Pensions and tax

Pensions Updates

You will find information on pension and tax changes that may affect your employer pension scheme savings here.  

The information provided is for general guidance only and does not represent financial advice.  

If you are concerned that the changes outlined here may affect you, please consider taking advice from an Independent Financial Advisor ('IFA').  

You can also find some useful links to other resources to help you with your pension choices here.

Universities Pension Scheme ('USS') - Member Guides

Links to USS pension guides for members 

USS produces a number of useful guides for members - the link above will take you to the USS website.  

USS Investment Builder Presentation 19 July 2016

Details from the USS presentation on the new defined contribution section of the scheme. 

On 19 July 2016, USS presented details of the new USS Investment Builder which is the defined contribution section of the scheme and is available to all USS members.  

A copy of the presentation slides can be downloaded at the link below. 

USS Investment Builder Presentation 19 July 2016

Alternatively, USS provided a link to a video presentation of the slides, which can be accessed at this link 

USS Pension Changes

From April 2016 the USS pension scheme will undergo significant changes.  This section will keep you updated with details of how the changes might affect you. 

12 Feb 2016 - Changes to USS pension scheme

Limits to Pension Tax Relief and Benefits

USS Pension Seminars

Information from USS about changes to the Scheme. 

USS gave a presentation on 9 March 2016 about changes to the Scheme coming in April and October 2016.  You can find copies of the presentation here

USS also presented on tax impacts for higher-earning members - USS Higher Earners Presentation 9 March 2016.

USS Fact Sheets on Pensions

Useful short summaries on pensions and tax prepared by USS. 

The USS administrators have prepared a number of fact sheets that give brief overviews of the main scheme changes and the tax rules around pension savings.  We have included them here for ease of reference but you can also find them if you go to the USS webpage. 

USS Mini Fact Sheet Lifetime Allowance

USS Mini Fact Sheet Enhanced Opt Out

USS Mini Fact Sheet Voluntary Salary Cap

USS Mini Fact Sheet Annual Allowance

Pension Tax Update

Tax rules on pension savings are changing from April 2016.  This section will keep you updated. 

The rules on saving into your pension with tax relief are changing from 6 April 2016.  Information to help you understand the changes will be uploaded here.  

12 Feb 2016 - Pension Savings & Tax Update

Useful links to pension advice resources

Deadline for USS Enhanced Opt Out with Fixed Protection

If you want to apply for Enhanced Opt Out, you must take action now. 

The Lifetime Allowance (LTA) will reduce to £1 million from 6 April 2016. Pension scheme members who have already built up enough pension to exceed this Lifetime Allowance (a pension of approx. £43,400 p.a. plus lump sum) may wish to apply to HMRC to take out Fixed Protection 2016 from 6 April 2016. This will protect their benefits up to the existing LTA of £1.25 million. A condition of Fixed Protection 2016 is that all future benefit accrual must cease by 5 April 2016. In order for this to apply pension scheme members will need to take the necessary steps to cease their pension accrual from the required date. In USS, members must have informed USS that they either wish to opt out of USS completely or to take out the Enhanced Opt Out option by Monday 29 February 2016.