Ten Points for the USS Valuation, #UCUTransformed

At the UCU Transformed meeting on 28 April, Dennis Leech (Warwick) posed the following points and questions that the Joint Expert Panel should consider.

  1. How does a scheme that is currently cash flow positive go into deficit?
  2. What do cash flow projections for income and outgo look like?
  3. Why use index linked gilts (currently producing a negative return)?
  4. Consider using the internal rate of return.
  5. Are investment returns really too low?
  6. Investigate the ‘best estimate’ valuation.
  7. Focus on income from investments not asset price.
  8. Question the facile assumption that equities universally riskier than bonds.
  9. Examine in detail projections of key parameters e.g. mortality, growth, inflation, etc. Also the level of prudence.
  10. Distinguish between risk and short-term asset price volatility.

See also


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