When you start work with a member employer, you will normally be automatically entered into the scheme, assuming your employment qualifies. But you do, of course, have the right to opt out.
Before deciding against being a member of USS, perhaps because you know you are only going to with your employer for a short time, this is what you would lose:
- Immediate life insurance protection for your dependants – a tax-free lump sum of three times your annual salary, plus a pension for life for your partner/husband/wife
- The 16% of your salary that your employer contributes for your benefit to USS every month
- The chance to build up a valuable pension benefit in a ‘final salary’ pension scheme, recognised as the best kind of pension you can get.
"I don’t intend to stay with this employer or join another USS participating institution"
Always remember, if you leave the final salary section and then rejoin within 30 months then you can cancel the deferred benefit you were originally given on leaving and have the original service added to your new period of membership in USS.
This happens automatically when you re-join, as for most this is an advantage. You can decide shortly before you next leave or retire whether or not to keep this benefit separate.
It may not be in you interest to do this if your salary on leaving/retirement is lower than the original period of service, plus price inflation increases.
There is no minimum length of service for this to apply. You could of course have a refund, less deductions for tax and national insurance, if you have less then 2 years’ membership.
Of course if you decide to move to another employer within higher education it’s very likely you can stay a member of USS.
"I am from overseas and I plan to return soon. It’s not worth me joining"
This may be true, but remember, even if you plan to leave the UK, we can still pay you a pension benefit when you reach retirement age, or you might be able to transfer the full value of your benefits to another scheme in the UK or overseas.
"I can’t afford the contribution"
If cost is a concern, take a look at the Cost of contributions modeller to see what the true cost of membership is. It’s a lot less than you might think. Also, speak to the pensions contact where you work to discuss your options. You will need to sign a form if you do decide to opt-out.
"I’m too young to start a pension"
We all should know by now that this just isn’t true. The sooner you start saving the better, and remember you’re getting a big help from your employer.
"I still want to opt-out"
Please contact your employer to complete the relevant opting-out form, they will then submit this information to USS. If you have not yet paid any contributions to USS there is no further action required, if you have paid into the scheme we will process the benefits due to you and advise you accordingly.
See Leaving the scheme for details of the benefits on leaving if you are already a member and are choosing to opt-out.
If you change your mind, after opting out, you may rejoin at a later date. If you change your mind within 6 months of opting-out then the earlier period of membership will be linked. If it is later than 6 months the earlier benefits will be kept separate from your new period of membership. And remember, if it’s more than 30 months since you opted-out you will join the new section of USS.