USS - General discussion

BikingBud

FIREmenow said:

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.

Written weird, yes they are very good at that!

DIABOLICAL way to treat members almost as if they are being spiteful for UCU daring to challenge the revaluation. 

All we want is a straight answer to a simple question. If we cannot decipher their response how can we conduct due diligence and decide what is best for us?

Did they advise when they decided to postpone the change to the ERF? Or comment why it was not published on the website. It's much easier to change  a website, with a simple message of postponement than provide new tables in a IFA crib sheet. 

Still not advised on the website:


They make such song and dance over the changes to; accrual rates, contribution rates, introduction of one-off lump sum and then sneak round the back and smash you for changes to ERFs that they then unpick without any advice.

How is it acceptable to change such a material fact and not advise the members?

But is it legal?

FIREmenow

@BikingBud
They linked to that exact web page and said they confirm the factors on that page are correct, the date has just been postponed. 
Didn't give a date the decision was changed, but we're implying that it came after the update to the calculator which was 2nd or 3rd I think? Which suggests it was after the implementation date had passed.

I don't think I would get any further - they had checked and noted that I was not eligible to retire before October (implying that the calculator and webpage not being correct now would not impact me anyway).

BikingBud

FIREmenow said:

@BikingBud
They linked to that exact web page and said they confirm the factors on that page are correct, the date has just been postponed. 
Didn't give a date the decision was changed, but we're implying that it came after the update to the calculator which was 2nd or 3rd I think? Which suggests it was after the implementation date had passed.

I don't think I would get any further - they had checked and noted that I was not eligible to retire before October (implying that the calculator and webpage not being correct now would not impact me anyway).

Just been postponed - I wish I could just postpone thing, like paying my CC or the mortgage or income tax.

Not impacting you does not make it acceptable as the impact upon other members cannot be quantified by that simple dismissal.

🙈🙉🙊

SilverSilverSilver

I am new to this site. I am a deferred member and first noticed a change to the USS benefit modeller result yesterday relative to when I used it in a prior month. It had fallen irrespective of the CPI rise. I plan to draw my pension from 55 due to our circumstances. This will be after October 2024.  So I was alarmed to see a significant drop and visited the Early Retirement Factors page. Yesterday it said April 2024 and today it says October 2024. This is no good to me and I still can not fathom why this can be applied to all existing benefits, just like that. It's crippling for us and I can't understand how it is legal as mentioned by someone else in this forum. As a deferred member I can say I was not notified. 

So my 3 questions -
Was there a notification on this that I missed?

Did anyone get a valid explanation as to why there was a drastic reductions in the ERFs (given life expectancy has fallen from what I can see)?

Anyone know why this is allowed legally?

It seems ethically questionable for it to be applied retrospectively to existing and past funds/benefits. I can understand if it is applied for anything accumulated after the date if it's implemented but not for prior funds. I've not seen this type of change before.

I believe now that I  foolishly wasted my time on the phone to them. More fool me. 

MPLMPL

Quick answer to your three questions.
1. You're in good company, active members haven't had any notification. The April 24 change just appeared on ERFs section of website mid Jan with no announcement and sent many retirement plans into a tailspin. The deferral to October was spotted in update to pdf of info for IFAs about a week ago and then on website yesterday (or Weds?).
2. No explanation. If I was a betting man I'd say it is due to the reduction in contribution rates for both employers and employees. Assume they want people to contribute longer to fund any perceived deficit or future pensions?
3. ERFs can be changed at their discretion. They are scheduled to be reviewed at each triennial evaluation. They were reviewed i.e. changed in April 2020 and again in April 2023. Wasn't expecting next review until April 2026. I'm not happy about it, but don't think there is any legal issue. They're probably more in line with something like TPS now. I thought they were generous before, hence my plan to retire at 55 in September. This plan was quashed when the new April 24 factors were announced, but is now back on for me with the stay of execution to October. It's appalling for anyone who can't bring things forward or those who are not obsessive about planning and ERFs who just assumed they wouldn't change much so will get a big shock if they planned to take their pension early in the next year or so.
Your benefits (pension at NPA) and NPA haven't (and I assume can't be) changed, but ERFs can. I'm not trying to defend the change or they way it has been communicated (it hasn't). It's a massive difference. I calculated that if I retire on 1st October I would have to defer drawing my pension for just short if 3 years, in order to get the same amount as retiring on 30th September.
OK, turns out it wasn't such a quick answer!

bluenose1

Oh fiddlesticks.
I was originally going to take my pension from April 24 but amended it  to start Feb 24 when they reduced the ERFs from April 24 on their website. 
So because of the incorrect information on their website my lump sum has been reduced unnecessarily as taking it in Feb 24 meant I didn’t  get the cost of living rise or the benefit of the £215 increase in pension x 3.

Not sure if I have the will to deal with USS anymore but feel I should pursue this further.

swindiff

I think you should

bluenose1

swindiff said:

I think you should

Agreed, I just have. 

So frustrated I have to have more dealings with them as already loads of angst when they changed the ERF’s  just as I retired and I was panicking in case they couldn’t put my pension in payment before April 24.
I was so relieved when it was sorted and that  I no longer had to have contact with them…..

I have complete the online “contact us” form which says they will respond within 4 weeks.

Too sum it up my complaint is - I  based my decision on when to take my pension on the incorrect information on the USS  website, resulting in my lump sum being reduced significantly and unnecessarily.

BikingBud

@bluenose1

Please check your PMs.

Simes122

bluenose1 said:

Oh fiddlesticks.
I was originally going to take my pension from April 24 but amended it  to start Feb 24 when they reduced the ERFs from April 24 on their website. 
So because of the incorrect information on their website my lump sum has been reduced unnecessarily as taking it in Feb 24 meant I didn’t  get the cost of living rise or the benefit of the £215 increase in pension x 3.

Not sure if I have the will to deal with USS anymore but feel I should pursue this further.

Same boat as you.  Was planning on end Apr but brought forward to avoid reduced factors costing me similar pension catchups and a months salary. Unnecessarily it seems!