Leaving the scheme. A guide to your options Career Revalued Benefits section

Leaving the scheme A guide to your options Career Revalued Benefits section

About this booklet This booklet explains the options open to you if you have been a member of the Career Revalued Benefits section of USS who has ceased employment in a pensionable post at a USS institution, but are not eligible to draw your benefits or have decided to opt-out of the scheme. Contents Withdrawing from the scheme 4 Leaving the scheme 5 Refund of contributions 6 Deferred benefits your options 7 Deferred benefits your questions answered 9 Transferring your benefits 13 The following symbols appear throughout this booklet to help you. where this appears more information is available in the factsheets or booklets on the USS website at www.uss.co.uk where this appears more information is available on the USS website at www.uss.co.uk where this appears a modeller is available on the USS website at www.uss.co.uk Additional Voluntary Contributions (AVCs) 15 Timing changing your options 16 After you have left employment 17 Definitions 18 where this appears you may need to complete a form please see the back of this booklet. 2

Leaving USS A quick guide to your options. Are you ceasing employment at a USS institution? N Withdrawal Information about withdrawing from the scheme without ceasing employment is on page 4. Y Will you be re-employed within one month at another USS participating institution? N Do you have more than two years qualifying service? N Y Y You have two options on leaving. Institution transfer You will transfer between institutions without leaving the scheme. Ask your pension contact for information. 1. Deferment Receive a deferred pension based on your benefits built up at the point you leave and claim it at retirement. More information on pages 7-12 1. Refund You could have a refund of your contributions More information on page 6 You have three options on leaving. 2. Deferment Receive a deferred pension based on your contributions and claim them at retirement. More information on pages 7-12 3. Transfer You can transfer your benefits to another scheme. More information on page 13 2. Transfer You can transfer your benefits to another scheme. More information on page 13 3

Withdrawing from the scheme You can choose to withdraw from USS at any time by notifying your employer. If you withdraw your options are the same as if you leave the scheme. How do I withdraw? To withdraw from membership, you must give your employer at least 28 days notice. Your last day of membership of the scheme will be the final day of the calendar month in which the 28 days notice expires. Please note: If you decide to withdraw (or do not join USS in the first instance) and later join or rejoin after six months have elapsed you can do so but restrictions may apply to any possible incapacity retirement after rejoining the scheme. For example, you cannot rejoin USS during a period of absence due to illness; and you may not be eligible for incapacity retirement within five years of rejoining if you have a known condition when you rejoin. Withdrawing within three months of joining (retrospective withdrawal) If you decide not to continue in the scheme within three months of joining USS, you should notify your employer as soon as possible of your wish to opt-out of USS. Your employer will refund your USS contributions (not your employer s) through your pay, and adjustments will be made to your national insurance contributions and tax as you will have paid less national insurance and tax while a member of USS. Before you withdraw The scheme provides an excellent range of benefits and you should consider what you would be giving up before you withdraw. Use the Cost of contributions modeller to find out the true cost of membership taking into account the tax relief on your contributions. The scheme also includes valuable life cover benefits like a pension payable if you have to retire early owing to ill health and lump sums payable in the event of your death. If you opt out of USS you will no longer be eligible for this cover. www.uss.co.uk 4

