USS Staff Working Group

Wednesday 29 March 2023

At the group's initial meeting, the members examined the 2023 USS valuation timeline and deliberated on the potential outcomes, offering what they hoped for. Additionally, the increase in contributions and benefits was discussed, considering the possibility of conditional indexation and understanding how such an approach would compare to the current workings of the scheme.

Friday 02 June 2023

The group met to discuss the potential implementation of Conditional Indexation within the framework of the USS scheme. The discussion explored both the benefits and drawbacks associated with Conditional Indexation. To conclude, the group members agreed that they were in support of UUK and USS, completing the further exploration of conditional indexation modelling that would incorporate regular assessments while ensuring the associated costs remain reasonable. The group also emphasised the importance of developing a transparent and easily understandable model that could effectively rebuild trust among all stakeholders involved.

Friday 1 September 2023

The group met and discussed the USS 2023 Valuation. The initial results show the scheme in surplus due to interest rates having risen over the past few years (this was in a deficit in the 2020 Valuation). The group therefore discussed whether employee and employer contributions should be decreased as a result.

The potential implications of reducing contributions, and risks involved, were considered; the volatility of the economy was discussed, and where it may leave members if this changed for the worse again. Furthermore, the repercussions of a company going under that USS is invested in was considered.

Furthermore, the members discussed when may be a good time to reduce the contributions.

The general consensus of the group was that it should be requested that contributions are reduced due to the surplus, and that this should be requested to be earlier than the usual schedule; moved to January 2024 rather than April 2024.

The subject of flexibility was also discussed, and Conditional Indexation was considered as a flexible option which could be explored further.