USS Employer Consultation Information session May 2015
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USS Employer Consultation Information session May 2015
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Background USS information video Recap of key proposed changes
Example Questions 3 USS CONSULTATION Information session
overview
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4 Background
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January proposals agreed by JNC 9-13 Marchdelivery of
consultation material to relevant staff 16 Marchstart of employer
consultation 22 Mayconsultation ends 31 Mayemployers report to USS
June/JulyTrustee considers responses Autumncommunication of agreed
changes April 2016earliest implementation date 5 BACKGROUND
Timeline
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Defined benefit amount paid in retirement is based on a formula
linked to salary and years worked retirement income can be
calculated in advance Defined contribution fund builds up depending
on what you pay in the funds investment performance amount payable
in retirement depends on fund value, therefore not certain in
advance 6 BACKGROUND Terminology
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7 USS information video
https://www.ussconsultation.co.uk/members/videos
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8 Recap of key proposed changes
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Benefits built up before change are protected Final salary
pensionable salary & service at day before implementation used
to calculate benefits Career revalued benefits section built up
benefits value as at day before implementation Built up value is
revalued until retirement, in line with official pensions 9 KEY
CHANGES Benefits built up before change
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On portion of salary up to 55k defined benefit career revalued
benefits basis for every year you work you get 1/75 of salary as a
pension (previously 1/80) 3/75 of salary as a lump sum (previously
3/80) 8% employee contribution (was 6.5% CRB, 7.5% FS) 10 KEY
CHANGES Future scheme
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On portion of salary over 55k defined contribution 8% employee
contribution (was 6.5% CRB, 7.5% FS) 12% employer contribution into
fund 11 KEY CHANGES Future scheme
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Additional defined contribution option all members can
contribute to a defined contribution fund regardless of salary
level up to 1% employee contribution will be matched by employer
employee can pay more if they want 12 KEY CHANGES Future
scheme
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Employer contribution to USS 18% (was 16%) regardless of salary
threshold regardless of matching any optional employee
contributions to defined contribution fund minimum employer
contribution of 18% will apply up to 31 March 2020 13 KEY CHANGES
Future scheme
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14 Example
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45 years old In Final Salary scheme 20 years service built up
by 31 March 2016 Planning to retire at 65 Current salary 15,000 Not
expected to change grade before retirement 15 EXAMPLE Jeanie
McTavish
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Estimated changes to pension current arrangement 7,110 a year
proposed arrangement 7,410 a year 300 a year estimated INCREASE
Estimated changes to lump sum current arrangement 21,330 proposed
arrangement 22,220 a year 900 estimated INCREASE 16 EXAMPLE Jeanie
McTavish
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www.ussconsultation.co.uk Interactive modeller Detailed
consultation material Q&As Ask the University Pensions team:
[email protected] x2611 [email protected] 17 USS
CONSULTATION Where to find out more
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22 Mayconsultation ends 31 Mayemployers report to USS
June/JulyTrustee considers responses Autumncommunication of agreed
changes April 2016earliest implementation date 18 BACKGROUND
Timeline
