Dear Colleagues,

As foreshadowed in our message last week, we have now received further information on the latest UUK consultation for the 2018 valuation.

You will recall that the JNC agreed on Option 3 last week, setting total contributions at 30.7% for the next two years with the rate to be shared 65:35 between employers and members respectively. The Pensions Regulator has indicated that they do not anticipate raising further queries about this option.  

The USS Trustee has now commenced a consultation with UUK on the proposed Recovery Plan for responding to the deficit assessed by it as at 31 March 2018, and on a revised Schedule of Contributions to confirm the contributions coming into effect from 1 October 2019. 

UUK are now consulting with employers. We are required to respond by 9 September 2019, so that UUK can formally respond to the USS Trustee in time for their Board meeting on 11 September 2019. The USS Trustee has indicated that they will be considering the Schedule of Contributions and Recovery Plan, as well as issues relating to investment outlook risks facing the scheme and current conditions in the financial markets. They will also take into account the expected valuation in March 2020 following consideration of the Joint Expert Panel’s (JEP) conclusions. We expect to hear the outcome of JEP’s work soon.

We are aware that the current timeframes are challenging – we will be reviewing the consultation documents very carefully, but wanted to circulate the proposed documents to staff as soon as possible for you to review and comment on. You can view the proposed Schedule of Contributions and Recovery Plan. We will then consider your comments and circulate our final response before the 9 September deadline. In light of this, we ask that you send any comments on the proposed recovery plan and schedule of contributions to the Provost’s email by Friday 6 September.

If you would like to know more about the 2018 valuation please visit our webpages.

Best wishes,

Alice and Ian

Professor Alice P. Gast, President

Professor Ian Walmsley, Provost