USS Projected DB Pension mostly worse Since April 2024

swindiff

I knew there were changes happening to the USS DB pension from 1st April, so I made sure to take screenshots of my pension projections from ages 58 to 66 in March.

The DB accrual rate has improved from 1/85 to 1/75, the salary threshold has been increased from just over £40k to just over £70k (my salary is just over £53k so that should have also made quite an improvement to the DB pension) and there was an annual £215 uplift being applied with a £645 lump sum increase.  Conversely the early retirement factors have been made worse.

The worse early retirement factors wipe out all the restoration of benefits that have been applied pretty much.  I will be worse off unless I work until I am almost 64.  My plan was to retire at 60.

I would have been better off if they had just left it as it was 

Marcon

They might change again before you get there...

ussdave

swindiff said:

I knew there were changes happening to the USS DB pension from 1st April, so I made sure to take screenshots of my pension projections from ages 58 to 66 in March.

The DB accrual rate has improved from 1/85 to 1/75, the salary threshold has been increased from just over £40k to just over £70k (my salary is just over £53k so that should have also made quite an improvement to the DB pension) and there was an annual £215 uplift being applied with a £645 lump sum increase.  Conversely the early retirement factors have been made worse.

The worse early retirement factors wipe out all the restoration of benefits that have been applied pretty much.  I will be worse off unless I work until I am almost 64.  My plan was to retire at 60.

I would have been better off if they had just left it as it was 

The USS site for me still has this disclaimer when I access the calculator.  I've not had a play with it though so perhaps it's out of date.

Please note: the calculator reflects the current scheme rules and has not yet been updated to reflect the agreed USS benefit changes that are proposed to take effect from 1 April 2024. Nor does it reflect the proposed changes detailed in draft legislation to Lifetime Allowance from 6 April 2024.


The new ERFs are indeed poor.  I'm shifting my strategy to bridge more years with a DC pot.

swindiff

Hi Dave
It says that for me too.  Clearly they have made some changes. It would be good if this was only showing the ERF changes but that would not explain how my pension has increased from the age of 64?

ussdave

swindiff said:

Hi Dave
It says that for me too.  Clearly they have made some changes. It would be good if this was only showing the ERF changes but that would not explain how my pension has increased from the age of 64?

I think it's likely just the ERFs but I can't be sure.  I'm not sure of the reason for you seeing an increase.  Perhaps there's an oddity about the ERFs at that age that are somehow beneficial?  Wild guess if I'm honest.

Or perhaps the previous version of the calculator had an error applied around that age?

edit: I've gone through the calculator myself now and the figures are roughly in alignment with what I remember them being.  I don't have any screenshots or figures written down though.  I'd expect a fairly significant uplift (if retiring at normal retirement age) with the new accrual rate and salary cap applied.  For me it should be a little over double the yearly accrual it was under the old rules. 

swindiff

Marcon said:

They might change again before you get there...

With these sneaky **** anything in possible

bluebirdy

I thought the calculator wasn’t being properly updated till 3rd April?

swindiff

bluebirdy said:

I thought the calculator wasn’t being properly updated till 3rd April?

I had not heard that, hopefully that is the case.

bluebirdy

 As per this from the website…

bluebirdy

I have been patiently waiting until tomorrow. I also predict it will break tomorrow…

swindiff

Thanks Bluebirdy