School of something FACULTY OF OTHER

PENSIONS & STAFF BENEFITS

Jill Nimmo - Pensions Manager

27.08.15

Staff Benefits

• Core benefits –

holidays, maternity, paternity, adoption leave, sickness benefits, staff review &

development scheme. Support services; HR, Library, etc.

More details on HR website; http://hr.leeds.ac.uk/

• Benefits+

• Lifestyle+

• Childcare+

• Travel+

• Pensions+

More details can be found on the staff benefits website;

http://hr.leeds.ac.uk/info/9/benefits_and_discounts/109/benefits_and_discounts

Lifestyle+

• Lifestyle+

access via https://uol.widerwallet.com/home to huge range of

discounts

See the main benefits website for further details;

Deals on healthcare & accident insurance

Simply Health

Give as you earn

Staff assistance fund

Sports centre membership – the Edge

NUS student discount Card

and many, many more…..

http://hr.leeds.ac.uk/info/9/benefits_and_discounts/109/benefits_and_discounts/2

Childcare+

• Childcare+

http://hr.leeds.ac.uk/benefits

• Childcare vouchers via salary sacrifice scheme, so you make

a saving on your tax & NI contributions

• on site nursery facilities

• Sports camp and holiday play schemes

Travel+

Travel+

http://hr.leeds.ac.uk/benefits

• Cycle to work scheme via salary sacrifice arrangement, so the cost to

you of acquiring the cycle is reduced

• Metrocard, discount of 15% on annual card

• Train season tickets via interest free loan

• First Bus monthly travel pass from £42.75 a month if you travel within

Leeds

Staff Benefits Fair held each year – your chance to meet providers &

ask questions

• What is automatic enrolment?

• What are the main pension schemes?

• When do I join?

• What benefits do they provide?

• What is Pensions+?

• Cost of pension scheme membership

• How can I increase my benefits?

Pension Benefits

What is automatic enrolment?

• This is a government initiative designed to increase levels of

pension scheme membership

• The regulations apply to all staff joining the University

• As an employer, the University are required to automatically

enrol all eligible members into a suitable pension scheme

• If you do not wish to be in a pension scheme at the University

you can opt out

• Under automatic enrolment regulations, if you do opt out we will

be required to opt you back in within the next 3 years

• Please see the pensions website for further detailed information;

http://hr.leeds.ac.uk/homepage/2/staff_information

Eligibility for automatic

enrolment

We will have to automatically enrol all staff, into the appropriate

scheme for their grade, if they meet the following criteria;

• Not already in a qualifying workplace pension

• Contract for more than 3 months

• Age 22 or over

• Under state pension age

• Earning more than a minimum amount each month (£833

2015/16)

• Work or usually work in the UK

Main Pension Schemes

The scheme you are eligible to join is dependent on your staff category

and will be confirmed in your letter of appointment;

Staff category Scheme

Academic or

Professional &

Managerial grade

USS Career Revalued Benefits (CRB) section

or

USS Final salary section if you were already a

member prior to 1 October 2011 changes are being made to the USS scheme from 1 April 2016,

which will impact on all members, see the USS website for further

details; http://www.uss.co.uk/news/Pages/ChangestoUSS.aspx

Support staff University of Leeds Defined Contribution Pension

Plan (DC Plan)

or

University of Leeds Pension & Assurance Scheme

(PAS) Career Average Revalued Benefits (CARE)

section

When do I join?

USS – If eligible, you will automatically join the CRB section from the first

day of your employment. You do not need to take any action.

- If you are eligible for the final salary section, we have to wait for

confirmation from USS before we can move you to this section

NB the final salary section will be closing on 31 March 2016, all final salary members will join the CRB section

DC Plan or PAS - You can opt to join one of these schemes from your first day of employment if you wish

- By default, you will not join a scheme for the first 3 months of your employment

- After 3 months, if you are eligible, you will automatically be enrolled into the DC Plan

- You can opt to join PAS rather than the DC Plan, but must do so within 6 months of

joining the University

- Please contact the pensions department if you want to join immediately or if you wish to

join PAS

• Both USS and PAS are defined benefit pension schemes. See website for further scheme specific details;

http://hr.leeds.ac.uk/info/41/pensions/241/pensions_at_leeds

• You build up pension and tax free cash sum based on your salary in each year of membership

• Retirement at age 65

• Once in payment, your pension increases in line with inflation (with a cap if inflation is more than 5% a year)

• Early retirement is available after age 55, but an early retirement reduction factor would apply

• Ill health early retirement benefits – enhanced benefits payable if you are unable to work

Main Benefits : USS & PAS

Main Benefits – USS & PAS

Death in Service & Retirement

• Death in service;

• Tax free lump sum of 3 times pensionable salary payable on death in

service under PAS & USS, plus

• Spouse’s/dependants pension equivalent to half your pension

projected to age 65 (maximum of 40 years service), plus

• Children’s pensions

• Death in retirement;

• Spouse’s/dependants pension equal to 50% of your pension

• Lump sum if you die within 5 years of retirement

• Remember to complete a nomination form & keep this up to date when

family circumstances change

Main Benefits - DC Plan (1)

(support staff only)

