Your USS benefit statement

Transcription

1 2016 Benefit Statement Your USS benefit statement This statement details the benefits you have earned, in USS s final salary section, up to 31 March About the scheme changes On 31 March 2016 the final salary section closed. The benefits you have earned up to 31 March 2016 will be where appropriate, increased in line with increases to official pensions (currently based on the Consumer Prices Index), subject to certain limits. Since 1 April 2016, you have continued to build up benefits in the USS Retirement Income Builder. From 1 October 2016, if your salary is greater than the salary threshold ( 55,000 for 2016/2017); and/or you choose to take advantage of the match (where you contribute 1% of pensionable salary and your employer contributes an additional 1% of pensionable salary) and/or make additional contributions, you will also build up benefits in the USS Investment Builder. When you take your benefits, these benefits may well be drawn from a combination of the two scheme sections outlined above. Please visit our website for more information about the USS Retirement Income Builder and the USS Investment Builder. About this statement The following pages outline your pension and tax-free cash lump sum as at 31 March If you have any separate deferred benefits these figures are not included in the headline pension and tax-free cash amounts on page two, but are listed separately for reference. Also included is a breakdown of your total pensionable service and your pensionable salary figure. If applicable, a list of any future deductions to be made from your benefits is shown, but those deductions have not been deducted from the headline pension and tax-free cash lump sum amounts on page two. These figures are taken as at 31 March 2016 so do not include any deductions notified to USS after that date. More information about this statement can be found on Review your benefits You should carefully check the information contained in this statement and contact your employer if you believe any of the information in the statement is, or may be, incorrect. Any queries regarding the content of this statement or the final salary section should be directed to your employer s pension contact in the first instance, who is listed below. Please note this statement and the data therein has been provided as guidance only and should not be relied upon by you to make a decision in relation to your USS benefits. We strongly recommend that you speak to an independent financial adviser (IFA) before making a decision or refraining from making a decision in relation to your USS benefits. You can find an IFA through the following website: Please be aware that you may be charged a fee for any advice. Should you have any queries about this statement, in the first instance please get in touch with your employer s USS pensions contact: <Pensions contact, Employing Institutions (18)> 1

2 <Forename> <Surname> <NINO> This statement is based on your service as at 31 March In providing the illustration, we have relied upon information provided to us by your employer(s). Please read the important notes section carefully. Benefits will always be calculated in accordance with USS s trust deed and rules, as amended from time to time. Your benefits - this is the amount of pension and tax-free cash lump sum earned to 31 March < 000,000> < 000,000> Annual pension Lump sum Benefit calculation - this is how we have calculated your benefits. Annual pension - your pensionable service of <XX> years and <XXX> days is divided by the scheme s pre 1 April 2016 accrual rate of 80 and then multiplied by your pensionable salary at 31 March 2016 of < 000,000>. <XX> + <XXX> x < 000,000> = < 000,000> pension a year Lump sum - your standard lump sum is three times the amount of your standard pension. < 000,000> x 3 = < 000,000> lump sum For further information about pensionable service and pensionable salary please refer to the important notes section. Each of these terms is defined in the scheme s trust deed and rules. Pre/Post October 2011 benefits - the figures below show the pre/post October 2011 split in your benefits. Pre-October 2011 pension: < 000,000> Pre-October 2011 lump sum: < 000,000> Post-October 2011 pension: < 000,000> Post-October 2011 lump sum: < 000,000> Benefits you built up before 1 October 2011 are increased differently to those built up from 1 October Please see the important notes section for an explanation of pension increases. 2

3 <Forename> <Surname> <NINO> This statement is based on your service as at 31 March In providing the illustration, we have relied upon information provided to us by your employer(s). Please read the important notes section carefully. Your pensionable service at 31 March 2016 Service accrued in USS: Total transferred-in service: Total pensionable service: <xx> years <xxx> days <xx> years <xxx> days <xx> years <xxx> days Total number of transfers-in: <X> Pensionable salary at 31/03/2016: < 000,000> Date of CPA*: <CPD 1> * This is the date you will reach contractual pension age (CPA) in respect of some/all of your benefits earned up to 30 September Please see the important notes section for an explanation of CPA. Money purchase additional voluntary contributions We note you have made payments to the USS money purchase AVC facility administered by Prudential. Please refer to the important notes section for further details on how to obtain the latest information regarding your benefits. The scheme is governed by a trust deed and rules and if there is any difference between this publication and the trust deed and rules as amended from time to time the latter will prevail. You are advised to check with your employer s USS pensions contact for the latest information regarding your benefits, the scheme, and any changes that may have occurred to its rules and benefits. You should carefully check the information contained in this statement and contact your employer if you believe any information in the statement is, or may be, incorrect. If you believe any information is incorrect you should consult your employer s pension contact in the first instance, who is listed on page one. You will find a list of FAQs to help further explain this statement and the calculation of benefits on our website at 3