Leaving the scheme When you leave USS you have a number of different options depending upon how long you have been a member. What are my options? Your options will depend on whether or not you have two or more years qualifying service. Qualifying service is used to determine how your benefits are calculated when you leave, but is not used in the actual calculation of the benefits. It includes all of your calendar service in USS counted at its full-time rate, even if some of the service has been part-time. It will also include your calendar service in another pension scheme in respect of which a transfer value has been paid to USS. Any periods of non-contributory absence are not included. If you are unsure about the length of your qualifying service, speak to the pensions contact at your institution. Staying in USS with another employer If you are re-employed within one calendar month by the same or another USS institution and therefore rejoin USS, the absence will not cause a break in your membership of USS (although the duration of the break will not count as a period of pensionable service). In this case, none of the benefits explained in this booklet are relevant. 0 2 years < 2 2 > Less than two years qualifying service You may choose any one of the following: a refund of your own contributions (minus statutory deductions), or a deferred pension and lump sum in USS based on the value of your own contributions to the scheme, or a transfer value based on the benefits you had accrued on leaving. Please note that if you transferred benefits from a personal pension into USS, you will not be able to receive a refund even if your qualifying service including the transfer, is less than two years. Two or more years qualifying service You may choose either: deferred benefits in USS (the total amount of pension built up in the scheme at the point you leave), or a transfer value based on the benefits you had built up on leaving. The following pages explain these options in more detail 5

Refund of contributions If you have less than two years qualifying service, you may be able to take a refund of contributions from USS. 1 2 If I choose a refund of my contributions, how will it be calculated? You will receive a refund of your own contributions to USS minus the following deductions: Your share of the cost of buying back your rights in S2P for the period you have been contracted-out of that scheme while a member of USS. S2P stands for state second pension, which would normally be paid in addition to the basic state pension. As a member of USS you did not pay into this arrangement and as a result you paid lower national insurance contributions. USS has a statutory obligation to reinstate you into S2P when you leave USS and accept a refund of your contributions. 20% tax (50% tax where the taxable amount is in excess of 20,000) payable to HMRC. This sum is not income tax and cannot be reclaimed regardless of whether you currently pay tax or not. Overseas residents are not exempt from this deduction. Please note these deductions are statutory and have to be made in every case. Interest on your contributions is also added to the total refund amount. Please be aware we do not apply tax to the interest and it is therefore your responsibility to inform your local tax office. The contributions paid to the scheme by your employer are not refundable. If you have participated in a salary sacrifice arrangement offered by your employer in respect of your ordinary USS contributions, for the period of any sacrifice, you will not be entitled to a refund of contributions as these will have been paid for you by your employer as part of the salary sacrifice arrangement. The amounts of these deductions will be shown in the statement you receive from USS once your employer notifies us that you have left. 6

Deferred benefits your options The options for deferring your benefits depend on the length of your qualifying service with USS. 0 2 years < 2 2 > Less than two years qualifying service Your benefits will be based on your own contributions to the main section of the scheme, i.e. your contributions less the 0.35% paid to the supplementary section to cover the life assurance benefits you benefited from while a member. These contributions will purchase a deferred pension, together with a deferred lump sum of three times the annual rate of that pension. The amounts will be calculated on the basis of actuarial tables to be paid at age 65 (or earlier in certain circumstances). Two or more years qualifying service If you have two or more years qualifying service and you choose deferred benefits to be paid at normal pension age (NPA) (or earlier in certain circumstances) you will be entitled to: an annual deferred pension equal to 1/80 of your pensionable salary for each year you were a member of the scheme revalued to date of leaving; and a deferred cash lump sum equal to your annual pension x 3. Within broad limits the balance between pension and lump sum may be altered at your request just before the benefits come into payment so you could take more tax-free cash and a smaller pension or vice-versa. Deferred benefits will be subject to pension increases from the date you ceased employment at a USS institution up to the date of payment. Please see example on page 8 and further information about increases on page 9. 7

How does it work? The following example is based on a member with exactly four years service with a salary in year one of 40,000, rising to 45,000 in year four. Pension earned each year Pension calculation Pension for year Banked pension Salary in year 40,000 1/80 x 40,000 500.00 500.00 42,000 1/80 x 42,000 525.00 1,025.00 43,500 1/80 x 43,500 543.75 1,568.75 45,000 1/80 x 45,000 562.50 2,131.25 Total annual pension 2,131.25 So, after four years membership in the Career Revalued Benefits section, the member has built up a pension of 2,131.25 a year. To calculate the final pension, the effect of the increases to official pensions must be added to the figures. We have used example rates below e.g. 2% is represented by 1.02. Increase to pension each year Pension for year Inflation calculation Banked pension 500.00 500.00 x 1 500.00 525.00 ( 500.00 x 1.02) + 525.00 1,035.00 543.75 ( 1,035.00 x 1.03) + 543.75 1,609.80 562.50 ( 1,609.80 x 1.015) + 562.50 2,196.45 Total annual pension 2,196.45 Therefore, the total pension after four years is worth 2,196.45 a year at the date the member leaves. 8

