UoDSS newsletter 2026

Letter from the Chair of Trustees

Dear Member,

Welcome to the sixth edition of our Trustee Newsletter which we hope you will find interesting and informative.

We are pleased to report that the Scheme’s funding level has improved significantly over the last Scheme year. The main reason for the improvement is due to a change in market conditions leading to higher gilt yields and lower expectations of future inflation, the past deficit repair contributions which are being paid by the University to the Scheme and the contribution towards future benefits which are being paid by the Employee members and the University.

More details on the Scheme’s funding position (including information we are obliged to include as a result of current legislation) is included in the Scheme’s Summary Funding Statement section of the Newsletter.

Retirement of Pensions Manager

I would just like to take this opportunity to thank Marion Imrie who recently retired from her Pensions Manager role at the University following over 35 years of service. Marion played a key role in supporting the retirement process for members and the Scheme’s secretarial duties over the years. I am sure you will join me in wishing Marion a long and happy retirement.

My Pocket Pensions

As you will see later in the newsletter, we have included some information about the My Pocket Pensions app which allows members to access their Scheme pensions information more easily and quickly. We recommend using this app for that reason and you can find more details under My Pocket Pensions section.

Current issues

We have included a number of articles on current pensions issues that we hope will be of interest to you. These are:

• upcoming changes to the minimum age at which you can access your pension benefits;
• details of how you can obtain information on your State Pension; and
• details of changes to the UK’s pension taxation rules, including Inheritance Tax

We welcome any questions or feedback you have, either on this newsletter or any aspect of the Scheme. Please do let us have your views on this newsletter using the contact details below.

Yours faithfully

Keith Swinley 
Chair of the Trustees of the University of Dundee Superannuation and Life Assurance Scheme April 2026

Changes to the Trustee Board

Since our last Newsletter, there have been some changes to the Trustee Board. Both Peter Hewitt and Fiona Woodward have stood down as Member Nominated Trustee Directors. Peter served as a Trustee Director for 3 years while Fiona served for 10 years. I would like to take this opportunity on behalf of the Trustee Directors to thank both Peter and Fiona for their service to the Scheme.

The Scheme has two vacancies for a Member Nominated Trustee Director. If you wish to become a Member Nominated Trustee Director or would like any further information on the role, please contact Spence.

Your Trustees and Advisers

The Scheme is managed by its Trustee; a company called the University of Dundee Superannuation Scheme Trustees Limited. This company currently has nine directors. Four directors are nominated by the University of Dundee and four are elected by Scheme members and one being an independent professional Trustee Director.

Current directors

Employer nominated:

• Keith Swinley (Chair of Trustee)
• Martin Glover
• Richard Parsons
• Louise Stanley

Member nominated:

• David Ritchie
• James Rourke

Independent:

• Allan Martin

Current advisors

• Alan Collins - Scheme Actuary
• Pinsent Masons LLP - Legal Advisers
• Spence & Partners - Administrators, Actuarial and Investment Advisers
• BDO LLP - Independent Auditor

Investment managers

• Aberdeen Standard Investments Limited - (Transfer agent:Brown Brothers Harriman)
• Partners Group (UK) Ltd
• Legal &General Investment Management Limited

Investment update

Up to the Scheme’s year-end July 31, 2025, global investment markets had demonstrated remarkable resilience, navigating geopolitical tensions, trade tariff volatility, and mounting "Artificial Intelligence (AI) bubble" concerns to deliver solid gains.

Most equity markets gave double digit returns over the year. One of the standout markets was the UK equity market returning around 12%, driven by gains in financials, energy and mining stocks.

Other growth assets generally gave positive returns with UK property beginning to stabilise as the Bank of England reduced interest rates.

Global listed infrastructure returned around 7%, supported by ongoing interest in AI-focused technologies and an increasing demand for datacentres, and increasing sentiment towards US infrastructure investment.

The various global government bond markets gave mixed performance depending on the length of the bonds and jurisdiction. In the UK gilts performed negatively due to economic uncertainty including concerns around how the UK Chancellor would look to fund the increasing UK budget deficit.

