-to-advocate-100-dc-2138bf1b7b59
. https://mikeotsuka.medium.com/why-it-makes-no-sense-under-the-dual-discount-rate-for-any-uss-employer-to-advocate-100-dc-2138bf1b7b59
