The Universities Superannuation Scheme (USS) is the main pension scheme for staff at pre-92 UK universities. Members pay 6.1% of salary and employers 14.5%. Salary up to the salary threshold, £74,208 from 1 April 2026, builds a guaranteed pension of 1/75 a year plus a lump sum of three times that pension.
If you earn more than the threshold, the part of your salary above it also builds a defined contribution savings pot, the Investment Builder. Your contribution rate does not change: you still pay 6.1% of your whole salary, and USS uses part of the combined contribution to fund the pot (USS).
USS key figures for 2026/27
| Figure | 2026/27 value | In force from | Source |
|---|---|---|---|
| Member contribution | 6.1% of salary | 1 April 2024, down from 9.8% | USS |
| Employer contribution | 14.5% of salary | 1 April 2024, down from 21.6% | USS |
| Salary threshold | £74,208 | 1 April 2026; it was £70,296 from 1 April 2024 and rises each year with official pensions | USS, April 2026 |
| Retirement Income Builder accrual | 1/75 of salary up to the threshold, plus a lump sum of 3 × that pension | 1 April 2024, improved from 1/85 | USS |
| Paid into the Investment Builder if you earn above the threshold | 20% of salary above the threshold | 1 April 2024 | USS |
| Increase applied to built-up pension | 3.8% | April 2026 | USS |
| Normal Pension Age | 66, and it follows State Pension age | scheme rule, not reset annually | USS |
| Life cover while paying in | Lump sum of up to 3 × salary, plus a dependant's pension | scheme rule, not reset annually | USS |
| Annual Allowance | £60,000 | 6 April 2023, raised from £40,000 in 2022/23 | HMRC |
The third column is the date each figure came into force, not the date this page was reviewed. Five of these changed together on 1 April 2024, which is why a member who joined before then pays a much lower percentage now and builds pension faster. Every figure was re-read at its USS or HMRC source on 27 September 2026.
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The salary threshold: correcting an old figure
Earlier versions of this page gave the threshold as "around £40,000". That figure applied from April 2022. The April 2024 benefit changes raised the threshold from £41,004 to £70,296, with annual increases in line with official pensions until 31 March 2028 (USS statutory notice). USS states the threshold from 1 April 2026 as £74,208.
How the Retirement Income Builder works
The Retirement Income Builder is the defined benefit part of USS. Each year you build a block of pension equal to 1/75 of your salary, up to the threshold, plus a tax-free cash lump sum (within HMRC limits) of three times that block (USS). The pension is not linked to investment returns.
Each block is increased every year in line with official pensions, which follow CPI. For benefits built up after October 2011, USS matches the first 5% of CPI in full and half of any excess, up to a maximum of 10% (USS).
Worked example: £45,000 salary
| Line | Calculation | Result |
|---|---|---|
| Pension block for the year | £45,000 ÷ 75 | £600 a year |
| Lump sum for the year | 3 × £600 | £1,800 |
| Your contribution | £45,000 × 6.1% | £2,745 a year |
| Your cost after basic-rate tax relief | £2,745 × 80% | £2,196 a year |
Ignoring the yearly increases, 30 years on the same salary would build 30 × £600 = £18,000 a year of pension and a £54,000 lump sum. In practice each block is uprated every April, so the pension you retire with is higher in cash terms.
How the Investment Builder works
The Investment Builder is the defined contribution part of USS. If your salary is above the threshold, a contribution equal to 20% of the salary above the threshold goes into your pot, funded from the contributions you and your employer already pay (USS). You can also pay extra into it whether or not you earn above the threshold.
Worked example: £85,000 salary
| Line | Calculation | Result |
|---|---|---|
| Salary counted for the defined benefit pension | capped at the threshold | £74,208 |
| Pension block for the year | £74,208 ÷ 75 | £989.44 a year |
| Lump sum for the year | 3 × £989.44 | £2,968.32 |
| Salary above the threshold | £85,000 − £74,208 | £10,792 |
| Paid into your Investment Builder pot | £10,792 × 20% | £2,158.40 |
| Your contribution | £85,000 × 6.1% | £5,185 a year |
On a salary of £60,000 you are below the £74,208 threshold, so all of your salary builds defined benefit pension and nothing goes into the Investment Builder unless you choose to pay extra.
The Match: no longer matched by your employer
USS still offers "The Match", an option to pay an extra 1% of salary into the Investment Builder. Between October 2016 and March 2019 employers matched that 1%. From 1 April 2019 the employer element was removed, so the extra 1% is now your money only (USS, April 2026). It still receives tax relief like any other contribution.
How USS appears on your payslip
| Payslip line | What it means |
|---|---|
| USS or pension deduction | Your 6.1%, taken before income tax is worked out |
| Additional contributions | Any extra amount you have chosen to pay |
| Employer contribution | 14.5%, usually not shown on the payslip |
Because your contribution is taken before tax, you get tax relief at your highest rate straight away. National Insurance is still charged on the full salary unless your employer runs salary sacrifice.
