USS JNC decides in favour of changes put forward by UUK as a response to the USS 2020 valuation

The Joint Negotiating Committee (JNC), agreed on 31 August, to progress the employers’ proposal for changing the Universities Superannuation Scheme (USS) pension scheme to consultation with affected members and representative bodies.

A spokesperson for USS employers said that the decision by the USS Joint Negotiating Committee “… provides a viable and implementable solution to the 2020 valuation. The employers’ proposal sees a significant element of defined benefit retained while preventing unaffordable contribution levels. The additional backing offered by employers is unprecedented among UK pension schemes, with the USS Trustee valuing their additional covenant support at around £1.3 billion per year, which has the impact of limiting the benefit reforms needed.”

Universities UK say, in partnership with UCU, they look forward to carrying out a major governance review of USS. This will explore future options for the scheme design, to consider whether it can offer more attractive benefits for members and shaping a lower-cost option, so staff on lower salaries are no longer priced out of retirement saving.

The decision by the Joint Negotiating Committee should give the USS Trustee enough reason not to impose the unaffordable contribution rates it had planned for scheme members and employers in October 2021 and April 2022.

A full consultation with members will now follow on the proposed solution to the 2020 valuation with clear and detailed information on what it would mean in terms of contribution costs and benefits to members – and to reassure them that their pension benefits built up to the date are unaffected and secure.

Read the full USSEmployers press release.

In September, Brendan Mulkern, Pensions Expert will be with us again to update members and eligible members of USS on the latest developments. You can register for your place below. If you are unable to attend a session with your faculty/department, please feel free to join another session of your choice.