PensionChoice renewal on 1 April
29 Mar 2010
Opt-in and opt-out forms must reach Pensions Office by 7 April
PensionChoice was introduced in June 2009 as an alternative way of funding benefits in USS and UMSS. It is a salary exchange arrangement where if you accept a reduction in your salary, in exchange, the University will make an additional equivalent pension contribution to your pension scheme.
As a result of participating in PensionChoice, your take home pay will increase, as you will pay less national insurance contributions. Examples of the savings that could be made by opting-in to PensionChoice are provided in the table below.
PensionChoice does not change your pensionable salary or reduce your pension benefits.
Over 90% of eligible members currently participate in PensionChoice. If you are one of these people and you wish to continue participating in PensionChoice, then no action is needed.
If you are currently opted out of PensionChoice and do not wish to change this decision, then no action is needed.
Renewal date
1 April is the renewal date for PensionChoice – this provides all members of UMSS and USS with the following options:
- to join PensionChoice if you have previously opted out, or,
- to withdraw from PensionChoice and revert to paying contributions.
If you wish to join PensionChoice with effect from 1 April 2010 please complete an opt-in form; if you wish to opt-out of PensionChoice please complete an opt-out form.
Opt-in and opt-out forms for both UMSS and USS are available on StaffNet at:
Opt-in and opt-out forms must be received in the Pensions Office, John Owens Building, no later than Wednesday 7 April 2010. Any forms received after this date cannot be processed and the next opportunity for change will be April 2011.
Opting out during the year
If you experience a lifestyle event as described in the booklet and FAQs, you can choose to opt out of PensionChoice at any time.
New employees
If you have joined the University since the start of 2010, you will be automatically placed in PensionChoice after three months' service, so you need only take any action if you do not wish to participate in PensionChoice.
Examples of salary savings for the 2010/2011 tax year:
| Grade | Annual salary £ | Pension scheme | Employee saving in national insurance pa £ |
|
|
|
|
|
| 1 | 15,292 | UMSS | 89 |
| 2 | 18,117 | UMSS | 106 |
| 3 | 20,327 | UMSS | 119 |
| 4 | 23,556 | UMSS | 138 |
| 5 | 28,139 | UMSS | 165 |
| 6 | 35,646 | USS | 212 |
| 7 | 45,155 | USS | 187 |
| 8 | 55,535 | USS | 35 |
Any questions?
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