The proposals mean that the benefits you build up after 1 April 2024 may change. How they might change depends on several different things, like your salary now and in future, when you choose to retire, and economic factors such as inflation.
To help you see how your benefits to USS could change as a result of the proposals, a tool has been provided which you can access below.
Please note:
- In most cases if you are already a USS member you will simply be able to log in to the modeller – you need your member number, and post code or overseas country of residence to log in. It will then be pre-populated with your basic USS data as at 31 March 2023 (please note that for a very small number of members, for example those who haven't received a 2023 benefit statement or who are very new members of USS, it may not be possible to login in this way, and you will need to follow the non-USS member approach – see below).
- If you are not a USS member, or if you have not received a 2023 benefit statement, a modeller is available for you to use. You will need to register first and then you can access the modeller.
Potential cost to you
It’s anticipated that the contributions required to fund the JNC’s proposed benefit changes will be lower than those being paid today and would see both members and employers paying less than the 9.8% and 21.6% respectively that is currently contributed.
The total contribution rate required will be determined by the trustee, once the Technical Provisions consultation with UUK has completed. Then, the JNC may decide how the required reduction in contributions is split between members and employers.
Until that decision is made later this year, it’s not possible to say what the member contribution rate will be. To help you understand the impact of different rates, the table below provides a broad guide as to the potential monthly cost for a range of different rates.
The costs illustrated show both the pre and post-tax relief cost of contributions, and assumes that you pay contributions without salary sacrifice. If you contribute via salary sacrifice, the cost to you will be different. If you wish to estimate the impact on you personally, you could use an online take home pay calculator, such as The Salary Calculator.
This table is for guidance only for the purposes of the consultation and does not confer any entitlements or guarantees. It should be used only to provide an indication of the potential contributions you might pay. You should take any professional advice that you need to understand the changes being proposed. You can find a financial adviser through MoneyHelper which brings three legacy consumer brands into one (Money Advice Service, The Pensions Advisory Service and Pension Wise). MoneyHelper is there to make your money and pension choices clearer. It offers impartial guidance that's backed by the government and free to use. MoneyHelper is available at moneyhelper.org.uk. You may be charged a fee for any advice you receive.
| Monthly Member Contributions (post tax) | |||||
|---|---|---|---|---|---|
| Salary | Current Rate (9.8%) | 9% | 8% | 7% | 6% |
| £5,000 | £41 (£41) | £38 (£38) | £33 (£33) | £29 (£29) | £25 (£25) |
| £10,000 | £82 (£82) | £75 (£75) | £67 (£67) | £58 (£58) | £50 (£50) |
| £15,000 | £123 (£98) | £113 (£90) | £100 (£80) | £88 (£70) | £75 (£60) |
| £20,000 | £163 (£131) | £150 (£120) | £133 (£107) | £117 (£93) | £100 (£80) |
| £25,000 | £204 (£163) | £188 (£150) | £167 (£133) | £146 (£117) | £125 (£100) |
| £30,000 | £245 (£196) | £225 (£180) | £200 (£160) | £175 (£140) | £150 (£120) |
| £35,000 | £286 (£229) | £263 (£210) | £233 (£187) | £204 (£163) | £175 (£140) |
| £40,000 | £327 (£261) | £300 (£240) | £267 (£213) | £233 (£187) | £200 (£160) |
| £45,000 | £368 (£294) | £338 (£270) | £300 (£240) | £263 (£210) | £225 (£180) |
| £50,000 | £408 (£327) | £375 (£300) | £333 (£267) | £292 (£233) | £250 (£200) |
| £55,000 | £449 (£281) | £413 (£251) | £367 (£220) | £321 (£193) | £275 (£165) |
| £60,000 | £490 (£294) | £450 (£270) | £400 (£240) | £350 (£210) | £300 (£180) |
| £65,000 | £531 (£319) | £488 (£293) | £433 (£260) | £379 (£228) | £325 (£195) |
| £70,000 | £572 (£343) | £525 (£315) | £467 (£280) | £408 (£245) | £350 (£210) |
| £75,000 | £613 (£368) | £563 (£338) | £500 (£300) | £438 (£263) | £375 (£225) |
Notes:
- Figures assume monthly contributions to be paid without salary sacrifice
- Figures are based on the tax regime applicable to England, Northern Ireland and Wales, figures for member contributions in Scotland will differ as per its tax regime
- Figures also assume no income from other sources is applicable (which would otherwise affect the application of tax bands)
- The sharp drop in post-tax cost of contributions between £50k and £55k is due to the placement of the tax bands – 20% or lower tax-relief applies to contributions made from salaries up to £50,279 (£12,579 personal allowance, plus the £37,700 within the standard 20% tax band), for contributions above £50,279, tax-relief increases from 20% to 40%.
- Member contribution rates are illustrative, and all figures are estimates. Member contribution rates will not be confirmed until after final decisions have been made on contributions and/or benefits following the end of the consultation. All figures are estimates only and do not take account of individual circumstances.