Pensions Handbook

The University provides academic and academic related members of staff, if eligible, with the opportunity to join the Universities Superannuation Scheme (USS).

Non-academic staff, if eligible, have the opportunity to join the University of Glasgow Pension Scheme (UGPS).

Staff not eligible for membership of USS or UGPS have the opportinity to join the National Employment Savings Trust (NEST).

Continued active membership of the MRC Pension Scheme is automatic to those staff were in that scheme and who transferred from the Medical Research Council under the TUPE regulations.

Continued active membership of the Scottish Teachers Superannuation Scheme (STSS) is automatic to those academic staff at St Andrew’s College, who were in the STSS Scheme immediately before 1 April 1999, and who transferred to an academic post in the School of Education at the University. Eligibility will cease whenever they cease to be employed in such a post at that School.

Continued active membership of the Local Government Pension Scheme (LGPS) is automatic for University employees who were active members of this Scheme immediately before 1 April 1999. Continued membership is not conditional on remaining at a post in the School of Education.

Employees remaining on St Andrew’s College terms and conditions may join USS and UGPS, as appropriate, only if they accept a University contract on University terms and conditions.

Continued active membership of the National Health Service (NHS) Superannuation Scheme, may be possible for certain new University employees - provided an application to remain within this Scheme is lodged with the NHS within the stipulated time limits. Continued active membership is normally confined to those employees who are employed as lecturers by the University on a contract of five years or less, or who have previously contracted with the NHS Superannuation Scheme to take out added years additional voluntary contributions.

New employees are normally eligible to join either USS or UGPS, and in accordance with CVCP policy established in 1988, automatic and immediate entry into the relevant pension scheme is arranged. Employees wishing to opt out of the pension scheme can do so.

Any employee considering opting out is asked to bear in mind the benefits being foregone - particularly the death in service and ill-health cover, which can be important even if only a short period of membership is being considered. The University will not contribute, on the member’s behalf, to other than the occupational pension scheme that the member is eligible to join. The level of the University’s contribution, on the member’s behalf, to both USS and UGPS is substantial.

Both USS and UGPS are Salary Related Schemes. This means that the members' benefits are not dependent on investment performance as with money purchase schemes. Instead they are based on length of service, pensionable salary, and an annual benefit accrual fraction. Both Schemes operate on the balance of cost principle. This means that individual members pay a fixed percentage of their pensionable salaries into either Scheme. This percentage remains constant irrespective of the requirements of the respective funds. The balance of cost necessary to pay the Scheme benefits, as determined by the actuarial calculation, falls on the University.

Current pension contributions are payable on the full salary as follows:

• USS - Final Salary Section
  Employee contribution is 7.5% of annual salary
• USS - Career Revalued Benefits Section
  Employee contribution is 6.5% of annual salary
• UGPS
  Employee contribution is 6% of annual salary

At present the State Pension Scheme operates on a two-tier structure. First there is a basic state pension, or old age pension, for which all employees qualify, providing they pay full-rate National Insurance contributions. In addition, there is the State Second Pension (S2P).

Both USS and UGPS are Contracted Out Schemes. This means that members USS or UGPS do not participate in S2P. As contracted out Schemes, both must provide pension benefits at least equal to the additional pension which members would have received had they contracted in to S2P. Lower rates of National Insurance contributions are payable as a result of the Schemes being contracted out of S2P.

Members of the University’s occupational pension schemes are provided with a member's handbook which provides information on the benefit structure of their particular Scheme.

Queries on individual pension issues should be raised in the first instance with the Pensions Section in the Finance Office (internal telephone extension 5366).