USS pensions update
07 Oct 2021
USS Trustee confirms that contributions are 21.4% for employers and 9.8% for members with effect from 1 October 2021
The USS Trustee has confirmed that contributions to the pension are 21.4% for employers and 9.8% for members with effect from 1 October 2021.
The Trustee agreed with the employers’ proposals last month and has now written to Universities UK (UUK) and to employers with its decisions following the formal consultation with employers and members earlier this year.
A UUK spokesperson said: “We now have a good foundation towards the conclusion of the 2020 valuation and ahead of the forthcoming statutory employer consultation with members which is planned to commence in early November and run through until mid-January.
“Overall, we see the recent decisions of the USS Trustee as positive steps for concluding the 2020 valuation and putting the scheme on a sustainable footing.”
In addition, the Trustee will support further actions to secure the pension’s future:
- Development of a lower cost pension savings option and member flexibilities;
- Exploration and development of alternative scheme designs, such as Conditional Indexation;
- A governance review.
They will also develop a detailed modeller for members to show the impact of the proposed changes alongside the contributions which would otherwise be payable should the changes not be made, as well as a suite of other resources. Benefits built up by members to date will remain unchanged.
The Russell Group has produced two videos explaining why the proposals will keep pensions affordable without having a disproportionate impact on take-home pay and what proposed ‘covenant protection measures’ mean for USS:
Further updates will be published on StaffNet.
Further information
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