Getting an up to date DB value from USS

Tomatillo

Can I ask a stupid question about the changing retirement ages in USS. I appreciate that an ERF will be applied if you retire earlier than the pension age applicable at the time the benefit was accrued. Is the converse also true i.e. that if you start to take the pension later the annual benefit will be increased? E.g. If the OP started to take the pension at 63 would the portion payable at 60 be increased just as the portion payable at 65 was decreased? 

SMcGill

Not a stupid question at all, some schemes do exactly that I believe - but not USS. 

I can DECREASE my income by taking it all at age 60, but I cannot INCREASE it by deferring it.

So each year I defer after 60 is simply lost income for me. Good ol’ USS eh?

Tomatillo

Thanks v much for the reply. That seems grossly unfair. If the ERF is simply an actuarial calculation so that an average you get the same overall benefit whenever you take it, surely the same thing should apply to taking it late. If they are not going to do that then it would seem far fairer for people to be able to take different portions at different ages so that they don't lose value from the earlier part in order to preserve the value of the later. 

deltrotter

Smcgill - I am a deferred member. Joined in 1998 and left in 2019. Aged 50 so a few years from retirement.

Are you sure about what you say above?

SMcGill

I believe I’m right.

USS will apply an actuarial increase if you retire late from active membership, but I don’t believe this is offered to deferred members.

I so want to be wrong about that, but I don’t think I am

deltrotter

Thanks SMcGill.

Shame about that...