Pensions+ - a new way to save for your retirement

Wednesday, 13 June 2012

The University outlined a commitment to increase the range of benefits for staff in the HR Strategy, Working Together: A Strategy for Success. We are therefore pleased to introduce Pensions+ with effect from 1 August 2012 to help make pension contributions work more efficiently for staff.  

If you are a member of one of the University's pension schemes, you already receive income tax relief on your pension contributions. Pensions+ is a salary exchange scheme which enables both you and the University to make savings without reducing the overall level of pension benefits you will receive. Pensions+ increases your take home pay by taking advantage of National Insurance (NI) savings.

At present, the pension schemes are funded by contributions from both you and the University. Under Pensions+, your salary will be reduced by the amount of your normal pension contributions and the University will pay an equivalent amount into your pension scheme in addition to the normal University contribution. 

The result is that the same amount of money will be paid into your pension scheme as now, but it will all be paid by the University. As your salary is reduced to compensate for this, the amount of NI you pay will be reduced, and your take home pay will increase.

Pensions+ is being introduced with effect from 1 August 2012, so you will see the savings in your August salary. As the majority of staff will benefit from participating in Pensions+, you will automatically be enrolled into the scheme, so you don't need to do anything to join.

If you do not wish to participate, you must opt out by 30 July 2012. You will need to complete and return an opt out form. Forms are available upon request from Human Resources, or to download from the web site.

You will shortly receive a letter and a booklet explaining the scheme in more detail.  If you wish to find out more about Pensions+, please come along to a presentation, or visit the website www.reading.ac.uk/benefitsplus.

Presentations are being held on the following dates:

Thursday 28 June  

11.00 - 12.00  Business School G11, Whiteknights

1.00 - 2.00     Business School G11, Whiteknights

3.00 - 4.00     National Grid Conference Room, Greenlands

Wednesday 4 July    

11.00 - 12.00  Business School G11, Whiteknights

1.00 - 2.00      Business School G11, Whiteknights

3.00 - 4.00      National Grid Conference Room, Greenlands

University savings

The savings made by the University will be reinvested in staff-related matters, taking into consideration suggestions put forward as part of the 2011 staff survey. Some of the savings will focus on valuing and supporting staff through reward and recognition arrangements and the introduction of an Employee Assistance Programme.

John Brady, Director of Human Resources