Proposals for change in USS

18 May 2010

Statement of trustee's responsibilities and details of proposed changes now online

In eUpdate on 6 May 2010 we promised to provide further information relating to proposals for change in USS, following the disbanding of the Joint Review Group. The employers and UCU are now putting separate proposals for change to USS Ltd, the trustee company, for consideration at a meeting to be held on 7 July 2010.

USS Ltd has made a statement about the trustee’s responsibilities and how change can be achieved; this is available on the USS website:

Statement from the trustee company on the review of USS - May 2010

A summary of the changes proposed by the employers and UCU is provided in the table below:

	Employers	UCU
1	Retain a defined benefit final salary for existing members; future members to be offered a defined benefit CARE scheme (career average revalued earnings).	Retain a defined benefit final salary for existing and future members.
2	NRA (normal retirement age) of 65 for all members, increasing in stages to age 68 between 2024 and 2046, if necessary.	Existing members retain NRA of 60; future members will have NRA of 65.
3	Introduction of cost sharing, being equally split between employers and members.	Introduction of cost sharing with employers meeting 65% of future cost increases and members 35%.
4	Member contribution rate to increase from 6.35% to 7.5% for all members.	Member contribution rate to increase from 6.35% to 7.35% for all members except those who earn less than £25,000 pa.
5	The introduction of a flexible retirement scheme for members aged 55 and over with 5 or more years’ service, subject to NRA of age 65 being agreed.	The introduction of a flexible retirement scheme for members aged 55 and over.

Full details of proposals from the employers and UCU can be found on the Employers Pension Forum website:

USS Review