Staff face being £240,000 worse off

According to new modelling by First Actuarial [425kb], because of the changes to USS, a typical member will pay around £40,000 more in to their pension, but receive almost £200,000 less in retirement leaving them £240,000 worse off in total. That is compared to a hypothetical member who also joined in 2011 on the same conditions, but has not been affected by any of the changes brought in since then.

The analysis looks at how recent changes to the scheme have affected members' costs and retirement package; this includes the increase in contribution levels to 9.6% from next month, the closure of the final salary element and a restriction on defined benefits.

While the analysis shows that those that earn more will lose more, the impact of increased costs on those on lower wages must not be discounted and warned some members may leave the scheme.

Read the full story here.