Changes to USS

29 Jul 2010

Summary of proposals approved by USS trustee board on 22 July

The USS trustee board has approved proposals for change that were submitted for consideration at its meeting held on 22 July.

Before the changes can be implemented, all employers who participate in USS must consult their employees who are active or prospective members of the scheme. The consultation period is expected to start in late September and will last for a minimum of 60 days.

The summary of proposals is as previously circulated; please note that we do not have any further information at this stage, but expect to do so for the consultation.

Summary of proposals

1	Proposed implementation date is 1 April 2011
2	Normal pension age of 65 for new entrants and for service earned after the implementation date for existing members
3	Existing members over the age of 55 will be exempt from the changes to normal pension age
4	Normal pension age will be linked to increases in state pension age
5	Flexible retirement will be available for members from age 55
6	The contribution rate for members who retain final salary will increase from 6.35% to 7.5%
7	Pensions in payment will be increased in line with rises in the Consumer Prices Index (CPI) subject to a maximum increase of 5% pa
8	Deferred pensions will be increased by CPI or 2.5%, whichever is lower
9	Benefits for new entrants will be 1/80 pension plus 3/80 cash lump sum, based on CARE (Career Average Revalued Earnings)
10	The contribution rate for CARE members will be 6.5%
11	Any future cost increases will be shared 65:35 between employers and members respectively

For further information please see:

Pensions Office
26 July 2010