Does the Universities Superannuation Scheme Provide a Model of Reciprocity Between Generations?

This article makes the case that, as an open, ongoing defined benefit (DB) pension scheme, Universities Superannuation Scheme (USS) once provided a model of reciprocity between generations but no longer does. It begins with account contribution (DC) scheme which preceded USS and its investment risk relatively low income that was created to rectify. shows how funding, investment, valuation during first two decades simple sustainable reciprocity, involving pooling among growth assets. USS’s subsequent shift, however, out assets into bonds, rise in contributions pay for this have led unfair imposition cost securing past promises upon current future generations. has occurred even though such shift been advocated on grounds intergenerational fairness. A closure DB move back 100% DC would exacerbate inequality JEL codes: D63, G22, J14, J32