Dear colleagues,
As part of the recent consultation about the USS, the Schedule of Contributions prepared by the USS Trustee has now been agreed.
The effect of this is detailed below, with the new contribution levels applying from 1 January 2024.
If you earn above the salary threshold*, the proposed reduction in your contribution rate doesn’t mean you would save less in the Investment Builder, you will still see 20% of your salary above the salary threshold going into the Investment Builder (6.1% from you, 13.9% from your employer).
| Current contribution level | New contribution level (from 1 January 2024) | |
| Employee | 9.8% of salary (with contributions relating to 8% of salary over the equivalent monthly salary Threshold being paid to the DC Section, with the remainder paid to the DB Section) | 6.1% of salary (with contributions relating to 6.1% of salary over the equivalent monthly salary threshold being paid to the DC Section, with the remainder paid to the DB Section). |
| Employer | 21.6% of salary | 14.5% of salary |
USS will be writing to all members in the near future to advise them directly of the changes.
Best wishes
Karl
*The JNC’s proposed changes to the salary threshold would, from 1 April 2024, see it increase in line with inflation (subject to certain limits) from its level at 31 March 2022 (£59,883.65) to an anticipated £70,308. For more information on this and the JNC’s other proposals, visit the proposals section of the consultation website
Karl Leydecker
Senior Vice Principal