Universities UK (UUK) has commenced a short consultation with employers to finalise the response to the 2020 valuation, and in particular on a proposed modification following responses to the statutory consultation with members that closed in January.
The proposal which drew the greatest comment and concern in members’ responses was the 2.5% cap on inflationary increases. In recognition of this, UUK is seeking employer views on whether they are supportive of a modification to the proposed changes to future benefits, to defer the application of the 2.5% cap up to and including the increase due in 2025 ( set out in detail in paragraph five of the below consultation document, and explained in the USS explanatory note).
The USS Trustee has costed this transition at 0.3% of pay – and if supported by employers – UUK proposes that the temporary cost would be met consistent with the usual cost-sharing formula, with an extra 0.2% contribution from employers, paid for two years, and the members’ share of 0.1% met through a modest extension to the recovery plan, rather than an increase in member contributions.
Details of how this change will materially benefit members is included the USS Trustee’s explanatory note, available to download alongside the consultation materials below.
This page was updated on 7 February 2022