Upcoming changes to USS contribution rates
02 Sep 2019
Increases to amount paid by employers and members to be implemented in October
The Trustee of the Universities Superannuation Scheme (USS), as part of the 2018 valuation, has agreed changes to contribution rates which will come into effect in October.
The Joint Negotiating Committee (JNC), which is made up of an equal number of UUK and UCU representatives plus an independent chair, is responsible for considering how any change in the contribution rate is to be applied.
At its recent meeting, the JNC recommended implementing ‘Option three’, which our University supports. We believe that this is the best option for our staff and the financial stability of our University.
Option three means that from October 2019, members would pay 9.6% and the employers like our University will pay 21.1% of pay in contributions to USS, an increase from the current rates of 8.8% for members and 19.5% for the University.
These rates will remain in place for two years or until the contribution requirements of the 2020 valuation of USS are agreed.
These revised rates are expected to replace the previously agreed contribution increases to 10.4% for members and 22.5% for employers that would otherwise have been payable from October 2019.
USS Employers have prepared an online calculator which members can use to see the changes in their personal contributions. USS has also published a summary of the changes.
USS now needs to formally consult Universities UK (which represents employers) on the Schedule of Contributions before the 2018 valuation can be finalised. This will be presented to the USS Trustee Board in September for a final decision.
Once the USS Trustee Board has met in September we will update you as soon as possible on its decision.
Karen Heaton
Director of Human Resources