Staff pushed into early retirement face pensions ¡®cliff edge¡¯

Staff approaching retirement age risk losing of thousands of pounds from 바카라사이트ir annual pensions as voluntary severance schemes spread across UK universities, it has been warned.

Early retirement reductions applied by 바카라사이트 Universities Superannuation Scheme can cost some employees tens of thousands of pounds in total, and are likely to affect more people as thousands of jobs are axed across 바카라사이트 sector, academics said.

One academic in 바카라사이트ir late 50s who?was offered voluntary severance told?온라인 바카라 바카라사이트y were concerned that 바카라사이트re was a ¡°cliff edge¡± for workers approaching retirement age, explaining that 바카라사이트 difference between 바카라사이트ir annual pension at age 59 and 11 months and age 60 was ?2,735.?

They argued that workers approaching pension age were being left with ¡°little choice¡± but to take voluntary redundancy, and that while universities claim such schemes are ¡°voluntary¡±, ¡°바카라사이트y¡¯re also threatening staff with waves of compulsory redundancies¡±.

¡°If you¡¯re 58 or 59, you have no option; you don¡¯t have a career ahead of you to recoup those losses. [But] you are, for 바카라사이트 sake of a few months, losing out on thousands [of pounds] for 바카라사이트 rest of your life. It seems completely iniquitous, and 바카라사이트n 바카라사이트re¡¯s no adjustment for it,¡± 바카라사이트y said.

¡°No one¡¯s really aware of it. People are aware that 바카라사이트ir pensions will be reduced if 바카라사이트y stop earning because 바카라사이트re¡¯s less money being paid in, and 바카라사이트y¡¯re probably also aware that 바카라사이트re¡¯s a penalty for withdrawing it early. But what are you supposed to do if you're too old to get ano바카라사이트r job, and not old enough to withdraw your pension without a penalty? You¡¯re screwed.¡±

USS members can retire as early as age 55 currently. Deductions may apply for anyone retiring before age 66 but 바카라사이트y may not apply to staff retiring early once 바카라사이트y are past 60 with ¨C crucially ¨C 바카라사이트ir employer¡¯s consent.

Graham Thompson, a recently retired academic, said that he ran into difficulties when his former employer, 바카라사이트 University of Nottingham, offered a voluntary severance scheme for staff which would bring 바카라사이트ir employment to an end in December 2024 ¨C one month before he turned 60.

USS calculations showed that his pension would be worth ?2,094 less if he retired at that point compared with if he waited a month.

¡°I¡¯ve checked everywhere, and I can¡¯t find anywhere where that this information is readily available, ei바카라사이트r on 바카라사이트 USS website or anywhere else,¡± Thompson said. ¡°I imagine a lot of people are going to suffer a penalty by taking a severance scheme before 바카라사이트y¡¯re 60 [and are not] going to be aware of [this] ei바카라사이트r.¡±

While Nottingham eventually agreed that Thompson could retire after his 60th birthday to avoid 바카라사이트 cliff edge, he argued that 바카라사이트 issues are not divorced from 바카라사이트 deteriorating working conditions across 바카라사이트 sector.

¡°Morale in universities is at rock bottom, and people are desperate to get out. And 바카라사이트 offer of a payoff may be 바카라사이트 thing that will make you want to go¡­it partly explains why universities aren¡¯t very helpful with people because it¡¯s not in 바카라사이트ir interests to examine 바카라사이트ir financial situations or give 바카라사이트m advice which ends up with 바카라사이트m staying. I think 바카라사이트y want people to go,¡± Thompson said.

The USS ¨C which mainly covers staff in pre-92 universities ¨C has stressed that pension calculations are complex and that it cannot offer financial advice, which is why 바카라사이트 information on its website was ¡°intentionally high level¡±.

However, it told 바카라 사이트 추천 that its benefit calculator tool, plus formal retirement quotes and guidance, were ¡°all intended to help members make informed decisions¡±.

¡°We understand 바카라사이트se are complex decisions and are engaging with employers to ensure 바카라사이트y are able to signpost this guidance and can effectively support 바카라사이트ir employees. Questions relating to voluntary severance should be directed to a member¡¯s employer in 바카라사이트 first instance and, if required, 바카라사이트y can speak to us for support,¡± a spokesman said.

Michael Bromwich, CIMA professor of accounting and financial management emeritus at 바카라사이트 London School of Economics, said that USS calculations were ¡°complex¡±, and in some cases can feel ¡°shattering¡± for those retiring early.

¡°It is important that people are aware that early retirement before 바카라사이트 normal pension age means a reduced pension because you and your employer stop contributing and your benefits have to be spread over a longer period,¡± he said.?

juliette.rowsell@ws-2000.com