USS - General discussion

Universidad

One thing I don't miss about the university sector.  Only there could a pension uplift be introduced in such a cack-handed way that people feel compelled to avoid it and yet be left unsatisfied even when they follow the best available known path. 

Beckster1964

Another one in the same boat - was going to retire July but brought it forward to March to avoid ERFs - shoddy behaviour from USS.

bluenose1

Beckster1964 said:

Another one and the same boat - was going to retire July but brought it forward to March to avoid ERFs - shoddy behaviour from USS.

I think all those affected should put in a letter of complaint, and advise we are going ombudsman if they don’t take action.

Simes122

Anyone had any joy with USS on this?  I saw a Union Rep saying the deferment was at their request, but I’ve still seen no comms about any of this!  

PJM_62

Not a thing.
Radio silence.

BikingBud

Simes122 said:

Anyone had any joy with USS on this?  I saw a Union Rep saying the deferment was at their request, but I’ve still seen no comms about any of this!  

And at what stage where the union going to inform their members so that the "good" intent was understood and could be exploited? 

Simes122

BikingBud said:

Simes122 said:

Anyone had any joy with USS on this?  I saw a Union Rep saying the deferment was at their request, but I’ve still seen no comms about any of this!  

And at what stage where the union going to inform their members so that the "good" intent was understood and could be exploited? 

No Comms from anyone.  USS, Unions, Sector.  It’s shocking.

uss_hamish

I hope (newbie here) that it's ok to keep using this thread for general USS options discussion? I've booked a pensions 1-1 but suspect it's not really going to be much help as really my qs are likely to be either things I can look up or things that are advice which they can't give. Come to that, any tips on things that are useful to ask about, particularly from anyone who's had such a 1-1? I definitely plan to ask "how can I make sure that next time the ERFs change I hear about it immediately?" as it was quite unnerving only to hear about it too late to act on the news by retiring, even if in practice I wouldn't have wanted to...

High level thing I'd be interested to hear people's thoughts on: the rationale for maximising tax free cash, or not. I get the general impression that this is what most people do, yet I don't think it's likely to be what I want to do.

Always understanding that nothing anyone says here is advice, here's my situation - wwyd?

Age 58. Currently on £77kpa. Not enjoying the job but for Reasons resigned to working another couple of years at least. On retirement I won't have a mortgage or other debt. I expect that my DB element will cover my day to day living expenses. Once I also get the state pension, I expect that can cover the holidays/luxuries I want, so the way I'm thinking about it is that the 3xpension lump sum from the DB side will nicely provide the equivalent of that money (bit more in fact) until I reach SP age. So I should be fine, based on what I stand to get on the DB side, before considering the DC element, where I might expect to have about £150k by then (have been overpaying pension, a lot, for a long time). I am inclined to leave it invested, rather than taking any of it as tax free lump sum, but wonder whether I'm missing something important. I'm certainly partly just thinking about neatness; this makes it easy to think about. But also, if I took it as a lump sum what would I do with it? I wouldn't be able to get it tax sheltered (the DB lump sum will use my ISA etc. allowances) so I'd end up paying tax on whatever capital gain and/or income it produced, which goes some way to balance the fact that if/when I take it, if I leave it alone on retirement, I'll have to pay income tax on 75% of it (I expect that I will always be a basic rate taxpayer, but never a higher rate taxpayer, in retirement). Plus, there is a decent chance I'll never need it, in which case, if the current rules don't change (big if, I know) it might be advantageous to have it in a pension where it's outside my estate and doesn't attratct IHT (currently a bit borderline as to whether that will apply, but likely to end up the wrong side of the borderline possibly by a lot depending on whether a relative dies without spending what they have).

Anyone been through a similar thought process, and have any comment? I do know this is a nice situation to be in.

ussdave

You're best off posting a new thread so the conversation doesn't get muddled

Asimovs_nightfall

uss_hamish said:

I hope (newbie here) that it's ok to keep using this thread for general USS options discussion? I've booked a pensions 1-1 but suspect it's not really going to be much help as really my qs are likely to be either things I can look up or things that are advice which they can't give. Come to that, any tips on things that are useful to ask about, particularly from anyone who's had such a 1-1? I definitely plan to ask "how can I make sure that next time the ERFs change I hear about it immediately?" as it was quite unnerving only to hear about it too late to act on the news by retiring, even if in practice I wouldn't have wanted to...

High level thing I'd be interested to hear people's thoughts on: the rationale for maximising tax free cash, or not. I get the general impression that this is what most people do, yet I don't think it's likely to be what I want to do.

Always understanding that nothing anyone says here is advice, here's my situation - wwyd?

Age 58. Currently on £77kpa. Not enjoying the job but for Reasons resigned to working another couple of years at least. On retirement I won't have a mortgage or other debt. I expect that my DB element will cover my day to day living expenses. Once I also get the state pension, I expect that can cover the holidays/luxuries I want, so the way I'm thinking about it is that the 3xpension lump sum from the DB side will nicely provide the equivalent of that money (bit more in fact) until I reach SP age. So I should be fine, based on what I stand to get on the DB side, before considering the DC element, where I might expect to have about £150k by then (have been overpaying pension, a lot, for a long time). I am inclined to leave it invested, rather than taking any of it as tax free lump sum, but wonder whether I'm missing something important. I'm certainly partly just thinking about neatness; this makes it easy to think about. But also, if I took it as a lump sum what would I do with it? I wouldn't be able to get it tax sheltered (the DB lump sum will use my ISA etc. allowances) so I'd end up paying tax on whatever capital gain and/or income it produced, which goes some way to balance the fact that if/when I take it, if I leave it alone on retirement, I'll have to pay income tax on 75% of it (I expect that I will always be a basic rate taxpayer, but never a higher rate taxpayer, in retirement). Plus, there is a decent chance I'll never need it, in which case, if the current rules don't change (big if, I know) it might be advantageous to have it in a pension where it's outside my estate and doesn't attratct IHT (currently a bit borderline as to whether that will apply, but likely to end up the wrong side of the borderline possibly by a lot depending on whether a relative dies without spending what they have).

Anyone been through a similar thought process, and have any comment? I do know this is a nice situation to be in.

If your 1-2-1 is with a HR person from your institution, they'll advise on the USS in general terms. A USS person wouldn't be able to offer the financial advice you're looking for, although if it is with a financial advisor, which might be likely, then they should be able to engage you in a discussion about the things you've raised here and offer advice.