Pensions Manager - University of Leeds

School of somethingFACULTY OF OTHERPENSIONS & STAFF BENEFITSJill Nimmo - Pensions Manager30.8.13

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 ofdiscountsSee the main benefits website for further details;Deals on healthcare & accident insuranceSimply HealthGive as you earnStaff assistance fundSports centre membership – the EdgeNUS student discount Cardand 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 makea 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 toyou of acquiring the cycle is reduced• Metrocard, discount of 15% on annual card• Train season tickets via interest free loan• First Bus annual pass saving £50Staff Benefits Fair held each year – your chance to meet providers &ask questions

Pension Benefits• 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?

What is automatic enrolment?• This is a government initiative designed to increase levels ofpension scheme membership• The regulations apply to all staff joining the University• As an employer, the University will be required to automaticallyenrol all eligible members into a suitable pension scheme• If you do not wish to be in a pension scheme at the Universityyou can opt out• Under automatic enrolment regulations, if you do opt out we willbe 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 automaticenrolmentWe will have to automatically enrol all staff, into the appropriatescheme 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 (£7872013/14)• Work or usually work in the UK

Main Pension SchemesThe scheme you are eligible to join is dependent on your staff categoryand will be confirmed in your letter of appointment;Staff categoryAcademic orProfessional &Managerial gradeSupport staffSchemeUSS Career Revalued Benefits (CRB) sectionorUSS Final salary section if you were already amember prior to 1 October 2011University of Leeds Defined Contribution PensionPlan (DC Plan)orUniversity of Leeds Pension & Assurance Scheme(PAS) Career Average Revalued Benefits (CARE)section

What is Pensions+?• Pensions+ is a more effective way of paying contributions, via what isknown 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 theemployer contributions• Your contractual basic salary is reduced by amount equal to yourcontributions• 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 PensionSchemeImportant note - if you join scheme under Pensions+ and you leave with less than 2 yearsservice, 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 oftaking a refund, then you can opt out of Pensions+ and still remain in the pension scheme

Cost of pension schememembershipSchemeUSS finalsalary sectionUSS CRB &PAS CARE *GrossmembercontributionUniversitycontributionNet employeecost –pensions+ **7.5% 16% 3.85% 4.65%6.5% 16% USS18.15% PAS3.5% 4.0%DC Plan 3%*** 6% 2.04% 2.4%DC Plan 5% 10% 3.38% 3.9%Net employeecost – Not inpensions+ **•You automatically get tax relief at your highest rate on your contribution• If in USS or PAS you also pay lower national insurance contributions* for USS joiners after 1 October 2011 & PAS joiners after 1.4.13** for basic rate tax payer***for support staff, lowest contribution rate 3%,you can pay more & University will pay double yourcontribution, up to a maximum University contribution of 10%

How can I increase mybenefits?• Can pay Additional Voluntary Contributions (AVCs) to all schemes• Suitable for members who can’t achieve maximum benefits or who maywish to retire early• Can buy extra pension benefits* (added benefits AVC) or build upseparate 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* USS only£8.00 net of basic rate tax relief

How can I increase mybenefits? -Transfers InIf you have previous company or personal pension scheme benefits;schemePASDC PlanbenefitNo transfers in allowed into PAS, but may be able to transfer previousbenefits into the DC PlanCan only transfer other DC benefits, not those from final salary schemeUSS final salarysectionUSS CRB sectionUSS at previousinstituteUSS – bothsectionsUnder USS final salary section, transfer in will buy extra serviceWill provide extra pension & lump sum in the CRB section of USSautomatic transfer of membership. If you were in the final salary section,able to rejoin this if it is within 30 months of previous leaving dateIf previous scheme in public sector Transfer Club, need to investigatewithin 2 years of joining USS. Extra service credited• To initiate a transfer enquiry, please submit a transfer enquiry form tothe pensions department

Further information forSupport Staff• If eligible, remember you only have a one-off opportunity tojoin the CARE section of PAS• Must make this decision within first 6 months of joining theUniversity• Otherwise DC Plan will be the default scheme• A monthly pension induction course is run by the pensionsdepartment, to help new support staff make an informedchoice as to which scheme they wish to join• Dates of the induction course will be circulated by thepensions department along with automatic enrolment letter

Contacts• Email – pension queries; pensions@leeds.ac.ukbenefit queries ; staffbenefits@leeds.ac.uk• Pension Office ContactsJill Nimmo – Pensions Manager ext. 34138Angela Jennings ext. 34139Nicola Waite ext 34448Haroon Adam ext 34156Elizabeth Horne – staff benefits ext 33966Joanne Hubbard ext 34147Website - http://hr.leeds.ac.uk/