A factor is a number that we use in our calculations to work out what your Retirement Income Builder benefits will be. We use factors in a range of different calculations.
This page is intended only as an overview of the factors and the way in which they are applied. If you have benefits in USS awarded in a divorce settlement, we calculate them differently and this page does not apply to you.
Early retirement
If you retire before NPA, your benefits are normally reduced because we’ll be paying your pension for longer. The factor helps us to work out by how much your pension (and associated lump sum) will be reduced. Generally, the earlier you take your benefits, the bigger the reduction.
Late retirement
If you retire after NPA, your benefits are usually increased because we will not be paying your pension for as long. If you’re still contributing when you retire, we use the factor to work out by how much your pension (and associated lump sum) will be increased. Generally, the later you take your benefits, the bigger the increase. If you’ve already stopped contributing, the way the factors are applied may be different.
Exchanging pension for lump sum (and vice versa)
You can choose to exchange some pension to increase your lump sum, called commutation. The commutation factor helps us to work out how much lump sum you'll get in exchange for the pension you give up.
Exchanging lump sum for more pension is called reverse commutation. We use the reverse commutation factor to work out how much extra pension you'll get in exchange for the lump sum.
We review the factors regularly, based on actuarial advice, to make sure they’re still appropriate. That’s important because any changes to the factors can mean changes to your benefit calculations. Your benefits are paid using the factors applicable at the date you retire.
You can use the Benefit Calculator in My USS to get an estimate of your benefits at different retirement dates and see the potential impact of dialling up or down your lump sum and annual pension. The Benefit Calculator reflects the factors currently in use and does not reflect the impact of any future changes to the factors.
How we determine the factors
We determine the factors on advice from the Scheme Actuary and taking into account a complex range of actuarial considerations. Along with the prevailing economic climate, some of the key influences on those calculations include our expectations of investment and government bond returns and life expectancy.
We carry out a regular review of the factors to make sure that they reflect the current conditions and expectations. This means the factors can be updated at any time without notice, but reviews usually happen annually. Factors may not always be changed following a review.
How we use factors
Each type of calculation has a factor table associated with it and the factor we use from that table depends upon how early or late you are retiring or how old you are.
If you’ve already stopped contributing to USS in full when you retire then the way the factors are applied may be different.
Early retirement factors
The early retirement factors determine by how much your benefits will be reduced if you take them before your NPA. Your pension (and associated lump sum) is reduced because we’ll be paying it for longer.
Because the NPA has changed over time, the age from which your benefits are reduced depends on when you built them up:
Benefits built up before 1 October 2011 are reduced from different ages depending on when you built them up, but reductions may not apply to these benefits if you retire from age 60 with employer consent.
Benefits built up between 1 October 2011 and 5 October 2020 are usually reduced if you retire before age 65.
Benefits built up since 6 October 2020 are usually reduced if you retire before age 66.
The factor is a percentage applied according to how many years (and months) before the relevant NPA you retire. For example, if you take benefits one year before the NPA that applies to them, the factor is 94.8. In other words, you’ll get 94.8% of the benefits you would have received if you’d retired at NPA for those benefits.
In some circumstances, a reduction will not apply, or a different reduction will apply. For example, benefits may be unreduced if you’re retiring early due to ill health.
These figures are for full years. If your calculation relates to a part year, we’ll adjust for that.
Number of years before NPA
Factors from 1 October 2024 %
1
94.8
2
90
3
85.5
4
81.4
5
77.5
6
74
7
70.6
8
67.5
9
64.6
10
61.8
11
59.3
12
56.8
13
54.5
14
52.4
15
50.3
16
48.4
Late retirement factors
If you retire after your NPA, we’ll be paying your pension for less time and so your benefits may be increased. We use the late retirement factors to work out how to increase your benefits.
If you’re still contributing in full to USS when you retire, we use four different late retirement factor tables in combination, depending on when you reached your NPA. We combine the appropriate factors to create a percentage figure that we use to increase your benefits. For example, if the resulting factor was 1.2481, we’d increase your pension (and associated lump sum) by 24.81%.
If you’ve already stopped contributing to USS when you retire, you would normally be required to take your pension at your NPA. Find out more on our your pension after leaving page. However, if you have passed your NPA and are planning to retire soon, contact us.
If you’ve taken Enhanced Opt Out, the way we determine your benefits will depend upon your circumstances. Find out more on our Enhanced Opt Out page or contact us if you have passed your NPA and are planning to retire soon.
