As a member of the Universities Superannuation Scheme (USS) or the Superannuation Arrangements of the University of London (SAUL), you will be able to participate in the arrangements under PensionsPlus which will reduce the amount of National Insurance contributions (NIC) that you pay each month, resulting in a higher take-home pay.
How does it work?
Normally you make employee pension contributions of 6.10% (USS) or 6.00% (SAUL) of your pensionable salary and St George’s contributes an amount equal to 14.50% (USS) or 21.00% (SAUL DB) 16.00% (SAUL DC) of your pensionable salary. The pension contributions are taken from your net salary (ie after tax and NIC have been deducted). You receive tax relief on your pension contributions, but you do not receive any relief for NIC. (Rates as at 01/01/2024)
Participating in PensionsPlus changes the way pension contributions will be made. Under PensionsPlus you cease to make employee pension contributions, and your basic salary (and other elements of pensionable income) will be reduced by the standard member contribution. The university will increase its employer contribution accordingly. This is known as a ‘salary exchange’. Since the NIC will be calculated once the salary exchange has taken place (ie it will be calculated using a lower basic salary), you will make NIC savings, resulting in a higher take-home pay.
PensionsPlus will also lead to savings for the university as there will be a reduction in the employer’s NIC.
Opting out
If you decide that you do not wish to participate in PensionsPlus, you must complete an opt-out form. You should read carefully the attached information which sets out the implications of being included in the scheme and opting out. You can opt out of PensionsPlus initially on joining the university or the PensionsPlus scheme anniversary on 1 August, thereafter. All completed opt-out forms should be returned to the Payroll and Pensions Department via email no later than 31 July each year. By opting out you will continue to receive your existing salary (and make pension contributions under the normal arrangements), however you will not benefit from the reduced NIC and a higher take-home pay.
Please note that PensionsPlus will not apply to any additional voluntary contributions (‘AVCs’) you may choose to make. These will continue to be paid in the same way as at present.
Find out more
In frequently asked questions (PPT), you will find information about how the arrangement works. Full details of the contractual changes under PensionsPlus are given in changes to terms and conditions of employment (Word). Please read these documents and the supplementary terms and conditions of employment (Word) carefully.
Many other employers are operating similar schemes. Like any benefit plan, PensionsPlus is based on current taxation and National Insurance law and practice. If these change, or if there is no longer a benefit in participating in this arrangement, the University reserves the right to withdraw PensionsPlus, but would always do so in a way that is not detrimental to your interests.
If you have any questions not covered in the FAQs, please contact the Payroll Department.
Useful documents