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Published byBarrie Griffin Modified over 9 years ago
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USS Pension Scheme Post-doc Society briefing Nov 2012
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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
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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
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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) http://tinyurl.com/cs4urpf
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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) http://www.hmrc.gov.uk/pensionschemes/qrops.pdf May be relevant tax rules in receiving nation
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CALCULATING BENEFIT - FS Benefits based on the following formula: Pension 1/80 th x highest average pensionable salary x years of pensionable service Tax Free Lump Sum 3 x pension Possible to take less cash, more pension
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CALCULATING BENEFIT - CR Pension 1/80 th 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
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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
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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
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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
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For more info… Final Salary: http://tinyurl.com/cshc5q9 http://tinyurl.com/cshc5q9 Career Revalued: http://tinyurl.com/cu8row8 http://tinyurl.com/cu8row8 USS: http://www.uss.co.uk/Pages/default.aspx http://www.uss.co.uk/Pages/default.aspx
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Other sources of information CIC Employee Assistance Service http://www.york.ac.uk/admin/hr/employee_assistance/ http://www.york.ac.uk/admin/hr/employee_assistance/ Union http://www.ucu.org.uk/index.cfm?articleid=2196 http://www.ucu.org.uk/index.cfm?articleid=2196 Citizens Advice Bureau http://www.citizensadvice.org.uk/ http://www.citizensadvice.org.uk/ Independent Financial Advisers
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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
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