Members of USS have the option to transfer benefits they may have built up in other pension schemes into USS. This includes pension schemes in the UK (that are registered for tax purposes) and many overseas schemes as well.

However you can’t do this if:

• you have retired
• have left the scheme
• are currently on a period of absence.

What’s the benefit of a transfer?

Firstly it’s important to point out that for many members this might not be the best option, but for some it could be very advantageous. And please don’t transfer benefits just because it’s handy to have everything in one place. That’s not a good reason on its own for making a transfer.

If you transfer benefits into USS, it will buy you extra years and days pensionable service in the scheme, increasing the value of your pension at retirement. Once ‘transferred-in’ the benefit from the extra service will increase in line with your future salary in USS.

You therefore need to estimate what you think your salary might be by the time you retire as part of the decision making process, and also how likely you are to stay in USS to enjoy those increases.

With effect from 1 April 2009, all transfers-in accepted by USS will be on the basis that these transferred-in benefits will be payable from age 65. If you retire before age 65, for any reason other than incapacity retirement, the benefits transferred-in to USS will be reduced for each year and part-year earlier than age 65. There is no longer an exception for transfers held by the scheme for more than 7 years.

The terms for transfers agreed before 1 April 2009 are unchanged, including the exception for transfers held by the scheme for more than 7 years (called the '7 year rule'). 

Please see the Transfers to USS factsheet, for a full explanation of the ‘7 year rule’ and a full explanation of the transfer process.

Public sector scheme transfers

If your previous pension scheme was in the public sector (eg. teaching, NHS, civil service etc.) the transfer is treated in a generous way. The public sector operates what is called the ‘transfer club’, which essentially means you get equal value for any transfer.

This is far more beneficial in the majority of transfers than the way transfers from the private sector are treated. Because it’s such a good deal it’s time limited. You must to apply for this type of public sector transfer within 2 years of joining USS.

You don’t need to have completed the transfer within 2 years. You simply need to have sent in the transfer request form. If you’re too late then you can still transfer your benefits but the service credit will be calculated differently on a commercial basis.

The service offered is likely to be less, perhaps a lot less, than would have been the case under the transfer club.

To view a list of schemes in the transfer club arrangement click here.

Is there any type of pension scheme that can’t be transferred?

Yes, you cannot transfer policies known as Free-standing AVCs into USS, nor into Money Purchase AVCs. Also, we cannot guarantee that overseas transfers can be accepted. On rare occasions it’s not possible to transfer benefits to USS. You would be told if this applied to you and the reason.

Need help deciding?

Take a look at the Pensions TV programme on ‘transfers in’. This explains what you need to think about and the calculation you need to do to see if it’s worthwhile. It also explains more about the transfer club system.

You may want advice on a transfer. Unfortunately neither USS nor your employer can advise you. We can give you plenty of information, but you must decide yourself whether or not to transfer. If you need financial advice click here to find a suitable adviser, but remember this advice may not come cheap so you’ll need to balance that with the value of benefits you’re transferring over.