As part of the current valuation, USS has outlined how much more we will all have to pay to keep our future pension benefits the same as they are today.

These are presented as three separate scenarios. Each scenario outlines the level of contributions from employers and employees required to cover the liabilities the scheme currently has and may have in the future. Additional factors - such as covenant strength and deficit repair contributions - can decrease the risk assessment and, in turn, the contributions required from employers and employees. 

The position it sets out is extremely disappointing. Every scenario presents a significant increase in costs for employees as well as for employers – with total contribution rates of 42.1%, 49.6%, and or 56.2% of salary – compared to the current contribution rate of 30.7% of salary. Even the most favourable option would be unaffordable and unsustainable for all of us.

 

Current USS proposals

Scenario 1

Total contributions required:
56.2% of salary (37.4% from the College, 18.7% from staff)

Scenario 2

Total contributions required:
49.6% of salary (33.1% from the College, 16.5% from staff)

Scenario 3

Total contributions required:
42.1% of salary (28.1% from the College, 14% from staff)

In addition, UUK have proposed an alternative scenario that may be able to retain contributions as they currently are. This is currently being considered by USS.

It is important to note that none of the current scenarios have been adopted. The Joint Negotiating Committee are considering what changes may be required and will provide further information in August 2021

UUK have published an indicative summary of what USS' initial three scenarios may mean for member and employer contributions.