USS Update

23 Jan 2024

The 2023 valuation has been completed and lower contribution rates are now in effect from 1 January 2024.

This means that the cost of USS membership has fallen from 9.8% to 6.1%, with benefits also improving from 1 April 2024. A reminder of the changes, as well as a summary of the one-off benefit uplift can be found on the USS website here. 

Additional Contributions

For existing members of USS, no action is required and your contribution rate will automatically be adjusted. Given the reduction in contribution rate, you may wish to consider making an ‘Additional Voluntary Contribution’ (AVC) to boost your pension pot which will also benefit from tax relief and potentially national insurance savings if you elect to do this via salary sacrifice. Simply log-in to My USS and go to the ‘Investment Builder’ heading on the left hand menu and select ‘View or manage savings’, where you can choose to build your pot with regular additional contributions, or even one-off lump sums if you wish. You can do this at any time and it will be effective from the next calendar month (i.e. for an AVC to occur in February’s payroll, you need to make the election on My USS by 31 January.

Eligible Members

For those individuals who have elected not to join USS we would urge you to review this again. The cost of contributing to the Scheme has fallen considerably and you can also benefit from tax relief and salary sacrifice to further reduce the cost. The University also makes a substantial contribution (14.5% of your salary). Aside from valuable benefits in your retirement, you will also receive life cover of 3 times salary and potentially ill-health early retirement protection once you have been in the Scheme for more than two years. Further information on this and the benefits of being a member can be found here. Finally, if you join prior to 1 April 2024, you will also benefit from the one-off benefit uplift of £215 annual pension (and corresponding uplift to the lump sum). You can elect to join the Scheme at any time by contacting the Pensions Office and will be put into the Scheme the following month. Please note to benefit from the one-off benefit uplift you must contact the Pensions Office by 8 March 2024.

If you have any queries then please contact the Pensions Office at pensions@manchester.ac.uk or 0161 275 2043.