Message from John Brady - Update on USS

Tuesday, 18 September 2018

As reported previously a Joint Expert Panel (JEP) was established in May 2018 to review the Universities Superannuation Scheme (USS) 2017 valuation, processes and assumptions. The JEP has now published its report. An executive summary is available to view, or you may prefer to read the full report

The panel has recommended possible ways of reducing the scheme deficit and the cost of future defined benefit provision. These include employers taking on greater levels of risk, stakeholders paying higher contributions, the trustee updating the valuation assumptions and stakeholders agreeing some moderate adjustment to benefits.

It will take some time to fully consider the panel’s recommendations, and all the stakeholders including the USS Trustee, UUK, UCU and the Pensions Regulator will need to reach some form of agreement as to the best way forward.  The JEP has recognised that this may require compromise from all sides. Further information will follow as soon as it becomes available.

In the meantime the USS consultation in respect of proposed changes to contribution rates for both employers and employees continues, as reported in my recent update

John Brady 

Director of Human Resources