Post on 12-Mar-2019
USS 2016 Proposed changes
Eifion Morris, APMI
Member Communications Manager
Agenda
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Introduction
Career Revalued Benefits – how it works
Final Salary – how it works
Proposed changes
Defined contribution
What next?
Questions
Introduction
USS’s Joint Negotiating Committee (JNC) have proposed a package of changes
Terminology
Final Salary
Service and salary at retirement
Career Revalued Benefits (CRB) Salary each year
Defined Contribution (DC) Investment fund
Final Salary How it works
Pension
The calculation
1
80th
Service Salary
Pension
Pension
Tax Free
£ 3
PLUS
Pensionable salary
2015 2002 2012
Pensionable salary calculation
11
13
12
8
10
9
5
7
6
2
4
3
Retirement day
Years to retirement
£ 41,000
£ 30,318
£ 38,068
£ 35,468
£ 45,922
£ 34,655
£ 38,760
£ 36,887
£ 37,580
£ 39,982
£ 39,701
£ 39,857
£ 40,000
Benefit modeller
Career Revalued Benefits How it works
The calculation
Year 3
Year 1
Year 2
Year 6
Year 4 Year 5
Year 9
Year 7 Year 8
Year 12
Year 10 Year 11
Each year your pension & tax-free cash are calculated
and ‘banked’
3
Salary Banked
We now need to add increases ‘revaluation’
Example
Pension calculation
TOTAL : £2,131.25 pa
Banked Pension
Example
Inflation calculation
TOTAL : £2,196.45 pa
Tax-free cash of 3 X pension in addition
Benefit modeller
Proposed changes
Proposal
Existing Final Salary section
2016
FSAL CRB
Existing CRB section benefits
2016
CRB CRB
Existing AVCs
2016
?
Existing transfer-in
2016
CRB
New CRB section
Revalued
CRB
1
75th 18% 8%
£55K
Defined contribution
Defined Contribution section
DC £55K
CRB
12% 8% 1%+1%
Tax free
Defined contribution
55yrs
100% Tax free
?
Assessing your own position
https://www.ussconsultation.co.uk/members
Comparison Tool
Assessing your own position
Other considerations
£55K
What next?
Amendments/approval
Timetable
16 Mar’15
Late May’15
Before end of June’15
1 April’16
Employer consultation
Implementation
Feedback to Trustee Board
Your questions Your questions