Name
Date of Birth:
National Insurance Number:
Date Pensionable Service Commenced:
Full Time Equivalent Salary:
###
###
###
###
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The proposal is that you will be offered membership of SAUL, if the Scheme trustee
agrees transfer terms with SAUL, for the provision of your future pension benefits on
a final salary basis from 30 June 2012. If you elect this option then your accrued
benefits in the UCL (Former Medical Schools) Pension Scheme (“the Scheme”) will
also transfer to SAUL.
If you do not elect this option then you will cease to accrue benefits under the
Scheme with effect from 30 June 2012 and you will retain a deferred benefit within
the Scheme. You may be eligible to join another scheme in which UCL participates
albeit that you may not be able to accrue benefits on a final salary basis
Provision of Independent Financial Advice
As you are aware, UCL will be making an independent financial adviser available to
you to discuss the courses of action available to you and the implications of selecting
a particular course of action. UCL recommend that you make use of the session and
bring a friend or colleague to the meeting with the independent financial adviser if
that would be helpful to you.
Your current benefits in the UCL (Former Medical Schools) Pension Scheme (“the
Scheme”)
Scheme Service:
Transferred-in Service
years ##days
##years ##days###
Accrued pension:
###
If you elect to transfer your accrued benefits to SAUL then your proposed new
benefits in SAUL will be:
Service:
###years ##days
Accrued pension:
Accrued cash lump sum:
###
###
Exchanging cash for pension
The way in which benefits build up in SAUL is different from in the Scheme. In the
Scheme you earn a pension of 1/60th of salary for each year of service and can opt
to exchange part of this for a cash lump sum on retirement.
In SAUL, for each year of service you accrue a pension of 1/80th of salary and a cash
lump sum of 3/80th of salary payable on retirement.
When you retire in SAUL, you will have several options; 1) To take the pension and
cash lump sum outlined above; 2) To exchange part of your pension for an extra
cash lump sum; or 3) To exchange part of your cash lump sum for extra pension.
For ease of comparison with your current accrued pension in the Scheme, we have
shown below the total pension available in SAUL if you were to choose to exchange
all of your cash lump sum for additional pension. The rate of converting pension for
cash varies depending on when you retire and the figure below is based on the
conversion taking place at age 65.
Total pension in SAUL if you exchange your cash lump sum for extra pension at age
65: ###
Accrued pension
Your accrued pension represents your benefits in respect of service prior to 30 June
2012. If your details change before then, for example if your salary changes, you
leave service or you change your working hours, then your benefit entitlement may
change accordingly.
Your accrued pension above does not include any allowance for potential service
after 30 June 2012.
Your accrued pension in the Scheme includes any pension that you have previously
purchased by transferring-in benefits from another pension arrangement. These
transferred-in benefits have been converted into additional years of service in SAUL,
which are included in the figures above.
Pension increases in payment
The way in which pensions increase each year while in payment is also different for
the two pension schemes.
The Scheme
Benefits in respect of service prior to 6 April 1997 do not increase in payment.
Benefits in respect of service after 5 April 1997 increase on an annual basis in
line with the lesser of 5% and the increase in the Retail Prices Index.
The exception to this is any Guaranteed Minimum Pension (GMP) that you
may have accrued between 5 April 1988 and 6 April 1997, which will increase
on an annual basis in line with the lesser of 3% and the increase in the
Consumer Price Index (CPI).
SAUL
Your pension in excess of any Guaranteed Minimum Pension (GMP) will
increase in line with price inflation in accordance with the Pensions (Increase)
Act 1971. In recent years these increases have been based on the Consumer
Prices Index (CPI). Your GMP in respect of service after 5 April 1988 will
increase in line with CPI subject to a maximum of 3% p.a.
Salary
Scheme: The salary used in the calculation of your accrued benefits in the Scheme
is your basic annual salary excluding bonuses, overtime and commissions as at 31
March 2011.
On leaving or retiring from SAUL the salary used to calculate your benefits will be
calculated as the highest annual Salary in one of the last three years before ceasing
to be an active member.
The salary used in the calculation of your benefits in SAUL is your ordinary pay
(including London Allowance). On leaving or retiring from SAUL the salary used to
calculate your benefits will be calculated as the higher of:
o
o
Your highest salary paid over any one of the three years before you
retire (or leave or die); or
The highest yearly average of your salary in any group of three years
during the 10 years before you retire (or leave or die).
Note for part-timer employees
If you are a part-time employee then the full-time equivalent salary shown above
represents your salary adjusted to the full time equivalent salary payable to a full-time
employee. A corresponding reduction has been applied to your service to reflect
your current working hours and any historic part-time hours. This is the same
approach that has always applied in the Scheme in the past.
Additional notes
All basic information is as shown in UCL’s records and any discrepancies should be
reported to UCL.
There are numerous differences between the relevant benefits provided by the two
schemes that are not covered in this statement. A comparison of some of the key
features of both schemes is provided in the Guide issued as part of the formal
consultation. Details of the SAUL benefits are described in the SAUL member
booklet provided.
The benefits shown include any benefit derived from transfers into the Scheme from
other pension arrangements.
Option to not transfer
If you decide not to transfer to SAUL your pension in the Scheme will be your current
pension as noted above. It will be increased by 3% p.a compound (or statutory
revaluation if greater) for all pensionable service earned before 21 November 2006.
For pensionable service earned between 21 November 2006 and 30 June 2012
statutory revaluation will apply. In very broad terms, statutory revaluation is the rise
in price inflation over the whole period between 30 June 2012 and age 65 or the date
you retire if earlier. Price inflation is currently calculated using the consumer prices
index. Increases are capped at 5% p.a. for pensionable service before 6 April 2009
and 2.5% p.a. for pensionable service thereafter.