USS - General discussion

dsw_123

I spoke to USS this morning and the rep from the pensions team didn't seem to know if the modeler was accurate. I had recently requested a pension quote for 1st July 2024 (prior to hearing of the changes in the ERFs) and was assured that the quote would be accurate and include changes to the the ERF.  Apparently it was posted on Monday but as I wasn't yet in possession of it he was unable to discuss it with me . So, assuming that the modeler is wrong I will be able to see the difference the changes make. My initial "estimate" was a cut of £400 which using a commutation rate of 25 would cost me £10,000 of LS or IB to restore.
He kept banging on about the the reduction in contribution rate and the improvement in accrual rates going forward, none of which will benefit me as they steal money from my pension contributions and he argued that they weren't hiding the changes as it is on the website (though who would be able to find it from the homepage beats me).

So it shows that what you thought of as your accrued pension can be dramatically slashed at a moment's notice prior to any form of early retirement and there is nothing you can do. Fortunately I am on 1 month notice and I am not an "University Officer" so if push comes to shove I can retire before the changes come into effect. It will leave my group in the lurch but if USS can change the rules of the game at the drop of a hat then so can I.

Grant1968

dsw_123 said:

He kept banging on about the the reduction in contribution rate and the improvement in accrual rates going forward, none of which will benefit me as they steal money from my pension contributions and he argued that they weren't hiding the changes as it is on the website (though who would be able to find it from the homepage beats me).

Exactly. Its like some sort of street hustle; look over here at these glistening things, while we pick you pocket. I suppose we should not be surprised what USS do, however there is another player here. I have always been in the union, and I feel they generally do a great job, however another post on MSEForum suggests that UCU knew about these changes, so I am perplexed why they have not communicated these changes to members.

swindiff

Has anyone managed to get a definitive answer from them as to whether pre 2011 pension ages are protected (whether that be 60 or 63.5).  I emailed them 10 days ago and have had no response.

PJM_62

The Factors Used by USS page has not changed . Still talking about single set of factors after March 31st

https://www.uss.co.uk/for-members/calculate-your-benefits/factors-used-by-uss

swindiff

I know the factors have been made worse, what I am seeking clarity on is whether the protected pension ages are still as they were. 

So in my case Pre Sept 30th 2011 I could retire at 60 with no reduction
1st Oct 2011 - 5th Oct 2020 I could retire at 65 with no reduction
6th Oct 2020 on I could retire at 66 with no reduction.

So if I retired at 60 these new factors would not have an impact on any of my pre Sept 30th 2011 pension.  They would impact the other 2 sections 2011-2022 would use the new ERF for 5 years and 2020 on would use the new ERF for 6 years.

This is how I have interpreted it but I have not had it confirmed.

ussdave

I don't think they can legally retrospectively change the protected ages, only the ERFs that are applied when drawing pension before those ages.

swindiff

That is what I am hoping and assuming.  Would really screw the pooch for me otherwise.

Universidad

swindiff said:

That is what I am hoping and assuming.  Would really screw the pooch for me otherwise.

If your pension defines a normal pension age this is very unlikely to be possible to change retroactively.
Currently most public sector DB schemes are tied to state pension age, so these ages can change, if the SPA changes. 
USS has not tied benefits to the SPA in quite the same way. Rather, since 2011, the SPA for benefits accrued is tied to the SPA at the point accrued, rather than to *your* SPA. One of a small number of comparatively good things about the USS CARE scheme vs the public sector. 
I wonder if there could be a potential for change in some schemes if the normal pension age for benefits is set as one thing, but the age at which benefits can be taken unreduced is set as another. That would be one for the experts.
I believe there's a clause in USS in some of the older FS benefits that you can take them unreduced at 60, unless you leave USS before retiring, in which case they revert to 63.5... I don't know how much the rug could be pulled there. 

NickBFS

AIUI, it is not so much a question what is the SPA per se as to what the contract with the employer provided for at the relevant time (the contractual pension age or CPA. Nowadays, contracts of employment in the academic sector will normally refer to the SPA but I don't think that this was necessarily the case in the past. If you were employed pre-2011, and especially if you had been in employment with the same employer for a long time, it is possible that the contract provided for a retirement age of 60. Your USS 2016 final salary statement should state what USS believes is your CPA for benefits accrued  before 2011. Mine gives a CPA corresponding to 65 years of age, which I take to mean that my pension entitlement pre-2011 will be aligned with SPA (i.e. 65 up to May 1990, 60 from then until April 1995 and 63.5 from then until September 2011) 

bluebirdy

Some of you fellow #USSers might want to ask Josephine Cumbo to put some of these questions to the USS CEO?