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Why does the University offer this scheme?
| The University is pleased to have the opportunity to offer this benefit to staff to encourage and promote more sustainable transport choices, and to help staff save money. |
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Is there a deadline to place my order?
| Pay Plus for bikes is a rolling scheme, so you can place your order for a bicycle at any time. |
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Do I have to order my accessories from the same supplier as the bike?
| Yes, you will only be able to order safety accessories at the same time, and from the same supplier, as the bike. |
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What is the maximum amount I can spend on a bicycle and accessories?
| The maximum spending limit is £1,000 including VAT and any discount offered by the supplier. |
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I am on a fixed term contract, can I still take part in the scheme?
| Yes, provided there is sufficient time left on your contract to fulfil the terms of the 12 month agreement. |
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What will happen if I leave the University before the end of my loan period?
| If you do leave during your loan period, then you will be expected to have the outstanding payments deducted from your final salary payment. This deduction will not attract tax and National Insurance savings. The bike will also need to be returned to the University. |
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Can I withdraw from the scheme during the loan of the bike, return the equipment and return to my normal salary?
| The rules of the scheme specifically rule this out. |
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What if the bicycle is stolen or damaged?
| If the damage is not covered by the manufacturer, or if the bicycle is stolen, then you are responsible for having it insured. The bicycle cannot be covered by the University’s own insurance policies. If the bicycle is replaced through insurance, please notify the Reward & Benefits team at the University. |
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I already have a bicycle, can I use the scheme just for additional accessories?
| No, you can only get accessories if you are also getting a bike through the scheme. |
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Can my agreement run for longer than 12 months?
| No, 12 months is the only loan period we offer. |
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What happens if I am absent from work for an extended period during my loan period, e.g. for maternity or sick pay?
If you are on maternity leave, the salary sacrifice will continue unchanged whilst you are in receipt of any enhanced maternity pay. When you are in receipt of Statutory Maternity Pay, or on unpaid maternity leave, the University is unable to reduce your salary, but will continue to provide the benefit at no cost to you, in accordance with the requirements of the Equality Act 2010.
For periods of sick leave, whilst you are in receipt of full or half pay, your participation in the scheme will be unaffected by your absence. If you are in receipt of Statutory Sick Pay or on unpaid sick leave, you may continue to participate in the scheme, but through a deduction from your salary, which will not attract tax and National Insurance savings. |
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What happens at the end of the loan period?
| At the end of the loan the bike is to be returned the University. We cannot give guarantees on what will happen to the bike at the end of the loan, but it is expected that by working with the scheme administrator, Cyclescheme, there may be options to enable you to retain usage of the bike. |
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Do you offer any cycling proficiency training?
| Sheffield City Council are offering free cycle training (on a two hour 1-2-1 basis) through a national cycling organisation. Details can be found from the box on the right. |
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How can I find out about local cycle routes?
The University has its own cycle map of the Sheffield area, which details all the cycle lanes. For a copy, email the Energy and Environment team at energy@sheffield.ac.uk.
The Energy and Environment team can also provide personalised travel plans to help you choose the best way to get to work. |
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Can I obtain a bicycle for someone else on this scheme?
| No. The tax and National Insurance exemption only apply if the bike is to be used by you for the purposes of commuting to and from work. |
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What salary can I quote when arranging a mortgage or a loan?
| You can quote your pre reduction salary i.e. your salary before any reduction due to Pay Plus. This will be shown on your payslip. |
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Does Pay Plus for bikes affect pay increases?
| All pay increases including National Pay Awards, increments and Exceptional Contribution Awards will be based on your pre reduction salary. All of your pay related benefits will also be calculated using this amount. |
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If my salary is being reduced how will I be able to check that my overtime etc has been worked out correctly and paid to me?
| Your salary, before the Pay Plus reduction, remains on your payslip for reference, and overtime etc continue to be based on this figure. |
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What effect does participating in Pay Plus for bikes have on the Universities Superannuation Scheme or the University of Sheffield Pension Scheme?
If you are a member of the Universities Superannuation Scheme or the University of Sheffield Pension Scheme, your pension contributions will be calculated based on your salary before any Pay Plus reduction. The salary before Pay Plus reduction will also be used to calculate Death In Service benefits, and for calculating your pension at retirement.
The rules for the NHS Pension Scheme are slightly different and are explained in the next question. |
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I am an NHS Pension Scheme member. Can I participate in Pay Plus for bikes?
