USS deferred member, early retirement

NedS

Hi,

I am a deferred member of the USS pension scheme. I have just under 8 years service and left in Feb 2004. The scheme's normal retirement age is 65 and I am currently 51.

As part of my retirement planning I have been reading through the literature relating to my previous DB schemes. I'm reading through the letter I received upon leaving USS, and the section on early retirement states I can retire early from age 60 at a reduction (at present - but that was in 2004!) of approx 6% for each year prior to age 65.

Then it states:

Benefits in respect of service from 1 April 1995 will be payable without reduction if retirement is on or after you attain age 63.5.

As I joined after 1 April 1995, am I correct in thinking I can ask to take my full USS pension (including lump sum) with no reduction 18 months early? As my annual pension is predicted (currently) to be approx £4,000 that's an extra £6,000 they are going to pay out, no strings attached?

What's the catch? Why would I not want to take my full pension 18 months early at 63.5 instead of waiting until 65? Is it possible the goal posts have moved since my letter dated March 2004?

xylophone

https://www.uss.co.uk/members/members-home/deferred-members

The current Guide is above.

On P8 Deferred benefits – your questions answered

Benefits in respect of service between 1 April 1995
and 30 September 2011 will be reduced if they are
paid before age 63½*.

*Or your contractual pension age at 30 September 2011 if this is lower.

A modeller is provided and a telephone number - you should check your exact position with the administrator.

NedS

Thank you for your reply.

xylophone wrote: »

Benefits in respect of service between 1 April 1995
and 30 September 2011 will be reduced if they are
paid before age 63½*.

*Or your contractual pension age at 30 September 2011 if this is lower.

My contractual pension age is 65. It is not clear to me whether "this" above refers to 63½ or my contractual pension age of 65. Any clues?

But you have given me good advice - I will call them to clarify.

xylophone

To my mind, "this" must refer to its antecedent "your contracted pension age" but you will check with the administrator.

MPLMPL

NedS wrote: »

Thank you for your reply.



My contractual pension age is 65. It is not clear to me whether "this" above refers to 63½ or my contractual pension age of 65. Any clues?

But you have given me good advice - I will call them to clarify.

Some may have had a contract of employment at 30th September 2011 that states age 60, in which case their pre 2011 service has no reduction if retire at 60 (it would be reduced if they retired <60).
This is from the USS retirement pdf.
The following is for contract of employment, as at 30 September 2011, states age 65.

Service Period: Reduction for each year and part year before age...
Pre 17 May 1990 65 60
17 May 1990 to 31 March 1995 60 60
1 April 1995 to 30 September 2011 63.5 63.5
Post 30 September 2011 65 65
The first age refers to males, the second females.

What I'm still unclear about is whether you have to continue in the USS scheme i.e. work until 63.5 to draw the pre-2011 pension without reduction, or whether you can retire earlier and defer drawing the pension until 63.5 and then only be subject to actuarial reduction on your post-2011 service.

NedS

MPLMPL wrote: »

What I'm still unclear about is whether you have to continue in the USS scheme i.e. work until 63.5 to draw the pre-2011 pension without reduction, or whether you can retire earlier and defer drawing the pension until 63.5 and then only be subject to actuarial reduction on your post-2011 service.

Good point. I will seek to clarify that with the administrators. I am a deferred member, and all my contributions fall between the relevant dates so the question becomes can I take my pension at 63½ without reduction. If so, obviously I'm going to take it early and I can write that into my retirement planning. That said, I think I should be OK as the policy above is specifically stated in the documents provided for deferred members, which by definition have left the scheme.

taka

Can you post back with what you find out?

I've been a member on 3 separate occasions - 1 period in FS section with several years pre Sept 2011 service, 2nd period in the CRB part (2014- Jan16) then current active membership (which began again later on in 2016). I'm finding it very confusing to know what applies to me as an active member who also has previous chunks of pensions that are (or were?) deferred. At some point I need to contact USS myself to clarify exactly what is what but I'd be very curious to know what they say for someone who is solely a deferred member with pre 2011 membership whose NPA is 65.