USS update on Thames Water investment
03 July 2023
The Universities Superannuation Scheme (USS) has said it does not expect the performance of its investment in Thames Water to affect the 2023 valuation or the security of members’ promised pensions.
Thames Water Chief Executive Sarah Bentley stood down last week and some media coverage has claimed the USS pension fund could face a financial setback due to it being a major investor in Thames Water.
USS wrote to members on Friday (30 June) to reassure them: “Our diversified approach to investing means that we do not expect events surrounding Thames Water to have a material impact on the funding position or contribution rates coming out of the 2023 valuation, nor on the security of members’ promised pensions.”
The communication also pointed to Thames Water’s public statement in which it said the company remained in a strong liquidity position and had received new funding from shareholders. The statement also said that Thames Water is in discussions over further equity funding to support its turnaround and investment plans. Further coverage over the weekend reports that USS has given its backing to these financial recovery plans.
USS reported an improved financial position in May, noting that pension contributions could be increased and employee contributions reduced later this year pending the full valuation result.
Thames Water Chief Executive Sarah Bentley stood down last week and some media coverage has claimed the USS pension fund could face a financial setback due to it being a major investor in Thames Water.
USS wrote to members on Friday (30 June) to reassure them: “Our diversified approach to investing means that we do not expect events surrounding Thames Water to have a material impact on the funding position or contribution rates coming out of the 2023 valuation, nor on the security of members’ promised pensions.”
The communication also pointed to Thames Water’s public statement in which it said the company remained in a strong liquidity position and had received new funding from shareholders. The statement also said that Thames Water is in discussions over further equity funding to support its turnaround and investment plans. Further coverage over the weekend reports that USS has given its backing to these financial recovery plans.
USS reported an improved financial position in May, noting that pension contributions could be increased and employee contributions reduced later this year pending the full valuation result.
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