This is a defined contribution (money purchase) arrangement

Contributions from you and the University are invested to build up a pot of

money for use on retirement

The investment of contributions is administered by The People’s Pension

Minimum member contribution is 3% but you can pay more if you wish to

You can vary your contributions at any time

The University will broadly match member contributions on a 2 for 1 basis

up to a maximum University contribution of 10% of pensionable salary

You have a choice of funds to invest in, or there is a default option

Main Benefits - DC Plan (2)

On retirement you can take up to 25% of the fund as tax free cash

Balance of fund can be taken as cash, subject to a tax charge or

used to provide income eg by purchasing a pension from an insurance

company, using the fund built up from the contributions plus

investment performance

You have flexibility to decide on the type of pension you want, for

example you can opt for a pension that increases once in payment,

and specify the annual rate of increase

If you are too ill to work, the DC plan will provide an income protection

benefit of 50% of pensionable salary, subject to conditions

On death in service a lump sum of 5 x pensionable salary is paid, plus

your fund will be returned (currently) tax free or it can be used to set up

a spouses pension

Retirement guidance for those over 50 is available from the Pension

Wise service; https://www.pensionwise.gov.uk/

What is Pensions+?

• Pensions+ is a more effective way of paying contributions, via what is

known as a salary sacrifice scheme.

• You do not make a regular contribution to the pension scheme,

University pays the contribution on your behalf together with the

employer contributions

• Your contractual basic salary is reduced by amount equal to your

contributions

• You pay less National Insurance so your net pay increases

• Level of saving will depend on salary level

• For more details please refer to the pensions+ booklet; http://hr.leeds.ac.uk/info/41/pensions/107/why_join_a_pension_scheme/5

What is Pensions+ (cont)

• Pensions+ will not affect:

• Salary related benefits (eg allowances, shift pay, holiday pay, overtime, pay reviews, death benefits)

• Mortgage or other salary references

• Pension benefits or AVC contributions

• Maternity, paternity, adoptive pay

• Basic State Pension benefits

• You will be assumed to participate unless you opt out

• You can opt out of Pensions+ and still remain a member of the Pension Scheme

Important note - if you join scheme under Pensions+ and you leave with less than 2 years

service, you cannot have a refund of contributions.

If you are likely to leave with less than 2 years service and think you might want the option of

taking a refund, then you can opt out of Pensions+ and still remain in the pension scheme

Cost of pension scheme

membership

Scheme Gross

member

contribution

University

contribution

Net employee

cost –

pensions+ (2)

Net employee

cost – Not in

pensions+ (2)

USS final

salary section

7.5% (4) 16% 3.85% 4.65%

USS CRB &

PAS CARE (1)

6.5% (4) 16% USS

18.15% PAS

3.5% 4.0%

DC Plan 3 (3) 6% 2.04% 2.4%

DC Plan 5% 10% 3.38% 3.9%

•You automatically get tax relief at your highest rate on your contribution

• If in USS or PAS you also pay lower national insurance contributions

(1) for USS joiners after 1 October 2011 & PAS joiners after 1.4.13

(2) for basic rate tax payer

(3)for support staff, lowest contribution rate 3%,you can pay more & University will pay double your contribution, up to a maximum University contribution of 10%

(4) All USS member contributions will increase to 8% from 1 April 2016

How can I increase my

benefits?

• Can pay Additional Voluntary Contributions (AVCs) to all schemes

• Suitable for members who can’t achieve maximum benefits or who may

wish to retire early

• Can buy extra pension benefits* (added benefits AVC) or build up

separate money purchase fund

• Can pay monthly or by lump sum

• Tax efficient way to buy extra pension benefits

-Tax relief granted at source e.g. contribution of £10 a month would cost

£8.00 net of basic rate tax relief

* USS only & time limited availability due to scheme changes

How can I increase my

benefits? -Transfers In

If you have previous company or personal pension scheme benefits;

• To initiate a transfer enquiry, please submit a transfer enquiry form to

the pensions department

scheme benefit

PAS No transfers in allowed into PAS

DC Plan Can only transfer other DC benefits, not those from defined benefit

scheme

USS final salary

section

Under USS final salary section, transfer in will buy extra service (deadline of 30 October 2015 for making enquiry, see USS website for further details)

USS CRB section Will provide extra pension & lump sum in the CRB section of USS (deadline of 30 September 2016 for making enquiry, see USS website)

USS at previous

institute

automatic transfer of membership. If you were in the final salary section,

able to rejoin this if it is within 30 months of previous leaving date

USS – both

sections

If previous scheme in public sector Transfer Club, need to investigate

within 2 years of joining USS. Extra service credited

Further information for

Support Staff

• If eligible, remember you only have a one-off opportunity to

join the CARE section of PAS

• Must make this decision within first 6 months of joining the

University

• Otherwise DC Plan will be the default scheme

• A monthly pension induction course is run by the pensions

department, to help new support staff make an informed

choice as to which scheme they wish to join

• Dates of the induction course will be circulated by the

pensions department along with automatic enrolment letter

Contacts

• Email – pension queries; pensions@leeds.ac.uk

benefit queries ; staffbenefits@leeds.ac.uk

• Pension Office Contacts Jill Nimmo – Pensions Manager ext. 34138

Angela Jennings ext. 34139

Nicola Waite ext 34448

Elizabeth Horne – staff benefits ext 33966

Joanne Hubbard ext 34147

Julie Waddington ext 34156

Website - http://hr.leeds.ac.uk/