UPS Pension Investment Plan

Employee Benefits

UPS Pension Investment Plan

UPS operates a ‘Defined Contribution’ pension scheme (UPS Pension Investment Plan, otherwise known as PIP) for its employees. Following government regulations, all new employees will be automatically enrolled into the plan if their earnings are greater than £10,000 per annum and they are at least 22 years of age. If you do not meet these requirements, you can still request to join the plan by contacting the Pensions Dept.

Upon enrolling, the employee contributions are 4.5% of gross basic annual salary - matched by UPS. Employees with a technical or management contract can increase their contributions to 5%, which is matched by UPS and then increased to 7% after five years pensionable service.

Your pension scheme is managed by Legal & General. You will receive log-in details for your account, which enables you to manage your pension e.g. changing your investment choice. If you do not wish to join the pension scheme you can opt-out through Legal & General.

A salary sacrifice arrangement is also operated in the UPS Pension Investment Plan. This is an easy way for pension contributions to be paid which can save you money.

How it works is simple: UPS provides you with an extra benefit by increasing its contributions to the plan by exactly the same amount as the normal pension contributions that you paid before the arrangement is implemented.

In exchange, your gross salary is reduced, again by exactly the same amount as the normal pension contributions that you paid before the arrangement was implemented.

In effect you swap some of your salary for pension contributions. The good news is that in the majority of cases both you and the Company should pay less National Insurance so everyone makes a small saving. In some cases, the savings may be modest but every little helps.

The Payroll Dept will assess all members to ensure they are above the minimum threshold to partake in the plan.