Investment grade bonds and high yield bonds performed positively as the yield in excess of the relevant government bond yield (yield spread) narrowed due to strong corporate earnings.

Benefit statements

Your latest Benefit Statement will be posted to your home address however, these will also be made available to you online via the My Pocket Pensions app. For further details on how to register for the app see My Pocket Pension section.

Pensions dashboard

The government has laid regulations to implement an approach to delivery of pensions dashboards and the Trustee are pleased to confirm that the Scheme has now connected with the Pension Dashboards programme. This is aimed to transform how savers access facts and figures about their pensions, allowing people to see what they have in their various pensions – including their State Pension – in a single place online, at any time they choose.

For more information on dashboards, a good source of information is the pension dashboards programme site.

For information on the Scheme and your benefits in it, you should continue to contact us at [email protected].

Summary Funding Statement

Update as at 31 July 2025

As a member of the University of Dundee Superannuation & Life Assurance Scheme (“the Scheme”) you are entitled to receive an update of the Scheme’s funding level. Legislation requires that this information is made available to all Scheme members following completion of each Actuarial Valuation or following each Annual Funding Update.

No action is needed from you. This statement is for your information only and is provided to help you understand the way in which the Scheme’s financial position is assessed. Should you wish to obtain more information or copies of the Scheme documents, you can contact us and we will be pleased to assist. Contact details are given at the end of this statement.

How does the Scheme operate?

The Scheme is intended to provide members and their dependants with pensions and lump sums when they retire or die. The University of Dundee and the Dundee University Students’ Association (“the Employers”) contribute to the Scheme, and their contributions together with any contributions the members made are invested. These contributions together with the investment returns are used to pay for members’ benefits. This money is held in a common fund, which means that there are no separate funds for each individual.

How is the financial security of the Scheme assessed?

An in-depth assessment of the Scheme’s financial situation is carried out at least every three years in a process known as an Actuarial Valuation. The most recent Actuarial Valuation was carried out as at 31 July 2023. The Actuarial Valuation is carried out by a qualified, independent professional known as the Scheme Actuary.

The Scheme Actuary also carries out annual checks on the financial security of the Scheme between full Actuarial Valuations, known as Annual Funding Updates. The results of these checks are shown in the Actuarial Report for the Scheme. The most recent Annual Funding Update was carried out as at 31 July 2025, and the results of that update alongside the funding update as at 31 July 2024 are also shown in this statement.

The approach adopted for the Actuarial Valuation is agreed with the Employers and is set out in a document known as the Statement of Funding Principles (“the SFP”).

The purpose of the Actuarial Valuation is to compare the Scheme’s liabilities to the Scheme’s assets on an ongoing basis.

• If the value of the assets is less than the value of the liabilities, the Scheme is said to have a “shortfall”.
• If the value of the assets is more than the value of the liabilities, the Scheme is said to have a “surplus”.

The Scheme’s funding level is expressed as the percentage of the Scheme’s assets relative to the value of the Scheme’s liabilities.

The Actuarial Valuation also compares the Scheme’s liabilities on a solvency basis to the value of the Scheme’s assets.

The main purpose of the Annual Funding Update is to show an approximate update on the progress of the Scheme’s ongoing funding level since the Actuarial Valuation.

Jargon Buster

Scheme liabilities are the estimated cost of providing benefits for all members included in the Scheme.

Scheme assets are the funds built up from monies invested, together with returns on the Scheme’s investments.

The Ongoing basis for an Actuarial Valuation assumes that the Scheme will continue in the future and has no plans to wind up.

The Solvency basis for an Actuarial Valuation estimates the amount needed to fully secure all benefits built up to date from an insurance company if the Employers decided to wind up the Scheme.

Ongoing funding position

An Annual Funding Update was carried out as at 31 July 2025 and the results of this update together with those at 31 July 2024 are shown below. The results of the Actuarial Valuation as at 31 July 2023 are shown below for comparative purposes.

