Commenting on the latest quarterly monitoring statistics for the end of December 2022, a spokesperson for Universities UK on behalf of USS Employers, said:
"We welcome the latest quarterly monitoring figures from the USS Trustee, which continue to show a significant improvement in the scheme’s financial position in a remarkable shift since the last valuation. There is still considerable volatility due to current economic conditions, but it is clear that the sharp and unexpected rise in interest rates together with benefit changes – made as part of the response to the difficult 2020 valuation – and the substantial employer (covenant) support for USS have all contributed to the scheme’s finances now being on a much stronger footing.
"Alongside the monitoring figures, the USS Trustee has advised stakeholders that:
Assuming there are no unforeseen market movements between now and the valuation date... stakeholders might want to plan for the 2023 valuation on the basis that the overall contribution rate required for the current level of benefits is unlikely to be in excess of 20% of payroll. Similarly, they might also want to plan on the basis that the rate that would be required for the pre-1 April 2022 benefit structure going forward is unlikely to be in excess of the current cost of future service (25.2%).
