Exiting the Students’ Union Superannuation Scheme (SUSS)

Following an improvement in the scheme’s funding position, many student unions are considering exiting the SUSS.

The Students’ Union Superannuation Scheme (SUSS) is a multi-employer defined benefit pension scheme. Between 1981 and 2011 over 2,500 individuals who worked in the students’ union sector accrued pension benefits in the SUSS.  While no longer open to the accrual of new benefits, many students’ unions are still required to pay contributions to the SUSS to fund their employees’ and former employees’ pensions in the scheme.  

An employer may withdraw from a multi-employer pension scheme by serving a withdrawal notice on the trustees of the scheme.  In an underfunded scheme, this will trigger a requirement to pay the employer’s share of the funding deficit - the so-called Section 75 debt.  The 2022 triennial valuation of the SUSS revealed a funding deficit of £154 million on the Section 75 debt basis.  However, since then, the funding position has improved significantly.  

Given this improvement in funding, many students’ unions are taking the opportunity to withdraw from the SUSS whilst their Section 75 debt is relatively affordable.  The minutes of a meeting of the SUSS trustees held in February 2024 note that close to one third of employers have enquired about leaving the scheme.

We understand the following students’ unions withdrew from the SUSS in 2024 after paying their Section 75 debt:

-         Queen Margaret College Students’ Association

-         University of Exeter Students’ Guild

-         University of West of England Students' Union

-         Manchester Metropolitan Students’ Union

-         Oxford Brookes Students’ Union

-         University of Leicester Students’ Union

The size of the Section 75 debt will vary amongst employers from a few thousand to a few million pounds.  For as long as an employer remains in the SUSS, it carries the risk of the insolvency of the other employers.  In an insolvency scenario, the funding liabilities attributable to the insolvent employer will be shared among the remaining employers, increasing their Section 75 debt.  Unsurprisingly, many students’ unions are taking this opportunity to withdraw from the SUSS.

Wrigleys Solicitors can support employers who wish to withdraw from the SUSS.

We have, to date worked with over 65 students’ unions. For more information, please visit our Students’ Unions webpage.