Operational updates
Members opting out and withdrawing - submitting your data
For action
In the January and February operational updates we told you about the new voluntary processes to collect and submit data about the reasons that employees opt out, or withdraw, from USS.
At the request of scheme stakeholders, including UUK and UCEA, we are looking to collect and share reporting on trends in opt outs and withdrawals. It can help inform scheme and new product design, as well as help stakeholders to understand any potential affordability issues as the cost sharing increases are implemented.
We updated the Notice to opt out of pension saving form and the Notice to withdraw from pension saving after three months with the most common reasons for opting out or withdrawing.
What does this mean for employers?
We will ask you to provide details of how many members opted out or provided notice to withdraw each quarter, for what reason and in what age bracket.
You can submit this information for the quarter ending 31 March 2019 now via this link:
CLICK HERE TO SUBMIT OPT OUT/WITHDRAWAL INFORMATION
Should you have any queries, please contact Colm Mitchell, Client Insight Manager.
Prudential With-Profits MPAVC ceases: September 2019
For action
From 1 October 2019 members will no longer be able to contribute to the Prudential With-Profits MPAVC. If you have members making contributions to these polices, you will make their last deductions from the September payroll. We’re planning a series of communications to make sure that both you and your members are properly supported through the change.
Members who are making contributions to the Prudential’s Life Assurance option will continue to pay their Prudential contributions, so it’s not as simple as stopping all Prudential contributions.
At the end of May we’ll write directly to affected members to let them know. This will include members who currently pay a With-Profits MPAVC, or those active members who no longer pay but are still invested in Prudential’s With-Profits fund. They will have the option to voluntarily switch their With-Profits fund to USS Investment Builder and we’ll explain how they do this, otherwise their funds will stay invested at Prudential (unless they choose to transfer to another provider). All of our related member information will be updated and we’re introducing a new webpage with information about these changes.
If you have any affected members we’ll email you with further information and let you know who will be receiving a letter.
Nearer the time we’ll contact employers who have members paying MPAVCs into the Prudential’s With-Profits or Life Assurance funds to make sure you know which members’ contributions you’ll need to amend.
If you have any queries about ceasing With-Profits MPAVCs, please contact the Client Engagement team.
Brexit
For information
It’s possible that with the current uncertainty around Brexit you’re getting questions from your members about what it might mean for their USS pension and retirement planning. We can’t say with any certainty what the impact of Brexit will be, however we are taking a pro-active approach to planning and detailed work is being undertaken to prepare for the potential implications.
We have an FAQ page on our website that you should direct members to if they have any queries.
Salary sacrifice
For information
We’ve had a few queries from clients lately who are interested in providing members with the option of salary sacrifice for pension contributions. In December we shared an article with lots of information about how salary sacrifice works for ordinary, matched and additional contributions as well as the implications of the cost sharing scheme changes that came into effect on 1 April. You can read that here.
If you’re interested in applying to offer salary sacrifice, or to add salary sacrifice for additional contributions I-Letter I.867 Salary sacrifice for additional contributions and the voluntary salary cap, available from the employer resource hub on the employer portal, explains the process and attaches the documents you’ll need to go ahead. Remember that members who contribute to USS by salary sacrifice and then leave within two years won’t be entitled to a refund of contributions.
Information for new starters
For action
Disclosure of information
On 11 April 2019, we sent I.885 Disclosure of information for new joiners to USS to the official and pensions contact at all employers. It reminds employers of the requirement to share Your Guide to USS with all new joiners and prospective members within one month of joining the scheme.
New starters thinking of opting out?
Did you know that we have a factsheet, Seven good reasons to be a member of USS? It explains all the reasons someone may want to be a member of the scheme, as well as responding to some of the common reasons that members opt-out. You may find it useful to share with new starters or members who are considering opting-out. It’s available on the public factsheets page and the employer resource hub on the employer portal.
Membership certificates
The presentational issue with the membership certificates which caused member data to appear without spaces has now been resolved, for certificates produced from 8 April 2019. They’re available from the Download a file page of the employer portal. We’ll provide a separate update about any certificates produced while the issue was ongoing.
Pension scheme registry number
For information
A number of clients are currently completing auto-enrolment confirmation exercises which require them to submit USS’ pension scheme registry number. Should you need it the number is: 10020100