USS deficit almost doubles amid row over contributions

The Universities Superannuation Scheme’s deficit has almost doubled from £3.6 billion to £6.6bn, casting doubt over whether the latest deadline for agreeing contribution levels can be met.

The increase in the scheme’s deficit was revealed in a letter from USS chief executive Bill Galvin to Alistair Jarvis, head of vice-chancellors’ body Universities UK, published on 27 August.

This came after the USS opened a consultation with employers, on 23 August, on plans agreed last week that would see staff contributions rise from 8.8 per cent of their salary to 9.6 per cent. The proposals would come into force from October—although HE understands this may not happen.