USS ERF's

NTFI19081

Hi, USS ERF's are getting worse from April 2024 (see link below). I am still in USS but was a pre 2011 Final Salary member. I called USS to ask if these changes to ERF's apply to the closed final salary section and they said yes. Can this be correct? It has messed up my planning as I am losing 3k a year! cheers, 

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

swindiff

I think, but don't quote me on this as I am still waiting on a response from USS to an email I sent 10 days ago.

The new ERF do apply to all benefits, however the age at which you could retire is protected from reduction.

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 wanted to retire at 60, all pre Sept 30th 2011 Benefits would be unreduced
1st Oct 2011 - 5th Oct 2020 benefits would be reduced by using the new 5 year ERF
6th Oct 2020 on benefits would be reduced by using the new 6 year ERF

That is how I see it but like I say I have not had this confirmed yet by USS

There is some discussion on this subject here
https://forums.moneysavingexpert.com/discussion/6287299/uss-options-options-options-what-to-do/p7

NTFI19081

swindiff said:

I think, but don't quote me on this as I am still waiting on a response from USS to an email I sent 10 days ago.

The new ERF do apply to all benefits, however the age at which you could retire is protected from reduction.

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 wanted to retire at 60, all pre Sept 30th 2011 Benefits would be unreduced
1st Oct 2011 - 5th Oct 2020 benefits would be reduced by using the new 5 year ERF
6th Oct 2020 on benefits would be reduced by using the new 6 year ERF

That is how I see it but like I say I have not had this confirmed yet by USS

There is some discussion on this subject here
https://forums.moneysavingexpert.com/discussion/6287299/uss-options-options-options-what-to-do/p7

I can't see how they could change the age at which you can retire i.e. my pre-2011 benefits were at 63.5 age protected I believe. Will be interested to hear what response you get from USS - if they change that my plans are shot!

SMcGill

I retired age 60 last year and started taking my USS pension. Just over half my benefits were accrued pre-2011 and had a contracted NRA of 60 but the benefits I accrued after that had a NRA of 65. In calculating my pension figures, USS applied an ERF only to those benefits accrued after 2011. 

USS confirmed the same rules apply to annual increases. My pre-2011 benefits will increase in line with official pensions and this in uncapped, but the second tranche of benefits will increase in line with official pensions up to 5%, then half of anything over that up to a max.

As for receiving benefits at 63.5 unreduced, AFAIK this was stated in USS pension rules as ‘usually’ and not specifically guaranteed but I could be wrong on that.