Deferred benefits your questions answered The information in this section will apply regardless of how long you have been a member of the Career Revalued Benefits section of USS at the date you cease employment at a USS institution. How are my deferred benefits increased? Both the pension and the lump sum will be increased between the date you ceased employment and the date your deferred benefits are put into payment. USS will pay increases that match official pensions paid to public sector employees like teachers, civil servants or NHS employees 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%. So, if for example official pensions increased by 15%, the USS increase would be 10%. Increases do not normally apply immediately if your benefits come into payment before you reach age 55. Circumstances in which increases are payable before age 55 include: if you become disabled by physical or mental infirmity after the deferred benefits have come into payment, or if whilst receiving a pension, you have a dependent child who is under 18 or undergoing full-time education up to age 23. Your lump sum on retirement is three times the annual pension coming into payment and is currently increased in the same way. Since April 2011 official pensions as described above are increased in line with the Consumer Prices Index (CPI). USS pensions, including deferred benefits, will continue to increase in line with official pensions, reflecting any changes to the index used but subject to the maximum increases outlined above. To obtain an estimate of what your future benefits may be, please see the Deferred Pension Increase modeller at www.uss.co.uk. You will need either the statement you received on leaving USS or a quotation you may have received from USS since leaving the scheme. Please note that any benefits shown which have been projected to age 65 are estimated and have been calculated using an assumed rate of inflation. www.uss.co.uk 9

1 When can my deferred benefits be paid? Your deferred benefits are normally payable at normal pension age, which is age 65. However, there are circumstances under which they may be paid earlier. Retirement before normal pension age Redundancy The Trustee Company must bring your benefits into payment immediately on request, if after having at least five years qualifying service (transfers-in are included as qualifying service) you left eligible employment at age 55 or over because you were made redundant, or otherwise at the request of your employer in circumstances in which there was no good cause to dismiss you. Additionally, if you were over age 55 when you left the scheme and had less than five years pensionable service (and were not therefore eligible for an early retirement pension), were made redundant and have subsequently been made redundant again, the Trustee Company has the discretion to bring your benefits into payment. However, if the redundancy occurs after 1 October 2014 any pension payable will be reduced for its early payment. Benefits would be reduced as for each year earlier than the normal pension age and part year. 2 Benefits transferred to USS The benefits granted will be payable in full from the normal pension age applicable when you transferred. If you draw these benefits early, except in the case of incapacity retirement, the benefits in respect of the transfer-in will be reduced for the years and days earlier than age 65. Incapacity You may receive early payment of your benefits immediately, without reduction, if the Trustee Company determines you are suffering from total incapacity that would have led to your retirement on those grounds had you remained in USS. Please see the Incapacity retirement (deferred members) factsheet at www.uss.co.uk All other circumstances If you want to retire early for any other reason, before the scheme s normal pension age you may do so at the discretion of the Trustee Company providing you have at least two years qualifying service in the scheme. If you do retire early your benefits will be reduced for early payment for each year and part-year earlier than normal pension age. Early retirement reductions are currently approximately 4% for each year. If you have a deferred pension based on your contributions only (having less than two years service on leaving), the earliest you can draw this pension is age 65. 10

