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Glossary 

  • Accrual Rate
    The rate at which pension benefit is built up as pensionable service e.g 1/80th for each year of service as a USS member.
  • Inflation-proofed pension

    USS pensions, including deferred pensions, are increased in line with the Index of Retail Prices. However, this arrangement does not apply automatically to the whole of ill-health retirement or death in service pensions part of which may be funded differently and are paid at the discretion of the USS trustees. But to date they have always been increased in the same way.
  • Pensionable Salary

    This is your highest average salary worked out to a formula designed to give you the best possible calculation – “smoothing out” any adverse ups and downs in your salary over the years, and making adjustments for price inflation.

    This is how it works:  we determine your salary for each period of 12 months that you have been a USS member, over a maximum time of 13 years previous to the date on which your pensionable salary is to be calculated, and revalue each salary, except the last 12 months, using the Retail Prices Index measure of inflation.

    Your pensionable salary is whatever comes out best -  either the highest revalued annual salary during the last three years or your highest revalued salary averaged across any three consecutive “best years” over the last 13 years.
  • Pensionable Service
    The period of service that is also used to calculate your pension benefits. Normally this is the number of years and days (up to a maximum of 40 years) that you have worked with one or more USS participating employers.
  • Pension Transfers
    A transfer of the cash value of a pension between two approved schemes.
  • Retail Price Index (RPI)
    The official “cost of living” index in the UK based on a monthly survey of the prices of a basket of goods and services.
  • Actuary
    A professional person qualified to use mathematical and forecasting principles to independently investigate and evaluate the financial status of pension schemes. The formal actuarial valuation, required by law, assesses the ability of a pension scheme to meet its liabilities.
  • Added Years AVCs

    A term used to describe the facility by which USS members can purchase additional benefits.  Extra financial contributions (AVCs) add extra years and days of pensionable service.
  • Additional Voluntary Contributions (AVCs)
    Extra payments you can contribute voluntarily, either monthly on by periodic lump sum, to top up your USS retirement pension. You obtain tax relief on such payments at the highest rate of income tax for which you are liable
  • Contractual Pension Age
    The age/date stipulated in your contract of employment as the earliest date you can retire on an unreduced pension from USS.
  • Deferred benefits, deferred pension(ers)
    We use the word “deferred” to describe the benefits and pensions of people who have ceased to be a contributing member but have left their benefits within the USS scheme until such time as they retire and draw their pension.
  • Dependant

    Your partner, whether married or not, regardless of sex. It can also include someone who, in the opinion of USS, was either financially dependent on you at the time of your death or dependent because of any disability.  A form (M03) is available to register the name of a potential dependant.
  • Eligible children

    Normally children up to age 18, or in approved full-time education or training or physically or mentally incapable of being self-supporting.
  • Final Salary Scheme
    A type of Defined Benefit scheme which undertakes to provide fixed benefits on retirement based on your Pensionable Salary and Pensionable Service.
  • Normal Pension Age
    The Normal Pension Age (NPA) is currently 65 but will increase in line with increases to state pension ages. The impact of an increasing NPA is that for any benefits in respect of service after any such change, if you retire before the new NPA, will be reduced for early payment for each year and part-year earlier than the new NPA. All benefits in respect of service before the change will only have early retirement reductions applied if you retire before the NPA applicable to that period of service.