Update on USS pension valuation

Posted by rmt22 at Jun 26, 2018 10:35 AM |
We wanted to give you an update on the latest developments in the USS pension reforms.

Joint Expert Panel formed

Joanne Segars OBE has been appointed to Chair the Joint Expert Panel (JEP) which UUK and UCU have established to review the valuation of USS. Establishing the JEP was part of the agreement that UUK and UCU reached working with ACAS in March.

The JEP is meeting regularly over the summer and is expected to report back in September. Its findings will help to formulate the next steps in resolving the ongoing USS valuation process. Details of the JEP, including reports of their meetings can be found on the UUK website.

Reform proposals

UUK and UCU have also recently agreed through the USS Joint Negotiating Committee that the proposal to reform benefits agreed in January will be revoked.

However, as the Trustees of the scheme are required by law to complete their valuation and with no agreed proposal from the JNC the Trustees are now starting the process of implementing changes under the scheme rules which are likely to come into place in April 2019 if no agreement is reached before then.

Under these changes it is expected that there will be contribution increases from both employers and members although the level of increase is not yet clear. A consultation on these proposed changes will take place later in the summer.

Once the JEP has reported in September it is hoped that an alternative way forward can be jointly agreed which could replace the planned changes for April 2019 and avoid further increases in contribution rates.

Further details are available on the USS website.

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