What happens if I die before my deferred benefits have come into payment? If you die before your deferred pension becomes payable, a tax-free lump sum equal to the value of your deferred lump sum plus increases to the date of your death is payable. The Trustee Company has discretion to decide to whom the lump sum is payable. You are strongly advised to nominate your beneficiary/ies using an Expression of Wish form. A copy can be found at the back of this booklet or on the USS website at www.uss.co.uk In addition to this lump sum a pension may be payable to your spouse, civil partner or dependant equal to 50% of the amount of your deferred pension at the date of your death. Additional pensions may be payable to any eligible children at the date of your death up to a maximum of 75% of the amount of your deferred pension at the date of death for two or more children (half this amount for one child). What happens if I die after my deferred benefits have come into payment? If you die after your deferred benefits have come into payment, pensions may be payable: to your surviving spouse or civil partner equivalent to half your standard pension on retirement plus pensions increases to date of death; or to a dependant if you are not married at the time of your death, and for two or more eligible children at the rate of 75% of your standard pension on retirement plus pension increases from the date you left the scheme shared between them (half this amount for one child). A lump sum benefit is not payable. Can I nominate someone to receive the lump sum or a dependant s pension payable after my death? USS strongly recommends that you indicate your wishes regarding the recipient of any lump sum benefit payable on your death (who may be relatives, dependants, your personal representatives or nominated beneficiaries) by completing an Expression of Wish form. This is especially important if you are unmarried, divorced or legally separated or if you have someone who is dependent on you. A copy of the Expression of Wish form can be found at the back of this booklet or on the USS website at www.uss.co.uk Although an Expression of Wish is not legally binding on the Trustee Company, it will be an important factor that will be considered carefully before deciding to whom the lump sum shall be paid. The lump sum benefit payable on your death is paid at the discretion of the Trustee Company and therefore under current legislation is not subject to Inheritance Tax. If you are not married or do not have a civil partner when you die, you may nominate a dependant to receive again at the Trustee Company s discretion a pension. This person would have to show financial dependency on you at the time of your death. If you wish to do this, you should complete a Registration of potential dependant form. A copy of the Registration of potential dependant form can be found at the back of this booklet or on the USS website at www.uss.co.uk. 11

When my deferred benefits are put into payment, will they be taxable? Your pension will be subject to tax under the HM Revenue & Customs (HMRC) PAYE system. If a surviving spouse s pension, civil partner s pension, dependants pension or children s annuities are payable, they too will be subject to tax under PAYE. If you permanently reside abroad your USS pension may be exempt from the UK tax. Tax-free lump sums are tax free at the point of payment. Are there any limits to tax-privileged pensions and lump sums? HMRC sets a limit on the maximum amount of benefit you can build up in a single year, called the Annual Allowance. There are also limits on the maximum value of your benefits at retirement, called the Lifetime Allowance and a limit to the amount of tax-free cash you can take at retirement. The Annual Allowance The Annual Allowance is currently a capital value of 50,000 a year, reducing to 40,000 from April 2014. The increase in value of your pension from 1 April to 31 March each year is calculated and converted to a capital value, using a multiple of 19 set by HMRC. The value of your pension at the start of the year is increased in line with the rise in the Consumer Prices Index as part of the calculation. You then add to this any contributions you have paid into what s called a Money Purchase scheme or another scheme. If the capital value is over the 50,000 Annual Allowance, then a tax charge is applied. To calculate the charge you add the amount of your excess pension to the amount of income on which you actually pay tax. The amount of pension saving: below your higher rate limit will be taxed at 20% over your higher rate limit will be taxed at 40% over your additional higher rate tax band will be taxed at 50% It is up to you to report to HMRC if you think you have exceeded the limit. Your USS benefits are measured over what is termed a pension input period. For USS this is 1 April to 31 March each year. If you do exceed the limit in one year, you are able to use any amount of unused Annual Allowance from up to the previous three years, meaning in most cases this limit only affects members with higher than average salaries and a lot of service in the scheme. The Lifetime Allowance The Lifetime Allowance is currently 1.5 million (reducing to 1.25 million from April 2014). To exceed 1.5 million you would need to have built up a pension in USS of just over 65,000 a year. Once my deferred benefits are put into payment, will I be able to rejoin USS if I am offered further employment? There is no restriction in the rules of USS to prevent you obtaining any kind of employment following retirement as long as your pensionable employment has ceased. If, however, after you have retired you are subsequently offered new employment, your employer may have a duty to enrol you into a pension scheme. You will need to seek advice from your employer as to your eligibility and whether you are able to rejoin USS. Further information on auto-enrolment can be found on the USS website at www.uss.co.uk 12

