If you are currently in the Universities Superannuation Scheme (USS) or the Superannuation Arrangements of the University of London (SAUL) you will automatically be included in PensionsExchange. This will constitute a change to your current Terms and Conditions of employment (see below). It is important that you understand and agree the changes to your basic salary and payment of pension contributions, as you will automatically be included in PensionsExchange. All other terms and conditions of employment remain unaffected.
If, however, you would prefer to opt out, you must sign and complete in full an opt out form. This is available from Pension Services and must be returned by 30 April 2010. If an opt out form has not been received by this date, you will not be able to opt-out of PensionsExchange until the following 30th April 2011 and thereafter any subsequent 30 April unless you experience a lifestyle event. Opt outs received by 30 April will be effective from 1st May.
|Basic Salary:||Your contract of employment with University College London (“UCL”) sets out your basic salary and grade. The changes under PensionsExchange mean that your Basic Salary will be reduced with effect from 1 May 2010 by 6.35% (for USS members) or 6% (for SAUL members). UCL will increase its employer pension contribution into the Universities Superannuation Scheme (“USS“) or the Superannuation Arrangements of the University of London (“SAUL”) by the equivalent amount.|
|Reference Salary||Your Reference Salary is your Basic Salary prior to any reduction for PensionsExchange. This will have been notified to you in your original employment contract. Should your rate of pay change as a consequence of a pay review this will be applied to your “Reference Salary”.|
|Pensionable Salary||Pensionable Salary is the sum of your Reference Salary and any other pensionable pay elements (e.g. London Allowance). Your Pensionable Salary and all entitlements to benefits under the USS or SAUL are unaffected by PensionsExchange.|
|Adjusted Salary||Adjusted Salary is the sum of your Reference Salary and other pensionable pay elements, reduced by 6.35% (for USS members) or 6% (for SAUL members), plus any non-pensionable payments you may receive. (The latter are unaffected by PensionsExchange.) PAYE and NIC calculations will be made on your Adjusted Salary. These statutory deductions, together with some other statutory and voluntary deductions that may be applicable (e.g. season ticket loan repayments) are deducted from your Adjusted Salary to produce your ‘net’ take home pay.|
|Overtime etc.||If you are entitled to additional pay for overtime working, acting up and similar pay supplements, these will continue to be calculated based on your Reference Salary prior to any PensionsExchange Adjustment. Therefore such payments will not be affected by participation in PensionsExchange.|
|Sick Pay / Maternity Pay / Adoption Pay /Paternity Pay||In accordance with statutory requirements Statutory Sick Pay, Statutory Maternity Pay, Statutory Adoption Pay and Statutory Paternity Pay will be based on your Adjusted Salary; however any enhanced occupational pay you receive will be based on your Reference Salary. The amount of pay you receive while in receipt of occupational pay will not be negatively affected by PensionsExchange and you will continue to Participate in PensionsExchange throughout this period. During periods where you are in receipt of Statutory Sick/Maternity/Paternity/Adoption Pay only, there will be no PensionsExchange Adjustment and UCL will continue to make additional pension contributions. During periods of unpaid maternity leave you will not have any PensionsExchange Adjustment and no contributions will be made by UCL. When you return to from your unpaid period of leave PensionsExchange will apply as before.|
|Holiday Pay||Any holiday pay which you might be entitled to receive on leaving UCL’s employment will be based on your Reference Salary.|
PensionsExchange is a salary sacrifice arrangement where an employee agrees to reduce their Basic salary and UCL agrees to provide the employee with an additional benefit equivalent to the salary reduction. In the case of PensionsExchange this is additional pension contributions. UCL reserves the right to amend or discontinue PensionsExchange should UCL determine that it is appropriate for it to do so taking into account such matters as it may consider relevant from time to time including changes to UK tax and National Insurance Contributions legislation. If you agree to these terms (i.e. do not opt-out by 30 April 2010) you will not be able to opt-out of PensionsExchange until 30 April 2011 and thereafter any subsequent 30 April unless you experience a lifestyle event. These include the following: