The Universities Superannuation Scheme, the UK's largest private pension fund, will cut contribution rates on Monday 1 January.
The announcement comes after UCU and employer representatives voted through changes at the USS Joint Negotiating Committee yesterday that will see employee contributions fall to 6.1%, down from 9.8%. For a member earning £45,000 this will mean a monthly saving of £111 after tax.
The change is the latest victory in a pension dispute that has seen UCU members take 69 days of strike action since 2018. In February (2024) the deed for restoration and recovery will also be voted on, before being implemented from Monday 1 April 2024. This will reverse cuts employers forced through in April 2022, by:
- reinstating the previous accrual rate of 1/75
- increasing the defined benefit threshold from £40k back to where it would have been had changes not been implemented, at around £70k
- removing the 2.5% pa cap on pension increases before and after retirement which will better protect pensions against inflation.
