USS - General discussion

Beckster1964

Pre 2011 they agree to match the full increase, post 2011, they agree to first 5% and then half the increase after that.

2nd_time_buyer

Beckster1964 said:

Pre 2011 they agree to match the full increase, post 2011, they agree to first 5% and then half the increase after that.

Thanks. That makes sense. I think they did switch from RPI to CPI at some point but I guess the RPI inflation (like ERFs) wasn't protected.

swindiff

FIREmenow said:

Website still says 1 April 2024, so clear as mud! https://www.uss.co.uk/for-members/calculate-your-benefits/factors-used-by-uss

Wonder what the calculator is using.

EDIT: I've contacted them to ask for clarification/correction and to see what information the benefit calculator is currently using.

Pretty sure the calculator is using the new ERF's.  I posted about it here, and it seems like I managed to catch the modeler with just the ERF applied without the restored benefits.  It seems the restored benefits were then applied later that day.

https://forums.moneysavingexpert.com/discussion/6517861/uss-projected-db-pension-mostly-worse-since-april-2024/p1

FIREmenow

Thanks.

Not sure if it's just me but I can't get on the website at all now.

Simes122

FIREmenow said:

It's 6.7% according to the Guide for IFAs : https://www.uss.co.uk/-/media/project/ussmainsite/files/financial-advisers/mfuss-for-ifa.pdf?rev=01577199f44d47a099fa829d63aa65cb

Also spotted on there that it looks like they have delayed the change to the early retirement factors to 1 October 2024 (on page 14)? I hadn't seen anything about this. The one on the left from 1 April 2023 is actually the better rates that were in place prior to 1 April 2022 as if the 2022 changes to benefit accrued from that date never happened.  

That’s actually a really annoying switch if this is what they have done.  I brought my early retirement date forward to pre 1 Apr becaise of the new factors which has cost me earnings and pension contributions I’d have otherwise have made. 

PJM_62

Simes122 said:

That’s actually a really annoying switch if this is what they have done.  I brought my early retirement date forward to pre 1 Apr becaise of the new factors which has cost me earnings and pension contributions I’d have otherwise have made. 

I initially thought the same. !!!!!!!? Now its not til October ?
But then took the line of .. it was the Apr 1st date that made me stopping thinking about it and actually get on and do it (Flexi Retirement).
So now, as of 31 March, I'm on a 3 day working week.  4 day weekends, every week, from now on
The max tax free cash (using IB) dropped into my bank as expected. 
So I can confirm I've seen the 3xP + 3.66xP option in action.

First pension pay day is 21st.  Be interesting to see how the figure given in my letter, increases due to the 6.7% increase and the one off uplift.  I'm thinking the latter might actually just be added to the 20% of pension that I didnt start taking as part of this first flex.

swindiff

If the new ERF's have been delayed until October, I don't understand why they seem to have been added to the modeller now?

BikingBud

Simes122 said:

FIREmenow said:

It's 6.7% according to the Guide for IFAs : https://www.uss.co.uk/-/media/project/ussmainsite/files/financial-advisers/mfuss-for-ifa.pdf?rev=01577199f44d47a099fa829d63aa65cb

Also spotted on there that it looks like they have delayed the change to the early retirement factors to 1 October 2024 (on page 14)? I hadn't seen anything about this. The one on the left from 1 April 2023 is actually the better rates that were in place prior to 1 April 2022 as if the 2022 changes to benefit accrued from that date never happened.  

That’s actually a really annoying switch if this is what they have done.  I brought my early retirement date forward to pre 1 Apr becaise of the new factors which has cost me earnings and pension contributions I’d have otherwise have made. 

Isn't that over simplifying it? There is not just one factor to be applied from Apr 23 you need to calculate according to this example:
 

and the ER Factors


In amongst all the unnecessary changes and obfuscation very few people can actually work out what they are due 🤬

Simes122

BikingBud said:

Simes122 said:

FIREmenow said:

It's 6.7% according to the Guide for IFAs : https://www.uss.co.uk/-/media/project/ussmainsite/files/financial-advisers/mfuss-for-ifa.pdf?rev=01577199f44d47a099fa829d63aa65cb

Also spotted on there that it looks like they have delayed the change to the early retirement factors to 1 October 2024 (on page 14)? I hadn't seen anything about this. The one on the left from 1 April 2023 is actually the better rates that were in place prior to 1 April 2022 as if the 2022 changes to benefit accrued from that date never happened.  

That’s actually a really annoying switch if this is what they have done.  I brought my early retirement date forward to pre 1 Apr becaise of the new factors which has cost me earnings and pension contributions I’d have otherwise have made. 

Isn't that over simplifying it? There is not just one factor to be applied from Apr 23 you need to calculate according to this example:
 

and the ER Factors


In amongst all the unnecessary changes and obfuscation very few people can actually work out what they are due 🤬

Not really - post 1 Apr 24 the factors got a lot worse whichever way you look at the detail, and that change affected me for life with early retirement.  Was advantageous at that time to retire pre 1 Apr than post 1 April.  But if the worsened factors were not going to be applied till October, it would have made sense to hold off retiring earlier.  In my case I was retiring end April 24 anyway, so bringing it forward a month gave me better factors on my accruals throughout, but meant I did not get the one off lump sum, and I lost a months earnings.  That was based on the info published at the time.  If it’s now changed, I’d have not accelerated my retirement, got an extra months salary ,  would have been on old factors, got the one off uplift etc.

FIREmenow

FIREmenow said:

Website still says 1 April 2024, so clear as mud! https://www.uss.co.uk/for-members/calculate-your-benefits/factors-used-by-uss

Wonder what the calculator is using.

EDIT: I've contacted them to ask for clarification/correction and to see what information the benefit calculator is currently using.

Had a reply from USS. It was written in a weird way as they said they can confirm the factors on the website are correct but that they have postponed the implementation of the new factors until 1 October to give soon-to-retire members more time to plan. (So the date is not correct, although they didn't directly say that).

They also said the calculator already had the new factors now so anyone wanting to retire before Oct should request a quote, and anyone wanting to retire after can use the calculator. They said for the website and new calculator the updates were made before the decision to postpone them. 

No mention of whether they would be correcting either the website dates or the calculator.

Would be interested to hear what they say to members who made retirement decisions based upon the original implementation date.