The trustee is required to carry out regular financial health checks of the scheme. The most recent of these, the 2020 valuation, revealed a gap between how much we have, and how much we’ll need, to pay the benefits currently provided.
This means, if members continue building up benefits at current levels, contributions would have to go up substantially. This is because the cost of providing DB pensions – which in USS includes a guaranteed income for life, has become increasingly expensive.
To avoid such a substantial rise in contributions, the JNC, which is responsible for deciding how to address the increase in costs of the scheme through changes to benefits and/or contributions, has proposed changes which, if implemented, mean contributions won’t need to go up as much.