2018 Valuation update: 13 September 2019

The final contribution rates required of members and employers under the 2018 valuation have been confirmed.

The overall contribution rate required to fund the current benefit arrangements is 30.7% of pay until October 2021 and 34.7% thereafter (subject to a 2020 valuation).

The JNC, made up of member representatives (University & College Union) and employer representatives (Universities UK) and an independent Chair, decided in August that:

  • members will contribute 9.6% of pay and employers 21.1% until October 2021, followed by 11% and 23.7% respectively thereafter (subject to a 2020 valuation); and,
  • the benefits currently offered to USS members will remain the same.

Information on how the 9.6% contribution rate given above will change members’ take-home pay, compared to the current position, is available here.

Contributions changed earlier this year as a result of the 2017 valuation – members have been contributing 8.8% of pay since April and employers have been contributing 19.5% – and they were due to change again from October (see table below).

A final, formal consultation with UUK on the schedule of contributions for the 2018 valuation has closed and the Trustee Board has confirmed that the contributions otherwise scheduled for October under the 2017 valuation will be replaced with new, lower rates as follows:

  Contribution rates under 2017 valuation New contribution rates under 2018 valuation
1 October 2019 –
31 March 2020
From 1 April 2020 1 October 2019 –
30 September 2021
From 1 October 2021
Members 10.4% 11.4% 9.6% 11%
Employers 22.5% 24.2% 21.1% 23.7%
Total 32.9% 35.6% 30.7% 34.7%

Published date: 13 September 2019

Last updated: about 29 days ago