Promotion

Receiving a promotion normally has no affect on your pension.

However, if your employer provides different pension arrangements for academic or comparable staff and support staff and you are promoted to a grade eligible for USS, then you will have to leave your existing scheme but will be able to join USS if you wish. You may be aware that there are two sections of USS. Until 1 October 2013, if you are promoted and therefore must join USS you will join the final salary section of the scheme. See the ‘Life events’ section for more information under ‘Getting a new job’.

If you are about to join, or have just joined, there are a couple of things you should think about straight away:

1. Complete the death benefit nomination forms

• Expression of Wish – Everyone should complete this to let USS know where any lump sum should be paid in the event of your death.
• Registration of Potential dependant – Only complete this form if you are not married nor part of a civil partnership. This form is used to notify USS of a financial dependant who might qualify to receive the equivalent of the spouse’s pension on your death.

2. Transfer benefits to USS

You can transfer previous pension benefits into USS. Click here for full details.

Public Sector Transfers

These transfers receive beneficial treatment but you must apply within 2 years of joining USS to qualify.  If you want to investigate a transfer, complete the transfer request form and pass to the pensions contact at your place of employment.

Why join?

• USS is one of the biggest pension schemes of its kind in the country with assets of many billions. We provide high quality pensions and peace of mind protection benefits for more than 250,000 people at over 390 universities, higher education and associated institutions.
• This section of the scheme provides a "final salary" pension, regarded as the best type of pension you can get. It is paid for partly by your employer and partly by you, with the employer paying the bulk of the cost.
• Your employer takes all the investment risk and you build up benefits based on a percentage of your salary over the years that you have been a member.
• Other company and private pension schemes are different. Take for example the most common alternative "money purchase" retirement plans. You take the risk that the pot of money invested regularly in your name is sufficient for a decent pension. Your retirement income depends on the ups and downs of the stock market and the state of the financial markets just at the time when you stop work. The pension is not linked to the size of your salary or your length of employment and your employer won’t top-up the pot if times are hard.
• USS was established collectively by the university sector in 1975. The 12-strong board of directors includes employer, employee and independent trustees, acting impartially to protect the rights and interests of members.
• There are no shareholders or dividends to pay out.
• There are no commission or set-up administration charges and
• There are no exit fees to pay if you transfer your pension somewhere else.

Other benefits

As well as a pension for you, as a member of the scheme you are covered for three times salary life cover and an income for your spouse/civil partner/dependant and eligible children if you die whilst paying into USS.

As well as this cover you may also qualify for an incapacity pension if you are unable to work due to long-term illness or physical or mental incapacity.

"I'm not staying long, it's not worth it"

If you are only going to be with your employer for a short while it is usually still worth being a member of USS because there is immediate life cover and income protection for your dependants if you die and you pay lower compulsory National Insurance contributions towards the UK state pension scheme.

If you change jobs, you won’t lose your contributions. You can simply transfer the cash value of your USS benefits straight into another approved pension arrangement.

If you don’t want to transfer your benefits, you can leave them in USS (this is called a deferred pension) and receive them when you’re old enough.

Meanwhile, if you rejoin the scheme within 30 months of leaving as a result of being re-employed at the same USS institution, or one of over 390 other institutions, you can link your deferred benefits with your future salary. So even very short periods can add up over time. If the period since leaving is more than 30 months then you will join the Career Revalued Benefits section of USS.

"I'm too young for pensions"

Retirement may be in the distant future but the sooner you start saving with a good pension scheme like USS the better. You don't lose out if you change jobs or leave the university world completely. Meanwhile, you get valuable tax relief on your contributions, and you have started to build up a pension.

If you leave it too late, you'll find it difficult to build up enough pension before retirement, and you may have to work longer to maintain the standard of living you wish to enjoy later in life.

Even a few years' difference in membership of a pension scheme can make a large difference in the pension you receive.

By the time you retire, your pension is likely to be your most valuable asset. It may even provide your income for over thirty years of your life. Unless you make other arrangements, it will be the main source of provision for your leisure years.

Starting now means a higher standard of living in your retirement. The sooner you start, the higher that standard will be.