Contributions and costs
Q What are the contribution rates?
A The employer contribution is currently 16% of salaries and the employee contribution of salary is 7.5% for Final Salary scheme members and 6.5% for Career Revalued Benefits section members. The employer contribution rate is reviewed following each scheme valuation, which takes place every three years and may change in the future to reflect the scheme funding level.
Q Are there any charges payable to USS for administration?
A No. The cost of running the scheme is covered under the employer contribution.
Q When can we start to deduct contributions?
A Generally, only when you and any guarantors have signed the deed of accession.
Q Will employees be contracted-out as USS members.
A Yes. USS is a contracted-out arrangement.
Q What costs will we be liable for should we have no active members or decide to withdraw from the scheme?
A You could be liable for some or all of the actuarial cost of providing benefits for members who have been employed by your institution. You should ready the Employer Debt Regulations for further information.
Eligibility
Q We would like to offer USS as an option for eligible employees and give them a choice between USS and another pension arrangement, is this possible?
A No. As part of the agreement to participate in USS you must agree that USS will be the only scheme available to eligible employees except where they have a statutory right to join another scheme. Employees can decide not to join USS but they must then make their own personal arrangements for pension to which the employer must not contribute or endorse. We would request that contracts of employment for eligible employees are changed to reflect this. You can, of course, continue to offer another pension arrangement/s for other employees so long as that category of employee is not eligible to be a USS member.
Q We are intending to form a new company and wish to apply for this new company to participate in USS, when can the application be made?
A Once the company has been formed. It is also a condition of participation that a the employer has at least one eligible employee.
Existing pension arrangements for eligible employees.
Q We would like to participate in USS and transfer the assets from our existing pension arrangement in bulk to USS. Is this possible?
A It may be possible to arrange a bulk transfer for all/part of your existing arrangement to USS. USS has an ‘expansion policy’, that details our requirements in this respect. Full details of this can be found in the expansion policy document.
Other
Q USS has very attractive early retirement terms. Will we automatically qualify for the additional Premature Retirement Compensation Scheme (facility that enables an institution to purchase service to enhance a member’s retirement benefits) as a participating employer?
A No. The ‘Premature Retirement Compensation Scheme’ is a separate agreement that institutions must decide to apply for under a separate deed. Please let us know in your application if you are interested in this. Please note you can apply for these terms at a later date if you wish.
Q We may wish to extend eligibility at a later date to more employees, is this possible?
A Yes. You will be asked to execute a supplementary deed of accession to extend your eligibility criteria.