USS consultation on ‘cost-sharing’
In the absence of any new proposals from the Joint Negotiating Committee (JNC), the USS trustee said in December 2017 that to fulfil its statutory obligations the ‘cost-sharing’ rule will take effect in parallel to the work of the Joint Expert Panel (JEP).
USS consulted members on proposed changes under the ‘cost-sharing’ rule, which would see a phased increase to both member and employer contributions beginning in April 2019.
We have created a modeller so that you can enter your own salary and see the potential impact of the proposed changes. Access the modeller (log in required).
Active members and staff who are eligible to join the scheme should visit the USS consultation website for more information.
The consultation ran for 60 days, closing on Friday 2 November 2018.
The proposed changes would see:
- The 1% employer match discontinued
- Employers’ contributions to the USS Investment Builder on salary above the threshold to remain at 12%
- An increase in contributions from both employers and members on a 65:35 cost-sharing basis.
This increase would be on a phased basis:
|From 1 April 2019||From 1 October 2019||From 1 April 2020|
|Source: USS members update|