Can I buy extra pension years or pay additional contributions with my VSS payment?
Answer
The first £30,000 of your severance payment will be paid free of income tax and national insurance deductions. The remainder of your payment will be subject to income tax.
Should you wish to make a one-off additional payment into your USS pension as part of the VS process, you would need to register this with USS via the ‘MyUSS’ platform, in line with the applicable payroll deadlines in your final month of employment. Additional contributions into your pension are subject to income tax relief.
Please note any additional payment into your USS pension will be applied to your Investment Builder (DC) savings. It is not possible to purchase additional Retirement Income Builder (DB) benefits.
We recommend individuals seek independent financial advice before making any significant financial choices with respect to their pension arrangements, including the HM Revenue & Customs guidance with respect to the annual allowance (AA).