FAQs
- How Do I Join?
- What if I previously opted out?
- What does it cost?
- Can I opt out?
- What are AVCs?
- Can I transfer benefits from a previous pension scheme?
- How do I know what benefits I will get from the scheme?
- What happens if I leave the University?
- What if I have unpaid maternity leave?
- Can I retire early?
- Will my pension increase?
- How long will my pension be paid for?
- What if I am not married?
- Who should I contact if I have a query?
How do
I join?
If you are an eligible employee you will automatically, unless you elect not to join, be entered into the
scheme at the start of your employment.
What if I previously
opted out?
If you previously opted out and now wish to re-join, membership is at the
discretion of the Trustees. Please contact the pensions department for an
application form. You will need to
complete a medical declaration before your application can be considered.
What does it cost?
You pay a contribution of 9% of your salary, but get tax relief at your highest
rate and also pay lower national insurance contributions, so the net cost to
you is much less than this. The average
net cost is approximately 5%. The
University pays an employer contribution of 19% and an annual cash payment
(from 2009) of £823,000.
Can I opt out?
Yes, you can opt out as membership is not compulsory. If you have less than two
years in the scheme when you opt out you will get a refund of your
contributions, minus a deduction for tax and national insurance. You must give at least one months notice of
withdrawal.
Remember, if you are no longer a scheme member you will not be covered for the death in service lump sum or dependent’s pension benefits.
What are AVCs?
AVCs are additional voluntary contributions and you can pay them either as a
lump sum or as a monthly payment. Paying AVCs will build up a fund at
retirement which can be used to provide extra pension or increase your tax free lump sum. For more information on AVCs contact the pensions department.
Can I transfer benefits
from a previous pension scheme?
Yes, we can usually accept transfers from most approved pension arrangements,
as long as the transfer value from the previous scheme is more than £5000. Your
fund will be used to buy extra pensionable service for you. To investigate a
transfer, please contact the pensions department.
What happens if I leave the University?
We will calculate the benefits you have built up in the scheme up to your
leaving date. If you have less than two years’ membership you will have the
option of transfer value or a refund of your contributions. If you have over
two years’ membership, we will issue you with a deferred benefit statement or
you can investigate a transfer to a new pension scheme.
What if I have unpaid
maternity leave?
Your maternity leave will count in full up to week 40. You will not accrue any benefits in respect
of your maternity leave beyond week 40.
Can I retire early?
The normal pension age of the Plan was increased from age 60 to age 65 for service from 1 August 2002
for future service. You may apply to
retire early from age 55 but an actuarial reduction
will apply to any benefits paid before the normal pension age.
Will my pension
increase?
Pensions in payment in excess of any guaranteed minimum pension (GMP) increase
each April by the rate of increase in the Retail Prices Index (RPI), as
measured by the September RPI figure. Historical rates of increase are as
follows:
|
Historical rates of interest |
|
|
April 2005 |
3.1% |
|
April 2006 |
2.7% |
|
April 2007 |
3.6% |
|
April 2008 |
3.9% |
| April 2009 |
5.0% |
| April 2010 |
0.0% |
Pension increases on the GMP portion of your pension are paid by the State. Pension increases are normally implemented in the May payroll.
How long will my pension be paid
for?
Your pension is payable for your lifetime, and on your death if you have a
spouse or civil partner a pension will be payable.
What if I am not married?
If you are not married, a lump sum will still be paid. You may nominate whoever you wish to receive this payment. The payment is made at the discretion of the Trustees who, unless any exceptional circumstances apply, will normally follow member’s wishes.
Who should I contact if I have a query?
Please contact the Pensions office.
