Universities’ pension reforms approved by scheme trustees

The trustees for the Universities Superannuation Scheme (USS) have approved the employers’ proposals for scheme reforms.

The decision comes two weeks after the Joint Negotiating Committee of the USS, which is the principal final salary pension scheme for university and higher education employees, confirmed the proposals would be recommended to the trustees.

The proposed reforms include: introducing a normal pension age of 65 for all active members and the future service of existing members; introducing a flexible retirement scheme for employees aged 55 or over; introducing a career average revalued earnings section for new entrants; and increasing level of member contributions from 6.35% to 7.5%.

Before the changes can be implemented, USS employers will be required to consult with all 130,000 active and prospective members.

The consultation period is expected to run from late September to early December. Further updates will be provided as the consultation process proceeds.

Damian Docherty, spokesperson for the Employers Pension Forum (EPF), said: “Members understand the scheme needs to be reformed to secure its long-term future, and their input and feedback will be carefully considered as part of the consultation process.

“The employers will work closely with USS to ensure members understand why these changes are a necessity and explain how they will be affected.”

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