USS Salary Sacrifice

deltrotter

Hi all

Thinking about taking a job in a UK  university that offers salary sacrifice into USS and a car scheme.

In terms of the employer contribution to the pension, is this calculated pre or post salary sacrifice?

E.g.

Salary = £60k
Employee pension contribution (including additional contribution) = £12k
Car scheme = £5k
Net Salary = £43k

So, is the employer contribution based on £60k or £43k?

TIA

Del

Cornish_mum

Hi Del, mine and MrCM (different universities) employers contribution is based on presalsac amount (in my case I also have a deduction for childcare vouchers). I would double check with the USS rep for your potential employer just to confirm. I am not sure regarding the car scheme.

One thing to note however is above the salary cap (40k) a lot of the employer contribution goes into backfilling the schemes deficit not into the employees DC. I think it’s only 12% of total salary that is paid into our DC. This isn’t affected by any pension AVCs you might make into the investment builder. 

CM

deltrotter

Thanks Cornish_mum, really appreciated!

swindiff

The deficit which does not actually exist.  Hopefully these changes will be reversed next year.  Above the £41,004 threshold (it has gone up a bit) only 20% of the total contribution goes into your DC pot.  9.8% from you and 10.2% from your employer.  The other 11.4% that your employer currently pays (they pay a total of 21.6%), the USS keep to pay off the imaginary defecit.