USS 2016 Proposed changes

Eifion Morris, APMI

Member Communications Manager

Agenda

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2

3

4

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7

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