2018 valuation

• Following the conclusion of the 2017 valuation, USS consulted with UUK and employers on the 2018 valuation. This valuation included USS’s consideration of the report of the first Joint Expert Panel (JEP).
• The USS Trustees consulted on three options. The College, after consultation with Heads of Department and staff, stated a preference for Option 3. The majority of HEIs also opted for Option 3 and this was agreed by the USS Trustee and submitted to the Pensions Regulator.
• UUK then consulted with employers on protective measures to allow the Trustees to conclude that the covenant remains strong, which was a pre-condition to implementing Option 3. Following discussion at President’s Board, the College sent a response [pdf] that supported the package of protective measures subject to further details on implementation.
• 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 2017 valuation 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, which is currently underway.
• The Pensions Regulator also needed to separately approve any new agreement reached between the parties. We have written directly [pdf] to the Pensions Regulator 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. Read the Pensions Regulator's reply [pdf].

The 2018 valuation resulted in a schedule of contributions set out below. This schedule remains in place until a further valuation is completed. 

The increase in contributions, outlined above, were part of the Trustee’s recovery plan submitted to The Pensions Regulator to address the scheme’s shortfall in funding of £3.6bn. 

• The USS Trustee 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 have consulted with employers – you can view our response [pdf]. UUK has now formally responded to the USS Trustee.
• Separately, on 7 June we received a letter [pdf] from national UCU. Having discussed the draft with Heads of Department and received feedback and comments from the wider College community we sent our response [pdf] back to UCU on 19 June. 
• There have been five meetings in January 2020 between UCU, UUK and USS to discuss and agree the approach for progressing the JEP’s recommendations. Read the statement from the fifth meeting.
• In December 2019, we wrote to the Pensions Regulator [pdf] calling on them to take a flexible and thoughtful approach to JEP2. They responded [pdf] that they are ‘…engaging with the Joint Expert Panel (JEP) and will consider their recommendations carefully…’.  Their continued support for these new talks and the outcome of the consultation process will be crucial to successfully concluding the 2020 valuation and securing the long-term future of the scheme, and we will continue to remind them of their commitment. 
• Following the JEP report, UCU, UUK and USS have developed Statements of Purpose and Shared Valuation Principles [pdf] and will continue discussions around scheme governance issues at future talks. 
• On 10 February 2020 UUK asked all USS employers whether they continue to support UUK’s position of keeping employer contribution rates at 21.1%, or whether they would like UUK to make a new offer to UCU. Imperial’s response was as follows: 
• On 19 February 2020 UCEA and UUK published a joint open letter to all staff at universities affected by strike action. The letter provides an update on the significant progress to address concerns of university employees on pay, working conditions and pensions. You can find the letter here and also on UUK and USS employers websites. 

• We submitted our response to the USS debt monitoring consultation on Monday 3 August 2020 - part of the 2018 valuation. View our response.