27 July 2026

USS annual report highlights strong funding position, value and member trust

Funding position improves significantly, with estimated surplus more than doubling since 2023
DB fund outperforms liabilities by 9.4% p.a. over the three years to 31 March 2026; growth part of DB fund returns 9.5% p.a.
Member trust and employer relationships at all time high levels

Universities Superannuation Scheme has published its annual Report and Accounts, covering the financial year to 31 March 2026, detailing the Scheme's continued financial strength, robust investment performance, high levels of member and employer satisfaction, and good value for money.

USS has also published its latest Task Force on Climate-related Financial Disclosures (TCFD) Report (further details provided below).

The annual report also shows that the funding position of the Retirement Income Builder — the defined benefit (DB) part of USS — has continued to improve, with an estimated surplus of £15.8bn (125% funded) at 31 March 2026, based on monitoring of the 2023 valuation¹.

This represents a substantial improvement in the Scheme's financial position and means USS enters the 2026 valuation in a strong funding position.

The Scheme’s improved funding position was driven by the DB fund’s net assets growing by £6.8bn to £79.8bn, supported by positive investment returns in the period, while the Scheme’s liabilities increased by £1.1bn to £64.0bn.

The DB fund’s growth portfolio delivered a return of 9.5% p.a. over three years, ahead of the 30-year return assumptions on growth assets (7.7% p.a.) set in the Scheme’s investment strategy for the 2023 Valuation.

The DB fund outperformed its liabilities by 9.4% p.a. over the three years to 31 March 2026 and exceeded the expected return target set following the 2023 valuation by 5.9% p.a. over the same period.

Other key highlights include:

Assets in the Investment Builder, the defined contribution (DC) part of USS, totalled £4.2bn.
USS membership grew to 599,000 (233,000 active, 266,000 deferred, 100,000 retired);
193,000 members had savings in the Investment Builder.
Benefits paid in the year totalled £2.8bn.
Member trust remained at its highest recorded level (68%), and a record high of 93% of employers rate their relationship with USS as good or very good.
USS continued to deliver strong value for money, with independent benchmarking showing investment costs £102m a year lower than the peer median and total costs £80m lower.
External benchmarking rated the Investment Builder ahead of the UK’s largest DC funds across a broad range of features (based on agreed weightings).
Independent benchmarking ranked USS third overall for member service among 11 comparable schemes, and first for schemes with active members.

Dame Kate Barker, Chair of the USS Board, said: “The continued improvement in the funding position demonstrates that our balanced investment strategy has performed as intended, in line with the promises owed to our members, and consistent with priorities established through consultation with the Higher Education sector we serve.

“I am sure the significant contrast in recent years to the difficult funding position over the previous decade will be welcome news to our members and participating employers. We will be reflecting on how best to position the Scheme for the longer term through the 2026 valuation – and we will be doing so from a very strong position.”

Carol Young, Group Chief Executive, said: “Alongside a significantly improved funding position, we have continued to receive strong positive feedback from members and employers, with high levels of trust and satisfaction, and delivered good value for money compared with our peers.

“These outcomes reflect the dedication of our people and our constant focus on delivering positive long-term outcomes for members and employers.”

2026 TCFD report

We have concluded that one of the biggest risks to the Scheme comes from real-world emissions globally causing increased global warming, which could lead to financial damage to almost all our investments.

We continue to make progress towards our own net zero ambition. We have met our 2025 interim target and are currently ahead of our 2030 interim target.

However, emissions in the real world continue to rise. We are committed to seeking real-world decarbonisation and continue to play our part in supporting the transition to a low-carbon economy both within the UK and globally as a Universal Owner.