Operational updates
For action
Backdated salary awards
In August the pay awards were confirmed. Backdated salary awards for active members should be reflected in the Contributions Interface.
If you are implementing in the pay award in September you can use the existing worked examples for further information. The backdated contributions should be reflected in the September contributions interface (due by 4 October).
If you plan to implement the pay award in October then you will need to take into account the 1 October 2019 contributions increase. We included updated worked examples in our correspondence about the increases, which you can review here.
Leavers
Please use the contributions adjustment form if you need to submit backdated salary award contributions for members who have left.
Prudential Money Purchase AVCs
With effect from 1 October 2019 all Prudential With Profit additional voluntary contributions will cease. The only Prudential contributions that will continue will be for those members who are paying Life Assurance contributions. We’ll be writing to affected employers shortly and making data available on the employer portal so you know which members you’ll need to adjust or stop contributions for from October.
Mandatory Employer Payment Reports
Under certain circumstances employers may be liable for a Mandatory Employer Payment (MEP) to fund the early payment of benefits when members are made redundant. Specifically:
- Member has transferred in benefits prior to September 2009; and
- The transfer was completed more than seven years before retirement; and
- The member is under age 60.
Following employer requests we have made a report available detailing members who would be affected. Please contact Nichola Roane if you would like this report for your institution.
For information
Scheme pays deadlines
Members who are liable for an annual allowance (AA) tax charge of £1,000 or more in respect of their USS pension input amount and want to take advantage of the Scheme Pays facility will need to make sure USS receives their application by the deadlines below:
15 December 2019 - Voluntary Scheme Pays
For members with:
- an AA charge in respect of their USS pension input amount of between £1,000 and £2,000; or
- a reduced AA due to tapering and an AA charge in respect of their USS pension input amount of at least £1,000.
31 July 2020 – Mandatory Scheme Pays
For members with a legal right to use Scheme Pays, which generally applies where:
- their pension input amount in respect of their USS pension input amount was greater than £40,000; and
- their AA charge is £2,000 or more .
For further information about Scheme Pays, including when members can use it and when they need to apply, please read our Scheme Pays factsheet.