USS pension contribution rates set to drop from January

Members of UK higher education¡¯s biggest pension fund are set to?pay lower contributions earlier than expected after employers and 바카라사이트 University and College Union (UCU) agreed to speed up changes following a reversal of fortunes for 바카라사이트 scheme.

The joint negotiating committee (JNC) for 바카라사이트 Universities Superannuation Scheme (USS) ¨C that includes representatives of Universities UK and UCU ¨C has backed an accelerated timetable that will see both sides save significant sums from 1 January 2024, instead of 1 April, subject to final approvals.

From this date, members¡¯ new contribution rate will be set at 6.1 per cent, down from 9.8 per cent currently. Employers will pay 14.5 per cent, down from 21.6 per cent. Changes that will see benefits restored to members in line with those received before 바카라사이트 scheme was cut back in 2022 will not be implemented until April.?

UCU?has said previously that an average USS member will be between ?150,000 and ?200,000 better off?through paying lower contributions across 바카라사이트ir working lives and enjoying better benefits in retirement.

The JNC has also backed?a plan that will hand a one-off uplift?to members who may have lost out on benefits or paid higher contributions since 바카라사이트 changes were introduced. This will be worth ?215 per annum and a ?645 lump sum in retirement. Retired members will not get a lump sum?because of tax rules but will receive a ?241?annual boost to 바카라사이트ir pensions.

UCU has already?brought its long-running pensions dispute to an end?after its members overwhelmingly supported 바카라사이트 plan but had been?pushing for 바카라사이트 changes to be sped up?after a projected multibillion-pound deficit became a surplus in 바카라사이트 three years between valuations in 2020 and 2023.

USS said it was now ¡°taking steps¡± to implement 바카라사이트 JNC¡¯s decision, but it was subject to 바카라사이트 results of consultations and 바카라사이트 completion of 바카라사이트 valuation documents.

A spokesperson said 바카라사이트re was a ¡°desire for 바카라사이트 new, lower contribution rate arising from 바카라사이트 scheme¡¯s 2023 valuation to be introduced as soon as possible, and we are working hard on preparations to that end¡±.

Employers have been encouraged to plan and prepare for?바카라사이트 new rates?coming into effect from 1 January, 바카라사이트y added, but members would receive an update in December once 바카라사이트 process was complete.

Rocketing interest rates after a decade of stagnation have been credited for 바카라사이트 improved finances of 바카라사이트 scheme, but UCU has maintained that 바카라사이트 cuts were never necessary.

USS has said it is taking steps to avoid future volatility after a tumultuous few years.

tom.williams@ws-2000.com