We wanted to ensure that colleagues who are members of USS are aware of the latest developments and the implications for both employee and employer contributions to the scheme.
Following Universities UK’s (UUK) and University College Union’s (UCU) support for the Joint Expert Panel’s (JEP) recommendations, the USS Trustee has confirmed its view that that the most appropriate way to allow these views to be taken into account is for the 2017 valuation to be concluded, and for the USS Trustee to then conduct a new valuation as at 31 March 2018. The overall aim is to conclude the 2018 valuation by 30 June 2019 with agreed lower contributions, replacing the higher cost sharing contributions which would otherwise come into effect from October 2019.
For employees who are members of the USS scheme this means that the employee contributions will increase from 8% of salary currently to 8.8% from 1 April 2019. From that date the employer contributions will increase from 18% to 19.5% of salary.
In the event that the 2018 revaluation is not completed in time then from 1 October 2019 employee contributions will increase to 10.4% of salary and employer contributions will increase to 22.5% of salary.
In both these cases the contributions paid to the DC Section of the scheme over the equivalent monthly salary threshold will be unchanged at 8% for employees and 12% for employers. The annual salary threshold for 2018/19 is £57,216.50. Members can elect to pay further contributions into the DC Section, but these will not be matched by the employer from 1 April 2019.
Both the 2017 and 2018 valuations will progress in the coming weeks and this will require two consultations. Further details on these consultations will be provided once we have received them. The timescale is tight to achieve an alternative solution by 31 October 2019 but the University is committed to playing its part in allowing this to happen.
Martin Williams
Director of Finance
Richard Brooks
Director of HR