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How revaluation works while you are an active member

Find out how revaluation is applied to your Retirement Income Builder benefits

Why does USS revalue your benefits?

In order to provide your Retirement Income Builder benefits with a level of inflation protection, the defined benefit (DB) part of your pension is increased annually. This is also the case if you leave active membership during a year, but using a different approach.

How revaluation applies

  • Your Retirement Income Builder benefits (i.e. any defined benefits you have built up, including any final salary or CRB benefits you built up before 1 April 2016) are increased annually, each April.
  • The annual increase is based on the Pensions Increase (Review) Order, made by the government, that comes into force in April of each year.
  • The Order currently provides a rate of increase in line with the prior September-to-September increase in the Consumer Prices Index (CPI). For example, the Increases Order 2025, applying from April 2025, used the rate of the September 2023 to September 2024 increase in CPI, which was 1.7%.
  • Increases are subject to the USS specific increases cap (where applicable – see below).

Please note:

Benefits built up during a benefit year are increased at the end of the following benefit year. A USS benefit year runs from 1 April of one year to 31 March of the next year. For example, any benefits you built up from 1 April 2024 to 31 March 2025 will receive their first increase in April 2026.

A proportionate increase will be applied earlier, if you stop paying in to USS or you retire part way through a benefit year.

Revaluation for active members who retire or leave USS part way through a benefit year

In your final benefit year of being an active member, whether you’re retiring or no longer paying in to USS, the approach to revaluation differs (unless you retire or leave USS on 31 March, see below).

You will receive a proportionate increase on your Retirement Income Builder benefits built up to and including the 31 March immediately prior to retiring or leaving USS. This increase is based on the number of months in which you have worked after 31 March of the relevant year.

This increase is also based on the Increases Order that came into force in the April immediately before you leave active membership.

Example

31 March retirees and leavers

The above approach would not apply if you were to leave USS or retire from active membership on 31 March, as you would have worked and paid in to USS for a full benefit year immediately before leaving or retiring.  So, if you were to leave or retire from active membership on 31 March 2026 your Retirement Income Builder benefits* would get a full year’s increase (12/12 rate), up to the date of leaving/retirement, based on the rate under the Increases Order 2026, subject to the USS increases cap (see below).

However, as described above, if you were to leave on 30 March 2026, you would get 12/12 of the increase, up to the date of leaving/retirement, based on the rate under the Increases Order 2025, subject to the USS increases cap (see below).

*Any benefits built up during your final benefit year would not be increased as an active member, as these benefits would have only just been earned (and would therefore not yet receive any inflation protection).

How your benefits are increased after you leave or retire

When you stop paying in to USS, your benefits will continue to receive some protection against inflation until you start taking them and throughout your retirement.  Each April, we apply the increases set out in the relevant Increases Order.

The Increases Order specifies the increase to be applied. It does so using tables which state the increase to be applied based on where your leaving date falls within 12 monthly date ranges or bands.

These bands vary each year, so if you leave part way through a month, the increases that apply could also vary, depending on when in the month you leave active membership.

Examples

Please note these examples assume that the monthly date bands do not change from those used in the Increases Order 2025.  All of these increases would be subject to the USS increases cap (see below).

Defined benefit AVCs and/or transfers-in to the Retirement Income Builder

Particular revaluation treatment applies if you have entered into a contract to pay additional contributions to purchase more benefits before 1 April 2016 and continued to pay those contributions after 1 April 2016, and/or if you transferred benefits into USS between 1 April 2016 and 1 October 2016. Should you require more information please call our Member Service Team on 0333 300 1043.

How revaluation is capped

Under the scheme’s rules, USS pension and lump sum benefits are revalued in line with Official Pensions subject to certain caps for benefits built up from 1 October 2011:

  • Where inflation (as currently measured by CPI) is 5% or less, the increase would be matched.
  • Where inflation is more than 5% but less than 15%, the increase would be 5% plus half of the percentage increase over 5%.
  • Where inflation is 15% or more, the increase applied would be 10%.

Benefits will not be reduced during periods of negative inflation.

Need financial advice?

An independent financial adviser may be able to help you determine how a projected leaving or retirement date may affect your benefits due to revaluation. You can find out more about finding a financial adviser and other guidance on our guidance and financial advice page.