Universities UK (UUK) have launched a review into the governance of the USS pension scheme. The review was one of the commitments made by UUK at the conclusion of the 2020 valuation, and it seeks to assess the structure and governance of the scheme in the long-term rather than specific changes to contributions or benefits, which are reviewed as part of regular valuations.
UUK have now published their proposed approach to this review [pdf]. The College was been asked to submit an initial response to this proposal, including its scope, terms of reference and structure. You can read our response [pdf], which was submitted in August 2022.
The 2020 USS valuation has now concluded. You can learn more about the changes to the scheme on USS' website.
The College understands the strength of feeling amongst members in relation to aspects of these changes and shares frustration with how the valuation was concluded. You can learn more about what the College is calling for below and on our explanatory webpages.
The USS pension scheme needs a more sustainable footing
We also agree that there is an urgent need for long-term scheme reform. We call for the creation of a well-resourced working party to explore the feasibility and promise of alternative approaches that will give long-term stability and viability to the USS pension scheme.
Maintaining a hybrid scheme is key
We will continue to strongly argue for both a Defined Benefit and Defined Contribution component. We also believe this should include a lower cost, more flexible alternative as part of USS to give members a more attractive, affordable, and sustainable option.