Salary sacrifice
Some universities let you pay your USS contributions by salary sacrifice. Your salary is reduced by the amount of your contribution and the employer pays it instead, so you also save employee National Insurance, 8% on earnings between £12,570 and £50,270 and 2% above (HMRC). USS points out two drawbacks: it can affect how much you can borrow, and if you leave within two years you cannot take a refund of contributions. The government has announced that from April 2029 only the first £2,000 a year sacrificed into a pension will be free of National Insurance (USS).
Annual Allowance: when USS members are affected
The Annual Allowance is £60,000 for most people. For USS it is measured on the growth in your defined benefit pension plus everything paid into your Investment Builder in the year (HMRC). Large promotions are the usual trigger, because a salary increase raises the value of every block built on it.
- You may be able to carry forward unused allowance from the previous 3 tax years.
- The allowance is tapered if your threshold income is over £200,000 and your adjusted income is over £260,000.
- If you owe an Annual Allowance charge of more than £2,000, you can ask USS to pay it from your benefits under Mandatory Scheme Pays (USS).
USS or the Teachers' Pension Scheme?
Post-92 universities usually offer the Teachers' Pension Scheme (TPS) to academic staff instead of USS. The two are very different.
| Feature | USS | TPS |
|---|---|---|
| Scheme type | Defined benefit up to the threshold, defined contribution above | Defined benefit (career average) |
| Member contribution | 6.1% flat | 7.4% to 12%, by salary band |
| Employer contribution | 14.5% | 28.68% |
TPS figures from Teachers' Pensions, for the year from 1 April 2026.
Frequently asked questions
How much do I pay into the USS pension?
You pay 6.1% of your salary and your employer pays 14.5%. Both are flat rates on your whole salary. Unlike the Teachers' Pension Scheme, USS does not band the member rate by salary.
What is the USS salary threshold for 2026/27?
It is £74,208 from 1 April 2026. Salary up to the threshold builds defined benefit pension in the Retirement Income Builder. If you earn more, 20% of the salary above the threshold goes into your Investment Builder pot.
How much USS pension do I build up each year?
Each year you build 1/75 of your salary up to the threshold as annual pension, plus a lump sum of three times that amount. On a salary of £45,000 that is £600 a year of pension and £1,800 of lump sum, increased every April in line with official pensions.
Does my employer match extra USS contributions?
Not any more. The employer's 1% match on The Match was removed from 1 April 2019. You can still choose to pay an extra 1%, or any other amount, into the Investment Builder, and you get tax relief on it.
What is the USS normal pension age?
It is 66. USS links its Normal Pension Age to the State Pension age, so it will rise when State Pension age rises. You can take benefits earlier, but they are normally reduced.
What happens to my USS pension if I die while paying in?
USS life cover can pay a lump sum of up to three times your salary and a pension for your dependants. Keep your expression of wish form up to date in My USS.
Sources
All sources were opened and checked by PayslipIQ on 21 September 2026.
- USS: Your USS pension basics, April 2026 (transcript). Salary threshold of £74,208 from 1 April 2026, the 20% Investment Builder contribution, removal of the employer match. Verified 21 Sep 2026.
- USS: What you pay and what you'll get. 6.1% and 14.5% contribution rates, life cover, salary sacrifice. Verified 21 Sep 2026.
- USS: Retirement Income Builder. 1/75 accrual and 3 × lump sum. Verified 21 Sep 2026.
- USS: Investment Builder. 20% of salary above the threshold. Verified 21 Sep 2026.
- USS: Your statutory notice of changes to USS. Threshold increase from £41,004 to £70,296 in April 2024. Verified 21 Sep 2026.
- USS: We're increasing your Retirement Income Builder benefits (March 2026). 3.8% increase and the increase caps. Verified 21 Sep 2026.
- USS: Your Normal Pension Age is changing. Normal Pension Age of 66 linked to State Pension age. Verified 21 Sep 2026.
- USS: What happens when you die and Scheme Pays. Verified 21 Sep 2026.
- HMRC (GOV.UK): Tax on your private pension: annual allowance. £60,000 allowance, carry forward and taper. Verified 21 Sep 2026.
- HMRC (GOV.UK): Rates and thresholds for employers 2026 to 2027. National Insurance rates. Verified 21 Sep 2026.
- Teachers' Pensions: Calculating contributions. TPS tiers from 1 April 2026 and the 28.68% employer rate. Verified 21 Sep 2026.
Disclaimer
PayslipIQ provides educational guidance based on published scheme and HMRC information. It is not regulated pension or financial advice. For decisions about opting out, transferring, Annual Allowance charges or retirement options, use the tools in My USS, the free guidance USS offers, or a regulated financial adviser.
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Check my payslip freePayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.