Universities Superannuation Scheme (USS) members are being consulted on plans to restore benefits to pre-April 2022 levels, for accrual from 1 April 2024, in anticipation of the Joint Negotiating Committee (JNC) deciding to propose the changes.

The JNC, which is made up representatives from both Universities UK (UUK) and University College Union (UCU), previously asked the scheme trustee to price benefits, subject to the outcome of the 2023 valuation process, at pre-April 2022 levels for service from 1 April 2024.

This revealed that the scheme was on track to restore benefits to pre-April 2022 levels, as the scheme's funding position looked "very encouraging" ahead of the key decision points for its 2023 valuation.

The consultation, which is running until 24 November, therefore seeks views from affected employees and their representatives on these potential benefit changes, in anticipation of the JNC formally proposing the changes.

The JNC is expected to make a decision, based upon the outcome of the consultation, by December 2023, with the final position to be communicated to affected employees, elected representatives and recognised trade unions as soon as possible afterwards.

Under the proposals, the accrual rate would be restored to the pre-April 2022 level, rising from 1/85 to 1/75 of salary, while the scheme the salary threshold would increase to within the range of £66,400 to £73,040 with effect from 1 April 2024.

This would also continue to increase annually in line with inflation, with the proposals looking to increase the cap on increases to benefits built up from 1 April 2022 from 2.5 per cent to a maximum of 10 per cent (before and after retirement) to take into account inflation.

The contributions required to fund the JNC’s proposed benefit changes are expected to fall, according to the consultation, with both members and employers set to pay less than the 9.8 per cent and 21.6 per cent respectively that is currently contributed.

However, the consultation clarified that the overall contribution rate required will be determined by the trustee, once the technical provisions consultation with UUK has completed, with the JNC to then decide how contributions will be split between members and employers.

Contributions above the salary threshold to the defined contribution part of the scheme, meanwhile, are expected to remain unchanged at 20 per cent, although the JNC will confirm, later in the year, whether the proposed share of member and employer contributions within that 20 per cent will change.

Scheme employers have also launched a consultation website to communicate and explain the proposals to members, including a modelling tool, frequently asked questions, and a glossary.

Plans for the consultation were announced earlier this year, as the scheme consulted USS employers on the proposed methodology for its 2023 actuarial valuation.

The USS previously suggested that it would also look to hold discussions with the JNC on the use of the scheme's wider surplus in parallel with this, clarifying however, that there are a number of equality concerns, particularly around intergenerational fairness, to consider as part of this.

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