After six months of extended negotiations, USS’s Joint Negotiating Committee (JNC) has now decided how the funding challenges facing the scheme should be addressed. This comes almost two years after we first committed to holding a 2020 valuation.
We understand the decisions faced by the JNC, and its members who represent UCU and UUK, have been very difficult. Long-term economic and demographic trends have made ‘guaranteed’ defined benefit pensions much more expensive.
The JNC’s recommendations will now be considered by the Trustee Board, alongside how best to manage the benefit and contribution changes proposed. The best interests of members and the scheme will continue to be the Board’s first concern.
We will confirm the next steps in the valuation process w/c 6 September, including whether the contribution increases currently scheduled from 1 October (per the 2018 valuation) will go ahead as planned.
Unless there are specific legal reasons (supported by actuarial advice) that would prevent the Trustee from taking steps to implement the JNC’s recommendations, USS will look to help employers plan and prepare for a statutory consultation with affected employees and their representatives on the JNC’s proposed changes.