Change in funding level since the Annual Funding

The funding level of the Scheme as at 31 July 2025 is significantly better than as at both 31 July 2023 and 31 July 2024. The main reasons for this improvement are as follows:

Deficit repair contributions which were paid by the Employers over the period.

The change in market conditions. Higher gilt yields and lower expectations of future inflation as at 31 July 2025 both contributed to a reduction in the value of the Scheme’s liabilities.

The contributions paid over the period in respect of the future accrual benefits were higher than the future service contribution rate calculated for the 31 July 2023 valuation.

The Trustees of the Scheme (“the Trustees”) and the Employers will continue to monitor the funding level on a regular basis in order to ensure that the Scheme’s funding remains on track over the long-term.

Eliminating the Shortfall

The Actuarial Valuation as at 31 July 2023 showed a shortfall and so a recovery plan was agreed to eliminate the shortfall with deficit reduction contributions of around £3.7m a year. Based on the agreed Recovery Plan, the Trustees estimate that the shortfall will be cleared by 31 July 2029.

The Employers also make contributions towards the cost of future benefits and the costs of administering the Scheme including the payment of levies.

Details of the contributions payable into the Scheme and details of how expenses are paid is contained in a document called the Schedule of Contributions. We can provide a copy if requested.

How are the Scheme’s assets invested?

The Trustee’s policy is to invest in a wide range of assets. The Scheme’s asset allocation as at 31 July 2024 is shown in the diagram below.

Asset distribution

The most recent Statement of Investment Principles (“SIP”) was agreed in September 2024. The SIP sets out the principles governing decisions about how the Scheme’s assets are invested. The actual allocation of assets held at a particular time may differ from the strategic allocation within acceptable limits. Find a copy of the latest SIP.

The Scheme’s asset value includes the Scheme’s invested assets and net current assets.

Financial support for the Scheme

The Trustee’s objective is to have enough money in the Scheme to pay pensions now and in the future. However, the Scheme relies on the Employers continuing to support it because:

• The funding level can fluctuate, and when there is a funding shortfall, the Employers will usually need to put in more money;
• The target funding level may turn out not to be enough so the Employers will need to put in more money.

What would happen if the Scheme had to wind up?

Although the Scheme is not in the process of winding up, we are required by legislation to advise you what would happen in these circumstances. If the Scheme had started winding up as at 31 July 2023, the additional assets needed to secure full member benefits with an insurance company would have been approximately £55.4m.

Inclusion of this information does not imply that the Employers are thinking of winding up the Scheme.

If the Scheme were to wind up, the Employers would need to pay sufficient money into the Scheme to enable members’ benefits to be secured by an insurance company.

If the Scheme were to wind up and the Employers could not afford to pay the full amount, you might not receive your full benefit entitlement, even if the Scheme is fully funded on the approach set out in the Statement of Funding Principles.

If the Employers became insolvent, the Pension Protection Fund (“PPF”) might be able to take over the Scheme and pay compensation to members.

Further information and guidance can be obtained from the PPF’s website. You can also write to the PPF at Renaissance, 12 Dingwall Road, Croydon, Surrey, CR0 2NA.

Why does the funding Scheme not call for full solvency at all times?

The full solvency position assumes that benefits will be secured by buying insurance policies. Insurers are obliged to take a very cautious view of the future and need to make a profit. The cost of securing pensions in this way also incorporates the future expenses involved in administration. By contrast, our funding Scheme assumes that the Employers will continue in business and continue to support the Scheme.

Payment from the Scheme

The Trustee is required to confirm to you whether there have been any payments to the Employers out of the Scheme’s assets in the previous 12 months. There have been no such payments.

Changes to the Scheme

The Trustee is also required to confirm to you that the Pensions Regulator has not given any directions in relation to the funding of the Scheme or imposed a Schedule of Contributions on the Scheme. There have been no such impositions.

