USS Trustee finalises contribution rates under 2017 valuation

31 Jan 2019

The USS Trustee has confirmed final contribution rates required of members and employers under the 2017 valuation.

After considering Universities UK’s response to its consultation on the Recovery Plan and Schedule of Contributions, the USS Trustee has taken on board employers’ concerns over the level of Deficit Recovery Contributions (DRCs), which were originally proposed at 6%.

As a result, they have agreed to make an allowance for higher returns on the scheme’s investments in the Recovery Plan, which results in DRCs of 5% payable from 1 April 2020. This affects the contribution increases for members and employers in April 2020, but the increases planned for April and October 2019 remain unchanged.

*Revised down from 11.7% and 24.9%

These increases will remain in place unless and until a new funding approach is agreed through the 2018 valuation process, which the USS Trustee has confirmed will supersede the cost sharing arrangements.