USS pension scheme:

the changes ahead

Jan Killick

Pensions Office, Finance Division

Tuesday 12 April 2016

Agenda

• Introduction

• Past membership

• Changes to benefits – April and ahead

• USS Retirement Income Builder

• USS Investment Builder

• Other

• Questions

Terminology

Final Salary

USS Retirement

Income Builder

USS Investment

Builder

Service and salary

at retirement

Salary each year

Investment fund

Changes during 2016

• From April 2016

• Contribution rates increase

• Final salary benefits cease

• USS Retirement Income Builder

• From October 2016

• USS Investment Builder

Final Salary benefits cease

Page title to go here

Pensionable salary

Other benefits

• Career Revalued Benefits (1/80ths, 6.5%)

USS Retirement Income Builder (1/75ths, 8.0%)

• AVCs

• Added years – continue unless you end them

• Money purchase (Prudential) – until 30 Sept 16

• USS Investment Builder from October 16

• Transfers In

Phased implementation

Retirement Income Builder

Salary Pension (1/75th) plus inflation calculation

Banked

£37,500 £500 x 1 £500.00

£39,375 £525 + (£500 x 1.02) £1,035.00

£40,781 £543.75 + (£1,035 x 1.03) £1,609.80

£42,187 £562.50 + (£1,609.80 x 1.015) £2,196.45

Total Pension £2,196.45 p.a.

Tax-free cash 3 x pension in addition

Investment Builder

USS Investment Builder charges

• Administration costs met by employers

• Fund management fees subsidised

• Fees / subsidy to be confirmed

• Subsidy does not apply to any funds

transferred into the USS Investment Builder

Your benefits online

Pension tax allowances

• Annual Allowance (AA) £40,000

• The maximum value of the benefits built up or

total contributions made each year

• Tapered Annual Allowance £10,000 - £40,000 • For people with Adjusted Income >£150,000

• Threshold Income £110,000

• Lifetime Allowance (LTA) £1,000,000 • The maximum accumulated value of benefits

(pension and cash lump sum) at retirement

We’re here to help

• Head of Pensions - Jan Killick (6) 16164

• USS Pensions Manager - Alan Cunningham (6) 16067

• By surname:

A to G Chiara Browning (6) 16075

H to S Jayne Hewitt (6) 16063

T to Z Cassie Butcher (6) 16048

• Email: USS@admin.ox.ac.uk

• USS modeller: https://forthefuture.uss.co.uk/

• DWP : www.gov.uk/calculate-state-pension

QUESTIONS?