uss member presentation - keele university · builder (db) uss investment builder (dc) automatic...
TRANSCRIPT
![Page 1: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/1.jpg)
USS Member Presentation
![Page 2: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/2.jpg)
Purpose
My Benefits My Actions
My Questions
![Page 3: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/3.jpg)
The over £55,000 section
USS Retirement Income Builder
USS Investment Builder
USS Retirement Provider
1.
2.
3.
What’s the name of the new defined contribution section in USS?
4.
![Page 4: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/4.jpg)
The over £55,000 section
USS Retirement Income Builder
USS Investment Builder
USS Retirement Provider
1.
2.
3.
What’s the name of the new defined contribution section in USS?
4.
![Page 5: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/5.jpg)
USS for the future
![Page 6: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/6.jpg)
Types of retirement benefits
Defined Benefit (DB)
USS Retirement Income Builder
Defined Contribution (DC)
USS InvestmentBuilder
![Page 7: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/7.jpg)
Benefits up to 31 March 2016
Final Salary (FSAL) or Career Revalued Benefits Section (CRB)
Statements of benefits at 31 March 2016 in Autumn
USS pension increases
2016
![Page 8: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/8.jpg)
USS pension increases
Cap to increase may applyIncreases match Official Pensions
5%
CPI
5%
USS
2.5%
7.5%10%15%
10%
![Page 9: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/9.jpg)
Phased implementation
1 Apr 2016
Sala
ry £
000s
1 Oct 20160
20
40
60
80
100
USS Retirement Income Builder (DB)
USS Investment Builder (DC)
Automatic for salaries of £55,000 and over
With the option to makevoluntary contributions and choose the match
USS Retirement Income Builder (DB)
With the option to make voluntary contributions to the
USS Investment Builderand choose the match
£55,000
![Page 10: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/10.jpg)
£55,000
2016 2017 2018 2019 2020
Salary threshold
or = based on FULL salaryDeath benefits Ill-health benefits
![Page 11: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/11.jpg)
USS Retirement Income Builder
x =USS pension
increasesSalary (up to threshold)
EVERY year
xBuild up
rate Pension
Tax-free cashPension
=3x+
1/75 £
![Page 12: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/12.jpg)
Salary 1/75 of salary every year
USS pension increases
(assuming 2% a year)Banked
£30,000 1/75 x 30,000 x 1.02 x 1.02 x 1.02 £424.48
£40,000 1/75 x 40,000 x 1.02 x 1.02 £554.88
£50,000 1/75 x 50,000 x 1.02 £680.00
£60,000 1/75 x 55,000 x 1 £733.33
Total: £2,392.69 pa
PLUS tax free cash of £2,392.69 x 3 = £7,178.07
USS Retirement Income Builder
1/75£
![Page 13: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/13.jpg)
USS Investment Builder
![Page 14: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/14.jpg)
Higher rate tax payers
Everyone
People earning above the salary threshold (£55,000)
Post October 2016 joiners
1.
2.
3.
Who is the USS Investment Builder relevant for?
4.
![Page 15: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/15.jpg)
Higher rate tax payers
Everyone
People earning above the salary threshold (£55,000)
Post October 2016 joiners
1.
2.
3.
Who is the USS Investment Builder relevant for?
4.
![Page 16: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/16.jpg)
USS Investment Builder - What is going in?
![Page 17: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/17.jpg)
The match – pay more get more
+1% 1%
You contribute an additional
or more of your salary
Your employer also contributes an additional
You can choose to pay more, but your employer will only match the first 1%
of your salary
INTO THE USS INVESTMENT BUILDER
![Page 18: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/18.jpg)
Extra contributions: example
Salary = £35,000
Per month You Pay Automatic Tax Relief
(assuming basic rate tax payer)
Your payment into
USS Investment Builder
Employermatch into
USS Investment Builder
Totalinto USS
Investment Builder
Your first 1% £23 £6 £29 £29 £58
Your next 1% £23 £6 £29 - £29
![Page 19: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/19.jpg)
Register with My USS
You have to register with My USS to pay extra contributions
Register with My USS online
![Page 20: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/20.jpg)
Automatic membership
+8% 12%
You contribute
of your salary above the salary threshold
Your employer contributes
This is in addition to your benefits in the USS Retirement Income Builder
of your salary above the salary threshold
INTO THE USS INVESTMENT BUILDER
![Page 21: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/21.jpg)
USS Investment Builder - What happens to
my money?
