How it works

With Pay Plus for pensions, the University pays the normal employer pension contribution and an additional contribution equivalent to the employee contribution. At the same time the pension scheme member agrees to reduce their Annual Salary by an amount equal to the employee pension contribution.

Both employee and employer National Insurance contributions are based on this reduced salary, making these contributions lower. This results in the pension scheme member receiving more take home pay and a reduction in costs for the University.

The pre reduction salary remains on payslips for reference, and overtime etc continue to be based on this figure.

Pension benefits also continue to be based on the pre reduction salary plus any other superannuable payments.

The pre reduction salary will be quotable for all external purposes, for example mortgage or loan applications.