presentation for uss members eifion morris apmi
DESCRIPTION
Presentation for USS members Eifion Morris APMI. How USS works. - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/1.jpg)
How USS works
Every effort has been made to present accurate information. Members are advised to check with their employer and/or the USS guides to confirm their understanding before acting on any information given. This presentation may be recorded for training and audit purposes.
Presentation for USS membersEifion Morris APMI
![Page 2: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/2.jpg)
Agenda
1
•How much will your pension be?
2
•Getting more out of USS
3
•Tax relief limits
4
•Bereavement benefits
5
•When can I stop working?
6
•USS Valuation
7
•Questions?
![Page 3: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/3.jpg)
How much will your pension be?
![Page 4: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/4.jpg)
The basics
Pension
Tax-free cash
Standard package
![Page 5: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/5.jpg)
The calculation
1/80th Service Salary Pension
Pension 3 Tax-free cash
![Page 6: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/6.jpg)
Part-time calculation
100% 30% 50%100%
Years
10
20
30
40
10
20
30
40
Salary £000s
10 years 3 years 10 years 5 years
![Page 7: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/7.jpg)
![Page 8: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/8.jpg)
![Page 9: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/9.jpg)
Getting more out of USS
![Page 10: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/10.jpg)
Put more in to get more out
Added years15% maximum £
Tax relief
Certainty
Tax-free cash
Long-term saving
Money purchaseUp to £40,000 pa
Tax relief
Flexibility
Tax-free cash
Long-term saving
![Page 11: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/11.jpg)
Help from the tax man
• £100 from net pay
Pay
• £125
Invest • £125 (returns dependent on investment)
Retire
![Page 12: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/12.jpg)
Help from the tax man
• £100 from net pay
Pay
• £166
Invest • £166 (returns dependent on investment)
Retire
![Page 13: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/13.jpg)
Tax allowances
Annual Allowance• £40,000 pa wef April 2014
Lifetime Allowance• £1.25 million wef April 2014
![Page 14: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/14.jpg)
Would you be affected?
£150K £43,498 £50,267 £57,036 £63,804
£140K £47,248 £60,216 £73,183 £86,151
£130K £43,873 £55,915 £67,956 £79,997
£120K £40,499 £51,614 £62,729 £73,844
£110K £37,124 £47,312 £57,501 £67,690
£100K £33,749 £43,011 £52,274 £61,536
£90K £30,374 £38,710 £47,046 £55,383
£80K £26,999 £34,409 £41,819 £49,229
£70K £23,624 £30,108 £36,592 £43,075
£60K £20,249 £25,807 £31,364 £36,922
£50K £16,874 £21,506 £26,137 £30,768
£40K £13,500 £17,205 £20,910 £24,615
10 20 30 40
Years of service
Annu
al s
alar
y
Annual allowance
![Page 15: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/15.jpg)
Lifetime allowance
Years of service
Annu
al s
alar
y
£150K £ 431,250 £ 646,875 £ 862,500 £ 1,078,125 £ 1,293,750 £ 1,725,000
£140K £ 402,500 £ 603,750 £ 805,000 £ 1,006,250 £ 1,207,500 £ 1,610,000
£130K £ 373,750 £ 560,625 £ 747,500 £ 934,375 £ 1,121,250 £ 1,495,000
£120K £ 345,000 £ 517,500 £ 690,000 £ 862,500 £ 1,035,000 £ 1,380,000
£110K £ 316,250 £ 474,375 £ 632,500 £ 790,625 £ 948,750 £ 1,265,000
£100K £ 287,500 £ 431,250 £ 575,000 £ 718,750 £ 862,500 £ 1,150,000
£90K £ 258,750 £ 388,125 £ 517,500 £ 646,875 £ 776,250 £ 1,035,000
£80K £ 230,000 £ 345,000 £ 460,000 £ 575,000 £ 690,000 £ 920,000
£70K £ 201,250 £ 301,875 £ 402,500 £ 503,125 £ 603,750 £ 805,000
£60K £ 172,500 £ 258,750 £ 345,000 £ 431,250 £ 517,500 £ 690,000
£50K £ 143,750 £ 215,625 £ 287,500 £ 359,375 £ 431,250 £ 575,000
£40K £ 115,000 £ 172,500 £ 230,000 £ 287,500 £ 345,000 £ 460,000
10 15 20 25 30 40
Would you be affected?
![Page 16: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/16.jpg)
![Page 17: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/17.jpg)
Added years modeller
![Page 18: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/18.jpg)
Money Purchase AVC calculatorwww.pru.co.uk/uss
![Page 19: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/19.jpg)
How to pay AVCs
• Use modeller on www.uss.co.uk
• Contact Pensions OfficeAdded Years
• Contact Prudential directly• Telephone consultation• 0800 2346913
Money Purchase
![Page 20: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/20.jpg)
Bereavement benefits
![Page 21: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/21.jpg)
Benefits for your dependants
Life assurance of 3 x salary
Income protection• Spouse/dependant/civil partner• Children
Update your beneficiary details• Expression of wish form (3 x salary)• Registration of financial dependant form (dependant’s
pension)
![Page 22: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/22.jpg)
![Page 23: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/23.jpg)
When can you stop working?
