THE UCL (FORMER MEDICAL SCHOOLS) PENSION SCHEME
(the “Scheme”)
Consultation on UCL’s proposal to transfer benefits in the
Scheme to SAUL: Frequently asked questions
Last updated: 24 April 2012
We set out below some frequently asked questions that may help you understand the
proposed changes a bit better.
If I am a deferred member at age 60 in SAUL, are there any benefits from
delaying taking my pension?
No. Indeed, it would be disadvantageous since a decision to delay taking a pension
beyond age 60 will not give result in any additional uplift in your pension.
What happens in SAUL if I decide to defer my pension benefits after 30 June
2012 and do not take a pension?
In the situation where you have consented to transfer your benefits into SAUL, and
subsequently decide to defer your accrued benefits in SAUL rather than take a
pension, then if you decide to take a pension before age 65 the element of your
pension relating to pensionable service after 30 June 2012 will be subject to actuarial
reduction. If you are an active member of SAUL and retire at age 60 or beyond, then
no actuarial reduction will apply.
Is there a limit on the number of years’ pensionable service that I may accrue
before taking a pension?
Under the Scheme rules the total period of pensionable service cannot exceed 40
years. In SAUL, there is no limit on the number of years’ pensionable service that
you can accrue up to retirement, although individuals are not permitted to accrue
pensionable service beyond age 75.
What options are open to me relating to the payment of a lump-sum on
retirement?
Under the Scheme rules you are eligible to a pension based 1/60th of your final salary
for each year of pensionable service. You would be able to request the payment of a
lump-sum, up to the maximum permitted in law, with an appropriate reduction to
pension. The transfer of benefits into SAUL would result in your pension being
calculated on the basis of 1/80th of final salary for each year of pensionable service,
plus a lump-sum of three times pension. You may request all or part of the lump-sum
to be converted to pension, or alternatively request that a greater lump-sum is paid,
up to the maximum permitted in law, with a corresponding reduction to your pension
entitlement.
How does PensionsExchange affect me?
UCL operates a salary sacrifice arrangement which has the effect of reducing the
amount of National Insurance an individual pays each month, resulting in an increase
in take home pay. This arrangement is fully supported by SAUL and USS (but has
not been adopted by the Scheme). If you consent to the transfer of benefits into
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SAUL, you will automatically be placed into the pensions exchange arrangement –
this will result in your contributions to SAUL (at 6%) being reduced to nil (excluding
AVCs) and UCL will make payments equivalent to those that would be payable by
the individual, together with its employer’s contribution, and your gross salary will be
reduced by the amount equivalent to the individuals contribution. You are able to opt
out of the pensions exchange arrangement by requesting this in writing to Human
Resources. Further details are available on the HR web pages at:
http://www.ucl.ac.uk/hr/pensions/pensionexchange/index.php
Is everyone affected in the same way?
All current active members of the Scheme are affected in the same way, irrespective
of where they work and how senior they are.
Why is this happening?
The Scheme closed to new members in August 1987, and now has only 7 active
members. By transferring to SAUL, the Scheme’s active members would become
part of a large, sophisticated fund and UCL can save on the time, administration and
expense involved in providing an important benefit for members and their
dependants.
How do I know that my interests are safeguarded?
UCL has carefully considered a range of options as part of its review of the future of
the Scheme. UCL has discussed its proposals with the Scheme Trustee which has
taken independent professional advice on UCL’s proposal and the way in which it
has been communicated to you in order to ensure that you are able to make an
informed decision on whether to transfer your benefits to SAUL or not. In particular,
the Trustee has asked UCL to provide you with Independent Financial Advice in
order to help you make your decision which UCL has agreed to provide.
Why has SAUL been chosen as the home for all benefits?
SAUL is a large well-run pension scheme and UCL already participates in SAUL to
provide pension benefits for many of its employees.
Are any assets being paid back to UCL?
No. All of the assets will be held under trust and UCL will not have any assets repaid
to it.
How will the Trustee Board operate under SAUL?
UCL would continue to make representation to the SAUL Trustee board through
employer and employee appointments.
When will the merger happen?
The transfer is proposed to occur on 30 June 2012.
Should I think about joining SAUL even if I am close to retirement?
We cannot advise individual members whether or not to join; however, there is no
minimum membership period. If you choose not to join, you will be eligible to join the
USS, assuming this scheme is appropriate to your salary grade, and your Scheme
benefits will be treated as preserved benefits.
Will I be able to join SAUL at a later date if I decide not to join at 30 June 2012?
You may apply to join SAUL at a later date if you meet the eligibility conditions
available to employees who have not joined SAUL at their first opportunity, and
SAUL is appropriate for your salary grade. In addition, assuming the current changes
being proposed for SAUL take place, you will only be able to join SAUL on the
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revised career average earnings basis, rather than on the current final salary basis.
You may not join at the time of the transfer other than on the basis described in this
announcement.
Where can I get more information about SAUL?
There is a lot of information about SAUL on their dedicated website, www.saul.org.uk
Where can I get independent financial advice?
UCL has agreed to provide you with some advice from an independent financial
adviser (IFA) at its cost.
If you wish you can seek advice from your own IFA or find your own IFA by visiting
the IFA Promotion website www.unbiased.co.uk. Please note that if you wish to use
your own IFA to obtain advice your IFA may charge you for any advice given and
UCL will not meet this cost.
What is the timetable now? What do I have to do?
Consultation commenced with the issue of the Guide and covering letter dated 30
March 2012 and will continue for 60 days, ending Tuesday 30 May 2012. If you have
any views or comments that you would like to be heard as part of the consultation
process, please contact Fenella Needham, UCL Pensions Manager, Human
Resources, Gower Street, London WC1E 6BT, or by e-mail to:
f.needham@ucl.ac.uk.
Alternatively, you may wish to direct your communication via one of UCL’s
recognised trades unions, as follows:
UNISON:
UNITE:
UCU:
Bill Lehm – w.lehm@ucl.ac.uk
Colin Skeete – c.skeete@ucl.ac.uk
Tamsin Piper – t.piper@ucl.ac.uk
Sean Wallis – s.wallis@ucl.ac.uk
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