4 Important notes Your transfer-in(s) This statement shows the total amount of service secured by transferring benefits into USS from another pension scheme. For further details regarding your transfer(s) please refer to the documentation you received at the point of transfer. Your money purchase AVC Our records show you are, or have, contributed to the USS Money Purchase AVC administered by Prudential. For details regarding your options or fund value please contact Prudential directly by visiting or telephone Further information on money purchase AVCs can be found in the members section of 4

5 Important notes Please note this statement and the data therein has been provided as guidance only and should not be relied upon by you to make a decision in relation to your USS benefits. We strongly recommend that you speak to an independent financial adviser (IFA) before making a decision or refraining from making a decision in relation to your USS benefits. You can find an IFA through the following website: Please be aware that you may be charged a fee for any advice. Contractual pension age (CPA) CPA is only relevant to benefits earned up to 30 September This is where, in the past, your contract(s) of employment and the scheme rules in force up to and including 30 September 2011 may have conferred a right to retire earlier than age 65, the normal pension age for USS. See the normal pension age note below. Should your CPA be earlier than the date you reach age 65 it may be possible to access some or all of your benefits earned up to 30 September 2011 without early retirement reductions from the date of your CPA. Further information on CPA can be found in the retirement factsheet within the for members section of Early and late retirement factors The figures quoted in this statement have not been reduced or increased by early/late retirement factors. Therefore, should you subsequently retire prior to normal pension age the figures quoted may be reduced by the application of early retirement reductions. However, if you were over age 65 at 31 March 2016 late retirement increases will be applied, where applicable, upon retirement from the scheme. Further information on early and late retirement factors can be found in the retirement factsheet within the for members section of Normal pension age The normal pension age for USS purposes is currently 65, although you may be eligible to retire earlier. You may also remain a member beyond age 65. If you retire before 65, early retirement reductions may apply, although this does depend on the reason for retirement. Further information on normal pension age can be found in the retirement factsheet within the for members section of Note: Normal pension age in respect of benefits accrued from 1 October 2011 is currently age 65 and will change in future in line with increases to state pension age. Those members in the scheme who were aged 55 or over on 1 October 2011 were exempt from this change. In addition, other rights earned before that date also remain unchanged. Pension increases Both your pension and tax-free cash lump sum figures will be, where appropriate, increased between 31 March 2016 and the date you retire from the scheme. For service you accrued before 1 October 2011, USS will match the increase in official pensions paid to public sector employees like teachers, civil servants or NHS employees (currently based on the Consumer Prices Index). For service you accrued from 1 October 2011, USS will pay increases which match official pensions for the first 5%; if official pensions increase by more than 5% then USS will pay half of the difference up to a maximum increase of 10%. Pensionable salary Your pensionable salary is calculated in accordance with the scheme s trust deed and rules, as amended from time to time. This is worked out using a formula designed to take into account your salary over the course of your membership, and make adjustments for price inflation. We will determine your salary for each of the 12 months you have been a member of the scheme up to 31 March 2016 (for a maximum of 13 years membership). We will then increase your salary up to 31 March 2016 for each of those 12 month periods, except for the last one, to reflect inflation, using the Retail Prices Index (RPI) measure of inflation. Your pensionable salary is the highest of either: the best inflation adjusted 12 months salary over the last 36 months membership; or the average of your best consecutive inflation adjusted three years salary during the last 13 years. Please note your pensionable salary may be higher than your actual salary due to the application of inflation. Pensionable service Your pensionable service is calculated in accordance with the scheme s trust deed and rules, as amended from time to time. Pensionable service is normally the number of years and days you have worked with one or more USS employers in a pensionable post. This may be adjusted to take into account a number of factors such as the effect of part-time employment, any periods of absence (if USS contributions did not continue), transfer payments from other pension schemes and any added years additional voluntary contributions (AVC) you may have made. <x>

6 Important notes Temporary salary increases If you have been in receipt of a temporary or short term retirement or death, revise the pensionable salary result in accordance with the rules of the scheme as they stood on 31 March selected from: during the last 13 years including the temporary salary allowance; or last 36 months membership excluding the temporary salary allowance. Please note no adjustment has been made to the pensionable salary in this statement to account for any temporary salary increases. Tax allowances relief is restricted by Her Majesty s Revenue & Customs (HMRC). Currently, the two main limits, which apply across all registered pension schemes, are the annual allowance (AA), which limits the tax relief you can receive on pension savings in a single year and the lifetime allowance (LTA), which limits you can build up over the course of your working life. The AA is currently 40,000 a year, however this limit could be less (possibly as low as 10,000) if your taxable income is greater than 110,000 per year. The LTA is currently 1 million. If you exceed these allowances you may be subject to additional tax charges. For more information, please see the pensions tax section located in the for members section of Update your expression of wish form If any of your circumstances change but particularly if you start or end a relationship you should check whether you also want to amend your expression of wish form. You can download a new blank form from the for members section of Your personal details If you move home, get married or divorced, register or dissolve a civil partnership, or change your name, please let between this publication and the trust deed and rules as amended from time to time You are advised to check with your employer s USS pensions You should carefully check the information contained in this statement and contact your employer if you believe any information in the statement is, or may be, incorrect. If you believe any information is incorrect you should consult your employer s pension on our website at <x>