Transferring your benefits You may be able to transfer the value of your benefits in USS to another pension scheme or insurance policy after you have left the scheme. If I choose to transfer the value of my benefits in USS, what will be the amount transferred? The amount of your transfer value will be the actuarial value at the date of calculation of your deferred benefits, and will be based on the pension you have accrued. If you would like a quotation, please complete the form included with your deferred benefit statement. Alternatively, you should ask the person responsible for pensions at your institution to obtain a quotation for you from USS. You will be advised by USS of the amount of the transfer value which can be made available for payment to: your new employer s approved pension scheme, or a personal pension, or an insurance company to purchase one or more buy-out policies. If you wish to use your transfer value to purchase one or more buy-out policies, then neither USS or your institution can advise you about which particular company or policy to choose. You are advised to obtain quotations from at least three insurance companies and to compare very carefully the benefits under each proposal with the deferred benefits available in USS before deciding to use your transfer value to purchase a buy-out policy. If necessary you should seek independent advice from a registered independent financial adviser. There are a number of websites that may help you locate a suitable adviser in your area. There is a list of financial advisers on the USS website at www.uss.co.uk A transfer value can be paid up to twelve months before the normal pension age, even if you choose deferred benefits initially and later change your mind, provided your new scheme will accept the transfer. Can I have the transfer value of my accrued benefits in USS paid to my new employer if I go to work abroad? This will depend on whether the scheme in the overseas country is willing and able to accept a transfer from the UK, and also if the tax authorities in that country are willing for a transfer to be made. Therefore, your first step should be to ensure this is possible and to check whether the tax authorities in that country make any tax charge to the incoming transfer. In addition, HM Revenue & Customs (HMRC) in the UK have requirements, which state that a transfer value can be paid only to a qualifying recognised overseas pension scheme (QROPS). In order to be considered as a QROPS, a scheme must first meet the requirements of an overseas pension scheme and the criteria for being a recognised overseas pension scheme set out by HMRC. HMRC is responsible for testing whether a scheme meets these conditions. 13

The scheme in the overseas country needs to register with HMRC to see if they can be recognised as a QROPS. You can check to see if the scheme you want to transfer to has already registered with HMRC by visiting the pension scheme section of the HMRC website. If the scheme has not registered, it will be necessary for an application to be made to HMRC. The address for correspondence is: HM Revenue & Customs, Audit and Pension Scheme Service, Yorke House, Castle Meadow Road, Nottingham NG2 1BG. If for whatever reason the scheme does not register as a QROPS, then the transfer of your benefits cannot take place. There is no time limit in the UK for making a transfer (although normally they cannot be made after age 64), but you should check whether there are any time limits applicable in the overseas country or applied by the scheme you are transferring to. If you wish to consider a transfer from USS you should contact the new pension scheme initially and they should then contact USS directly to obtain a transfer quotation. What will I get in return for the payment of the transfer value of my accrued benefits in USS? The administrators of your new scheme will calculate the benefits you will receive in exchange for your transfer value. You should weigh carefully the relative values of your deferred benefits in USS against the benefits you will be entitled to in your new scheme before deciding to request that a transfer value be paid to your new scheme. The transfer payment is worked out by converting the value of your USS pension to a current cash equivalent using factors based on your age and gender. The calculation accounts for fluctuations in the stock market but includes no allowance for discretionary benefits. Any AVCs paid into the Money Purchase AVC fund would also be transferred at their value at the time of transfer. If the transfer value is to be paid to an insurance company to purchase a buy-out policy, or to a personal pension, only the company you choose can provide you with an estimate of what benefits you can expect. This will depend largely on amount of the transfer value, the rate of return on the investment of the transfer value and the annuity rates current at the time the benefits become payable. It is vital that you obtain the fullest information and a realistic assessment of the likely benefits from the insurance company you choose before committing yourself. If necessary you should seek financial advice from a registered independent financial adviser. There are a number of websites that may help you locate a suitable adviser in your area. There is also a list of financial advisers on the USS website at www.uss.co.uk 14

