uss 2016 proposed changes eifion morris, apmi member communications manager
TRANSCRIPT
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USS 2016Proposed changes
Eifion Morris, APMIMember Communications Manager
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Agenda
1
2
3
4
5
6
7
Introduction
Career Revalued Benefits – how it works
Final Salary – how it works
Proposed changes
Defined contribution
What next?
Questions
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Introduction
USS’s Joint Negotiating Committee (JNC) have proposed a package of changes
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Terminology
Final Salary
Service and salary at retirement
Career Revalued Benefits (CRB) Salary each year
Defined Contribution (DC) Investment fund
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Final SalaryHow it works
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Pension
The calculation
1
80th
Service Salary Pension
Tax Free
£3PLUS
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Pensionable salary
20152002
RPI
2012
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£ 31,740
£ 22,218
£ 28,566
£ 30,153
£ 36,500
£ 28,566
£ 34,914
£ 31,740
£ 33,327
£ 38,889
£ 36,501
£ 37,612
£ 40,000
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
RPIRevalued salary
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Career Revalued Benefits How it works
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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’
33333
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Salary Banked
We now need to add increases ‘revaluation’
Example
Pension calculation
TOTAL : £2,131.25 pa
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BankedPension
Example
Inflation calculation
TOTAL : £2,196.45 pa
Tax-free cash of 3 X pension in addition
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Proposed changes
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Proposal
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Existing Final Salary section
2016
FSAL CRB
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Existing CRB section benefits
2016
CRB CRB
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Existing AVCs
2016
?
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Existing transfer-in
2016
CRB
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New CRB section
CPI
CRB
1
75th 18%8%
£55K
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Defined contribution
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Defined Contribution section
DC £55K
CRB
12%8%
1%+1%
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Tax free
Defined contribution flexibilities
55yrs
100% Tax free
?
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Assessing your own position
https://www.ussconsultation.co.uk/members
Comparison Tool
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Assessing your own position
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Other considerations
£55K
CPI
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What next?
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Amendments/approval
Timetable
16 Mar’15
Late May’15
Before end of June’15
1 April’16
Employer consultation
Implementation
Feedback to Trustee Board
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Your questionsYour questions