These figures are for full years. If your calculation relates to a part year, we’ll adjust for that.
Pre-April 2016
factors
April 2016 - October 2020
factors
October 2020 - March 2024
factors
Factors from 1 April 2024
Years
Factor
Years
Factor
Years
Factor
Years
Factor
0
0
0
0
0
1
0
1
1
0.06
1
0.042
1
1.0428
1
1.0554
2
0.12
2
0.084
2
1.0875
2
1.1138
3
0.18
3
0.126
3
1.134
3
1.1754
4
0.24
4
0.168
4
1.1826
4
1.2405
5
0.3
5
0.21
5
1.2332
5
1.3092
6
0.36
6
0.252
6
1.286
6
1.3816
7
0.42
7
0.294
7
1.3411
7
1.4581
8
0.46
8
0.336
8
1.3985
8
1.5388
9
0.54
9
0.378
9
1.4584
9
1.624
10
0.6
10
0.42
10
1.5208
10
1.7139
Exchanging pension for lump sum and vice versa
You can increase your pension by reducing your lump sum or increase your lump sum by reducing your pension. If you choose either of these, we use a commutation factor or a reverse commutation factor.
Commutation factors: Exchanging pension for extra lump sum
If you want to exchange some of your Retirement Income Builder pension for more lump sum, we use a commutation factor.
To work out how much additional lump sum you’d get, we multiply the pension you’re giving up by the factor. For example, if the relevant factor were 17.379, you’d get £1,737.90 lump sum in exchange for £100 pension (£100 x 17.379 = £1,737.90).
The factor we use depends on your age because it takes into account the value of the pension you’re exchanging.
These figures are for full years. If your calculation relates to a part year, we’ll adjust for that.
Age
Factors
Factors from 1 October 2025
55
19.902
18.959
56
19.561
18.657
57
19.214
18.349
58
18.859
18.033
59
18.495
17.71
60
18.123
17.379
61
17.741
17.038
62
17.349
16.687
63
16.947
16.324
64
16.536
15.95
65
16.114
15.565
66
15.684
15.168
67
15.247
14.76
68
14.803
14.343
69
14.353
13.917
70
13.898
13.485
71
13.439
13.046
72
12.974
12.603
73
12.505
12.155
74
12.03
11.704
75
11.549
11.247
Reverse commutation factors: Exchanging lump sum for extra pension
If you want exchange some (or all) of your lump sum for more pension, we use a reverse commutation factor.
To work out how much additional pension you’d get, we divide the lump sum you’re exchanging by the factor. For example, if the relevant factor were 23.81, you’d get £42 of gross Retirement Income Builder pension for every £1,000 of lump sum you exchanged (£1,000/23.81 = £42.00).
The factor we use depends on your age because it takes into account the value of the pension you’re receiving in exchange for the lump sum.
These figures are for full years. If your calculation relates to a part year, we’ll adjust for that.
Age
Factor
Factors from 1 October 2025
55
25.74
23.41
56
25.15
22.93
57
24.55
22.45
58
23.96
21.96
59
23.36
21.47
60
22.75
20.97
61
22.14
20.46
62
21.53
19.95
63
20.9
19.43
64
20.28
18.9
65
19.64
18.36
66
19.01
17.81
67
18.37
17.25
68
17.73
16.68
69
17.09
16.12
70
16.46
15.54
71
15.82
14.97
72
15.19
14.4
73
14.56
13.82
74
13.93
13.25
75
13.3
12.68
Prudential MPAVCs
A small number of members still have MPAVC savings in an historic arrangement with Prudential.
We use a Prudential MPAVC conversion factor to work out how much it would cost to convert MPAVC savings into USS pension. The factor that we use depends upon the age you are when the conversion is applied.
These factors are reviewed monthly and depend on the prevailing market conditions.
Guidance and advice
If you want to seek guidance or take financial advice on the options available to you, visit our guidance and financial advice page. You’ll find a range of resources to support your planning and you can also find information on how to access an independent financial adviser.
Disclaimer
This web page is for general guidance only. It is not a legal document and does not explain all situations or eventualities. USS is governed by a trust deed and rules and if there is any difference between this publication and the trust deed and rules the latter prevail. Members are advised to check with their employer contact for the latest information regarding the scheme, and any changes that may have occurred to its rules and benefits. For a glossary of our terms please see our important information page.