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Rediscovering SAUL Understanding and appreciating your pension scheme. October 2010. Agenda. Introducing the Scheme The cost Your benefits Funding. Introducing the Scheme. Set up in 1976 for non-academic staff of the University of London Sole Trustee and Administrator 30,000 members

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Rediscovering SAULUnderstanding and appreciating your pension scheme

October 2010


Agenda

  • Introducing the Scheme

  • The cost

  • Your benefits

  • Funding


Introducing the Scheme

  • Set up in 1976 for non-academic staff of the University of London

  • Sole Trustee and Administrator

  • 30,000 members

  • 50 Employers


Occupational Pension Scheme

Employers

Trustees

Pension

Scheme

  • 5 appointed by the University of London

  • 4 appointed by your recognised trade unions

Employees

  • 3 co-opted


Defined Benefit Scheme

  • Simply the benefits you receive are defined in the scheme rules

- You know what you’ll get when you retire

Benefits

(Liabilities)

  • Contributions

FUND

(Assets)


Final Salary Scheme

Benefits are based upon:

  • Salary at or near the date of you leave or retire

  • Your length of service in the Scheme


The Cost

13% of salary

Employees

Employers

6% of salary

Employees

  • For each £1 contribution you pay 20p (or 40p) less tax

  • You pay1.6% less in National Insurance contributions on earnings between £4,940 and £40,040


Example: earning £24,000 pa

Difference of £70.58 or 3.5% of salary


Your benefits

Pension

  • 3 x Annual Pension

Pensionable Pensionable

Salary x Service

80

Lump Sum


Definitions

Pensionable Salary is usually salary paid in the last 12 months of service

Pensionable Service in years and days

  • SAUL service

  • Transfer in credits

  • AVC credits

    Full-time Equivalent (for part-timers)


Example Calculation

Pensionable Salary: £40,000 pa

Pensionable Service: 20 years

£40,000 x 20 =

80

£10,000 x 3 =

£10,000 pa

Pension

£30,000

Lump Sum


Flexibility

  • Normal Pension Age is 65 – but you can retire:

  • From age 50 or 55 with a reduction

  • From age 60 with no reduction

  • Commutation of your pension or lump sum


Family Protection

  • Income

  • for

  • Spouse

  • Children

2/3rds member’s pension

Lump sum

4 x salary (in service)

Return of contributions (in deferment)

5-year guarantee (retirement)


Your benefits on leaving SAUL

Defer your

Pension

Until you wish to retire

Index linked

Transfer

out

Refund of

Contributions

if under 2 years

service


Other advantages

Additional Voluntary Contributions

  • Contribute up to an additional 10% of salary

  • Pay by lump sum or monthly

  • Purchase added years

    Public Sector Transfer Club

  • Roughly equivalent benefits


Funding

The Actuarial Valuation

  • Assets and liabilities

  • Assumptions

    Funding level

  • £1,391 million (31 March 2010)

  • 90% (technical provisions)

  • 74% (secondary funding objective)


The future

Pension Increases: CPI

Funding shortfall

  • Increased longevity

  • Lower investment returns

    Addressing the shortfall

  • Recovery Plan

  • The Negotiating Committee


More information

  • Benefit Statement

  • Your benefits guide

  • Your Pensions Officer

  • The SAUL website:

    www.saul.org.uk


Questions


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