Additional Voluntary Contributions (AVCs) If you made AVCs in the scheme, your options on leaving depend on your length of service. What if I have been paying AVCs? If you have been paying AVCs to the USS Revalued Benefits AVC facility and, on leaving employment at a USS institution, you have chosen: a refund of your contributions you will also receive a refund of any Revalued Benefits AVCs you have paid plus compound interest less 20% tax (50% tax where the taxable amount is in excess of 20,000). to have the transfer value of your deferred benefits paid to another approved pension arrangement the extra pension secured by your AVCs up to the date you ceased employment will be included in the calculation of your transfer value. deferred benefits (based on less than two years qualifying service) the total contributions on which your deferred benefits are calculated will include the AVCs you have paid up to the date you left employment. deferred benefits (based on two or more years qualifying service) a proportion of the extra pension you had originally undertaken to purchase, calculated at the date you left employment, will be used in the benefit calculation. Contributions to the USS Money Purchase AVC fund USS will notify Prudential that you have left the scheme and will advise them of the benefit option you have chosen. 15

Timing changing your options After you have left the scheme, in certain circumstances it may be possible to change your options. See below for details when this might apply. Can I change my mind once I have made a choice? If you have applied for a refund of your contributions and change your mind You must notify USS in writing before any payment has been made to you. You cannot change your mind once you have received your refund. If you have chosen deferred benefits You may ask for the transfer value of your deferred benefits to be paid to another scheme, or to an insurance company to purchase a buy-out policy, at any time up to twelve months before your 65th birthday (before your deferred benefits are due to be paid). You cannot change your mind once a transfer value has been paid. Opting-out within three months of joining (retrospective withdrawal) If within the first three months of joining USS, you decide not to continue in the scheme, you should notify your employer as soon as possible. In this case your employer will refund your contributions to USS (not your employer s) through your pay. Your employer will need to make adjustments to your national insurance contributions and tax as you will have paid less national insurance and tax whilst a member of USS. 16

After you have left employment This section explains your options if you leave the scheme and are no longer employed by a USS instution. Can I continue in membership of USS after I have ceased employment in a USS institution? You may contribute to USS only if you are employed at a USS institution in a pensionable post eligible for membership of USS. You may be able to remain in membership of the scheme for a period during which you are seconded to another employer. You can obtain information about this from the pensions contact at your institution. What if, after leaving, I again become employed by an institution which provides USS membership? You may rejoin a USS institution in the future. If you rejoin USS the pension you build up under your next period of membership will be added to the pension you have already built up in the scheme when you retire. If you chose to withdraw or not join USS when you first had the opportunity and after six months join or rejoin Restrictions apply to any possible retirement on the grounds of incapacity following rejoining the scheme. You cannot rejoin whilst in a period of absence due to illness and you may not be eligible for retirement on the grounds of incapacity within five years of rejoining for a known condition at the time of your rejoining. 17

