2016 Benefit Statement
Your USS benefit statement
This statement details the benefits you have earned, in USS’s final salary section, up to
31 March 2016.
About the scheme changes
On 31 March 2016 the final salary section closed. The benefits
you have earned up to 31 March 2016 will be where appropriate,
increased in line with increases to official pensions (currently
based on the Consumer Prices Index), subject to certain limits.
Since 1 April 2016, you have continued to build up benefits
in the USS Retirement Income Builder. From 1 October 2016,
if your salary is greater than the salary threshold (£55,000 for
2016/2017); and/or you choose to take advantage of the match
(where you contribute 1% of pensionable salary and your
employer contributes an additional 1% of pensionable salary)
and/or make additional contributions, you will also build up
benefits in the USS Investment Builder.
When you take your benefits, these benefits may well be drawn
from a combination of the two scheme sections outlined
above. Please visit our website www.uss.co.uk for more
information about the USS Retirement Income Builder and the
USS Investment Builder.
About this statement
The following pages outline your pension and tax-free cash
lump sum as at 31 March 2016. If you have any separate
deferred benefits these figures are not included in the headline
pension and tax-free cash amounts on page two, but are listed
separately for reference.
Also included is a breakdown of your total pensionable service
and your pensionable salary figure. If applicable, a list of any
future deductions to be made from your benefits is shown, but
those deductions have not been deducted from the headline
pension and tax-free cash lump sum amounts on page two.
These figures are taken as at 31 March 2016 so do not include
any deductions notified to USS after that date.
More information about this statement can be found on
www.uss.co.uk
Review your benefits
You should carefully check the information contained in this
statement and contact your employer if you believe any of
the information in the statement is, or may be, incorrect. Any
queries regarding the content of this statement or the final
salary section should be directed to your employer’s pension
contact in the first instance, who is listed below.
Please note this statement and the data therein has been provided as guidance only and should not be relied
upon by you to make a decision in relation to your USS benefits. We strongly recommend that you speak to an
independent financial adviser (IFA) before making a decision or refraining from making a decision in relation to your
USS benefits. You can find an IFA through the following website: www.unbiased.co.uk. Please be aware that you may
be charged a fee for any advice.
Should you have any queries about this statement, in the first instance please get in touch with
your employer’s USS pensions contact:
<Pensions contact, Employing Institutions (18)>
FS
1
<Forename> <Surname> <NINO>
This statement is based on your service as at 31 March 2016. In providing the
illustration, we have relied upon information provided to us by your employer(s).
Please read the important notes section carefully. Benefits will always be calculated
in accordance with USS’s trust deed and rules, as amended from time to time.
Your benefits - this is the amount of pension and tax-free cash lump sum earned to 31 March 2016.
<£000,000>
Annual pension
<£000,000>
Lump sum
Benefit calculation - this is how we have calculated your benefits.
Annual pension - your pensionable service of <XX> years and <XXX> days is divided by the scheme’s pre 1 April
2016 accrual rate of 80 and then multiplied by your pensionable salary at 31 March 2016 of <£000,000>.
<XX>
+
<XXX>
365
80
x <£000,000> = <£000,000> pension a year
Lump sum - your standard lump sum is three times the amount of your standard pension.
<£000,000> x 3 = <£000,000> lump sum
For further information about pensionable service and pensionable salary please refer to the important notes section.
Each of these terms is defined in the scheme’s trust deed and rules.
Pre/Post October 2011 benefits - the figures below show the pre/post October 2011 split in
your benefits.
Pre-October 2011 pension:
<£000,000>
Pre-October 2011 lump sum:
<£000,000>
Post-October 2011 pension:
<£000,000>
Post-October 2011 lump sum:
<£000,000>
Benefits you built up before 1 October 2011 are increased differently to those built up from 1 October 2011.
Please see the important notes section for an explanation of pension increases.
FS
2
<Forename> <Surname> <NINO>
This statement is based on your service as at 31 March 2016. In providing the
illustration, we have relied upon information provided to us by your employer(s).
Please read the important notes section carefully.
