USS will announce contribution rates based on the new valuation later this year.
The University has submitted its response to USS’s consultation on the assumptions and technical provisions for the 2020 scheme valuation. The assumptions and technical provisions play a key role in determining the outcome of the valuation.
The University has questioned several aspects of USS’s approach to the valuation.
Read the University’s response
Cambridge’s response will be collated with those of other university employers by Universities UK (UUK) which acts as an umbrella body for the sector in negotiation with the USS Trustee.
The next step is for USS to determine the final assumptions and technical provisions to use in the valuation. It will then publish its estimation of the scheme’s funding situation, and the contribution rates needed to maintain that. This is likely to be in December, according to the timeline on the USS website.
The USS Joint Negotiating Committee (JNC), which represents scheme members and university employers, will review the valuation and decide whether it is necessary to propose changes to contributions and/or benefits. If changes are proposed, there will be a formal consultation with scheme members in early 2021.
There will be an open meeting for USS members at Cambridge once USS has published its estimate of the scheme’s funding position and required contribution rates. Details will be sent round in the USS bulletin.
Read a summary of the 2020 valuation process
Change to retirement age
The state pension age increased from 65 to 66 on 6 October 2020. In line with this, the normal pension age for USS has also risen from 65 to 66. This means that you will now need to be 66 or older on retirement to claim the full benefits of the Retirement Income Builder (the defined benefit part of the scheme). This change does not affect benefits built up in the scheme before 6 October 2020. For more information see the Normal Pension Age FAQ on the USS website.
The national rise in state pension age was brought in by the Pensions Act 2011. Under the Pensions Act 2014, it is scheduled to rise again to 67 between 2026 and 2028 and to 68 between 2037 and 2039.
Do we have the right address for you?
All USS members at Cambridge should check that their home address is up-to-date on the Employee Self Service system. This address is used to send out important scheme information, including your annual statement of benefits and documents for member consultations.