Definitions Buy-out policy is an insurance policy or annuity contract purchased from an insurance company approved for the purpose, with the transfer value of your benefits in USS if you exercised your statutory right to purchase such a policy or contract under the Social Security Pensions Act 1975 (as amended). Dependant is in relation to any member (including a former member) a person (whether or not a relative) who in the opinion of the Trustee Company is, whether wholly or in part, at the time of the member s death either financially dependent on the member or dependent on the member because of any physical or mental disability. Eligible child (born or unborn) who is your lawful or adopted child or your dependent natural child or stepchild or accepted by you as a member of the family (but also dependent) or is a dependent lawful, natural or legally adopted child of a surviving civil partner and is: under the age of 18, or Guaranteed Minimum Pension (GMP) is the amount the Social Security Pensions Act 1975 requires to be paid to the retired members of occupational pension schemes which are contracted out of the state second pension. Normal pension age is the earliest age at which you can draw your benefits without reduction. NPA is currently 65 and will increase in line with state pension age in future. Qualifying service is normally the calendar period you have been a member of the scheme counted at its full-time rate regardless of any part-time service. It will include any period of contributory absence and your calendar service in another pension in respect of which a transfer value has been paid to USS. It will not include any non-contributory absence. Standard pension is the pension payable at retirement before any adjustments have been made to take more or less tax-free cash in exchange for pension. over the age of 18, but unable, owing to ill-health, to be in full-time education or self-supporting, or over age 18 but under age 23 and in full-time education or training approved by the Trustee Company. 18

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Please tear along the perforated line For USS use only: Joiner / EoW Expression of Wish Member details National insurance number Surname Initials Title Institution details Full name of employing institution Beneficiary or Beneficiaries Name Address Relationship to member Proportion % Name Relationship to member Proportion % Address Name Relationship to member Proportion % Address Alternative wishes If the above (or any of them) predecease me, I wish the Trustee Company to consider the following: Please sign overleaf, have the form witnessed and send it direct to Universities Superannuation Scheme Ltd, Royal Liver Building, Liverpool, L3 1PY

Data protection Declaration by member Witnessed by Definitions Universities Superannuation Scheme Ltd (the Trustee Company) takes its obligations under the Data Protection Act 1998 seriously and has appropriate procedures in place to ensure that your rights under that Act are protected. The information provided on this form will be used by the Trustee Company for the purpose of administering your pension e.g. calculating the benefits due from USS. In the course of processing the information for this purpose, the Trustee Company may disclose your personal data to legal advisers it has appointed. By completing this form and submitting it to the Trustee Company you consent to the use of your personal data for the purposes set out above. I wish the persons named overleaf to be considered as possible recipients of any lump sum from USS payable on my death at the discretion of the Trustee Company under the scheme s discretionary trusts (see below) and (where more than one person is named by me overleaf) in the proportions indicated. The person(s) named overleaf will also be considered as possible recipients of any fund value payable in respect of Money Purchase Additional Voluntary Contributions (MPAVC) paid under the scheme s rules, unless I have made a specific direction in writing in respect of my MPAVC, in which case I understand that the MPAVC fund payable is likely to be subject to inheritance tax. I confirm that I understand that, under USS rules, the Trustee Company can take this expression of wish into account when deciding how to exercise its discretionary powers, but is not legally bound to do so. This supersedes any previous expression of wish signed by me. Member s signature Date Witnessed by (the witness must not be one of the named beneficiaries) Name Address Witness s signature Date DISCRETIONARY TRUSTS means, in relation to any sum directed to be held on such trusts in respect of a deceased individual, the trusts, powers and provisions set out below: (a) the Trustee Company may pay or apply the whole or any part of that sum to or for the benefit of all or any of the relatives, dependants, personal representatives or nominated beneficiaries of the deceased individual in such shares and proportions as the trustee company may decide; (b) if the deceased leaves no relative or dependant, the Trustee Company may elect to retain all or any part of the sum in the fund; (c) the Trustee Company may declare in respect of the sum or any part of it such separate trusts, terms and limitations (including for maintenance, education, advancement and accumulation of income during a minority) as the Trustee Company may by deed appoint without infringing the rule against perpetuities; the Trustee Company may appoint as trustees of such trusts any 2 or more persons or a trust corporation and may provide for the remuneration of any such trustee; (d) to the extent that the Trustee Company does not exercise the powers under paragraphs (a) and (c) within 2 years of the death of the individual, the Trustee Company shall hold that sum outside the fund upon trust for the personal representatives of that individual or, if there are none, the statutory next of kin of that individual; and (e) the Trustee Company may have regard to any document signed by the individual expressing wishes as to the disposal to or for the benefit of nominated beneficiaries of any sum to be held upon the discretionary trusts. DEPENDANT means, in relation to a person, an individual (whether or not a relative) who in the opinion of the Trustee Company is at the time of the death of that person wholly or partly either: (a) financially dependent on that person; or (b) dependent on that person because of any physical or mental disability. RELATIVE means, in respect of a deceased member, former member or ex-spouse, any living individual who is: (a) the surviving spouse or civil partner; (b) a lawful, natural or adoptive parent or the surviving spouse or civil partner of such parent; (c) a lawful, natural or adoptive child, or remoter issue, of such parent, or the spouse or civil partner, or surviving spouse or civil partner, of any such person; or (d) a former spouse or civil partner NOTE If you do not leave a spouse or civil partner but do have a dependant, you may wish to indicate to the Trustee Company your wishes relating to any pension which may become payable after your death. If so, you should complete a Dependant Registration form available from this pack or the USS website www.uss.co.uk 02/14

