The cost of providing pensions has reduced, therefore, the overall contribution has reduced to 20.6%. Both member and employer contributions have reduced.

The factors have been reviewed as part of the 2023 actuarial valuation and the early retirement factors will increase from April 2024. These apply to any pension that is drawn before the normal pension age, regardless of when the pension was earned.

The higher salary threshold means that from April 2024, all members will build up a larger amount of defined benefit pension income. However, less contributions will be credited to the Investment Builder (defined contribution) section of the scheme.

You will be able to access all of your Investment Builder contributions and the investment breakdown in your My USS account. There are no broker fees and the management charges are covered by the employer for active members, excluding funds transferred in. Your Annual Statement will show the level of Defined Benefit pension built up. This is not based on the contributions paid in, but on your salary, and the length of membership.

Imperial pays 14.5% on all of your pay to USS, as part of the employer contribution. This can be seen in the bottom right hand side of the monthly payslip under the ‘balance’ heading.

USS will provide a maximum of two retirement estimates per year but no more than seven months in advance of your retirement date.  Earlier than that the retirement calculator will provide a reasonable estimate.

The maximum contribution Imperial will make is the 14.% employer contribution.

All USS members have the option to make Additional Voluntary Contributions (AVCs) to the Investment Builder section of the scheme at 1% of pensionable salary, or more. 

You can pay Additional Voluntary Contributions (AVC's) by logging into your My USS account here.

No, the valuation has not changed the old style added year AVC’s and these were stopped for new members from 2016.

Only if you take a taxed lump sum from a DC pension pot. More information can be found here.

It increased to £60,000 from the 2023/24 tax year.

The Lifetime Allowance (LTA) will be abolished in April 2024. In April 2023, the budget changes meant that no LTA recovery charge applied for pension pots that exceeded the LTA in place at the time of £1.073m.

Pension payments are taxable as they are income. These payments will be taxed at source by USS.

As long as you have paid your National Insurance Contributions for long enough, you will also receive a state pension in addition. You can check your state pension entitlement here.

Yes, you can draw from this fund once you have reached minimum pension age, which is currently 55. More information can be found here. 

Please visit our pages on Approaching Retirement and Retirement Options for further information.

When you join USS, you will automatically qualify for life cover equal to three times your salary, so long as you remain an active member paying into USS. In the event of your death, this is paid tax-free to your beneficiaries as nominated by you. You can check your ‘My USS’ account for further information directly related to you and your pension. 

Further information on what happens if you die after leaving can be found here.

The lump sum payment on death is three times annual salary at the time of death. This is based on the whole annual salary, regardless of the threshold.

In retirement you receive a pension from the USS Income Builder portion only.  The USS Investment Builder cannot be used to provide a pension within USS. After death 50% of your USS Income Builder pension passes to a spouse or civil partner.  More information can be found here.

No, the threshold operates on your actual salary (whether someone is full time or part time). The threshold is currently £41,004.

This is personal choice for someone to consider, and seeking financial advice is recommended.

All salary sacrifice schemes are tax efficient schemes where you can exchange salary in return for a benefit. In the case of PensionSMART you exchange salary in return for Imperial paying the employee contributions, in addition to the employer contribution. The benefits of this is that as you receive a lower salary you pay less National Insurance Contributions (NIC’s). Imperial also pay lower employer NIC’s.

If you pay using PensionSmart which is salary sacrifice you would not be able to have a refund of your own contributions should you leave before two years membership.  If you do not contribute through salary sacrifice you can have a refund if you leave before two years.

No, they have received a lower salary, however, they have a pension in USS. If the method of contributing is not salary sacrifice, then a refund of contributions can only be paid if the membership is under two years.

This will depend on the tax amounts set locally within the country in question.

Please see information here on your options after leaving.