Transferring out of the Universities Superannuation Scheme

djohnsonhk

I'm employed by a Uni and they have a pension scheme called the USS (Universities Superannuation Scheme) that employees pay 6.25% and the employer (my Uni) pays 14% of my salary amount into a pension fund.

Now, I'm not planning on staying working for a USS institution for much longer, and am thinking I will want to transfer my contributions to a new pension scheme (possibly a private one).

The T&C's say I can do that no problem, but it doesn't say what amount gets transferred - it just says 'actuarial value of deferred pension'. What does that mean in simple English? Does this mean I would retain the employer's contribution when I move schemes?

Sobraon

I'm not in the USS but look very carefully at the benefits you get - particularly as the scheme is a much coveted 80ths Final Salary scheme. Info on key features here http://www.ucu.org.uk/index.cfm?articleid=1403

If you can find a private pension scheme which offers anything like the benefits for the same cost then please post it on here!

Another thing is that in the case of early retirement the USS has picked up a lot of the slack at a number of institutions and allowed people to retire early on very generous packages.

Recommend you talk to your UCU rep (even if you are not in) as a first step before getting into details of transfer values etc.

HTH.

Andy_L

The employers contributions are fairly irrelevant in a final salary scheme. They have to pay in enough to fund the pension promise they have given you at the moment they reckon that costs 20.25% but that number can & will change.

If you transfer to a new scheme they will look at the value of that pension promise, make a few assumptions about longevity, investment return & the health of the pension fund & offer you a lump sum that should buy you the same value pension in the new scheme.
Obviously if those assumptions are wrong you could either win or loose on the deal

dunstonh

Many personal pensions wont accept a transfer from a final salary scheme without an IFA signing off on it. Unless you have good financial reasons for doing it, I cannot see an IFA signing off on it.