USS Pension Scheme

Post-doc Society briefingNov 2012

Two sections to USS• Final Salary Section (FS)

Open to staff who have been a member continuously since before 1 October 2011

• Career Revalued Section (CR)All other staff

Main Benefits

Both FS & CR:• Immediate life cover

provides lump sum of 3 x salary on death in service + pension payable to partner

• Incapacity coverPension & lump sum payable if unable to work due to incapacity

• Retirement lump sum & pensionBased on no. years membership & earnings

KEY FEATURES

• Employer’s contribution up to 16% of salaryown contribution 7.5% FS, 6.5% CR (with tax relief)

• Chance to buy AVCs• Portability

- transfer in from other HMRC-approved scheme- take membership with you to new USS employer- transfer benefits to non-USS job or leave in scheme- transfer to overseas scheme subject to rules (see http://tinyurl.com/cs4urpf)

Transferring Overseas

• Receiving schemes must be registered with HMRC

• Must count as Qualifying Registered Overseas Pensions Schem,e (QROPS) (for list see http://www.hmrc.gov.uk/pensionschemes/qrops.pdf)

• May be relevant tax rules in receiving nation

CALCULATING BENEFIT - FS

Benefits based on the following formula:Pension1/80th x highest average pensionable salary x

years of pensionable serviceTax Free Lump Sum3 x pensionPossible to take less cash, more pension

CALCULATING BENEFIT - CR

Pension• 1/80th x salary per year of membership• Total is ‘banked’ & added to the next years• Value of banked sum is increased according to

‘official pensions’ figureTax Free Lump Sum3 x pensionPossible to take less cash, more pension

WHEN CAN YOU RETIRE?

• Normal pension age is 65 will increase in line with state retirement

• Age 60 for members 55 & over on 1/10/11 (with employer’s permission)

• Age 50 if member continuously since April 06 if you are made redundant

• Other early retirement will mean reduced pension

OTHER RETIREMENT PROVISIONS

• Flexible retirementTake part of pension early & reduce hours

• Late retirementContinue past 65 & continue to build benefits

• Incapacity retirementPartial or full

LEAVING THE SCHEME

Under two years’ service- refund of contributions- deferred pension & lump sum- transfer of the value to another scheme

Over two years’ service - deferred pension & lump sum- transfer of the value to another scheme

Note: can’t rejoin final salary scheme if employment gap of 30 months or more

For more info…

• Final Salary: http://tinyurl.com/cshc5q9

• Career Revalued: http://tinyurl.com/cu8row8

• USS: http://www.uss.co.uk/Pages/default.aspx

Other sources of information

• CIC Employee Assistance Service http://www.york.ac.uk/admin/hr/employee_assistance/

• Union http://www.ucu.org.uk/index.cfm?articleid=2196

• Citizens Advice Bureau http://www.citizensadvice.org.uk/

• Independent Financial Advisers

Sick Pay Provisions

Length of service Pay Entitlement Up to 3 months Up to 2 weeks full & 2 weeks ½ During 1st year Up to 2 months full & 2 months ½ During 2nd & 3rd year Up to 4 months full & 2 months ½ During 4th & 5th year Up to 6 months full & 4 months ½ After 5 years Up to 8 months full & 4 months ½