Exchanging pension for extra lump sum

If you want to exchange some of your Retirement Income Builder pension for more lump sum, USS uses a commutation factor. To work out how much additional lump sum you’d get, they multiply the pension you’re giving up by a factor. The factor used depends on your age because it takes into account the value of the pension you’re exchanging. On 01 October 2026, the factors will change and members may be slightly worse off than if they exchanged pension for more lump sum before 01 October 2026.

Exchanging lump sum for extra pension

If you want exchange some (or all) of your lump sum for more pension, USS uses a reverse commutation factor. To work out how much additional pension you’d get, they divide the lump sum you’re exchanging by a factor. The factor used depends on your age because it takes into account the value of the pension you’re receiving in exchange for the lump sum. On 01 October 2026, the factors will change and members may be slightly better off than if they exchanged lump sum for pension before 01 October 2026.

You can get further information on Commutation factors here and I would appreciate it if you could bring this to the attention of members. Please do not accept this message as financial advice and members considering accessing their pension should seek independent financial advice. UCU members can, if they wish, use the services of Quilter Financial Advisers whom we have a partnership arrangement with. You can get further information here.

Dooley Harte

Pensions Official – USS