![Page 24: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/24.jpg)
Normal retirement
Retirement at the Normal Pension Age applicable• No ‘early retirement’ reductions
NPA to increase in line with State Pension Ages• 1 October 2020 66 • 67 by 2036• 68 by 2046
Retirement before NPA will be classed as early retirement• but only in respect of service after any increase
![Page 25: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/25.jpg)
Future increases to NPA - 66
100% 65
100% 96% 65
October 2020 NPA increases to 66
![Page 26: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/26.jpg)
Early retirement
• Reductions apply for each year earlier than Normal Pension Age
Own choice
• Pre October 2011 benefits in full• All benefits in full if 55 or more on 1 October 2011Employer consent
from 60• Until 1 October 2014 no reductions apply
Redundancy
• Benefits in full
Severance
![Page 27: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/27.jpg)
Flexible retirement
•Subject to consent of employer and USS
•2 months’ notice required by USS
Flexible retirement from age 55
•Hours must reduce by at least 20%
•Draw up to 80% of benefits (minimum 20%)
•Early retirement reductions apply before age 60
2 ‘Flexes’ possible, 3rd is full retirement
•If you flex, you continue to build up further benefits on a part-time basis and remaining benefits based on future full-time equivalent pensionable salary
You continue to build up benefits
![Page 28: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/28.jpg)
Incapacity retirement
Pension based on service to 65
Total incapacity Pension based
on service already earned
Partial incapacity
![Page 29: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/29.jpg)
Varying pension and cash
•No cash and higher pension
•Higher cash and lower pension
Vary the cash
•Multiply your pension by 20
•Add on tax-free cash
•Add on any Prudential AVCs
Maximum 25% of capital value
![Page 30: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/30.jpg)
![Page 31: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/31.jpg)
Scheme Valuation 2014
![Page 32: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/32.jpg)
Valuation 2014
Full valuation in 2014 (3-yearly)
• Large deficit predicted• Valuation as at 31 March 2014 - results late
2014/early 2015• Potential benefit changes/contribution increases?
![Page 33: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/33.jpg)
What next?
![Page 34: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/34.jpg)
What next?
• Pensions office contacts
• Prudential www.pru.co.uk/uss0800 234 6913
• USS www.uss.co.ukPensions TV
![Page 35: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/35.jpg)
Your questions
![Page 36: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/36.jpg)
Money Purchase AVC fund early exit charge
Year of withdrawal % of fund withdrawn
During Year 1 15%
During Year 2 10%
During Year 3 8%
During Year 4 6%
During Year 5 5%
During Year 6 onwards No charge
![Page 37: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/37.jpg)
Pension increases
In line with ‘Official pensions’
• Civil Service, NHS, Teaching etc• Benefits earned before 1 October 2011 no cap• Benefits since 1 October 2011 capped
Service before 1 October 2011 Since 1 October 2011
Matches official pensions with no cap Matches up to 5%
5% plus 50% of increases above 5%
Overall ceiling of 10% pa
![Page 38: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/38.jpg)
Pensionable Salary
Calculated in most favourable way
Based on last 13 years’ salary history
All salaries indexed by RPI
Better of:• Best 12 months in last 36, or• Best average over 3 years falling in last
13 years
![Page 39: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/39.jpg)
Pensionable salary calculation
Retirement 40000 X
193.5/193.5 = 40000
2 38889 X193.5/188.6 = 39982
3 37612 X193.5/182.6 = 39857
4 36501 X193.5/177.9 = 39701
5 34914 X193.5/174.3 = 38760
6 33327 X193.5/171.6 = 37580
7 31740 X193.5/166.5 = 36887
8 30153 X193.5/164.5 = 35468
9 28566 X193.5/159.5 = 34655
10 36500 X193.5/153.8 = 45922
11 31740 X193.5/149.8 = 41000
12 28566 X193.5/145.2 = 38068
13 22218 X193.5/141.8 30318
Year Salary RPI increase
Revalued salary
= 41663
Back
![Page 40: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/40.jpg)
Benefits on leaving
More than 2 years service?
Pension = Service/80 X final pensionable salary
Plus 3 X Pension as cash
Increases apply up to retirement
Less than 2 years service
Refund of your contributions (except salary
sacrifice) less tax and NI
Pension based on your contributions only
![Page 41: Presentation for USS members Eifion Morris APMI](https://reader036.vdocuments.us/reader036/viewer/2022062321/568139e7550346895da1a0f4/html5/thumbnails/41.jpg)
Options after leaving
Transfer out?
At any time
To any UK and many overseas schemes
Full value of benefits
Draw at retirement
Plus deferred pension increases
from leaving to retirement
Rejoin?
Final salary section if within 30 months
and benefits left in USS
Re-link earlier membership