Your pensionable service at 31 March 2016
Service accrued in USS:
Total transferred-in service:
Total USS monthly added years AVC service:
Total pensionable service:
<xx>years<xxx>days
<xx>years<xxx>days
<xx>years<xxx>days
<xx>years<xxx>days
Total number of monthly AVC arrangements:
Total number of transfers-in:
Pensionable salary at 31/03/2016:
Date of CPA*:
<X>
<X>
<£000,000>
<CPD 1>
* This is the date you will reach contractual pension age (CPA) in respect of some/all of your benefits earned up to 30 September 2011.
Please see the important notes section for an explanation of CPA.
Added years additional voluntary contributions - most recent arrangements are below.
Please note that the service for all of your AVC arrangements is included in the total pensionable service figures on page two and above.
Monthly added years AVC arrangements - total number of monthly AVCs: <X>
Date
commenced
<DD/MM/YYYY>
<DD/MM/YYYY>
Date
ceased
Date due
to cease
<DD/MM/YYYY>
<DD/MM/YYYY>
Service purchased to
date
Contracted amount of Percentage
contribution
service
<xx>years<xxx>days <xx>years<xxx>days
<xx>years<xxx>days <xx>years<xxx>days
<xx>%
<xx>%
Please note that if the ‘Date ceased’ field above is blank, then you were still paying into this AVC as at 31 March 2016.
See important notes for more details.
The scheme is governed by a trust deed and rules and if there is any difference between this publication and the trust
deed and rules as amended from time to time the latter will prevail. You are advised to check with your employer’s USS
pensions contact for the latest information regarding your benefits, the scheme, and any changes that may have
occurred to its rules and benefits.
You should carefully check the information contained in this statement and contact your employer if you believe any
information in the statement is, or may be, incorrect. If you believe any information is incorrect you should consult your
employer’s pension contact in the first instance, who is listed on page one.
You will find a list of FAQs to help further explain this statement and the calculation of benefits
on our website at www.uss.co.uk
FS
3
Important notes
Your transfer-in(s)
This statement shows the total amount of service secured by
transferring benefits into USS from another pension scheme.
For further details regarding your transfer(s) please refer to
the documentation you received at the point of transfer.
USS added years monthly AVCs
If you paid into a USS added years monthly AVC
arrangement(s) up to 31 March 2016 and you have not
elected to cease the arrangement(s) at that date then it (or
they) will have continued beyond 1 April 2016. As previously
advised, although the monthly AVC arrangement(s) will
continue beyond the closure of the final salary section, it is
important to note that the additional pensionable service
secured will be based on your pensionable salary at
31 March 2016 and will be where appropriate, increased
annually from 31 March 2017 in line with increases to
official pensions (currently based on the Consumer Prices
Index), subject to certain limits. However, the fixed monthly
contribution you pay in respect of added years AVC(s) will
continue to be based upon your actual pensionable salary.
Further information on added years AVCs can be found in
the members section of www.uss.co.uk
FS
4
Important notes
Please note this statement and the data therein has been provided as guidance only and
should not be relied upon by you to make a decision in relation to your USS benefits.
We strongly recommend that you speak to an independent financial adviser (IFA) before
making a decision or refraining from making a decision in relation to your USS benefits.
You can find an IFA through the following website: www.unbiased.co.uk. Please be aware
that you may be charged a fee for any advice.
Contractual pension age (CPA)
Pension increases
CPA is only relevant to benefits earned up to
30 September 2011.
Both your pension and tax-free cash lump sum figures will
be, where appropriate, increased between 31 March 2016
and the date you retire from the scheme.
This is where, in the past, your contract(s) of employment
and the scheme rules in force up to and including
30 September 2011 may have conferred a right to retire
earlier than age 65, the normal pension age for USS. See the
normal pension age note below.
For service you accrued before 1 October 2011, USS will
match the increase in official pensions paid to public sector
employees like teachers, civil servants or NHS employees
(currently based on the Consumer Prices Index).
Should your CPA be earlier than the date you reach age 65
it may be possible to access some or all of your benefits
earned up to 30 September 2011 without early retirement
reductions from the date of your CPA.
For service you accrued from 1 October 2011, USS will pay
increases which match official pensions for the first 5%; if
official pensions increase by more than 5% then USS will pay
half of the difference up to a maximum increase of 10%.
