As a member of one of the University's pension schemes, you already receive income tax relief on your pension contributions. The University is committed to making pension contributions work even more efficiently and will be introducing Pensions+ with effect from 1 August 2012.
Pensions+ is not another pension scheme -
it is a more effective way of paying into your pension scheme. Pensions+ enables both you and the University to make savings without reducing the overall level of pension benefits you will receive. At present, the pension schemes are funded by contributions from both you and the University. Under Pensions+, the same amount of money will be paid into your pension scheme, but it will all be paid by the University.
How it works:
- You stop paying your normal pension contributions;
- Your gross contractual salary is reduced by the same percentage as your normal pension contributions;
- The University will pay an amount into the pension scheme equal to your contribution, in addition to the normal University contribution;
- As your salary will be lower, you will pay less NI;
- As your NI decreases, your take home pay increases.
- Additional Voluntary Contributions (AVCs) are not included within Pensions+.
We will still keep a record of your gross salary before Pensions+. This will be called your Reference Salary and will be used for any salary related calculations, such as pay awards and overtime. It will also be the amount used in any official letters issued by the University on your behalf e.g. mortgage references.
As the majority of staff will benefit from participating in Pensions+, you will automatically be enrolled with effect from 1 August 2012, so there's nothing you need to do to join.
If you do not wish to participate, you should complete the Opt Out form and return it to Human Resources. If you do not opt out, you will be deemed to have agreed to the change to your terms and conditions. Some staff may be automatically opted out if the University believes that they would be adversely affected by participating.