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Human Resources

PensionsPlus

FAQs

Does this affect my overall pension position?

No – your pension will continue to accrue as previously and remains a valuable benefit to you.

Are other companies and universities doing this?

Many other large organisations have already introduced an arrangement like PensionsPlus, including the Universities of Edinburgh, Durham, Leeds and King’s College London, as well as companies like BT, T-Mobile, Rolls Royce, Tesco and ASDA. 

Why are savings different at different rates of pay?

The marginal rate of NI that you pay depends on how much you earn. For earnings below the Upper Earnings Limit (£43,875 from April 2009) the employee NI rate is currently between 9.4% and 11% , and above this level is just 1%. Therefore for an employee earning £40,000 their saving is calculated at the rate of 9.4%; the saving for an employee earning £50,000 is 1%.

Are Additional Voluntary Contributions (AVCs) be included in PensionsPlus?

No, AVCs are not included in PensionsPlus and any AVCs you make will continue unchanged.

Can I opt out of PensionsPlus?

If you wish to make a change you can do so in October each year, effective as at 1 November.

However, if your situation significantly changes following a lifestyle event, for example if your pay or hours change significantly, you can ask the College to review your position with immediate effect. You should contact pension@qmul.ac.uk. Please note that any change to your participation in these circumstances is subject to the agreement of the College.   

In addition, if your salary drops below the pay protection limit (currently £6,600 a year), you will automatically be removed from PensionsPlus so that you are not disadvantaged.

What is a lifestyle event?

A lifestyle event is when your personal situation changes significantly, such as a result of one of the following events:

  • 10% or more increase or decrease in salary
  • significant change in working hours
  • go on maternity/adoption leave
  • Marriage or divorce
  • Death of a dependant

If you believe you have experienced a lifestyle event, please contact pension@qmul.ac.uk.

If I decide to opt out of PensionsPlus, can I opt back in?

You will be able to opt back in, but will only be able to do so at the next enrolment period which is in October each year, effective from November. You should contact pension@qmul.ac.uk in writing if you wish to do so.

If I am automatically opted out can I opt back in?

Yes, provided your gross pay does not reduce below the NMW (national minimum wage). However if you have been opted out of PensionsPlus it is unlikely that you will benefit from opting back in.

If I am on a secondment/ have been posted abroad am I eligible for PensionsPlus?

As long as you are paying NI in the UK and are on the College’s UK payroll (and receive a monthly salary that is more than 1/12th of £6,600 and would not otherwise fall below the NMW) you will automatically be opted into PensionsPlus. If you do not meet one or more of these criteria, you will automatically be opted out.

What happens if I go on sick leave?

As long as you continue to receive a monthly salary that is more that 1/12th of £6,600 and would not otherwise fall below the NMW, you will continue to participate in PensionsPlus.

What happens if I go on unpaid leave?

When your earnings drop below 1/12th of £6,600 in any given month, you will automatically be opted out of PensionsPlus but will still remain a member of the pension plan. When you return from your period of unpaid leave, you will automatically be included in PensionsPlus.

What happens if I go on maternity/adoption/parental leave?

When you advise the College of your intention to take maternity/adoption or parental leave, you should call HR who will discuss your options with you.

You will continue to participate in PensionsPlus whilst you are on paid maternity/adoption leave, provided that your maternity/adoption pay in any given month is above the pay protection limit. If you take any period of unpaid maternity/adoption leave, you will cease to participate in PensionsPlus. If you take unpaid parental leave you will also cease to participate in PensionsPlus.

If I am on maternity/adoption/parental leave am I eligible for PensionsPlus on my return?

Yes. If your earnings are above the pay protection limit when you return to work, you will be automatically included in PensionsPlus and if they are below this limit, you will be opted out of PensionsPlus.

What happens if I have a student loan?

Student loans are based on pay that is subject to National Insurance (NI'able pay). If NI'able pay in the month is £1,250 or above, student loan deductions are made. As PensionsPlus reduces pay (and hence the NI that is payable), the amount of student loan repayments you make may therefore reduce.

PensionsPlus may result in earnings falling below the monthly threshold of £1,250 in which case no repayments would be made.

Does participating in PensionsPlus affect any mortgage or loan applications I make?

No - your salary, before any adjustment for PensionsPlus, will be the amount used in any personal letters issued by the College on your behalf e.g. mortgage letters or loan applications. In addition, the third party will be advised that you participate in a salary sacrifice arrangement.

What happens if I leave?

If you leave and have been a pension plan member for two years or more your benefits will not change because of the introduction of PensionsPlus. Your benefits will be secured as normal.

However, if you leave the USS or SAUL before completing two years’ membership, and do not have any benefits transferred in from a previous pension scheme, there could be relevant changes to the benefits you are entitled to on leaving service:

If you leave the USS or SAUL with 0-3 months’ membership: you'll receive a payment of an amount equivalent to a refund of your pension contributions, less tax and NI.

If you leave the USS or SAUL with 3-24 months’ membership: your benefits will be preserved and you will have the option to either transfer this to an alternative pension arrangement or leave it in the USS or SAUL until you retire.

Have the Scheme Trustees and the Unions been involved?

Yes, the Trustees of USS and SAUL and the Unions are aware and support the introduction of PensionsPlus.

Will PensionsPlus affect any benefits I get from the State?

Entitlement to some State benefits, such as the Basic State Pension, Statutory Sick Pay, Incapacity Benefit and Job Seekers Allowance are based on the amount of National Insurance that has been paid.

Provided you continue to earn more than the Earnings Threshold, currently around £5,715 a year, on a regular basis after the introduction of PensionsPlus, your entitlement to these benefits will not change. The College has also introduced a pay protection limit, which at £6,600 is above the Earnings Threshold to protect against you nearing this limit.

If you are unsure as to whether you should participate in PensionsPlus you should seek your own financial advice.

Will PensionsPlus affect the amount of basic state pension I will receive at retirement?

No – this will not be affected by PensionsPlus.

I am over the State retirement age and do not pay NI contributions. Can I still join PensionsPlus and what would be the advantage for me?

If you are over State retirement age (currently 60 for women and 65 for men), you will not pay NI contributions on your earnings. As a result, you will not benefit from any NIC savings through participating in PensionsPlus. However, you  will still automatically be opted into the scheme unless you have ‘opted out’. Employer’s contributions are still payable for staff who are over retirement age and therefore, by being a member of PensionsPlus, you will help the College to achieve savings. 

How long will PensionsPlus last?

The College plans to operate PensionsPlus indefinitely. However, if tax, NI or pension law is changed, or if it is no longer viable, the College reserves the right to withdraw PensionsPlus.

What will the College do with its share of the PensionsPlus savings?

PensionsPlus will allow the College to make savings on its employer’s national insurance contributions, which will be invested to support services for staff and students.

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