USS Pension Scheme
You are eligible to join USS if you are employed on a post which falls into Grades 6-9 (inclusive). You will automatically be entered into the scheme unless you return an opting out form which is included in your information pack when you join the University. Employees who wish to opt-out at a later date can obtain an opt-out form from the Pensions Administrator.
From 1 October 2011, the USS pension scheme has two sections - the Final Salary sectionand the Career Revalued Benefits section.
If you rejoin USS on or after 1 October 2011 you would be eligible to rejoin the Final Salary section if you:
- left before 1 October 2011 and have deferred benefits in USS and are rejoining before 1 April 2014; or
- leave the Final Salary section after 30 September 2011 and rejoin the scheme within 30 months of leaving.
Otherwise you will join the Career Revalued Benefits section.
Information for Final Salary Members ONLY
Due to the government changes with the Annual Allowance (AA) and the Lifetime Allowance (LTA) USS has introduced three options to help members to mitigate the impact of the tax change. Please note the options are only available to members of the final salary section of USS, and will only impact on members who may suffer from an annual allowance or a lifetime allowance charge.
(i) Enhanced opting out
This will assist members who have a larger lifetime allowance value. It will mean the member must opt out of USS, and the member cannot rejoin USS within 12 months of opting out, and if the member elects to rejoin USS they will become a member of the career revalued section.
Pensionable service accrual will cease with effect from the opting out date, but death in service and incapacity cover will be maintained if the employee makes mandatory contribution of 2.5% per month.
The member can continue making contributions to the USS money purchase AVC up to the maximum of £50,000 per year, less the contributions for death in service and incapacity cover.
The member must give the University 28 days notice of election to opt out of USS.
(ii) Temporary Cessation of Accrual (TCA)
This will assist members who experience a substantial increase in salary, perhaps due to a new appointment or promotion.
The member can elect to suspend the pensionable service accrual for a maximum of 6 months. This 6 month period can start no earlier than 1 October in any scheme year, but must include the following 31 March. The member will re-commence in the final section of USS.
During the TCA period the employee must maintain a 2.5% contributions rate to ensure full cover for death in service and incapacity.
The trustee company has the discretion to reject applications for TCA where the rule is being used for reasons other than the mitigation of a tax charge.
The member must give the University 28 days notice of the effective date of a TCA election.
(iii) Salary capping with past service deferral
This will assist members who do not have a large lifetime allowance value, but who may trigger an annual allowance charge on a regular basis due to salary increase.
A member can make an election for future service to be based upon a salary which is capped at £150,000, with their previous benefits treated as deferred.
It should be noted that the trustee company can change the £150,000 cap if there is a change in the level of the annual allowance.
The member must give the University 28 days notice of the effective date of a TCA election, which will be the first day of the month following the 28 days notice. It should be noted that the election is irreversible.
For more information, please visit the USS website or contact Lisa Harley, Pensions Administrator ext 2546 or ljh10@st-andrews.ac.uk.