Defined Contribution Vs Defined Benefit (USS Scheme)

kidmugsy

Plus wrote: »

As I understand it, the current deficit is calculated based on assuming the investment returns from bonds.
(I'm not clear if this is the whole fund or the liabilities to those receiving pensions)

I understand that what they do is put a capital value on the fund's liabilities by discounting the expected future payouts using discount factors based on the returns from bonds.

Then they subtract that capital value from the capital value of the assets. Unfortunately they get a negative answer.

Puddylove

Southend1 wrote: »

Sorry to hear that, Puddylove. I’ve had two roles that were made redundant in the last 5 years but fortunately both times I was able to secure a suitable alternative. I feel your pain and wish you the best of luck.

To be honest, I hope to be one of the 24%...my university is being trashed by a VC who knows nothing about education, and cares less.

LXdaddy

Plus wrote: »

As I understand it, the current deficit is calculated based on assuming the investment returns from bonds.
(I'm not clear if this is the whole fund or the liabilities to those receiving pensions)

Yes the valuation of the DB scheme funds uses gilt returns. This is why many deficits have grown larger recently - because gilt yields have fallen. But there is nothing in the pension regulator rules that dictates what investment strategy is followed.