USS pension presentation

Report
USS Pension Scheme
Post-doc Society briefing
Nov 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 cover
Pension & lump sum payable if unable to work due
to incapacity
• Retirement lump sum & pension
Based on no. years membership & earnings
KEY FEATURES
• Employer’s contribution up to 16% of salary
own 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:
Pension
1/80th x highest average pensionable salary x
years of pensionable service
Tax Free Lump Sum
3 x pension
Possible 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’ figure
Tax Free Lump Sum
3 x pension
Possible 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 retirement
Take part of pension early & reduce hours
• Late retirement
Continue past 65 & continue to build benefits
• Incapacity retirement
Partial 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
During 1st year
During 2nd & 3rd year
During 4th & 5th year
After 5 years
Up to 2 weeks full & 2 weeks ½
Up to 2 months full & 2 months ½
Up to 4 months full & 2 months ½
Up to 6 months full & 4 months ½
Up to 8 months full & 4 months ½

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