How will my salary be affected if I participate in PensionPlus?
From 1 July 2010 PensionPlus will operate on the basis that all standard contributions are paid by the University. Therefore, with effect from 1 July 2010 you will no longer pay employee pension contributions directly from your salary. Instead, your salary will be reduced by the amount of pension contributions that you pay into USS. The University will make an equivalent additional employer contribution to USS. We will use the term ‘reference salary’ to mean your current basic salary before taking account of any PensionPlus adjustment and the term ‘actual salary’ to refer to your basic salary after the PensionPlus adjustment. Example 1 The example below highlights the pre and post PensionPlus position of an employee earning £18,000 per year and contributing £1,143 (being 6.35% of Pensionable Salary) per year into USS. Under PensionPlus the employee’s Reference Salary remains at £18,000 although the Actual Salary becomes £16,857. Pre PensionPlus Post PensionPlus Basic Salary £18,000.00
