Pension for wife after my death?

http://www.salford.ac.uk/__data/assets/pdf_file/0006/734046/USS-Member-Guide-2016.pdf


According to the 2016 USS Member Guide page 14 Increases

"These increases are applied to:
§ The benefits from any past membership you
may have built up until 31 March 2016;
§ The benefits you build up in the USS Retirement
Income Builder;
§ The value of pension benefits once in payment;

and
§ The value of your benefits if you leave the
scheme and have a deferred pension.

USS pension increases are reviewed each year and
are linked to increases in official pensions. Official
pensions increases are those paid to retired public
sector employees such as teachers, civil servants
or NHS employees. Currently, the annual increases
to official pensions, usually effective from each April,
are linked to changes in the consumer price index,
which is a measure of inflation over the 12 months
up to each September.
USS will match increases in official pensions for the
first 5%. If official pensions increase by more than
5%, then USS will pay half of the difference up to
a maximum increase of 10%. So, if official pensions
increased by 15% or more, USS increases would
be 10% in that year.
Your pension will not be reduced during periods
of negative inflation."
Additionally, the USS pension increases are used
to increase the salary threshold."

The amount of the widow's pension will be half of (your pension at commencement plus the increases paid after commencement up to date of death)
Page 19
"Death after retirement
The scheme will pay a pension to your spouse or
partner of half the pension you were entitled to as
standard when you retired, plus increases to date
of your death. This pension refers only to the USS
Retirement Income Builder and will be the pension
worked out each year based on your salary subject
to the salary threshold. Any remaining funds
under the USS Investment Builder would provide
additional benefits."

This widow's pension is still a USS pension and therefore increases in payment as on P14?

You should check with the administrator.

I don't wish to sound harsh, but if she's educated to post-grad level, why won't she be seeking "proper" work, rather than voluntary? That seems like a waste of education and earning potential, not to mention building up NI/pension of her own

Moneyer wrote: »

Yes, that's one of the two main options under consideration. The point is that the objective is not to boost pension income in my lifetime (which should be fine anyway) but to boost income between my death and hers: I want to ensure her financial security even if she survives me by 30 years or more. So the questions are (i) what kind of pension fund I should contribute to myself in order to boost income after my death but before hers and (ii) whether doing this is better value than taking the tax hit now and using the net income to buy her NI stamps to maximise her state pension.

So, what you need to do is many fold.

First answer questions. Why do you think she will not get a SP of her own? How many years has she worked and paid nics? Will she get credit for the 3 extra years from 16-18? Possibly. She needs to get a statement of contributions.


Second, why voluntary work over paid work? If you are worried about her financial situation, you should discuss her working for a salary over for free.

3rd, have you considered paying into a private pension for her? She can pay in up to 2880 per year, which the govt gives TR on (even though she doesnt pay tax) to make it 3600. Do that for a few decades, and she has a decent pension pot. Even if she doesnt go back to work.