Your statutory notice of changes to USS

Below are the statutory notices of changes to USS, please read the version that fits your membership status.

You're paying in
You're a pensioner
You're a beneficiary
You're not paying in

You’re paying in

The way you build up benefits is changing from 1 April 2024.

The changes follow recommendations from the Joint Negotiating Committee (JNC) and the statutory employer consultation with affected members and representatives on the proposed changes. The JNC’s recommendations have been approved by the trustee board. It’s important you understand how they’ll affect your USS pension in the future.

Here we’ll cover the key changes and what you need to do next.

The key changes

1. A higher accrual rate for your defined benefit pension

The rate at which you build defined benefits in the Retirement Income Builder will increase.

Currently, you build 1/85 of your salary (up to the salary threshold) in defined benefit (DB) pension each year and 3/85 of your salary as a lump sum on retirement. This will increase for each year from 1 April 2024 to 1/75 of your salary for pension benefits and 3/75 of your salary for the lump sum, respectively.

Watch our video to see a reminder on how you build benefits in the Retirement Income Builder.

2. Remember, you’re already paying less too

Since 1 January 2024, your member contributions have reduced from 9.8% of salary to 6.1%. Your employer’s contribution rate has also reduced from 21.6% to 14.5%. This does not affect the level of pension benefits you build up.

See how much you now pay by using our Contributions & Tax Calculator in My USS.

3. Benefit uplift

This April you’ll receive a one-off uplift to your Retirement Income Builder (DB) benefits. This uplift will give you an extra £215 annual pension in retirement and an associated £645 lump sum. Like your existing Retirement Income Builder benefits, it will be subject to USS standard pension increases.
4. Salary threshold change

There will be an increase in the salary threshold, the level from which you start building regular savings in the Investment Builder, the defined contribution (DC) part of USS. The salary threshold will increase from £41,004 to £70,296. This means, if you earn over the current salary threshold, from 1 April 2024 your normal contributions will now build more guaranteed income (defined benefits) in the Retirement Income Builder.

This salary threshold will be increased annually until 31 March 2028 in line with increases to official pensions, which broadly go up with CPI inflation, subject to certain limits. Currently this is limited to a maximum increase of 2.5% a year but from 1 April 2024 the £70,296 figure will rise in future years by a maximum of 10% (see the explanation of pension increases for how this will apply).

For a refresher on how the DB and DC parts of USS work, see how your pension works.

5. Higher cap for future pension increases

The benefits that you have built up in the Retirement Income Builder increase every year both before and after you retire in line with increases to official pensions which currently go up with CPI inflation. This provides a level of inflation protection for your benefits.

The annual increase for benefits built up from 1 April 2022 was to be subject to a maximum increase of 2.5% (coming into effect for increases from 1 April 2026). The changes mean these benefits will now be subject to a higher maximum increase of 10% rather than 2.5%. Increases will be as follows:
- Where inflation (currently CPI) is 5% or less, the increase will be matched.
- Where inflation is more than 5% but less than 15%, the increase will be 5% plus half of the percentage increase over 5%.
- Where inflation is 15% or more, the increase applied will be 10%.

What's not changing?

There are no changes to Normal Pension Age. You’ll also still receive life cover and other benefits for loved ones and will still be entitled to ill health cover. Benefits built up before 1 April 2022 will remain unchanged. Benefits built up between 1 April 2022 and 1 April 2024 will be increased by the benefit uplift detailed above and the ongoing higher cap on pension increases.

Retirement Income Builder benefits already built up are guaranteed and protected by law.

Investment Builder savings remain invested and could go up or down in value depending on how investments perform.

What next?

Now:

Use the Contributions & Tax Calculator at My USS to see how much you now pay.

Look at How will the changes impact you to see how these changes are likely to impact your retirement benefits.

From 3 April:

Use the new Benefit Calculator in My USS to estimate how these changes will impact what you’ll get when you take your benefits and savings.

The changes to the scheme will be reflected on the Benefit Calculator from 3 April, apart from your benefit uplift. The uplift won’t be reflected on the Benefit Calculator or in My USS until early June.

You’re a pensioner

Your pension is getting a boost

This April you’ll receive a one-off uplift to your Retirement Income Builder benefits. This uplift will give you an extra £241 in annual pension. Like your existing Retirement Income Builder benefits, it will also be subject to USS standard pension increases.

You’re receiving this uplift following recommendations from the Joint Negotiating Committee (JNC) in response to the 2023 valuation that benefits built up by eligible members between 1 April 2022 and 31 March 2024 should be increased.

This uplift is in addition to your pension being increased in April (our payroll team will write to you separately about this).

You’re a beneficiary

Your pension is getting a boost

This April you’ll receive a one-off uplift to your Retirement Income Builder benefits. This uplift will give you an extra £108 in annual pension. Like your existing Retirement Income Builder benefits, it will also be subject to USS standard pension increases.

You’re receiving this uplift following recommendations from the Joint Negotiating Committee (JNC) in response to the 2023 valuation that benefits built up in respect of eligible members between 1 April 2022 and 31 March 2024 should be increased.

This uplift is in addition to your pension being increased in April (our payroll team will write to you separately about this).

You’re not paying in

Find out what these changes mean to you

If you have any period of active membership between 1 April 2022 to 31 March 2024 and do not retire before 1 April 2024, you’ll receive a benefit uplift which will give you an extra £215 of annual pension and an associated £645 retirement lump sum. This uplift will be subject to USS standard pension increases. This will also be reflected in any benefits you choose to transfer out of USS before retirement.

If you don’t currently meet those eligibility criteria for an uplift, but you re-join and start rebuilding your USS pension before 1 April 2024, you’ll still receive this uplift.

These changes follow the recommendation from the Joint Negotiating Committee (JNC) in response to the 2023 valuation, that benefits built up by eligible members between 1 April 2022 and 31 March 2024 should be increased.

You can find out more about the uplift in our Q&As.

There are also a number of changes happening which, if you can re-join, might be of interest, read more about these in the You’re paying in version above.