SBS

Update January 2025

CHANGES TO CONTRIBUTION RATES

A JOINT ANNOUNCEMENT FROM THE UNIVERSITY AND THE TRUSTEES

We have recently completed a full valuation of the SBS. It showed that the cost of providing future benefits has fallen considerably since 2021 when the trustees last did a full scheme valuation, from 34.9% to 21.7% of pensionable pay. This means that the University and the trustees have been able to agree to reduce the amounts that both the University and the members will pay to cover future service benefits.  

The rate payable by SBS members will fall from 9.1% to 6.1% of pensionable pay.  

The rate payable by the University will fall from 25.8% to 15.6% of pensionable pay.  

This keeps the share of the cost between the University and the members broadly similar.  

The new rates will apply from 1 January 2025. They will be reviewed again when we next do a full valuation of the SBS, in 2027.

The benefits the SBS provides are not changing.

We are very pleased to be able to bring you this news, which means that the cost of providing this very valuable benefit will be more affordable for all.  

What’s happened

Every three years, pension schemes like the SBS must carry out a detailed formal valuation. This involves checking how much the scheme needs in order to pay the benefits that have been earned in the scheme (its liabilities) and how this amount compares to the investments it holds (its assets). If the assets are worth more than the liabilities, the scheme has a surplus. If the liabilities are greater than the assets the scheme has a deficit.

This valuation showed that the SBS now has a small surplus, so benefits earned for past service are fully covered, with the University’s ongoing support. The trustees will write to members with a formal notice giving you more details about the results of the valuation in due course.   

The valuation also works out how much it will cost for members to continue to earn benefits in the SBS for future years of service.  This determines what both the University and the members pay to cover those future service benefits – the contribution rates.  

Update at December 2022

Statement of Investment Principles - November 2022

Update at June 2022

The University and the Trustees of SBS have agreed the following contribution levels as part of the agreed 31 March 2021 triennial valuation:- Employee contribution will remain at 9.1% of salary Employer contribution will increase to 25.8% of salaries from 1 July 2022 onwards. In addition the University will pay deficit reduction contributions of £3,388,568 in June 2022, £1.5m in April 2023, £1.5m in April 2024 and then an amount payable annually, starting from April 2025 with the final payment due in April 2029, which will be a proportionate contribution reflecting the period from 1 April 2029 to 31 December 2029. The amount payable will be equal to £1.1m plus any increase in the Consumer Price Index from September 2021 to the September preceding the payment date.

Update at September 2020

Statement of Investment Principles – September 2020

Updates at August 2020

We wrote to you earlier in the year to ask your views about proposed changes to the University of Edinburgh Staff Benefits Scheme (SBS). To recap, the University proposed to increase both the member and employer contribution rates to the Scheme, to address the rising cost of providing the benefits. 

The increases are stated in the table below:

Thank you to those who provided feedback, which we have listened to carefully while making our decision.  Based on the results of the consultation process, the University has decided to proceed with implementing the contribution increases with effect from 1 August 2019. 

The University is consulting with SBS members in relation to its proposal to increase member and employer contribution levels.  You can find the consultation document here along with some FAQs and additional data.

SBS Proposal Document

Summary of 31 March 2018 SBS Valuation Results

SBS Timeline 2018