Any USS crew about?

ussdave

I'd work on some fairly pessimistic assumptions to see if the figures add up for you.  If those turn out to be overly pessimistic, happy days....if not, your decision (to not go for it) will be all the easier.

At my institution the VS terms have become gradually worse over the years.  I recall over 18 months pay being offered around a decade ago.  The most recent round was more like 2 * statutory, up to a fairly low limit (based on service length).  Not great.  Without knowing what's happened at your institution previously, I'd probably look at figures for 6 months and 12 months pay (hopefully the 6 months one is very pessimistic).

It sounds like you've already worked out the potential positives from an ERF perspective.  Perhaps also worth considering how much of your pay between now and then that you could hammer into your Investment Builder?  Make the most of the tax benefits whilst you can, and you'll only be waiting for a few months before you can access the money.

Circling back round to the start...would you be financially comfortable if it's a relatively poor package of 6 months salary and drawing your pension before the new ERFs kick in?  If the answer is yes to that then I'd bite their hand off and go.  Hopefully it'll be a better package and you'll feel anything above that is a nice bonus.

In terms of how to 'store' the money, I agree with Marcon.

swindiff

Historically there were some great VS deals going at our university.  Not only avoiding Actuarial Reduction, but having your pension made up to what it would have been at your normal retirement age.  I know of someone about 20 years ago who was made redundant at 50 (not voluntarily) and had his pension made up to what it would have been at 65.  These deals are long since gone, you don't even avoid actuarial reduction now when made redundant.  The last round of redundancies here were 2.5 weeks pay for each years service (if you volunteered), capped at 20 years.  If you did not volunteer and were still made redundant you only got 2 weeks pay capped at 20 years service.  the maximum redundancy pay-out is therefore just under a years pay.

bluebirdy

Ok so it’s a month of pay per year of service up to 10 years (I have more than 10 years service) and I assume they’ll also have to pay out notice in addition but will ask.

I think the ERFs before October would, after October, mean I’d need another two years of working to make up the equivalent pension/TFLS amount, though obv losing out on extra contributions in the meantime. Was planning on retiring in three years anyway so on that logic, it feels like a no brainer.

But I think I need to do the helpful thinking/numbers from @ussdave above and work out the cost of not earning full salary, and whether that is worth the pain of being one of Those Left Behind in the current !!!!!! climate…

ussdave

Sounds promising.  I'd be very tempted myself if I was close to retirement.  

Worst case you could possibly do another (much lower paid/stress) job for a year or so to supplement your retirement income if you discovered you really needed to.