Frequently Asked Questions
General
- What is auto-enrolment?
- Who will this affect?
- If I meet the criteria on earnings and age, which pension scheme will the University enrol me into?
- If I don’t meet the criteria on earnings or age, can I still join a pension scheme?
- How will I be contacted about auto-enrolment?
- Will the University tell me what to do?
- Will I have to pay into my pension scheme once enrolled?
- What if I am already auto-enrolled by another employer?
- Can I join a pension scheme before auto-enrolment?
- Will my bonuses or overtime earnings trigger auto-enrolment?
- I am already in receipt of my pension, will I be auto-enrolled?
- What if I do not want to join a pension scheme, can I opt-out?
- If I opt-out, can I rejoin at a later date?
- I've been automatically enrolled and had pension scheme contributions deducted from my pay. I want to opt out of the pension scheme - can I get my money back?
- What will happen to my pension if I leave the University?
- I intend to move abroad, what will happen to my pension?
- The auto-enrolment assessment runs every month. Will I need to opt out every month as well?
- I have reached the State Pension Age, will I be auto-enrolled?
- Is there a pension calculator online to help me work out what my pension will be?
1. What is auto-enrolment?
Auto-enrolment is new legislation which means that all employers must enrol their workers into a suitable pensions scheme on a given date (the employer’s staging date). It is part of a Government initiative to encourage more people to save for their retirement through increased pension scheme membership across the whole country.
The new law comes into force at the University on 1 April 2013.
2. Who will this affect?
It will affect those people who undertake work at the University either as an employee (with a formal contract of employment) or as a casual/atypical/bank worker who is paid directly by the University.
Those who are not currently a member of a pension scheme at the University will have to be automatically enrolled into a pension scheme after 1 April 2013 provided they earn at least £787 per month (gross, i.e before tax and national insurance deductions) and are aged between 22 and 65 years old.
People who are currently a member of USPS, USS or the NHS Pension Scheme will not be affected by the new law however you will still receive communication from the University to simply confirm this position. This is a legal requirement.
If you are unsure, you can check if you are a member of a pension scheme by looking at your payslip where deductions for pension scheme membership will be shown.
3. If I meet the criteria on earnings and age, which pension scheme will the University enrol me into?
This depends on the grade of work you are doing at the University.
If you are currently working on grade 1 to 5, you will be automatically enrolled into USPS.
If you currently work at grade 6 and above, you will be automatically enrolled into USS.
4. If I don’t meet the criteria on earnings or age, can I still join a pension scheme?
Yes, the University is keen to support all staff in saving for their future and even if you are not automatically enrolled into a pension scheme, you can opt to join a scheme offered by the University.
Depending on the grade of work you are doing at the University you can join the appropriate pension scheme (USPS for work up to grade 5 and USS for work at grade 6 and above). You should contact the Pensions Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk to join.
5. How will I be contacted about Auto Enrolment?
The University will be providing information to managers and staff about auto-enrolment in the coming weeks and months. There are articles in Overview, broadcast (announce) emails and face to face briefings being planned. Details on these briefings can be found using the link in the "See Also" box at the top right-hand corner of this page.
The University will be contacting all staff to inform them individually how the new law will affect them (if at all). The main method for this communication will be by email, so in order to make sure that you do not miss out on really important communications relating to your pension position, it is vital that your contact details are up to date. Staff with access to myJob should log on via MUSE and ensure their email address, home address and telephone number are up to date as soon as possible.
6. Will the University tell me what to do?
The University will be contacting all staff to inform them of how the new law will affect them (if at all) but the University is not allowed to offer advice or guidance on what you should do as a result of the impact of the new law.
If you have any queries on auto-enrolment having received any letters or emails from the University on the subject then please contact the Pensions Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk.
7. Will I have to pay into my pension scheme once enrolled?
USPS, USS and the NHS Pension Schemes all require members to make contributions towards their retirement income. These member contributions are however supplemented by employer contributions from the University.
If automatically enrolled into USPS (i.e. you are working in a role on grades 1 to 5), you will pay 4% of your pay (before tax) towards your retirement savings. Because the contributions are deducted before you are taxed on them, your take-home pay is reduced by less than 4%.
As an example USPS membership will cost you around 3.2% of your monthly take-home pay. If you earn £10,000 per year, this will mean your take-home pay will reduce by £26.67 per month to cover your pension scheme membership. With the University’s contribution, and tax relief, this will turn into £125 per month, or £1,500 per year towards your retirement income, plus you get the peace of mind of life cover of 4 times your salary which goes with your pension scheme membership at no extra cost.
In USPS you have the option to choose a level of contribution of between 2% and 10% of your pay and receive different contributions from the University as outlined in the Pensions Team web pages information for USPS.
Member contributions to USS are either 6.5% in the Career Re-valued Earnings section, or 7.5% in the final salary section (see scheme web pages for your eligibility and benefits modellers).
