The key changes for you:
1. A higher accrual rate for your defined benefit pension
The rate at which you build defined benefits in the Retirement Income Builder will increase.
Currently, you build 1/85 of your salary (up to the salary threshold) in defined benefit (DB) pension each year and 3/85 of your salary as a lump sum on retirement. This will increase for each year from 1 April 2024 to 1/75 of your salary for pension benefits and 3/75 of your salary for the lump sum, respectively.
Watch our video to see a reminder on how you build benefits in the Retirement Income Builder.
2. Remember, you’re already paying less too
Since 1 January 2024, your member contributions have reduced from 9.8% of salary to 6.1%. Your employer’s contribution rate has also reduced from 21.6% to 14.5%. This does not affect the level of pension benefits you build up.
See how much you now pay by using our Contributions & Tax Calculator in My USS.
3. Benefit uplift
This April you’ll receive a one-off uplift to your Retirement Income Builder (DB) benefits. This uplift will give you an extra £215 annual pension in retirement and an associated £645 lump sum. Like your existing Retirement Income Builder benefits, it will be subject to USS standard pension increases.