This is an update in a regular series of communications to update staff on the progress of the 2020 valuation of the USS pension scheme.

USS changes come into effect on 1 April
The benefit structure and contribution rate that will apply to the University Superannuation Scheme (USS pensions scheme) comes into effect from 1 April 2022 following completion of the 2020 Scheme valuation and trust deed changes.

A consultation was carried out by UUK in February on a UCU alternative proposal. UUK reported that 93 out of 97 employers, presenting 92% of scheme members, responding to the consultation did not support the UCU proposal to conclude the 2020 valuation. Subsequently the USS trustee has proceeded to adopt the previously agreed changes to the scheme, which include significant covenant support from employers, and the changes come into effect on 1 April.

What will change?
While employer contributions will rise this week, members will see no changes to what they pay. The revised benefits package is described on the USS web site.  We encourage all members to take advantage of the information and training on offer from USS (see links below).

The table below therefore reflects the contribution rates that will apply from 1 April 2022, (and unless and until any other arrangements are subsequently put in place).
 

  
*The contribution rates for members who have elected for Enhanced Opt Out (EOO) or the Voluntary Salary Cap (VSC) would remain the same (2.5% member; 6.3% employer).

What next?
Employers will now be working with other scheme stakeholders on rapid progress in three key areas, following the conclusion of the 2020 valuation:

• to explore whether alternative scheme designs, including Conditional Indexation, could make the scheme more sustainable in the longer-term and provide better value
• to develop a more flexible and lower-cost option for members to help address the opt-out rate
• to begin work on a governance review of USS.

Further information:

• You can read what these changes mean on the USS website
• View a USS webinar recording Understanding scheme changes
• Register to attend a USS webinar Understanding the Investment Builder on Thursday 31 March at 10am, or on Thursday 31 March at 2pm.
• Watch a video: How could the proposed changes impact your benefits?
• If you have questions about your individual pension or circumstances, please contact pensions@sussex.ac.uk
• For the latest updates please visit our USS – 2020 valuation webpage