PensionChoice
21 Mar 2012
1 April is the renewal date for PensionChoice: UMSS and USS members have the opportunity to opt in or opt out of the scheme by 3 April.
PensionChoice was introduced in June 2009 as an alternative way of funding benefits in USS and UMSS. It is a salary exchange arrangement; instead of the traditional route of paying employee contributions, if you accept a reduction in your salary, in exchange, the University will make an additional equivalent pension contribution to your pension scheme.
As a result of participating in PensionChoice, your take home pay will increase, as you will pay less national insurance contributions. Examples of the savings that could be made by opting in to PensionChoice are provided in the table below. PensionChoice does not change your pensionable salary or reduce your pension benefits.
Over 95% of eligible members currently participate in PensionChoice. If you are one of these people and you wish to continue participating in PensionChoice - no action is needed.
Renewal date
1 April is the renewal date for PensionChoice – this provides all members of UMSS and USS with the following options:
- to join PensionChoice if you have previously opted out, or,
- to withdraw from PensionChoice and revert to paying contributions.
If you wish to join PensionChoice with effect from 1 April 2012, please complete an Opt in Form; if you wish to opt out of PensionChoice, please complete an Opt out Form.
Opt in and Opt out Forms for both UMSS and USS are available on StaffNet at:
All forms should be sent to the Pensions Office in John Owens Building and received by 3 April 2012. Any forms received after these dates cannot be processed and the next opportunity for change will be April 2013.
Opting out during the year
If you experience a lifestyle event as described in the booklet and FAQs:
you can choose to opt out of PensionChoice at any time.
New employees
If you have joined the University since the start of 2012, you will be automatically placed in PensionChoice after 3 months service, so you need only take any action if you do not wish to participate in PensionChoice.
Examples of salary savings for the 2012/2013 tax year:
| Grade | Annual salary £ | Pension scheme | Employee saving in national insurance pa £ |
| 1 | 15,503 | UMSS 7% | 115 |
| 2 | 18,340 | UMSS 7% | 136 |
| 3 | 20,559 | UMSS 7% | 153 |
| 4 | 23,811 | UMSS 7% | 177 |
| 5 | 28,401 | UMSS 7% | 211 |
| 6 | 35,938 | USS 7.5% | 286 |
| 7 | 45,486 | USS 7.5% | 109 |
| 8 | 55,908 | USS 7.5% | 84 |
Any questions?
You can contact us at: