The UK’s European university
Introduction to PensionsPlus Alan Gazzard Assistant Pensions Manager
Welcome Alan Gazzard – Assistant Pensions Manager
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Key Phrases for PensionsPlus
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PensionsPlus
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Scheme Anniversary
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Reference Salary
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Lower Earnings Limit
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Primary Threshold
What is PensionsPlus? PensionsPlus is a new and more cost-effective way of making pension contributions for both the USS and SAUL pension schemes. The scheme will benefit many employees as it will reduce National Insurance Contributions resulting in more take home pay. The scheme will commence in February 2020 and will annually renew in February each year. This is known as the Scheme Anniversary.
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National Insurance Contributions and State Benefits`
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Footer text
State Pension Being in PensionsPlus does not effect your State Pension Entitlement. The previous State Pension system has been replaced with a simpler one if you are reaching your State Pension Age on or after 6 April 2016. You will now be required to have 35 qualifying years' of National insurance contributions or credits to get the full amount. The amount of National Insurance Contributions you pay does not effect the level of State Pension you will receive. Page 6
Sickness and Family Statutory Payments Statutory Sickness Pay
Statutory Maternity Pay
You can get £94.25 a week Statutory Sick Pay (SSP) for up to 28 weeks if you earn an average of at least £118 per week
You can get £148.98 a week for Statutory Maternity Pay (SMP) for up to 33 weeks if you earn an average of at least £118 per week
PensionsPlus has controls in place to ensure that you will not be taken below the Lower Earnings Limit of £512 meaning this will not effect your Statutory Benefits
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How does PensionsPlus work?
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Your pension contribution is exchanged for an equivalent employer contribution
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Work related Payments and Allowances
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Impact on Annual and Lifetime Allowances
Pensions Benefits (incl. State Benefits) Taxation Multiple Posts and/or Contracts Other Salary Sacrifice Schemes (C2W and Childcare)
Who can participate in PensionsPlus? Opted Out
Opted In
9.6%
6%
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Graduate Teaching Assistants
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External Examiners
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Timesheet Staff
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NEST
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NHS
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Scottish Equitable
How much will my take-home pay increase by?
Annual income £10,000 £15,000 £20,000 Page 10
Annual net pay increase (SAUL) £72 £108 £144
Annual income £40,000 £50,000 £60,000
Based on 6% member contribution for SAUL members and 9.6% for USS members as at 1 October 2019
Annual net pay increase (USS) £461 £576 £115
How are additional pension contributions treated under PensionsPlus?
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SAUL • All excluded from PensionsPlus
USS • Defined Benefit Final Salary or Career Revalued Benefit AVCs are excluded • Defined Contributions can be included however action may be required – ‘The match’ 1% contribution – Additional Monthly or Lump Sum contributions
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Refunds, Payments and Salary
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Refunds Loans and Mortgages Statutory Payments Unpaid Leave Tax Credits Student Loans Child Benefit
What happens next?
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Am I agreeing to a change in the terms and conditions of my employment?
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I wish to participate in PensionsPlus; what do I need to do?
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What will my payslip look like?
Payslip Change
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How do I opt out? Opt Out before the Scheme Anniversary
Opt Out at Launch
LIFESTYLE EVENT
Complete the Opt Out Form on Staff Connect
Complete the Opt Out Form on Staff Connect where there is a Lifestyle Event.
If you opt out of PensionsPlus, you will NOT be opting out of SAUL or USS and will continue to pay contributions. If you wish to opt out and cease all pension contributions, you will need to complete the form available from the SAUL or USS websites and return this to the Pensions Office based in Darwin College, Canterbury Campus.
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h>ps://staconnect.kent.ac.uk
How do I opt in? Opt In after previously Opting Out at Scheme Launch
Opt In after previously Opting Out due to a Lifestyle Event LIFESTYLE EVENT
You may only re-join on the Scheme Anniversary by completing the Opt In Form on Staff Connect.
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Complete the Opt In Form on Staff Connect at any time.
h>ps://staffconnect.kent.ac.uk
Questions and Support Email: pensionsplus@kent.ac.uk Website: www.kent.ac.uk/human-resources/pensions/pensionsplus My View: https://staffconnect.kent.ac.uk/ My USS: www.uss.co.uk/members/login
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THE UK’S EUROPEAN UNIVERSITY
www.kent.ac.uk