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USS Pension Scheme

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:

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USS Pension Scheme

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  1. USS Pension Scheme Post-doc Society briefing Nov 2012

  2. 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

  3. Main Benefits Both FS & CR: • Immediate life coverprovides 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

  4. 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)

  5. 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

  6. 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

  7. 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

  8. 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

  9. OTHER RETIREMENT PROVISIONS • Flexible retirementTake part of pension early & reduce hours • Late retirementContinue past 65 & continue to build benefits • Incapacity retirementPartial or full

  10. 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

  11. For more info… • Final Salary: http://tinyurl.com/cshc5q9 • Career Revalued:http://tinyurl.com/cu8row8 • USS: http://www.uss.co.uk/Pages/default.aspx

  12. 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

  13. Sick Pay Provisions Length of servicePay 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

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