USS: How is basic rate tax relief given?

dllive

Hi guys
I presumed (probably wrongly!!) if I set the AVC setting to £100 per month (for example) on the transaction screen I would see £120.
Thanks

Dazed_and_C0nfused

You would never see that.

It's 20% of the gross so relief at source contribution would be £125 in your pension fund.

If it's net pay method then £100 goes into your pension and your taxable pay is £100 less so you avoid paying £20 tax on that £100.  But don't get any pension tax relief added by the pension company.

deltrotter

Likely to be the latter as USS tends to be salary sacrifice.

ussdave

If it's salary sacrifice (as my USS payments are, though not all) then you'd see your take home pay go down by approximately £66.5 and your Investment Builder would be topped up by £100.  If it's net pay as above then it's more like £80 reduction in take home pay.

It may be a little harder to work out the difference in take home pay right now as you'll also need to account for the spine point / cost of living increase that hit this month.

dllive

Thanks guys. I had it confirmed yesterday that AVCs are not done via salary sacrifice.

Mrs_Binxtoria

I had a similar query about AVCs, I am going to speak to our HR/Pensions team to see about doing salary sacrifice and then upping my AVCs with the additional take home pay that I would receive, plus the additional spine point increase.