Universities Superannuation Scheme (USS) - changes with effect from 1 October 2011
22 September 2011
After more than 2 years of discussion and negotiation with staff and Trade Unions as well as a statutory consultation exercise of all current and potential scheme members late last year, the
From 1 October 2011 there will be 2 sections of the USS: Final Salary and Career Revalued Benefits. The USS document; Summary of changes, sets out the main changes to USS for members of the existing Final Salary Section, details of the new Career Revalued Section and the changes which will affect new members and rejoiners to USS.
Final Salary Section members
A new Guide for members - Final Salary section, incorporating the scheme changes, is now available. A copy of the guide is scheduled to be distributed during October 2011 to all existing members of USS who are in active USS membership immediately prior to 1 October 2011. This will be sent to your UCL work location.
Revised Employee Contribution rate - how this affects your take home pay
The revised employee contribution rate for members of the Final Salary section is 7.50%; up from 6.35%. A modeller is available for you to assess this increase on your take home pay. If you are participating in PensionsExchange, you will need to click on the Salary Sacrifice "Yes" box within the Modeller.
PensionsExchange - change to your employment terms and conditions
Following the change in the employee contribution rate for Final Salary section scheme members, if you are participating in PensionsExchange this constitutes a change in your employment terms and conditions. This arrangement has no effect on the amount of your pensionable salary for pension purposes in any USS benefit calculations. Your USS pensionable salary will continue to be calculated as at present, ie based on your higher "reference salary", prior to the PensionsExchange Adjustment. i.e. your pensionable salary value before the deduction of pension contributions.
New members of USS on or after 1 October 2011
All new members of USS on or after 1 October 2011 are being issued with a copy of the New Employee's Guide to joining USS. It contains an overview of the 2 sections of USS from 1 October 2011. Importantly for those current members who leave USS and subsequently re-join USS after 1 October 2011 having previously been a member of USS, it also sets out which section; Final Salary or Career Revalued Benefits, you are eligible for upon re-joining USS.
Further information about USS, including the full range of the new USS publications are available on the USS website
Pensions Manager, Human Resources