The valuation report is available to view here.
Over the past few months, Universities UK (UUK) has been undertaking a formal consultation with the university employers in the scheme to seek their views on how they believe the scheme can be made more affordable, inclusive and sustainable for staff. The consultation outlined options for mitigating the scheme's increasing costs, sizeable deficit, and high member opt-out rate.
As a result of the consultation, an alternative approach to the 2020 valuation has been proposed which, if adopted by the USS Trustee, should reduce headline costs and provide scheme members with valuable pension benefits at more sustainable and affordable contribution rates.
Without changes to the scheme, employers and staff who are members of the scheme face escalating contribution rates. Members would see their payments rise from 9.6% of salary, to 11% in October 2021 and reach at least 13.6% next year. Employers’ payments would increase from the current level of 21.1% of salary to 23.7% in October 2021 and at least 28.5% next year.
Details of the proposals are available on the USS Employers website.
To provide staff with further information, two briefing sessions have been arranged. Andy Stephens, the Director of Finance, and the Vice-Chancellor, Professor Bob Allison, will provide an update on developments and address any questions or concerns that staff may have.
The sessions are as follows:
Loughborough University campus
2 July, 3pm-4.30pm
Loughborough University London campus
14 July, 10am-11.30am
The briefing sessions will be recorded and made available after the events for any members of staff who are unable to attend on the day. The recordings may be edited if personal details are raised as part of the Q&A sessions.