NHS Pension Scheme member contributions vary from 5% to 10.9% depending on your income. Member contributions to both the NHS Pension Scheme and USS are also paid from gross pay and so attract tax relief.
A link to the University's pension schemes can be found in the "See Also" section to the right of this page.
8. What if I am already auto-enrolled by another employer?
Each employer is treated separately. If you earn over £787 per month at the University and are aged between 22 and 65 years you will be automatically enrolled into the appropriate pension scheme.
This may mean that you are automatically enrolled into different pension schemes by both or all of your employers.
9. Can I join a pension scheme before auto-enrolment?
The University's pension schemes are still open to new members in advance of Auto Enrolment. Anyone not currently a member of a pension scheme at the University who wishes to join should contact the Pension Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk.
Further information on the pension schemes available at the University can be found here
http://www.shef.ac.uk/finance/staff-information/mymoney/mypension
10. Will my bonuses or overtime earnings trigger auto-enrolment?
Yes. If your bonus or overtime earnings take your income for that month over £787, you will be auto-enrolled into the relevant pension scheme. However, your pension contributions will be calculated based on your regular basic pay, excluding bonuses and overtime earnings.
For example, Jennifer is aged 34 and regularly earns £700 per month. In September, she has earned £100 for her overtime work bringing her total earnings for September to £800. As this amount is above the minimum threshold of £787 a month, Jennifer will be auto-enrolled into the relevant pension scheme and will begin to contribute a percentage of her base pay which is £700. She will continue to contribute to her pension scheme in subsequent months even if her earnings fall below the £787 threshold.
11. I am already in receipt of my pension, will I be auto-enrolled?
Yes. As long as you meet the eligibility criteria of earning at least £787 per month (gross, i.e before tax and national insurance deductions) and are aged between 22 and 65 years old, you will be auto-enrolled into the relevant pension scheme.
12. What if I do not want to join a pension scheme, can I opt-out?
If you are automatically enrolled, you can opt-out of pension scheme membership once you have been enrolled into it, but not before. This means that you can only opt-out of your pension scheme from 1st April 2013.
You should think carefully about the benefits you are giving up by not being a member of a pension scheme, including life cover and of course an income in retirement as well as the immediate cost of pension scheme membership.
The opting out process will be handled by the pension scheme provider, either Capita (who administer USPS on behalf of the University) or USS. You will need to obtain an opt out directly from them either via their website or by phone.
For USPS, please click here to obtain the opt-out form. Alternatively, you can telephone 0114 273 7331 and ask for the University of Sheffield Pension Scheme administration team and they will send you a copy.
For USS, please click here to obtain the opt-out form. Alternatively, you can telephone 0151 478 7140 and USS will send you a copy.
The completed opt out form should be returned to the Pensions Team at the Arts Tower.
In order to get your contributions returned to you, you will need to return your completed opt out form to the Pensions Team within one calendar month from the date of the letter addressed to you. Your pension contribution will be taken from that month's pay but then refunded back to you in the following month.
13. If I opt-out, can I rejoin at a later date?
Yes, you can rejoin the relevant scheme at any point.
Please contact the Pension Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk for further information.
14. I've been automatically enrolled and had pension scheme contributions deducted from my pay. I want to opt out of the pension scheme - can I get my money back?
Yes, provided you opt out within one calendar month of receiving the letter addressed to you your contributions will be refunded to you.
15. What will happen to my pension if I leave the University and begin work for another employer?
Depending on the scheme you have been enrolled into, leaving the University may mean that you cease to be an active member of that scheme. You may be able to transfer your Retirement Account to another qualifying pension scheme provider (subject to the rules of that employer's scheme).
For specific information of each scheme please visit:
16. I intend to move abroad, what will happen to my pension?
If you have left the University to move abroad, you will cease to be an active member of the scheme you have been enrolled into. You may be able to transfer your Retirement Account abroad to another qualifying pension scheme provider (subject to the rules of that employer's scheme).
For specific information of each scheme please visit:
17. The auto-enrolment assessment runs every month. Will I need to opt out every month as well?
No, once you have opted out of a pension scheme you will not be auto-enrolled until a later date (usually every three years). The monthly assessment is used to capture new starters as well as those who achieve the eligibility criteria of age and earnings.
18. I have reached the State Pension Age, will I be auto-enrolled?
If you're above the State Pension Age, you will not be auto-enrolled. However, you still have the right to opt-in to the relevant pension scheme up to age 75.
If you wish to join a pension scheme at the University, please contact the Pension Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk.
19. Is there a pension calculator online to help me work out what my pension will be?
USS - please visit click here for several modellers and calculators available to you.
USPS - there is no pensions calculator available online. However, if you contact the Pensions Team on 0114 222 1397 or via email at pensions@sheffield.ac.uk they will be able to guide you through the calculations.