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Information about the salary sacrifice scheme for members of staff with children in the UCL Day Nursery.
UCL runs an approved, voluntary “salary sacrifice” scheme for members of staff with children in the UCL Day Nursery (for further information about the Day Nursery and its fees, contact Catherine Burtenshaw on 020 7679 7461 or email nursery@ucl.ac.uk)
Or see: www.ucl.ac.uk/day-nursery/
This is an arrangement which constitutes a legal variation in an employee’s terms and conditions of employment and involves an employee by their choice taking a reduction in future remuneration. Subsequently, UCL undertakes to pay a corresponding sum to the Day Nursery. In this way, the nursery costs are funded out of gross and not net income, and therefore the employee’s deductions (i.e. tax and National Insurance) are based on a lower salary.
The arrangements involve a reduction in the basic annual salary which may have implications for an employee’s financial position, including the ability to make pension contributions, to secure mortgage funding, life insurance multiples, etc. As this could have implications for the purposes of pensions schemes, members of staff who are interested in the scheme should contact Pension Services (tel: 41243, email: pensions@ucl.ac.uk) for further information before any decision is made. The USS and Saul will accept Pension contributions based on ‘notional salary’ i.e. the individual’s salary before any sacrifice is made. The NHSPS, however, will only accept pension contributions based on salary after the deduction of the cost of the childcare. The benefits affected would include retirement benefits and an individual’s Additional Voluntary Contributions (AVC’s). will accept Pension contributions based on ‘notional salary’ i.e. the individual’s salary before any sacrifice is made. The NHSPS, however, will only accept pension contributions based on salary after the deduction of the cost of the childcare. The benefits affected would include retirement benefits and an individual’s Additional Voluntary Contributions (AVC’s).
The salary sacrifice cannot and does not refer to past earnings and constitutes a change in the terms and conditions of employment with UCL. Staff wishing to take part in the scheme may do so from the 1st of the month. The sacrifice will be deducted one month in advance of the effective date (e.g. in July for an effective date of 1 August, etc.) in accordance with an Inland Revenue requirement that the relevant remuneration is sacrificed by the employee before they have earned it. No rights in relation to the sacrificed portion can be exercised and the agreement can only be revoked or changed due to a significant lifestyle change. If you opt out of the scheme you will not be able to join within the same financial year.
Members of staff who wish to take part in the scheme should contact Catherine Burtenshaw (Nursery manager) at c.burthenshaw@ucl.ac.uk who will arrange for a salary sacrifice request form for you. This will be passed onto payroll to issue a revised contract. Further information on the scheme can also be obtained from Emma Sweeney.
Closing date for receipt of a signed contract is 18th of the month prior to the effective month in the relevant year in which the sacrifice is due to take effect.