Pensions Update - consultation on the 2018 valuation - 23 August 2019
Following our last update on the USS pension 2018 valuation, the Joint Negotiating Committee (JNC) met on 22 August to consider UUK’s proposals under Option 3 to complete the valuation. The JNC agreed (by majority vote) on Option 3, that sets total contributions at 30.7% for the next two years and that the change in the rate should be shared 65:35 between employers and members respectively (21.1% for employers, 9.6% for employees from October 2019). You can read the responses from UUK and UCU who are the organisations represented on the JNC.
This would avoid a significant, and for many unaffordable, increase to contributions set out in the USS default position already agreed with the Pensions Regulator from April 2020, while allowing time for the Joint Expert Panel to complete their work and move quickly towards a new valuation in 2020.
We wrote to the Pensions Regulator directly urging them to work with the other parties involved to come to a mutually agreeable valuation as soon as possible and avoid the default 2017 valuation contribution increases. You can view their response here.
UUK will now consult with employers on the revised schedule of contributions and recovery plan (documents which set out employers’ and members’ contributions, and how the deficit is to be addressed) for the 2018 valuation proposed by the USS. The deadline for this consultation is 9 September. We will be in touch with further details on this consultation as soon as we hear more.
If you would like to know more about the 2018 valuation please visit our webpages where you will also find a modeller that shows the financial impact of the various options on your net pay.
We hope to update you again soon with news from the Pensions Regulator on the proposal as approved by the JNC.
Alice and Ian
Professor Alice P. Gast, President
Professor Ian Walmsley, Provost