USS announcement on pension valuation

This message from Vice-Chancellor Robert Van de Noort has been sent to all colleagues at the University

Dear colleagues,

I hope you are well. You may have seen reports in the media today about the 2020 valuation of the Universities Superannuation Scheme (USS). This is the pension scheme for those colleagues on Grade 6 and above.

For those colleagues who have not seen the reports, the USS Trustee has now set out possible total contribution rates (i.e. the combined employer and employee contributions) in three scenarios ranging from 42.1% to 56.2%; for reference the current total contribution rate is 30.7%. 

I echo the sentiments expressed by Universities UK that the contribution rates for current benefits put forward by the USS Trustee are unaffordable not just for employers but for scheme members as well. An increase to these levels would risk even more colleagues opting out of the scheme. In addition, the last year has shown us that the sector is strong and resilient even under the most difficult and unprecedented of circumstances and it can be argued that the USS Trustee recommendations undervalue the collective and enduring financial strength of the participating employers.

Universities UK will be holding further discussions with the USS Trustee and the Pensions Regulator, encouraging them to provide clear reasoning for such high contributions and urging them to further consider the value of the measures employers have already offered to take in order to support the scheme.

I fully understand that pension issues are complicated and can, quite fairly, be a source of anxiety. So I would encourage you to come to the all-staff briefing on pensions on Friday 19 March (13.00-13.50) – keep an eye out for the Outlook invitation that should land in your inbox in the few days. This session will cover all three pension schemes we operate, including USS, and so will, I hope, be helpful to all colleagues.

Kind regards

Robert