UCL is continually seeking ways to add to its range of staff benefits and this new method of making pension contributions reduces the amount of National Insurance an individual pays each month, resulting in an increase in their take home pay. It has already been successfully implemented by many other universities and is fully supported by USS / SAUL. PensionsExchange was introduced following consultation with UCL trade unions and will be effective from 1st May 2010.
How it works
Under PensionsExchange an individual’s regular pension contributions will be reduced to nil (excluding any Additional Voluntary Contributions - AVCs), and UCL will make payments equivalent to those the individual previously made to USS / SAUL, as well as its employer contribution. The individual’s contractual gross pay will be reduced by the amount that they used to pay into USS / SAUL. As a result, their take-home pay in most cases will increase because they are paying less National Insurance. This is because the salary from which the employee pension contributions were previously paid were subject to National Insurance but contributions made by the employer are not.
Pension entitlements and pay-related benefits are not adversely affected by this change and the scheme ensures that all pension contributions continue to be paid in full.
IMPORTANT NOTE: If you are a member of USS or SAUL and in PensionsExchange BUT wish to have the option of taking a refund of your contributions (less statutory deductions) when you leave USS or SAUL with less than 2 years membership, you will NOT be able to have the refund of contribution option if you remain in PensionsExchange.
In order to qualify for the refund of contributions option, you will need to opt out of PensionsExchange (but still remain a member of SAUL or USS) either before you join UCL or immediately upon joining UCL. This can be done making your PensionsExchange opting out election as part of the Pension Scheme Membership section of your UCL On-line Staff Registration (or non-online paper equivalent form).
|PensionsExchange - Annual Anniversary Date|
|Employers NI Savings|
|Terms and Conditions|
|Glossary of Terms|
|HMRC – Guidance on Salary Sacrifice|