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Your pension is changing

Find out what these changes mean to you if you’re eligible to join USS

Notice of changes to USS

The way benefits build up in the Retirement Income Builder and how savings build up in the Investment Builder are changing from 1 April 2022.

The changes follow recommendations from the Joint Negotiating Committee (JNC) about how benefits should change in the future and the statutory employer consultation with affected members and representatives on the proposed changes. The JNC’s recommendations have now been approved by the trustee board.

Summary of the key changes at a glance, and what’s not changing

  • Changes that will affect members immediately

    The accrual rate in the Retirement Income Builder, the defined benefit part of USS, is reducing, which means members will build up fewer benefits each year than they do now.

    The salary threshold is reducing, members that earn above £40,000 a year, will build up savings in the Investment Builder, the defined contribution part of USS.

    The level that the salary threshold increases each year will be capped at 2.5%.

    Other changes will affect how Retirement Income Builder benefits increase before and after members retire in the future, and what benefits members that leave USS with less than two years receive.

  • What's not changing for members

    The member contribution rate will remain 9.8%.

    There are no changes to Normal Pension Age.

    Members will still receive life cover and other benefits for loved ones.

    And they’ll still be entitled to ill health cover.

    Benefits built up before 1 April 2022 will remain unchanged.

    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.

The changes in detail

The accrual rate in the Retirement Income Builder will decrease to 1/85 of salary up to the salary threshold from 1 April 2022.

The salary threshold will reduce to £40,000 from 1 April 2022.

The salary threshold will continue to rise annually after 1 April 2022 in line with official pensions but will be subject to a cap of 2.5%.

The cap that applies to the level of pre and post retirement increases on benefits members build up in the Retirement Income Builder from 1 April 2022 is changing.

Boost to short-term members’ benefits.

This notice is issued pursuant to The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013. It does not explain all situations or eventualities and does not represent any promise or guarantee as to the amount of benefit that may be received and should not be relied upon to make a decision in relation to your USS benefits. If there is any difference between this notice and the USS trust deed and rules, then the latter shall prevail.