Yes, you can participate in Pay Plus for bikes, and make savings on the amount of tax and National Insurance you pay. However, the rules of the NHS Pension Scheme require that the pensionable salary of staff participating in a salary sacrifice scheme, such as Pay Plus for bikes, is reduced by the amount of the benefit provided. Pensionable salary is the salary on which your pension contributions and pension benefits are based. Participating in Pay Plus for bikes has an effect on the following areas:
Death in Service benefits
Pensionable salary is used to calculate your Death in Service benefits, so if you participate in Pay Plus for bikes, this will reduce the level of benefits payable on death.
Pension transfer values
Pensionable salary is used to calculate the transfer value of your pension, so if you are considering transferring your pension to another scheme, and are participating in Pay Plus for bikes, your reduced salary will affect the value of your transfer value.
Pension at retirement
Pensionable salary is used to calculate the amount of your pension when you retire, so if you are planning to retire within the next three years, and are participating in Pay Plus for bikes, your reduced salary will affect the value of your pension. |
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Does participating in Pay Plus affect the amount of State Pension I receive?
No, in most cases Pay Plus does not affect your State Pension. The State Pension is based on the number of years for which you have been paying National Insurance, not how much National Insurance you have paid. So if your pay is above the Lower Earnings Limit, you are considered to be paying National Insurance and are entitled to the State Pension.
If your salary is below the Lower Earnings Limit, you do not make National Insurance contributions and, therefore, this will have an effect on your State Pension. The salary reduction caused by participating in Pay Plus for bikes may take your salary below the Lower Earnings Limit. Details of the current Lower Earnings Limit can be found from the link on the right.
The State Second Pension (S2P) does depend on the value of National Insurance contributions made by an individual, but if you are a member of the Universities Superannuation Scheme, the University of Sheffield Pension Scheme or the NHS Pension Scheme, you are contracted out of S2P and so make no contributions to it. If you aren’t a member of one of these schemes, your S2P contributions will be reduced by participating in Pay Plus for bikes. |
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Does Pay Plus for bikes affect maternity pay?
| Calculating maternity pay is complex. Pay Plus for bikes does affect these calculations and the amount the University can claim back from the government but the University will ensure that the amount you receive will not be less than the amount you would have received had you not been in Pay Plus for bikes. |
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Does Pay Plus for bikes affect adoption pay?
| The University will replicate current practices, so you will be no worse off as a result of participating in Pay Plus for bikes. The qualification rules for adoption leave and adoption pay are complex. If you are considering, or going through an adoption placement, please contact the Human Resources Department for further advice. |
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Will Pay Plus for bikes leave me worse off if I am on long term absence (for instance sick leave or study leave)?
| No, you will not be any worse off. |
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Does Pay Plus for bikes affect student loan repayments?
| If you are repaying a student loan through payroll, your student loan repayments may be reduced slightly as a result of participating in Pay Plus for bikes. This is because your repayments are calculated based on your pay which is subject to National Insurance contributions, which is reduced under Pay Plus for bikes. You may wish to seek independent financial advice if you are unsure of how these changes may affect you. |
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Does Pay Plus for bikes affect Tax Credits?
| There may be an effect on your entitlement to these credits. You should contact the Tax Credits helpline on 0845 300 3900 for further information. They may ask you to provide details of the salary sacrifice. |
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Does Pay Plus for bikes have any impact on payments to the Child Support Agency (CSA)?
Child maintenance payments to the CSA are calculated with reference to your net income i.e. your pay after the deduction of pension contributions, tax and National Insurance. Under Pay Plus for bikes your net income increases because you are paying less National Insurance and your child maintenance payments may therefore increase as a result.
If you participate in Pay Plus for bikes you should notify the CSA of the change in your net income immediately. Contact details for the CSA and further details of possible effects can be obtained from the link on the right to the CSA’s website. |
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I am over the state retirement age and therefore do not pay National Insurance. Can I participate in Pay Plus for bikes?
| You can participate in Pay Plus for bikes. Although you will not make a National Insurance saving, you will make a saving on the amount of income tax you pay. Also, your department or research project will benefit from a reduction in employer National Insurance. |
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I pay National Insurance at the reduced married women’s National Insurance rate. Can I participate in Pay Plus for bikes?
| You still make National Insurance savings from participating in Pay Plus for bikes but your savings are based on these rates. |
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How are the employer savings used?
| Pay Plus for bikes results in a reduction in staffing costs for internally and externally funded staff. The savings for internally funded staff are available to departments. The savings for externally funded staff remain in project budgets. |
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Will the reduction in staffing costs created by Pay Plus for bikes lead to staffing budgets being reduced in future years?
| No. A staffing budget for one year will not be reduced as a result of the Pay Plus savings from the previous year. Pre reduction salaries will be used for costing research projects. |
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How long does it take to get my bike and accessories?
| From the day you requested your bike certificate online, it will normally take approx. 3 weeks for you to receive your bike certificate, posting to your home address. |
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Pay Plus for bikes