![Page 22: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/22.jpg)
Choosing your USS Investment Builder investments
How do I decide where my money
is invested?
vDo it for me Let me do it
![Page 23: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/23.jpg)
Do it for me
The Default fund
The fund designed by the Trustee to
meet the requirements of most members
![Page 24: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/24.jpg)
Do it for me
The Default fund (A Lifestyle fund)
There is also an Ethical Lifestyle
Fund
![Page 25: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/25.jpg)
Let me do it
![Page 26: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/26.jpg)
Subsidised fund management charges
Contribution 5% pa return after 20 years
0.5% pa charge
5% pa return after 20 years
No charge
Difference
£1,000 £2,410 £2,650 £240
Fund management charges reduce the return you get on your investments… so they will be subsidised on the
USS Investment Builder funds
![Page 27: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/27.jpg)
USS Investment Builder - What do I need to do?
![Page 28: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/28.jpg)
Your choices
You can make changes to contribution amounts and funds
Opt into the match
Elect to pay more than 1% if you
wish
Choose your funds
(or default lifestyle)
![Page 29: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/29.jpg)
Register with My USS
You have to register with My USS to make your investment choices
Register with My USS online
![Page 30: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/30.jpg)
USS Investment Builder - What comes out?
![Page 31: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/31.jpg)
USS Investment Builder flexibility
Pension
Leave funds invested
From age 55
Cash
USS Investment
Builder
Tax-fee cash
![Page 32: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/32.jpg)
Benefit illustrator
![Page 33: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/33.jpg)
Get the 1% match
Subsidised fund management charges
Potential to take fund tax-free
All of the above
1.
2.
3.
What is the advantage of saving via the USS Investment Builder?
4.
![Page 34: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/34.jpg)
Get the 1% match
Subsidised fund management charges
Potential to take fund tax-free
All of the above
1.
2.
3.
What is the advantage of saving via the USS Investment Builder?
4.
![Page 35: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/35.jpg)
Existing Additional Voluntary Contributions
(AVCs)
![Page 36: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/36.jpg)
Types of existing AVCs
Added years/benefits
Money PurchaseAVCs
with Prudential
![Page 37: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/37.jpg)
Added years/benefits
Nonew arrangements
Old arrangements cancontinue
![Page 38: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/38.jpg)
Money purchase AVCs
Action needed to continue to pay extra contributions from
1 October 2016!
STOPMoney purchase AVCs
with Prudential
![Page 39: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/39.jpg)
Extra contributions from 1 October 2016
All other Prudential funds
Prudential With-profits funds
USS Investment Builder
?
![Page 40: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/40.jpg)
What happens to money purchase AVCs?
Prudential With-profits AVCs will say where they are
All otherPrudential funds
USS Investment Builder
![Page 41: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/41.jpg)
What happens next?
![Page 42: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/42.jpg)
What happens next?
Register with My USS to get the match, pay extra contributions and make your investment choices
Register with My USS online
![Page 43: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/43.jpg)
Where to get further information
USS Scheme information and latest newsuss.co.uk
USS For the FutureSite dedicated to the 2016 scheme changes (including benefit illustrator) forthefuture.uss.co.uk
Pensions Advisory ServiceGeneral guidance on pensionspensionsadvisoryservice.org.uk
Money Advice ServiceFor general financial guidance including pensionsmoneyadviceservice.org.uk
Pension WiseNew government site focussed on defined contribution pension savingpensionwise.gov.uk
Independent Financial AdvisersLook for “chartered advisers” onlyunbiased.co.uk, findanadviser.org
![Page 44: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/44.jpg)
Taking action
The match
Default fund
The change to Prudential AVCs
1.
2.
3.
What’s the most important message from today for YOU?
4.
![Page 45: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/45.jpg)
Important notice
This presentation and any comments made during thepresentation and responses to questions are for generalguidance only. The presentation is not a legal document anddoes not explain all situations or eventualities. USS is governedby a trust deed and rules and if there is any difference betweenthis publication and the trust deed and rules the latter prevail.Every effort has been made to present accurate information atthe date of publication and members are advised to check withtheir employer contact for latest information regarding thescheme, and any changes that may have occurred to its rulesand benefits.
![Page 46: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/46.jpg)
Appendix –Extra Information
![Page 47: USS Member Presentation - Keele University · Builder (DB) USS Investment Builder (DC) Automatic for salaries of £55,000 and over . With the option to make voluntary contributions](https://reader033.vdocument.in/reader033/viewer/2022043004/5f860c0f1e12452a886fcff2/html5/thumbnails/47.jpg)
Transfers-in
Non-club transfers to buy benefit• No new requests until 1 October 2016
31 March 2016
Up to 1 October
2016
1 October 2016
onwards
Membership of ‘transfer club’ ended from 31 March 2016 •Transition (2 years)•Based on pensionable salary as at 31 March 2016
1 October 2016 onwards = USS Investment Builder