Changes to the USS pension scheme
Response to 2018 valuation consultation
Following the conclusion of the 2017 valuation, USS are consulting with UUK and employers on the 2018 valuation. This valuation includes USS’s consideration of the report of the first Joint Expert Panel (JEP).
The USS Trustees have been consulting 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 we are waiting to hear from the USS Trustees whether this is an arrangement that can now be agreed. Find out more about the three options
Since then, UUK have consulted with employers on protective measures to allow the covenant to be confirmed as “strong” which would be a pre-condition to implementing option 3. Following discussion at President’s Board, the College submitted a response [pdf] that supported the package of protective measures subject to further details on implementation.
The Joint Negotiating Committee (JNC) met on Monday 29 July to discuss the protective measures approved by employers. The USS trustee Board meets on Wednesday 31 July to consider option 3, now that it is confirmed as an option supported by the majority of UUK employers. This will be followed by an important meeting of the JNC on 20 August. We hope that the JNC will support option 3, otherwise the USS trustee is likely to revert to the 2017 valuation decision already approved by the Pensions Regulator. Find out how this would affect your contributions
The Pensions Regulator must also 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.
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.