Does anyone know about Universities Superannuation Scheme?

dllive

Hi. I started work at a University last year. I was automatically signed up to their pension scheme which is USS (Universities Superannuation Scheme). Does anyone know this scheme and whether its any good? Ild rather have a SIPP and be in control of my pension, but with the USS, the university contributes 16% towards my pension, so I dont want to stop paying in.

I suppose I have 2 questions:
- Is USS any good compared to - say - a public sector final salary scheme?
- In the USS documentation it mentions Salary Sacrifice. What does this mean?

Thanks

jem16

dllive wrote: »

Hi. I started work at a University last year. I was automatically signed up to their pension scheme which is USS (Universities Superannuation Scheme). Does anyone know this scheme and whether its any good?

One of the best.

Ild rather have a SIPP and be in control of my pension, but with the USS, the university contributes 16% towards my pension, so I dont want to stop paying in.

Why would you rather have a SIPP with investment risk than a final salary scheme with no risk?

I suppose I have 2 questions:
- Is USS any good compared to - say - a public sector final salary scheme?

Basically the same.

- In the USS documentation it mentions Salary Sacrifice. What does this mean?

Thanks

Salary sacrifice usually means you sacrifice some of your salary which goes into your pension thus meaning lower NI contributions. I was not aware that the USS operated like this. It does pay lower NI contributions as it's a final salary pension.

dunstonh

It will wipe the floor with a SIPP (irrespective of what you put in the SIPP). So, why would you rather have a SIPP?

kidmugsy

"Salary sacrifice usually means you sacrifice some of your salary which goes into your pension thus meaning lower NI contributions. I was not aware that the USS operated like this." It depends on your employer whether SS is offered. Presumably most Universities offer it now. Most people would be wise to sign up for SS before the government scraps it.

"Is USS any good compared to - say - a public sector final salary scheme?" It's designed to resemble a public scheme but it is, in fact, a private scheme - if it all goes wrong you'll depend on the usual Defined Benefit private scheme rescue arrangements. On the other hand, unlike (most) public schemes, it is a Funded Scheme - i.e. there is a pot of money accumulating to fund the pensions, rather than just a promise given by long-dead politicians.

anamenottaken

An excellent scheme - I'll be collectining my pension soon.

dllive

Thanks for the comments.

I mentioned the Final Salary bit I was reading the USS leaflet and it seems it operates 2 ways: "Final Salary" and "Benefits Revalued something" (I dont have the leaflet to hand!). Im not eligible for the Final Salary part. It seems by your comments that this is a good pension. I will probably stop paying money into my SIPP and just rely on USS.

kidmugsy

Link: http://www.uss.co.uk/news/Documents/Important%20Info%20for%20USS%20members.pdf

Note "

Members of the scheme who joined prior to 1 October 2011

will continue to build up benefits on a final salary basis"

cvd

Members of the scheme who joined prior to 1 October 2011
will continue to build up benefits on a final salary basis"

The inevitable sequence of events with final salary schemes is:

1. Close to new members
2. Perhaps 5-10 years later, close to existing members.

Stage 2 is an inevitable consequence of stage 1 - otherwise the scheme is unfair to all new members.