If you are currently paying into USS, you have the option to transfer benefits you may have 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.
Unfortunately, you don’t have this option if you have retired, have left the scheme or are currently on a period of absence.
What’s the benefit of a transfer?
Well, 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.
If you think it likely that you will retire before age 60, you should be aware that if your transfer has been in the scheme for (broadly speaking) less than 7 years, then unless it’s an ill-health retirement, the pension from the transfer will be reduced for early payment.
Please see transfers to USS factsheet for a full explanation of what’s called the ‘7 year rule’ and a full explanation of the transfer process.
Public sector scheme transfers
If your previous pension scheme was within 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 need to apply for this type of transfer within 2 years of joining USS.
You don’t need to have completed the transfer; 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 on a commercial basis and 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 is not possible to transfer benefits to USS. You would be advised if this applied to you and the reason for this.
Need help deciding?
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 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.