2018 Valuation update: 23 August 2019

USS’s Joint Negotiating Committee (JNC) has been considering how to respond to the 2018 valuation for some time.

The overall contribution rate required of members and employers to fund the pensions being promised is 30.7% of pay until October 2021 and 34.7% thereafter (subject to review under a 2020 valuation).

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

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

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 are due to change again later this year (see table below).

USS now needs to formally consult UUK on the schedule of contributions before the 2018 valuation can be finalised. This will begin today (23 August), in support of stakeholders’ desires to avoid the changes currently scheduled for October:

Original rates under 2017 Valuation New rates under 2018 valuation
(subject to UUK consultation)
1 October -
31 March 2020
From 1 April 2020 Until
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: 23 August 2019

Last updated: about 3 months ago