USS Commutation rates question

shinytop

Asking for a friend...

The USS commutation rates for giving up pension in exchange for cash are like this:

Age   Pre 1 April 2022 Factor %

55     28.843

56     28.222

57     27.59

58     26.946

59     26.291

60     25.624

61     24.944

62     24.253

63     22.195

64     22.842

65     22.127

66     21.407

Probably a silly question but does anyone know why there is a larger drop 62-63 and an increase 63-64.  

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

thanks

Marcon

shinytop said:

Asking for a friend...

The USS commutation rates for giving up pension in exchange for cash are like this:

Age   Pre 1 April 2022 Factor %

55     28.843

56     28.222

57     27.59

58     26.946

59     26.291

60     25.624

61     24.944

62     24.253

63     22.195

64     22.842

65     22.127

66     21.407

Probably a silly question but does anyone know why there is a larger drop 62-63 and an increase 63-64.  

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

thanks

Looks like an error - the figures for 63 and 64 are in the wrong order. Given that the post-1 April 2022 factors are the ones which will apply to your friend if they have yet to take their USS benefits, it's not something they need to worry about - the post-1 April factors look entirely logical (i.e. they don't have the same blips).

shinytop

Marcon said:

shinytop said:

Asking for a friend...

The USS commutation rates for giving up pension in exchange for cash are like this:

Age   Pre 1 April 2022 Factor %

55     28.843

56     28.222

57     27.59

58     26.946

59     26.291

60     25.624

61     24.944

62     24.253

63     22.195

64     22.842

65     22.127

66     21.407

Probably a silly question but does anyone know why there is a larger drop 62-63 and an increase 63-64.  

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

thanks

Looks like an error - the figures for 63 and 64 are in the wrong order. Given that the post-1 April 2022 factors are the ones which will apply to your friend if they have yet to take their USS benefits, it's not something they need to worry about - the post-1 April factors look entirely logical (i.e. they don't have the same blips).

I did think that but wondered if it was anything else I was missing, thanks

FrugalFredi

If you go to www.uss.co.uk and scroll down to the very bottom of the page, there's a Guide for IFA's. My interpretation of that guide is that different commutation tables are applied for pension accrued before and after 2022.

The factors in the IFA's guide match those posted above except for age 63, which is 23.552.