University of Reading Pension Scheme (URPS)
The University of Reading Pension Scheme (URPS) is a brand new pension scheme launching on 1 August 2011. Membership is offered by the University of Reading, working in partnership with BlackRock, to employees in Framework Grades 1-5 or equivalent. The Scheme is operated under a Trust and the assets are kept entirely separate from those of the University.
URPS is a defined contribution scheme. This means that contributions from both you and the employer are paid into a Retirement Account which is invested and managed by BlackRock. On retirement, the Retirement Account is used to provide benefits for you and your Dependants. The level of benefits will depend on
• the amount of contributions paid in
• the investment returns achieved on the selected investment funds
• investment and administration charges
• the rate used to convert the retirement fund into a pension (known as an annuity rate) and
• the type of benefit you choose to buy.
Contributions are invested in a fund or funds chosen from a range selected by the Scheme's Trustee. Initially the contributions will be invested via a default Lifestyle option which has a target retirement age of 65. However members can go down the Self-select route and make their own choice of fund(s) from the available range and change their target retirement date by contacting BlackRock. Details are given on the right in "Things to do now".
Information about the charges levied on the different investment funds can be found in the Your investment options leaflet.
If you are aged 22 or more when you take up your post at Reading you will be entered automatically as a member of URPS from your first day of employment. Membership is available if you are under age 22 and you simply need to fill in an application form (see below) and send or take it to the Pensions Office in Whiteknights House.
Should you decide that you do not want to be a member of URPS please complete an opt out form (available below or from the Pensions Office) and send it to the Pensions Office. Any contributions already paid over to BlackRock will be returned to you plus or minus any investment returns after the deduction of tax.
Contribution rates are 4% of pay for employees and 5% of pay for the employer. The employer's rate increases to 7% once you have completed 5 years of continuous membership of the scheme. The contributions you pay into URPS are eligible to receive tax relief so the cost to you is less than it may seem.
Membership of URPS provides the following benefits:
• the option to take up to 25% of your Retirement Account as a tax free cash sum on retirement
• a facility to increase your retirement benefits by paying additional contributions
• a range of funds in which to invest the contributions paid by both yourself and the employer
• additional contributions paid by the employer after 5 years of membership
• a tax free lump sum of 6 times your annualised salary if you die whilst an active member
• a discount on the investment charges while you are an active member as your employer will
contribute towards the cost.
URPS is not contracted-out of the State Second Pension (S2P) so members and the employer pay full National Insurance contributions.
Scheme Information
Scheme Summary (PDF - 313KB)
Investment Options (PDF - 501KB)
Forms
Application Form (PDF - 290KB)
Expression of Wish Form (PDF - 228KB)
Opt-Out Form (PDF - 173KB)