The Universities Superannuation Scheme (USS) is on track to record another major increase in its surplus which could drive down contributions for employers and their staff.
An update released by the UK higher education’s largest pension provider as it carries out its latest valuation said the funding position of the scheme has “strengthened materially” in the past three years.
Its surplus has doubled since the last valuation in 2023, rising from £7.4 billion to £16.9 billion. The scheme’s assets have also increased from £73.1 billion in 2023 to £79.8 billion in 2026.
The figures will be used to determine employer contribution rates, which currently stand at 14.5 per cent, while employees contribute 6.1 per cent.
The USS said it was now “in a strong position from which to consider long term objectives, how these may be achieved and how much risk to take”.
