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What is PensionsPlus
by UoKHR
INTRODUCING PENSIONSPLUS
1 What is PensionsPlus? PensionsPlus is a more cost effective way of making pension contributions for both the USS and SAUL pension schemes. For the majority of staff it will reduce National Insurance Contributions meaning you take home more pay than you would outside of PensionsPlus.
2 How does PensionsPlus work? PensionsPlus works through salary exchange.
PensionsPlus has the effect of exchanging your pension contribution for an equivalent employer pension contribution.
The total pension contribution paid into USS or SAUL and the amount of pension that you build up will not change if you remain in PensionsPlus, however the National Insurance Contributions that you pay are reduced. The amount of National Insurance Contributions that you pay depends on earnings and certain thresholds.
Under salary exchange, you agree to all of the following: • The University will, together with its normal employer pension contribution, make an additional contribution into your pension. The additional amount that the University will pay is equal to the amount you would otherwise have contributed to your pension. • A reduction in your contractual
gross salary which is equal to the amount you would otherwise contribute to your pension. • You will stop making employee
contributions into your pension as your employer will make these contributions on your behalf.
For an illustration of how much you could expect to save under PensionsPlus, please refer to the table ( see Q9).
3 Am I agreeing to a
change in the terms and conditions of my employment? Yes, in order to contribute to your pension through PensionsPlus, the University needs to amend the terms and conditions of your employment. It is therefore important to understand that, unless you opt out of PensionsPlus, you are agreeing to a change in your terms and conditions of employment. This change only applies to pension contributions and therefore does not alter any other terms and conditions.
4 Does PensionsPlus affect any other workrelated payments I receive? PensionsPlus does not affect any other work-related payments you receive.
PensionsPlus has been designed to ensure that your entitlements to other work-related payments such as salary increases or overtime remain unaffected. Such entitlements, as well as any pension benefits that are calculated at retirement, will continue to be based on your pay before the PensionsPlus salary exchange has been applied. This is known as your ‘Reference Salary’.
