Operational updates
Members opting out
For action
Employees opt-out of USS for a number of reasons. At the request of scheme stakeholders, including UUK and UCEA, we are looking to collect and share reporting on trends in opt-outs. 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.
Following consultation with employers at the Institutions’ Advisory Panel (IAP), we are introducing a voluntary process for employers to collect and submit this information.
We have updated the Notice to opt out of pension saving form, which members complete and submit to you, with the most common reasons for opting out. Each quarter (ending March, June, September and December) we will contact you and invite you to submit your opt out data, recorded from the opt-out forms that members have submitted to you.
What does this mean for employers?
We will ask you to provide details of how many members opted out each quarter, for what reason and in what age bracket (from a selection provided on the form/survey).
Please start recording this information now so that you have it to hand when we ask you. We expect to send a survey for you to complete with this information, which will be in a similar format to this.
Should you have any queries, please contact Colm Mitchell, Client Insight Manager.
Retirements
For action
Notification that member is not retiring
On occasion, members start the process to retire and then decide not to proceed but USS has not been notified. This means that we have active retirement cases open and members contributing after their proposed retirement date.
If you are aware of any retirements that are not going ahead as planned please notify USS. You can tell us using the employer member query form from the employer portal or via email to retirementteam@uss.co.uk.
Late notification of flexible retirements
In Employer update No 6 2018 we let you know that requests for flexible retirement should be submitted at least two months before the member’s flexible retirement date. We are receiving some late notifications of members flexibly retiring and, in particular, after the reduction in hours/remuneration has already taken place. So that we have everything we need to make a decision about whether the flexible retirement will be allowable, please let us have the following information:
- Reason for late notification of flexible retirement.
- Documentary evidence that flexible retirement was approved by the employer for the relevant date.
You can send this to us using the employer member query form from the employer portal. If you have any queries please contact retirementteam@uss.co.uk.
We do not require the two month notice period for members taking their final flexible benefits.
Member absence
For information
Members who are on unpaid absence have the option to pay special contributions to maintain their death in service and ill health retirement cover. If members wish to pay special contributions you will need to request a quote on the absence form from the employer portal.
For any cases which cannot be sent via the employer portal, please email datareconciliation@uss.co.uk with the member details, date absence commenced and the expected return date.
Employers are able to approve absences of up to 12 months, providing there is an expectation that the member will return to work.
Unpaid absence over 12 months can only be approved in the following circumstances:
- Undertaking work of national importance
- Undertaking full time education (must be connected with the member’s employment)
- Seconded to another UK employer
- Seconded to an overseas employer
- Research
In all these circumstances the employer can approve the absence for a period of up to ten years, provided there is a definite expectation that the member will return to work. There is an exception for members undertaking work of national importance for whom the period of absence can be unlimited.
Refunds for members with salary sacrifice
For action
Members who leave the scheme within two years are entitled to a refund of their contributions unless they were part of a salary sacrifice arrangement because their contributions will have been paid by their employer.
It is not uncommon for us to get feedback from members, who would like a refund, that this information was not made clear to them when they joined their institution. They note that they would have elected not to participate in their employer’s salary sacrifice scheme had they known.
When new members join, please make clear to them that they will not be entitled to refund of contributions paid under salary sacrifice. More information is available from the Salary sacrifice factsheet.
Not all employers offer salary sacrifice for pension contributions. We published more information about salary sacrifice, and how it works for employers, in Employer update No 11 2018.
Voluntary salary cap
For information
The updated voluntary salary cap election form is now available from the Employer resource hub and member search on the employer portal. The deadline for submission is 3 March 2019.
We’ll provide further information about the updated salary threshold for 2019/20 in the February update.
Annual member statements
For information
All members who received an annual member statement as at 31 March 2018 are now able to access their statement from My USS.
In March, we’ll be sending you Statutory Money Purchase Illustrations (SMPIs) for a small number of members for whom we weren’t able to produce a statement but who have benefits in USS Investment Builder. We’ll let you have more information nearer the time.
New client management tool
For information
To help us improve the way we take care of our clients, we’ve introduced a new Client Management Tool. It’s new software that centralises how we hold our contact information, and some of the correspondence and information relating to our participating employers. Over the course of the coming months it’ll help us to streamline our communications and reporting, as well as improve our contact management.
What does it mean for employers?
In practice, most of the changes are at USS but it does mean that emails that you send to colleagues at USS may be saved on this new system.