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A large majority of the responses welcomed the proposed changes to the schemes benefit structure, indexation, and a reduction in contribution levels. The USS Joint Negotiating Committee (JNC), comprised of employee and employer representatives with an independent chair, will be meeting on the 18 December, where it is anticipated that they will formally agree to the proposed changes and, most urgently in the short term, a reduction of employee contributions from 9.8% to 6.1% with effect from 1 January 2024. If as expected, this is agreed, staff will see this reduction in contributions reflected in their increased January net pay. The subsequent changes to the schemes benefit structure will apply from 1 April 2024.

Whilst the outcome for the 2023 USS valuation is positive, allowing for an improvement in benefits, a reduction in contributions and the retention of a surplus of £7 billion, ¹û¶³Ó°Ôº is mindful that the results would have been different in a lower interest rate environment. As outlined before, ¹û¶³Ó°Ôº is therefore committed to continuing its support of the joint USS Stability Working Group whose work we see as crucial, the group will explore options to provide a greater level of scheme funding stability for scheme members and employers in the future.