This is part of a regular series of communications to update staff on the progress of the 2020 valuation of the USS pension scheme.
In this update:
- UUK launches further employer consultation
- USS publishes member update
- A reminder of where to find resources
UUK launches further employer consultation
Employers recently gave their strong backing for an alternative package of reforms from UUK in a move to try and finalise the Universities Superannuation Scheme (USS) 2020 valuation and avoid contributions rising to between 42.1% and 56.2% in order to retain current benefits.
However, the USS Trustee states that it considers the indicative benefits can be provided for an overall cost of 31.2% of salary (a rate 0.5% higher than current contributions). To reach this price the USS Trustee is seeking further requirements as part of its counter-proposal for a covenant support package.
A short consultation of employers in the USS on potential modifications to the indicative outcome to the 2020 valuation will run until 5pm on Monday 5 July 2021.
The full consultation materials, including the consultation document and response sheet, is available here.
USS publishes member update
USS has published an update for members on the 2020 valuation.
In it, USS said that, if UUK confirms the proposals, the Joint Negotiating Committee (JNC) would then need to agree to that package and decide how the required contribution rate would be shared between employers and members. Of the current rate (30.7%), members pay 9.6% and employers pay 21.1%.
It added that a UUK response is expected ahead of the JNC meeting on Monday 12 July where the University and College Union (UCU) also have an opportunity to bring forward proposals. The JNC will decide by Tuesday 31 August how the cost of any changes would be split between employers and members.
It noted that, given the changes being considered, it is likely there will need to be an employer consultation with members. The earliest date any changes to benefits could be introduced would be Friday 1 April 2022.
A reminder of where to find resources
We are keeping up-to-date information about the 2020 valuation on our website. This includes links to key documents published by the main parties, as well as recordings of recent webinars.
If you have questions about your individual pension or circumstances, you can contact pensions@sussex.ac.uk.
Further information: http://www.sussex.ac.uk/humanresources/payrollandpensions/pensions/ussmembersinformation/valuation