GMP Equalisation

You may be aware that a significant legal judgement was published which confirmed the legal requirement for pension schemes to “equalise” Guaranteed Minimum Pensions (“GMPs”) built up after 17 May 1990 (in the same way that other Scheme benefits are also treated equally). This means that the Scheme will need to revisit benefit calculations and some members may receive a slightly larger benefit. The Trustees have now worked through this complex project, written to those members impacted and payroll adjustments have been made where appropriate.

Internal Dispute Resolution Procedure

In the event that you have a complaint, you should first raise this with the Trustee through the Scheme’s Internal Dispute Resolution Procedure (“IDRP”). A copy of the IDRP can be obtained by contacting the Trustee.

Additional documents available on request

A list of more detailed documents which provide further information is included below and if you would like to view any of these documents, please let us know.

• Statement of Funding Principles sets out the Scheme’s funding plan.
• Recovery Plan explains how the funding shortfall is being made up.
• Schedule of Contributions shows how much money is being paid into the Scheme.
• Statement of Investment Principles explains how the Trustee invests the Scheme’s assets.
• Implementation Statement considers whether these investment principles have been followed by the Scheme’s investment managers.
• Find Statement of Investment Principles and Implementation Statement.
• Annual Report and Accounts of the Scheme shows the Scheme’s income and expenditure and is prepared for each Scheme year ending 31 July. The most recent available is for the year ending 31 July 2025.
• Actuarial Valuation Report following the Scheme Actuary’s review of the Scheme’s funding position as at 31 July 2023.
• Actuarial Report the Annual Funding Updates on the Scheme’s funding position as at 31 July each year, the most recent being as at 31 July 2024.
• Scheme Booklet you should have been given a copy of this when you joined the Scheme.

Pension news

How to access information on your State Benefits

State Pension update

The full State Pension is currently £230.25 per week.

For 2026/27 the State Pension will be increased in line with average earnings (under the Government’s triple lock calculation as average earnings increased by more than inflation and by more than 2.5%), and will rise by 4.8% to £241.30 per week.

How do I know what my State Pension will be

You can ask for a forecast of your State Pension on the Gov.uk website.

In order to access the service, you will need a Government Gateway ID (if you don’t already have one).

The rules associated with the State Pension are explained in more detail in a Department for Work and Pensions leaflet entitled “Your State Pension Explained”.

Increase to the Normal Minimum Pension Age

The Normal Minimum Pension Age (“NMPA”) is the minimum age at which most pension scheme members can access their pension without incurring an unauthorised payments tax charge. Some members may be exempt, for example those retiring due to ill health.

The current NMPA is set by the Government as age 55. However, the Government has confirmed plans to increase this to age 57 from 6 April 2028, alongside planned increases in the State Pension Age (“SPA”) to 67. From then on, the current government’s intention is that the NMPA will remain ten years below the SPA. The SPA has been increasing since December 2018. Anyone born between 6 October 1954 and 5 April 1960 will reach their SPA on their 66th birthday. Anyone born after 5 April 1960 will have an SPA of 66 and one month or higher. The Government has already increased the SPA to 68 from 2046 but is planning to bring the date at which the SPA reaches 68 forward. You can confirm your State Pension Age and obtain a forecast of your State Pension on the Gov.uk website.

This change will not affect your ability to take your Scheme pension at earlier ages due to ill health, or if you qualify for an earlier protected pension age.

Annual allowance

There are currently three limits on your tax relievable pension savings:

The Annual Allowance limits tax relief on pensions ‘input’ (the value of your and the University’s contributions). It is currently set at £60,000 per annum, but it is also possible to carry forward unused relief from previous tax years.

The Lump Sum Allowance is the maximum amount of benefits you can take from all your pensions as tax-free cash. It is currently set at £268,275 (unless you hold a higher protected allowance). Any lump sum above this allowance is taxed at your marginal income tax rate.

The Lump Sum and Death Benefit Allowance (LSDBA) sets the maximum tax-free lump sum payable of death. It is currently set at £1,073,100. Any lump sum above this allowance is taxed at your beneficiary’s marginal income tax rate.