Please tear along the perforated line For USS use only: Guide/ Dep Reg Registration of potential dependant Please complete this form using BLOCK CAPITALS Member details National insurance number Surname Initials Title Institution details Full name of employing institution Dependant details Dependant means in relation to any member (including former member) a person (whether or not a relative) who in the opinion of the Trustee Company is, whether wholly or in part, at the time of the member s death either financially dependent on the member or dependent on the member because of any physical or mental disability. You do not need to register a child on this form who would be eligible to receive an annuity in their own right under the rules of USS. You do not need to complete this form in respect of your husband or wife. Name Relationship to member Nature of dependency Address Data protection Universities Superannuation Scheme Ltd (the Trustee Company) takes its obligations under the Data Protection Act 1998 seriously and has appropriate procedures in place to ensure that your rights under that Act are protected. The information provided on this form will be used by the Trustee Company for the purpose of administering your pension e.g. calculating the benefits due from USS. In the course of processing the information for this purpose, the Trustee Company may disclose your personal data to legal advisers it has appointed. By completing this form and submitting it to the Trustee Company you consent to the use of your personal data for the purposes set out above. Declaration by member To Universities Superannuation Scheme Ltd: Completion of this form does not commit the Trustee Company to pay a pension as that decision can only be made based on circumstances at the time of death. Member s signature Date Please sign this form and send it direct to Universities Superannuation Scheme Ltd, Royal Liver Building, Liverpool, L3 1PY 02/14

Contact us If you have any queries about your benefits before leaving employment at a USS institution, then you should send them to the person responsible for pensions at your institution. After you have left employment, write to the address below for further information about your USS benefits: Write: Universities Superannuation Scheme Limited Royal Liver Building Liverpool L3 1PY Tel: 0151 227 4711 Tel: (local rate) 0845 068 1110 Fax: 0151 236 3173 Web: www.uss.co.uk Designed by Anthony Hodges Consulting Limited 2014_3744_Leaver Career Revalued Benefit section_02/14 A large print version of this booklet and enclosed forms is available. To obtain a copy please contact USS. This publication is for general guidance only. It is not a legal document and does not explain all situations or eventualities. USS is governed by a trust deed and rules and if there is any difference between this publication and the trust deed and rules the latter prevail. Every effort has been made to present accurate information at the date of publication and members are advised to check with their employer contact for latest information regarding the scheme, and any changes that may have occurred to its rules and benefits.