1. 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 members Eifion Morris APMI

2. Agenda 1 How much will your pension be? 2 Getting more out of USS 3 Transfers in to USS 4 Bereavement benefits 5 When can I stop working? 6 Scheme valuation 7 Questions?

3. How much will your pension be?

4. The basics

5. The calculation Each year your pension & tax-free cash are calculated and ‘banked’

6. Example We now need to add increases ‘revaluation’

7. What does ‘Revalued’ mean? Pension calculated each year & ‘banked’Increases applied to pension earned

8. Example Tax-free cash of 3 X pension in addition

10. Getting more out of USS

11. Put more in to get more out Revalued Benefits AVC 15% maximum £Tax reliefCertaintyTax-free cashLong-term saving Money purchase Up to £40,000 paTax reliefFlexibilityTax-free cashLong-term saving

12. Help from the tax man £100 from net pay Pay £125 Invest £125 (returns dependent on investment) Retire

13. Help from the tax man £100 from net pay Pay £166 Invest £166 (returns dependent on investment) Retire

14. Tax allowances Annual Allowance £40,000 pa 1 year of service X salary of £168,420.00 pa Plus Money Purchase AVC contributions Lifetime Allowance £1.25 million Pension of £54,347 pa

15. Tax allowances

16. Added years modeller

17. Money Purchase AVC calculator www.pru.co.uk/uss

18. How to pay AVCs Use modeller on www.uss.co.uk Contact Pensions Office Revalued Benefits Contact Prudential directly Telephone consultation 0800 2346913 Money Purchase

19. Transferring benefits in to USS

20. Transfers in to USS Transfer previous benefits to USSBeneficial Club transfers Two year time limit on transfers from the Public Sector Treated as ‘Final Salary’ benefits Transfer request form – www.uss.co.uk

21. Bereavement benefits

22. Benefits for your dependants Life assurance of 3 x salaryIncome protection Spouse/dependant/civil partner Children Update your beneficiary details Death benefit nomination form (3 x salary) Registration of financial dependant form (dependant’s pension)

23. Dependant’s pension – how much? Pension earned in last 12 months Multiplied by years until age 65 Add to pension already earned Then, it’s a % of that figure

24. Dependant’s pensions Spouse/Civil Partner 50% of projected pension Children 2 or more children 75% of projected pension 1 child 37.5% of projected pension

25. When can you stop working?

26. Normal retirement Retirement at the Normal Pension Age applicable No ‘early retirement’ reductions NPA to increase in line with State Pension Ages 1 October 202066 67 by 2036 68 by 2046 Retirement before NPA will be classed as early retirement but only in respect of service after any increase

27. Future increases to NPA - 66 100% 65 100% 96% 65 October 2020 NPA increases to 66

28. Early retirement Reductions apply for each year earlier than Normal Pension Age Own choice Until 1 October 2014 no reductions apply Redundancy Take some of your pension and keep working, reductions may apply Flexible retirement Income if your ability to work is limited by ill-health Incapacity retirement

29. Varying pension and cash less cash and higher pension More 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

30. Scheme Valuation 2014

31. 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?

32. What next?

33. Pensions office contacts Prudential www.pru.co.uk/uss 0800 234 6913 www.pru.co.uk/uss USS www.uss.co.uk Pensions TV www.uss.co.uk

34. Your questions

35. Benefits on leaving More than 2 years service? Pension earned to leaving date 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

36. 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? Re-link to earlier membership and add to deferred pension