USS or TPS pension scheme - that is the question?

stueyscott

I know I will have to look at this in more detail, but anybody any idea which pension scheme is likely to be the best / most secure in the long term?

I've been in a LGPS scheme for 12 years and due to a new job have the option to move to the USS superannuation scheme or the Teachers Pension Scheme.

I'm just wondering which pension scheme will be best in the long term.

Cheers

Stu

Cook_County

stueyscott wrote: »

I know I will have to look at this in more detail, but anybody any idea which pension scheme is likely to the be the best / most secure in the long term?

I've been in a LGPS scheme for 12 years and due to a new job have the option to move to the USS superanuation scheme or the Teachers Pension Scheme.

I'm just wondering which pension scheme will be best in the long term.

Cheers

Stu

I know this is a rant, not an answer - and maybe I am becoming old and grumpy - but I find it strange that a teacher cannot spell either "pension" or superannuation" (nor indeed write a grammatically correct sentence).

Loughton_Monkey

Cook_County wrote: »

I find it strange that a teacher cannot spell either "pension" or superannuation" (nor indeed write a grammatically correct sentence).

I don't find it strange. It's quite normal, sadly.

stueyscott

If it wasn't so sad that you felt it necessary to comment on such a trivial matter rather than help me with the question I asked it would be funny. I asked for advice about pensions not a lesson in grammar.

So what I made a mistake spelling a few words - it was 10pm at night I had just been offered a new job and had drunk several glasses of wine to celebrate. I can imagine that you guys must be perfect!

I still need advice on the question so if you have anything useful to say I'm interested in hearing it, if not, then I suggest you crawl back into the hole from where you came and I shall seek advice elsewhere.

Oh, and I never said I was a teacher, did I.

bigbigmamamoo

I'm in USS, it is about to make changes. It is funded by member and employer contributions, so I think it is more resiliant against government changes to public sector pensions. I don't think that TRS is self-funded in the same way.

stueyscott

It appears that it may be worth joining the USS scheme sooner rather than later then. I start in the New year so I should be ok in terms of the proposed changes. In addition I have also been told that I should be able to transfer my LGPS into the USS scheme as well which should help kick it off to a reasonable start.

cvd

It is funded by member and employer contributions, so I think it is more resiliant against government changes to public sector pensions.

It is in deficit and the employers are determined to cut back on its costs. It was recently in the news that one large institution (Imperial College) is investigating whether it can withdraw from USS because of fears that it is not resilient to one or more universities going bust - and there is the real prospect of at least one university going bust over the next few years because of the funding changes.

All final salary schemes in the public sector (including universities) will be phased out over the next few years - and existing staff will be transferred over to new schemes. This is not a maybe - it is a certainty. It is just a question of timing, working out the details of the new schemes and working out the details of the arrangements for transferring individuals from the old schemes to the new schemes.
Changes may be done in stages - close a final salary scheme to new members and then a few years later close it to existing members.
It seems to me that anyone who does not accept this trend is burying their head in the sand.

mac2008

stueyscott wrote: »

I know I will have to look at this in more detail, but anybody any idea which pension scheme is likely to be the best / most secure in the long term?

I've been in a LGPS scheme for 12 years and due to a new job have the option to move to the USS superannuation scheme or the Teachers Pension Scheme.

I'm just wondering which pension scheme will be best in the long term.

Cheers

Stu

No idea on what scheme will be best in the longer term, but USS is proposing significant changes, particularly for new joiners from April 2011, a summary of which can be found at:

http://www.ussconsultation.co.uk/questions_and_answers?locale=en

stueyscott

I've asked for further advice from a online pension advisory service but after reading the last few posts I am now more inclined to contact a pension specialist to see what they say.

I start my new position in January so if I choose to stay with USS then I should avoid the changes, which will be important if I transfer my LGPS.

The joys of pensions!

cvd

No idea on what scheme will be best in the longer term,

I agree with this - it is impossible to say.

but USS is proposing significant changes, particularly for new joiners from April 2011, a summary of which can be found at:

http://www.ussconsultation.co.uk/que...wers?locale=en

The interesting thing here is that the new scheme is a really poor scheme. It seems to me that someone who is in the new scheme for a few years and then changes jobs and is a long way from retirement (say over 30 years) may be better off transferring his accrued benefits to a money purchase scheme rather than leave it with USS to accrue at CPI capped at 2.5%.

The previous general advice that you should never transfer from a defined benefit scheme to a money purchase scheme will no longer be true when there are defined benefit schemes which are so poor.

emilygilmore

I'm in the USS scheme at the moment and my employer matches my contributions which is obviously amazing. But I'm over 30 years off retirement and I feel like this probably won't exist at all in 30 years. Will there be a way to get the money out? And how do i find out what kind of interest it gets while it's in there?

I also have a HUGE mortgage and feel like the money would be better spent on paying that off slightly quicker instead. I don't particularly want a pension when i'm older; If i need money i will have lodgers like I do now.

Sorry if these are basic questions, I know nothing at all about pensions and don't know what to ask.