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  11. USS conditional indexation, January 2026 update

USS conditional indexation, January 2026 update

15 January 2026

Conditional indexation is a potential way of indexing USS pensions where the inflationary increase that members receive each year would no longer be guaranteed but will be dependent on the performance of the scheme. If the scheme is under-performing members may not get an increase or only receive a part-increase.

If the scheme is performing well, members could get a CPI inflationary or even above inflationary increases. It is argued that over the longer term, conditional indexation could provide greater flexibility, improve member benefits and be more beneficial for employers.

In line with conference policy, the SWG has been engaged with UCEA and USS to sceptically explore whether conditional indexation would be of benefit to scheme members.

In June 2025, an Interim CI report was produced and this can be accessed here. As part of a wider engagement strategy, the SWG organised a webinar for scheme members and a recording of this can be accessed here. We encourage members to read the June 2025 Interim Report and watch the recording of the previous webinar before attending the first webinar below.

In December 2025, the USS JNC approved a Second CI Report and USS has just placed on its website and can be accessed here. You can also access the report in the Corporate News section of the USS website. It is important that members consider the Second Report before attending the second webinar below.

As part of our ongoing commitment of engaging scheme members, the SWG has organised two webinars for members.

First webinar: an introduction to conditional indexation 

As part of our engagement with pension officers and reps, many still say they do not properly understand what conditional indexation is. This webinar will provide an introduction to conditional indexation and seek to explain what it is, how it might work and what are the potential benefits and significant drawbacks for members. This webinar will take place on Wednesday 11 February 2026 at 13:00 and will involve a presentation and then Q&A session. You can register for this first webinar here.  

Second webinar: technical discussion on Second CI Report  

This webinar will provide an opportunity for the SWG to present the Second CI Report and set out what work has been done, what remain to be explored and what the benefits and drawbacks are through a more technical analysis of the work to date. This webinar will take place on Wednesday 25 February 2026 at 13:00 and will involve a presentation and then Q&A session. You can register for this second webinar here.  

Both webinars are open to all USS scheme members including UCU members, UCU staff as well as non-UCU members and deferred and pensioner members. We recommend that members attend both webinars.  

I look forward to engaging with you at these webinars and if you have any questions, please contact any member of the SWG or email me.

Dooley Harte
UCU pensions official (USS)

Last updated: 15 January 2026