Pension scheme members already receive income tax relief on pension contributions and the University is committed to making your pension contributions work even more efficiently. pensions+ means that both you and the University can make savings.
By agreeing to reduce your gross contractual salary by the value of your pension contributions, the amount both you and the University pay in National Insurance contributions reduces. As your NI contributions decrease, your take-home pay increases.
On joining DUPS or USS, members will automatically be opted into the Pensions+ arrangement, unless their salary is below the Pay Protection Limit as set by the University or they choose to opt out. Members of NOW:Pensions cannot participate in pensions+.
How it works
- You do not pay your normal pension contributions directly
- Your gross contractual salary will be reduced by a percentage, based on your pension contributions
- In return, the University will increase its contributions by an equivalent amount, which will be paid into the pension fund
- As your salary will be lower, you will pay lower NI contributions
- Currently, Additional Voluntary Contributions are not included in pensions+.
Your basic state pension will not be affected.
If you are unsure about whether or not you should participate in pensions+, you should seek your own financial advice. Details of an independent financial adviser (IFA) near you can be found by calling IFA Promotion Ltd on 0800 085 3250 or at: www.unbiased.co.uk.