How will Pensions Extra Salary Exchange affect my salary?
Under Pensions Extra (USS) and (UoY) both pension schemes will operate on the basis that all normal contributions are paid by the University. Therefore 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 currently pay. This revised salary will be known as your Post Salary Exchange Pay. In exchange for this reduction in your salary, the University will make an equivalent additional employer contribution into the relevant pension scheme. Your pension and other similar benefits will continue to be based on your pay before taking account of any Pensions Extra (USS)/(UoY) or other Salary Exchange adjustments (known as Notional Salary). Example 1 – Pensions Extra (UoY) The example below highlights the pre- and post-Pensions Extra (UoY) position of an employee earning £18,000 per year and contributing £675 (being 3.75% of Notional Salary) per year into the UoY Pension Scheme (Lowe
