The JEP and cost sharing

We have a legal, regulatory and fiduciary duty to complete the valuation as soon as reasonably possible.

Our stakeholders, UUK and UCU introduced the cost sharing rules to USS through the JNC in 2011 and amended them in 2014. Cost sharing applies when the JNC is unable to agree how to respond to a change in the cost of providing benefits.

The JNC decided, at the end of April, to withdraw proposed changes to the scheme. No alternative benefit proposals were tabled by either UCU or UUK, who instead set up the Joint Expert Panel (JEP) to review the 2017 valuation.

Since then, we have followed the scheme rules and begun the default cost sharing process, and the JNC has had the opportunity to consider the outcome of that process.

We are also engaging with the JEP, though this is not part of the cost sharing process. The JEP is expected to report back to UCU and UUK in September.

UUK and UCU will then consider its recommendations through the JNC, before deciding on any future changes to benefits and/or contributions.

Depending on the complexity, implementing scheme changes can take up to 12 months from a JNC decision.

Therefore, any scheme changes proposed by the JNC as a result of the JEP’s review would be implemented well beyond 1 April 2019, which is the timescale required for us to complete the valuation by introducing contribution increases under the cost sharing process.

Published date: 25 July 2018