A £900 million top-up to Universities Superannuation Scheme pensions is set to reimburse members for money they lost between April 2022 – when benefits were cut – and April 2024 – when they are set to be restored.
Benefit “augmentation” is a key part of a deal between Universities UK and the University and College Union, which also confirms that – subject to the completion of the ongoing USS fund valuation process – employer and employee contributions will be cut substantially.
In a joint statement, the organisations said that scheme members with any service between April 2022 and April 2024 would get a one-off top-up, worth £215 for active members, and with an associated £645 retirement lump sum for active and deferred members. Pensioner members should get £26.
These payments, funded by the USS and worth around £900 million in total, according to UCU, should reimburse members for money they lost after vice-chancellors pushed through cuts to benefits last year amid warnings that the fund faced a multibillion-pound deficit.
