How does Salary Exchange work?
• Your employee pension contributions to USS (currently 6.35% of your Pensionable Salary) will be reduced to nil. • The University will increase its employer contribution (currently 14%) to an amount equivalent to 20.35% of your Pensionable Salary, i.e. 14% (employer’s) plus 6.35% (previously employee’s) contributions. This contribution will be paid directly by the University into USS. • Your basic salary and other pensionable pay elements will be reduced by 6.35%, which represents the amount you used to pay into USS. This revised salary (together with any non-pensionable pay to which you may be entitled) will be known as your ‘Adjusted Pay’. The term ‘Reference Pay’ will be used to refer to your pre-Salary Exchange basic salary. • Your take-home pay will increase because your NICs will reduce. The University will make NIC savings in the same way. These savings will be returned to your department. • The overall level of contributions to USS remains unchanged. • Your level of USS pensio
