Russell Group seeks more information on USS 2020 valuation
15 Mar 2021
Letters written to the Pensions Regulator
Following letters last week from Universities UUK to the University Superannuation Scheme (USS) Trustee and the Pensions Regulator, the Russell Group has now also written to the Pensions Regulator.
The letter urges the publication of exchanges between the Trustee and the Pensions Regulator which led to the recent 2020 valuation. It also raises concerns “about the proportion of individuals opting out of the scheme with at least 1 in 6 having chosen to do so.”
You can read the letter online, which is signed by Dr Tim Bradshaw, Chief Executive, and Professor Dame Nancy Rothwell in her role as Chair of the Russell Group. The earlier letters from UUK are also available online.
The 2020 valuation is used as the basis for negotiations on how much employees and employers will pay in contributions and/or how benefits to members may have to change. It is very much worse than expected, and the previous valuation in 2018. The upper end of the pricing range is now around 56% of salary and the lower end circa 42%. The current rate is 30.7% (21.1% paid by employers and 9.6% paid by employees), due to increase to 11% and 23.7%, respectively in October.
The Pensions Regulator is the independent body, established by government in 2004, to look after workplace pension schemes in the UK.
We have published a timeline of the ongoing negotiations on StaffNet. The next stage is for UUK to consult with employers, which they anticipate taking place in March and April. We will publish our response on StaffNet.
You will be kept fully up to date on developments and we are working on opportunities for colleagues to ask questions and give their views on the scheme.