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The Universities Superannuation Scheme (USS) is the pension scheme for academic and professional services staff at UK universities and higher education institutions. It is one of the largest private sector pension schemes in the UK. It is a hybrid scheme: the Retirement Income Builder is defined benefit, and salary above the salary threshold goes into the Investment Builder, which is a defined contribution pot. When a USS member dies, their family can claim a lump sum, an ongoing pension for dependants, and anything left in the Investment Builder.
In most cases, no. Unlike the statutory public service schemes, USS really is a trust, and the discretion is real. USS states that "payment of the lump sum is made at the discretion of USS, but your wishes are of course taken into consideration". Because the member had no absolute right to direct who received it, the lump sum can be paid straight to the beneficiary without a grant of probate.
Where there is no nomination and no eligible dependants, USS may pay the lump sum to the estate. In that case, you may need to apply for probate before the funds can be distributed.
Anything left in the member's Investment Builder pot is paid to the beneficiaries separately. Money Purchase AVCs held with Prudential are also separate: USS notifies Prudential, which pays to the beneficiaries named on the USS expression of wish form.
A surviving spouse, civil partner or financially dependent partner receives a pension for life of around half the member's pension. What "the member's pension" means depends on when they died: for an active member USS projects the benefits forward to age 65 and pays half of that; for a leaver it is half the value of the benefits built up; for a pensioner it is half the standard pension at retirement, plus inflation increases. A leaver who paid in for at least five years leaves a higher initial pension for the first three months, called a death grant. The pension is taxable as income.
Eligible children receive up to 75% of the same figure — an only child gets half of that (37.5%), and two or more children share the 75% between them. A child's pension is paid on top of any spouse's, civil partner's or dependant's pension.
USS members complete an Expression of Wish form saying who should receive the lump sum and the Investment Builder savings. USS takes it into consideration but is not bound by it, and it asks members to refresh it at least every three years. The lump sum does not have to go to one person, or even to a person — USS accepts a charity or other organisation.
If no Expression of Wish is on file, USS says it will take other documents such as the will into consideration, but it will not have the member's most recent wishes. An out-of-date form naming a former partner or someone who has since died causes delay.
One trap: if a member told Prudential different beneficiaries for their Money Purchase AVCs from the ones on the USS form, USS warns that the Prudential lump sum may be subject to inheritance tax.
The spouse's or partner's pension is paid automatically under USS rules to an eligible dependant — it is not subject to the nomination form.
For the latest guidance, visit GOV.UK's page on tax on a private pension you inherit.
From 6 April 2027 most unused pension funds and death benefits come into the estate for inheritance tax. HMRC's policy paper of 26 November 2025 states that all death in service benefits payable from a registered pension scheme are excluded from that change — discretionary and non-discretionary schemes alike — as are dependants' scheme pensions from a defined benefit arrangement. The lump sum for a member who died in service and the spouse's, partner's and children's pensions therefore sit outside it.
Unspent Investment Builder savings are a different matter. They are a defined contribution pot, and from 6 April 2027 they come into the estate for inheritance tax like any other. The spouse, civil partner and charity exemptions are kept, and personal representatives, not scheme administrators, are liable for reporting and paying the tax. Read our guide to pensions and inheritance tax from April 2027 and the inheritance tax guide for 2026/27.
If no Expression of Wish is on file, USS exercises its discretion and says it will take other documents, such as the will, into consideration. The lump sum is usually paid to the surviving spouse or civil partner. If there is no surviving spouse and no eligible dependant, it may be paid to the personal representatives, triggering the probate process and potentially inheritance tax.