Pensions+

Pensions+ is not a pension scheme but a salary sacrifice arrangement which aims to help pension scheme members save more effectively. 

Anyone who contributes to a pension scheme will automatically receive income tax relief. Pensions+ goes one step further by allowing you to also receive relief on National Insurance payments. This in turn allows you to optimise your take-home pay.

How it works:

In salary sacrifice arrangements, the employer pays the scheme contribution on your behalf and your salary is lowered by the equivalent amount. As your basic salary is lower, the amount of tax and National Insurance contribution (NIC) payable will also be lower, allowing for your take-home pay to be optimised.

In a non-salary sacrifice arrangement, you would still receive the same amount of tax relief as above. However, as you would make the pension contribution yourself, your basic pay would remain unchanged. Therefore, the amount of NIC due would be based on a higher amount and you would not benefit from the NI relief provided by Pensions+.

The Payroll Team will still keep a record of your gross salary before Pensions+. This will be called your Reference Salary and will be used for any salary-related calculations, such as pay awards and overtime. It will also be the amount used in any official letters issued by the University on your behalf e.g. mortgage references. 

Please note that additional voluntary contributions (AVCs) will not be taken through salary sacrifice except for ‘the Match’ AVC for USS pension scheme members.

Further information about the University’s pension schemes can be found on the following webpages: 

• University of Reading Employees’ Pension Fund (UREPF)
• University of Reading Pension Scheme (URPS)
• Universities Superannuation Scheme (USS) 

Most staff will be entered automatically into the Pensions+ arrangement based on the terms and conditions of their contract. Please note, some staff may be automatically opted out of Pensions+ if the University believes that they would be adversely affected by participating.

If you do not wish to participate in this arrangement but still wish to contribute to your pension scheme, you will need to complete a Pensions+ opt out form and return it to the Payroll Team.

Further information about the Pensions+ arrangement can be found on the following Pensions+ FAQs webpage.