Transferring TPS contributions into USS defined contribution section

sunny_soccer239

Seeking advice from folk with knowledge of both the Teachers' Pension and the Universities Superannuation Scheme please:

I am moving employer from a university that offered only the TPS to one that only offers the USS. I have a previous pension with the USS through prior employment (2012 - 2019) but had to leave when made redundant. I then took up a new role in March 2020 and have been with the TPS since that point.

I understand that my USS pension will be revived (so to speak) when I rejoin and that I will have the option to move my contributions from the TPS into the USS's defined contribution section, where I already have a very small pot. So my question is - should I move my TPS contributions into the USS to combine everything in one place?

I'm 43 so have some significant working years ahead of me but my hope is that I will stay with the USS from now until the end of my career, rather than needing to flit around again. 

Any guidance much appreciated!

hyubh

sunny_soccer239 said:

I will have the option to move my contributions from the TPS into the USS's defined contribution section

Unlikely. With over 2 years TPS membership, the pension has vested, i.e. you have pension benefits in the TPS. While the USS is a 'hybrid' scheme, i.e. part DB and part DC, transfers into the DB part are not allowed. And, separately, transferring out from an unfunded public service scheme like the TPS to a DC pension is not allowed.

, where I already have a very small pot. So my question is - should I move my TPS contributions into the USS to combine everything in one place?

A DB and a DC pension are fundamentally different things. A DB pension implies an income for life in retirement, whereas a DC pension is more like a stocks and shares ISA. Even if it was possible to transfer out from the TPS, doing so would unlikely make much sense because the terms of the pension in it are very good (for example, uncapped indexation in payment - a modern USS DB pension, in contrast, has capped increases when inflation is high).

Cornish_mum

Hi 

UCU have a good comparison table https://www.ucu.org.uk/article/1403/USS--TPS-at-a-glance.

Personally, if I had 5 years of TPS I would keep it where it is. 

There have been a lot of changes in USS in the last 5 years, so don’t assume it will be the same as when you left. Lots of threads on here available.

Well done on your new appointment, it’s not an easy time to to be in HE.

Marcon

Cornish_mum said:

Hi 

UCU have a good comparison table https://www.ucu.org.uk/article/1403/USS--TPS-at-a-glance.

Personally, if I had 5 years of TPS I would keep it where it is. 

There have been a lot of changes in USS in the last 5 years, so don’t assume it will be the same as when you left. Lots of threads on here available.

Well done on your new appointment, it’s not an easy time to to be in HE.

I don't think OP has any choice. USS only accepts transfers into the defined contribution section, and TPS only allows transfers to a defined benefit scheme.