Inheritance tax

In Autumn 2025, HMRC published its response to its consultation on the draft legislation to bring unused pensions and lump sum death benefits into scope for inheritance tax from 6 April 2027.

HMRC has confirmed death in service lump sums paid from registered pension schemes will not be subject to inheritance tax, regardless of whether the lump sum is discretionary or non-discretionary. The exemption applies to death in service lump sum and dependants’ pensions. The exemption does not apply to a refund of contributions, or the 5-year lump sum balance of payments.

The originally proposed process for reporting and paying inheritance tax heavily relied on Pension Schemes Administrators to collect information about the estate and pay the inheritance tax. Following heavy industry push back, this process will now be led by Estate Personal Representatives in a similar way to other inheritance tax aspects.

Pension scheme administrators will, however, have additional responsibilities, including:

• Providing personal representatives with the pension value within four weeks of death notification
• Once beneficiaries have been determined, inform the personal representatives of the split between exempt and non-exempt beneficiaries
• If an inheritance tax account is required, supply the beneficiary's identity details and confirm benefit values
• Provide the beneficiaries with information and support to make informed decisions
• If the beneficiaries request, pay the beneficiaries inheritance tax to HMRC and issue an inheritance tax certificate to the beneficiary.

This presents increased administrative complexity for schemes with the need for faster decision making and robust processes for data collection and communication.

In terms of next steps, HMRC will develop reporting and payment processes and issue further guidance/tools for schemes before April 2027. In the meantime, the Trustee will monitor developments and prepare any internal processes as necessary.

Protecting you against pension scams

It is exceptionally important that you stay alert to the danger of scams. The Scheme’s administrator has measures in place to combat pension scams – but it still could be you! Market volatility and economic uncertainty often present opportunities for people running scams, and the Trustee will remain vigilant and follow best practice in this area. This means we might ask you additional questions if you are looking to transfer your benefits out of the Scheme and ultimately the Trustee may refuse to complete the transfer if there is evidence that you are at a risk of being scammed.

We also encourage you to be on the lookout for pension scams. Follow these four simple steps to protect your pension savings:

1. Say no to unexpected pension offers – cold calling is illegal and you should be wary. An offer of a free pension review from a firm you have not used before may be a scam.
2. Check who you are dealing with – Make sure anyone offering you advice is authorised to give pensions advice by calling the Financial Conduct Authority (FCA) Consumer helpline on 0800 111 6768. If you do not use an FCA-authorised firm, you may not have access to compensation schemes. A list of FCA-regulated, qualified financial advisers can be found on the Unbiased website.
3. Do not be rushed or pressured – Take your time and make all the checks you need, even if this means turning down an ‘amazing deal’.
4. Get impartial information or advice – You should seriously consider taking independent financial advice before changing your retirement benefits. In some cases, you may be required to do so.

If you are unsure about any approach, please do not hesitate to contact Spence to discuss. There is also help available via the ScamSmart website and Action Fraud on 0300 123 2040.

My Pocket Pensions – a simple way to manage your Scheme pension

My Pocket Pensions is a phone app that allows you to:

• View your pension and cash lump sum from age 55-75 (for active and deferred members only);
  • Get an estimate of your transfer value, updated daily;
  • Understand what happens to your pension when you die;
  • Let us know about any changes to your personal circumstances;

The app uses a simple registration process with a personalised QR code and it typically takes less than a minute to register for the app. Even if you want to check the Scheme’s rules at any point these are embedded within the app together with a virtual library of key Scheme documents. It allows you to use SMS messaging to and from the administrator and members can easily keep personal details up to date.

We would recommend using the app to access your pensions information more easily and quickly any time of the day. Please contact [email protected] for further details on how to register.

Summary from the latest Scheme accounts

Below is a summary of the latest audited Scheme report and accounts for the year to 31 July 2025. The full annual report has been audited by BDO LLP and a copy is available on request. Totals may not sum due to rounding.

At 31 July 2025, there were 2,339 members of the Scheme of whom 684 were active, 953 were deferred members, and 702 were pensioners.