Academics who brought a High Court case against the directors of UK higher education’s largest pension fund have promised to appeal after a judge dismissed their claim.
Neil Davies, of the University of Bristol, and Ewan McGaughey, of King’s College London, argued that those in charge of the University Superannuation Scheme (USS) “failed to act within their powers” when they conducted a controversial valuation during the height of the Covid-19 pandemic which predicted a deficit of between £14.9 billion and £17.9 billion and led to cuts to members’ benefits.
Their case – which was funded through donations of more than £220,000 – also alleged discrimination, accusing the directors of ignoring the disproportionate effect of the cuts on women, ethnic minorities and young people. A third claim related to USS’ operating costs that were called “super-inflationary” and amounted to a breach of duty by the directors in allowing such an increase. Fourthly, the claimants alleged that the directors failed to act in members’ best interests by refusing to stop investing in fossil fuels, going against the findings of a survey that found most members favoured the move.
