UNISON – Advice to Members on Benefit Plus

What is Benefits Plus?

All staff will have received information from HR about a scheme called Benefits Plus. At the heart of this scheme is an arrangement where you give up some of your gross salary (often called "salary sacrifice") in exchange for a specific benefit. The University already uses this approach for childcare vouchers. However, Benefits Plus will extend this practice to other benefits such as your occupational pension (to be called "Pensions Plus"), car parking, and the new cycle to work scheme.

Pensions Plus is the only strand of the scheme which applies to the majority of staff and the University intends to automatically opt in all eligible staff from October 2008.

How could I benefit?

By giving up the relevant proportion of your gross salary in return for these benefits you will make savings in salary deductions. The amount of the savings will depend on the benefit you are choosing and the level of your gross salary. For examples of potential savings see the table below:

How does the University benefit?

In all cases the University will make savings. This will be the amount of employer’s NI contribution it would have paid on the portion of salary you are giving up.

If all staff participate in Pensions Plus, the University could save close to £1 million per annum.

What will the University do with its savings?

UNISON UG together with the other campus trade unions, have been in negotiation with the University over the scheme and, whilst agreeing in principle with the scheme, is extremely disappointed in the stance that the University has taken over the use of the savings that will be made from Pensions Plus.

UNISON UG takes the view that any savings the University makes under this scheme are a gift from the staff as each member of staff can choose to opt out, thereby, denying the University access to the money. UNISON UG feels that the monies saved from this scheme should be used to benefit all staff. Together with the other campus unions, UNISON UG has asked the University to earmark the savings for use in the following ways:

• All uses of the monies saved should be recorded, transparent and publicly available to show how the money was spent and how it benefited staff.

• To provide additional support to the University’s own superannuation scheme

• To remain in a fund, for determination by agreement between the employer and the campus trade unions (other HEIs have used this for pump priming, like the Chancellors Fund). 

• To be earmarked for staff benefits to improve the quality of life on campus such as the provision of a staff only College Club facility, etc.

The University's position on this is that the money should not be ring fenced for transparent staff benefits but will be returned to the Faculties to decide how to use it. The Faculties will be asked (but not required) to allocate some of the money to the above uses and be required to report annually on its use. Clearly this is far from ideal, and is significantly at odds to agreements made at other universities. By distributing the savings this way its potential to bring benefits to the staff who have been responsible for making the funds available will be eroded.

Long term financial security

Unison UG is also concerned that if the University uses the money derived from your participation in Benefits Plus to shore up its core business (such as by employing core staff) then there may be serious repercussions if the level of funds were to fluctuate or if the Government were to remove the scheme completely. We believe that core activities should be funded from secure sources and that 'windfall gains' such as these should be used for the benefit of staff or should be invested to produce a fund that can be tapped in a sustainable way.

A change to your employment contract

The University proposes to opt everyone who is eligible IN to Pensions Plus This constitutes a change to your employment contract. UNISON has NOT agreed to the Pensions Plus package and so any change of contract will be imposed by the University, giving each member of staff one months notice. To opt out of Pensions Plus you must contact the Pensions Section 0141 330 5366 or email finpensions@mis.gla.ac.uk and return the form by 29 September

Should I opt out from Pensions Plus?

The positive benefit the University obtains from Benefits Plus is only available because staff have agreed to participate.

Other universities have worked collaboratively with staff to deliver a use of funds that will benefit all parties. In some cases money has been earmarked to safeguard pensions. UNISON believes that staff here at Glasgow have been denied  such an inclusive approach and individual members may wish to consider opting out of the Benefits Plus scheme.

How do I opt out?

Simply complete the opt out form. For a copy of the form, contact the Pensions Section on 0141 330 5366 or email finpensions@mis.gla.ac.uk

Need more information?

Contact a member of the UNISON Committee.