Employers support prompt conclusion to USS valuation
USS consultation response
USS employers are calling for the 2023 valuation of the Universities Superannuation Scheme (USS) to be finalised quickly, so that scheme members receive the full benefit of lower pension costs in their take-home pay as soon as possible.
In a letter to USS, employers have signalled their support for the USS Trustee’s proposed outcome, and confirmed their support for the agreement with the University and College Union, which represents scheme members, to lower contributions, improve pension benefits to the pre-April 2022 level, and explore a series of stability measures for the scheme.
Acknowledging the cost-of-living challenges faced by members, and the significant financial pressures faced by higher education institutions, employers responding to the recent Technical Provisions consultation stressed the importance of reducing contributions to the level required as soon as possible.-
Employers have also reaffirmed their commitment to continuing to provide the significant covenant measures, introduced at the last valuation to lower the scheme costs, which the Pensions Regulator has rated as strong support.
The USS Trustee has priced the return to April 2022 benefits at this valuation at a total contribution rate from employers and members of 20.6% of salary, which is significantly lower than the current contribution level of 31.4% and the circa 43% which was the cost of April 2022 benefits at the 2020 valuation.
You can read a copy of the University’s employer response to the consultation on For Staff.
The statutory consultation with USS members about the proposed changes remains open until 24 November 2023. USS members can respond to the consultation on the consultation website or through the University. All responses received during the consultation period will be considered before any final decision is made and implemented.
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