USS Prudential query

Tarama

Hi
I work in higher education and am a member of the University Superannuation Scheme. Prior to the 2016 changes I had a Prudential AVC, most of which transferred to the new Investment Builder (into similar funds) in the latter part of 2016.However I chose to leave a portion (currently valued at £8800) in the Prudential AVC, because as it was a with profits cash accumulation fund, this option was available.

I am unsure what to do – whether to leave it in Prudential or transfer it into the Investment Builder now, into one of the funds I am currently contributing to. The fund charges are currently waived, although the direction of the USS pension scheme is uncertain at present as it responds to the outcome of the UCU strike earlier this year. l also understand USS plan to transfer any remaining Prudential AVC funds into the Investment Builder by 2019.

Any suggestions would be very welcome.

Many thanks Tarama

kidmugsy

Tarama wrote: »

The fund charges are currently waived ...

Where: in the AVC or the Investment Builder?

If the AVC transfers into the Investment Builder does the employer add any money? Does the investment builder offer any advantage - e.g. low charges - over your transferring the AVC to a SIPP and managing it yourself?

Tarama

kidmugsy wrote: »

Where: in the AVC or the Investment Builder?

If the AVC transfers into the Investment Builder does the employer add any money? Does the investment builder offer any advantage - e.g. low charges - over your transferring the AVC to a SIPP and managing it yourself?

Dear Kidmugsy


thank you for your reply - in relation to the employer adding any money - no they don't. USS offer a 1% match if one invests 1% in the Investment Builder - I already do this. But USS do not charge to invest in the investment builder funds (at least for the present time) and Prudential do.


I suspect the decision should be made based on fund performance?


Siobhan

kidmugsy

Tarama wrote: »

I suspect the decision should be made based on fund performance?

But you don't know what the fund performance will be. The best you can do is guess based on what it aims to achieve.

I'm not familiar with a "with profits cash accumulation fund". I know what a Pru With Profits investment is, and a Cash Accumulation Fund, but the combination is new to me.

Southend1

The fee waiver doesn’t apply for funds transferred in to investment builder from other schemes. Not sure what the deal is with former Pru AVCs though.

Tarama

Southend1 wrote: »

The fee waiver doesn’t apply for funds transferred in to investment builder from other schemes. Not sure what the deal is with former Pru AVCs though.

Dear Kidmugsy


thanks for the reply - no I do not know what the fund performance may be but I am just trying to work out if it would be best to leave where it is and wait for USS to transfer it in to the Investment Builder at some point in the future.


Southend I think at present the fee waiver still applies as this was a USS AVC.


many thanks Tarama