Further information on CPA can be found in the retirement
factsheet within the for members section of www.uss.co.uk
Pensionable salary
Early and late retirement factors
Your pensionable salary is calculated in accordance with the
scheme’s trust deed and rules, as amended from time
to time.
The figures quoted in this statement have not been reduced
or increased by early/late retirement factors.
Therefore, should you subsequently retire prior to normal
pension age the figures quoted may be reduced by the
application of early retirement reductions.
However, if you were over age 65 at 31 March 2016 late
retirement increases will be applied, where applicable, upon
retirement from the scheme.
Further information on early and late retirement factors can
be found in the retirement factsheet within the for members
section of www.uss.co.uk
Normal pension age
The normal pension age for USS purposes is currently 65,
although you may be eligible to retire earlier. You may also
remain a member beyond age 65.
If you retire before 65, early retirement reductions may apply,
although this does depend on the reason for retirement.
Further information on normal pension age can be found
in the retirement factsheet within the for members section of
www.uss.co.uk
Note: Normal pension age in respect of benefits accrued
from 1 October 2011 is currently age 65 and will change
in future in line with increases to state pension age. Those
members in the scheme who were aged 55 or over on
1 October 2011 were exempt from this change. In addition,
other rights earned before that date also remain unchanged.
This is worked out using a formula designed to take into
account your salary over the course of your membership, and
make adjustments for price inflation. We will determine your
salary for each of the 12 months you have been a member of
the scheme up to 31 March 2016 (for a maximum of 13 years’
membership). We will then increase your salary up to 31
March 2016 for each of those 12 month periods, except for
the last one, to reflect inflation, using the Retail Prices Index
(RPI) measure of inflation.
Your pensionable salary is the highest of either:
• the
best inflation adjusted 12 months’ salary over the last
36 months’ membership; or
• the
average of your best consecutive inflation adjusted
three years’ salary during the last 13 years.
Please note your pensionable salary may be higher than your
actual salary due to the application of inflation.
Pensionable service
Your pensionable service is calculated in accordance with
the scheme’s trust deed and rules, as amended from time
to time.
Pensionable service is normally the number of years and
days you have worked with one or more USS employers in a
pensionable post.
This may be adjusted to take into account a number of
factors such as the effect of part-time employment, any
periods of absence (if USS contributions did not continue),
transfer payments from other pension schemes and any
added years additional voluntary contributions (AVC) you
may have made.
<x>
Important notes
Temporary salary increases
Tax allowances
If you have been in receipt of a temporary or short term
retirement or death, revise the pensionable salary result in
accordance with the rules of the scheme as they stood on
31 March 2016.
selected from:
•
during the last 13 years including the temporary salary
allowance; or
•
last 36 months’ membership excluding the temporary
salary allowance.
Please note no adjustment has been made to the
pensionable salary in this statement to account for any
temporary salary increases.
relief is restricted by Her Majesty’s Revenue & Customs
(HMRC). Currently, the two main limits, which apply across all
registered pension schemes, are the annual allowance (AA),
which limits the tax relief you can receive on pension savings
in a single year and the lifetime allowance (LTA), which limits
you can build up over the course of your working life.
The AA is currently £40,000 a year, however this limit could
be less (possibly as low as £10,000) if your taxable income
is greater than £110,000 per year. The LTA is currently
£1 million. If you exceed these allowances you may be
subject to additional tax charges.
For more information, please see the pensions tax section
located in the for members section of www.uss.co.uk
Update your expression of
wish form
If any of your circumstances change – but particularly if you
start or end a relationship – you should check whether you
also want to amend your expression of wish form. You can
download a new blank form from the for members section of
www.uss.co.uk
Your personal details
If you move home, get married or divorced, register or
dissolve a civil partnership, or change your name, please let
between this publication and the trust deed and rules as amended from time to time
You are advised to check with your employer’s USS pensions
You should carefully check the information contained in this statement and contact
your employer if you believe any information in the statement is, or may be, incorrect.
If you believe any information is incorrect you should consult your employer’s pension
on our website at www.uss.co.uk
<x>