Pensions
- New staff at the University of Glasgow are typically enrolled into one of two pension schemes - the Universities Superannuation Scheme (USS) or the National Employment Savings Scheme (NEST).
- Staff members in Grades 1 to 5 join NEST and Grade 6 and above USS.
- 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.
Most people will also be eligible for a state pension. Find details about the UofG workplace pension schemes and your state pension, including an online calculator, below.
External Financial Planners - Tilney - run financial and retirement planning workshops in the University approximately every six months.
NEST (National Employment Savings Trust)
NEST is a workplace pension scheme set up by, and accountable, to government. NEST is a defined contribution pension scheme - meaning that both you and the University pay a set amount into your pension. You pay a 4% contribution from your salary and the University contributes an amount equal to 10%. The Government also contributes through tax relief.
- Log into you NEST member account
- Choose where you want your money invested - including an ethical, Sharia and low and high risk investment funds
- Transfer other pensions to NEST
- Browse the NEST website for further guidance and advice
Please contact the UofG Pensions Team or NEST with any questions
USS (Universities Superannuation Scheme)
USS is the main pension provider for universities in the UK. USS is a salary related scheme which means that members' benefits are based on length of service, pensionable salary, and an annual benefit accrual fraction. Employees contribute 9.6% of their annual salary.
- Log in to your USS member account
- Plan your retirement
- Understand where your contributions are invested
- Browse the USS website for lots of top tips!
Please contact the UofG Pensions Team or USS with any questions
UGPS (University of Glasgow Pension Scheme)
Please note that the UGPS is no longer open to new members of staff.
Like USS, the UGPS is a salary related scheme which means that members' benefits are based on length of service, pensionable salary, and an annual benefit accrual fraction. Employees contribute 7.5% of their annual salary.
Read the annual reports and statements
For more information contact the UofG Pensions Team
State Pension
- Most people are entitled to some form of State Pension. It is a secure income for life which increases at least by the rate of inflation.
- Contribution to a State Pension is made throughout your working life through National Insurance (NI) contributions. You can check how many years you have paid national insurance online - if you haven't paid enough, you may be able to voluntarily top it up.
- To qualify for the full state pension, you need to have 35 qualifying years of NI.
- You don't get your state pension automatically - you have to claim it. You should get a letter no later than two months before you reach state pension age telling you what to do.
- Check your state pension forecast to find out what age you'll receive it, how much you'll get, what steps you could take to increase it and what other financial support you might be eligible for.
- Check the government's online Mid-life MOT - supporting planning in the areas of work, wellbeing and finances - aimed to help you to make informed decisions to ensure the future retirement you want.
- If you think you might have paid into a workplace pension with another employer but have lost the details you can use the government's lost pension tracing tool.
- Remember your pensions - and any other income you earn - will be taxed!
Pension Jargon
Defined benefits pension (also known as a final salary scheme) An employer-sponsored scheme where the eventual retirement income is based on your earnings, length of employment and the scheme's rate of accrual. The circumstances under which you take your pension – at retirement, as an early leaver, or through ill health – could also affect the income you get.
Defined contribution pension (AKA money purchase scheme) A pension plan where the eventual retirement income is based on the amount of money paid in and the amount by which that money grows. There are several different types including company, personal, stakeholder, self-invested and group personal pension plans. The resulting pot is usually used to buy an annuity – an insurance contract that pays out regular income.
Accrual rate This is the rate at which you build up pension benefits while a member of a defined benefit scheme. The rate is multiplied by your earnings to calculate how much money you will eventually be entitled to. It is typically expressed as a fraction, and the bigger the fraction the more pension benefit you will get. So a 1/65th rate – as proposed by the government for public sector workers – would generate more benefits for the scheme member than the current typical rate of 1/80th.
Annuity This is an insurance contract that pays out a regular income, either for a set period of time or until you die. It is usually bought with the money from your pension fund. The income it will provide will depend on a number of factors including your age when you buy it, whether or not you're a smoker, and annuity rates at the time of purchase.
RPI The retail prices index is a measure of inflation published each month by the Office for National Statistics. It measures the change in cost of a basket of retail goods and services, including housing costs. Until April 2011, RPI was the principal measure of inflation used by the government when calculating by how much public sector pension payments should rise (this change is currently being contested by unions).
CPI The consumer price index is the government's preferred measure of inflation since 2003. It measures a basket of retail goods and services, but it excludes certain costs such as council tax, mortgage interest, building insurance and house depreciation that are included in RPI. CPI, which is the measure the government now uses to calculate increases in pension payments, has been lower than RPI since January 2010.
Annuity rate The rate of return you get when buying a pension income with the money you have saved in your defined contribution pension scheme.
Final salary scheme This is the type of pension scheme the government wants to move public sector workers away from. The pension paid to members is based on their salary at the point of retirement, the number of years they have belonged to the scheme and the accrual rate. It particularly benefits employees who salaries rise steeply towards the end of their careers.
Career average scheme This is the type of pension scheme the government wants to adopt for public sector workers. A notional percentage of the employee's salary is put aside each year – the calculation is based on multiplying the employee's earnings during that year by the accrual rate. At retirement, the cash value of all these notional amounts is added up to produce the annual pension the employee is due. The averaging effect means this type of scheme generally produces smaller pension incomes, particularly for those who get big salary increases towards the end of their career.
Group personal pension A collection of personal pension plans provided by an employer for its employees. Contributions are deducted through payroll, the employer may make contributions on behalf of the employee, and the scheme charges may be lower than those of an equivalent straightforward personal pension because the company providing the scheme is able to offer a reduction for bulk business.
Stakeholder pension A pension scheme designed to incorporate a set of minimum standards set out by the government. Charges must be capped at 1.5% a year for the first 10 years and 1% thereafter; there can be no penalties for altering or stopping contributions or transferring the benefits to another scheme; and investors can contribute a minimum of £20 a month. Stakeholder pensions are available on a group or individual basis.