This page is about the 2017 valuation of USS, which is now completed. See the latest news about USS.
For definitions of terms used on these pages, see this glossary.
A brief history of the 2017 valuation
The 2017 valuation projected a significant deficit for the scheme. The two options for funding this deficit were a rise in contributions or changes to benefits. It was initially proposed to reform benefits – by temporarily closing the defined benefit side of the scheme – but after strong opposition from members, this proposal was abandoned. Instead, members and employers agreed to set up a Joint Expert Panel (JEP) composed equally of experts nominated by UCU and UUK, with an independent chair. This panel met over the summer of 2018 to review the valuation assumptions and methodology, with the aim of finding a way to resolve the issues of the 2017 valuation and produce a mutually agreeable outcome.
At the same time as the JEP was meeting, the USS Trustee had a statutory duty to complete the valuation, and it did this by implementing “cost-sharing”, a measure mandated in the scheme rules for situations where members and employers cannot reach agreement. Under the cost-sharing rule, the rise in contributions necessary to fund current benefits is split 65:35 between employers and members. These rises were planned to be phased in in three stages between April 2019 and April 2020.
In September 2018 the USS Trustee agreed to conduct a new valuation – the 2018 valuation. It was hoped that changes in market data and other factors would produce a more favourable picture of the scheme’s funding position than the 2017 valuation; employers and members also hoped that the Trustee would be willing to take on board the recommendations of the JEP on changes to the valuation assumptions and methodology. Read more about the 2018 valuation.
Articles and University statements on the 2017 valuation
15/11/18 University of Cambridge supports recommendations of JEP
22/10/18 Recording of 10 October open meeting available to Cambridge members (Raven login required)
28/09/18 Open meeting for members of USS to discuss JEP report announced: 10 October
13/09/18 Joint Expert Panel report published
29/08/18 USS cost-sharing consultation opens on 3 September
31/07/18 Cost-sharing briefing #2: information about contribution increases under cost-sharing
20/07/18 Recording of 13 July open meeting available to Cambridge members
10/07/18 Open meeting for members of USS announced: 13 July
21/05/18 Recording of 17 May open meeting available to Cambridge members
21/05/18 Chair of Joint Expert Panel announced
09/05/18 Open meeting for members of USS announced: 17 May
09/05/18 University putting deducted pay from industrial action towards student hardship
08/05/18 UCU and UUK withdraw proposal to make USS a purely defined contribution scheme
17/04/18 Vice-Chancellor's statement on the results of the UCU ballot
29/03/18 Vice-Chancellor welcomes latest proposal to resolve USS dispute
27/03/18 Proposal for an expert panel to review the 2017 USS valuation
20/03/18 The USS member consultation that was originally scheduled to start this week and run for 60 days has been suspended. Further information on this is expected shortly.
17/03/18 An update from the USS trustee: the facts of the 2017 valuation
16/03/18 The future of UK universities: Vice-Chancellor's blog (an edited version of this was published on 16 March in the letters section of The Times)
14/03/18 Vice-Chancellor calls on negotiators to make key amendments to UUK/UCU proposal
14/03/18 Recording and transcript of pensions open meeting available to Cambridge members
12/03/18 Vice-Chancellor writing to USS to demand full disclosure of valuation methods
12/03/18 Notice of a Discussion on USS in the Lady Mitchell Hall on Tuesday 20 March
07/03/18 Vice-Chancellor to ask Council to accept greater risk
01/03/18 Vice-Chancellor calls for compromise to end industrial action
23/02/18 Vice-Chancellor calls for new talks between UUK and UCU
22/02/18 A message from the Vice-Chancellor on industrial action
16/02/18 USS FAQs for Cambridge members