Pension Salary Exchange

Arrangements for new appointments

New employees who become members of the USS or ERBS pension scheme become eligible to participate in Pension Salary Exchange after three full calendar months of employment. This means that you will pay employee pension contributions until you have completed three full calendar months’ service and then you will automatically participate in the Pension Salary Exchange scheme from the 1st of the month following this date – unless you exercise your right to opt-out.

Annual renewal

Each year, on 1 April, members of USS and ERBS have the opportunity to choose whether or not they wish to continue to participate in Pension Salary Exchange.

Your choices

• If you wish to continue to participate in Pension Salary Exchange, you don't have to do anything - you will automatically continue to participate.

   

• If you have previously decided not to be part of Pension Salary Exchange but would now like to enjoy the benefits of participating in Pension Salary Exchange, you should contact the Pay and Benefits Manager, Alison Rose, to obtain a form. You should return the completed form to the Pay and BenefitsOffice in Human Resources no later than 31 March 2013.

   

• If you have been participating in Pension Salary Exchange but wish to withdraw from 1 April 2013, you should contact the Pay and BenefitsManager, Alison Rose, to obtain a form. You should return the completed form to the Pay and BenefitsOffice in Human Resources no later than 31 March 2013.

More information about the Pension Salary Exchange

• Pension Salary Exchange FAQ
• Example of NI savings
• Salary Exchange Calculator - to assess how much of your salary is available for salary exchange
• Current rates
• Pension SX joint statement

Current Rates

National Minimum Wage

You will not be able to participate in Pension Salary Exchange if the combined salary exchange for pension contributions and the salary exchange for any other schemes you may participate in (either now or in the future) would bring your Adjusted Salary to below the National Minimum Wage. It will not be advantageous for you to participate in Pension Salary Exchange if your earnings are close to the National Minimum Wage.

The National Minimum Wage is £6.19 per hour from 1 October 2012, or around £11,748 per annum for an employee working a standard 36.5 hour week. We will monitor pay levels and advise you if you are likely to be affected, however if your circumstances change and you think you might fall into this category you should contact Human Resources.

Primary Earnings Threshold

It will not be advantageous for you to participate in Pension Salary Exchange if your earnings are close to the Primary Earnings Threshold for NIC purposes.

The Primary Earnings Threshold for the 2012/2013 tax year is £7,605 per annum (£146 per week).

If we think either of the above applies to you, Human Resources will contact you separately. However, if you believe that you may fall into one of the above categories, please contact Human Resources.

Married women who pay NICs at the reduced rate

For staff who made the election prior to 12 May 1977 to pay reduced rate NIC for married women and widows, the rate at which NIC savings will be made is 5.85% on earnings between £7,605 and £42,475 and at 2% on earnings above £42,475.

Example of NI savings

The increase in your take home (net) pay depends on your annual salary. The table below gives an estimate of the annual National Insurance Contribution (NIC) savings available to employees who are members of the University of Exeter Retirement Benefits Scheme (ERBS), the USS Career Revalued Scheme or the USS Final Salary Scheme. The savings are based on income tax and NIC rates for the 2012/2013 tax year. NIC savings for higher earners are smaller because the rate at which NIC is paid reduces for earnings above the upper earnings limit.