Loughborough University
Leicestershire, UK
LE11 3TU
+44 (0)1509 222222
Loughborough University

Human Resources

A-Z content

Pensions

Loughborough University employees are eligible to join a pension scheme; this is dependent on the grade of your position. 

LGPS: Grades 1 - 5 

USS: Grades 6 and above 

Local Government Pension Scheme (LGPS) – (Leicestershire County Council)

 

If you have a contract exceeding 3 months duration, you will be contractually enrolled into the scheme from the first day of your contract. If your contract is less than 3 months, entry into the scheme would commence if your contract was extended past the 3 months** duration, but would not be backdated.

Casual contracts will only be entered if you meet the criteria as an eligible job holder for auto enrolment. You will be contacted if you trigger auto enrolment. Refer to section below.

Information about the scheme can be found by clicking here.

As a member of the LGPS scheme, you will need to complete a ‌membership form. Please complete the form and return this directly to the scheme address given on the form.

Rates

In the LGPS the employee's contribution rates are based on your actual earnings, including all overtime. The employer pays 18.9%.

 

Pensionable Pay – (including overtime)

Contribution Rates

  Up to £13,600

5.5%

£13,601 - £21,200

5.8%

£21,201 - £34,400

6.5%

£34,401 - £43,500

6.8%

You will receive tax relief on your contributions. To see how this affects you, use the calculator from the link below.

https://lgpsmember.org/more/contscalc.php

 

I am not in the scheme and I now want to join.

 

You can request to join a scheme by emailing pensions@lboro.ac.uk.  Your email must be from your own email address and has to contain the following statement: "I confirm I personally submitted this notice to join a workplace pension scheme." It will be entered from the next available payroll run -  we will contact you to advise when you will be entered into a scheme.

 

The scheme you will be entered into will depend on your grade.

 

LGPS - FAQs and Important Information

  •  I don't want to be in the scheme.

If you do not want to be in the scheme we will need a form to “opt out” of the scheme, click here or call the scheme for a form on 0116 305 5471 and leave a message. Completed forms are to be returned to the Pension section at the University.

 

  • Withdrawing from the scheme

If you wish to cease paying contributions, please email one of the University Pension contacts - The Pension contacts will advise whether any documentation is required and the date that your pension contributions will cease.

 

  • Casual Workers

For staff paid on the Claims Payroll, enrolment into the scheme is not automatic but you will be assessed against the criteria for Auto Enrolment and enrolled if you meet the criteria. We will contact you to advise if you are enrolled into a scheme.

 

  • Transfers

Transfers requests must be completed within 12 months of joining the scheme by entering the information on the membership form. Only other LGPS service or Public Sector Pensions will be permitted. If you decide that you wish to consider a transfer after your membership form has been processed, you will need to contact County Hall directly.

 

  • What is my pension worth?

The scheme produce annual benefits information which is accessible via your online account, you will need to register at Leicestershire County Council Pension website. If you do not have access to a PC or require a paper statement, please contact the Scheme providers.

 

  • I am leaving the University, what do I need to do?

 For general information on leaving, please click here. For LGPS specific information please see below;

If you are leaving employment, we will notify the scheme within 4 weeks of your last payment from the University. The scheme will then correspond with you at your home address with your options.

If you have less than two years membership, and have not completed a transfer in from another pension, you will be offered a refund from the scheme, minus any deductions for tax that should have been paid.

If you have more than 2 years’ service, you will have a deferred membership. This means the pension is kept ‘on hold’ in the Leicestershire scheme. This will apply to you if you have been a member of the LGPS for 2 years more or have transferred in any pension from another scheme. You will be sent a statement of the value of your pension benefits and the date you can expect to receive them, and then a statement every year to tell you by how much your benefits have increased.

You will therefore always need to let the Pension Section know if you change your address. You will be contacted at retirement age and offered the benefits.

 

  • When can I retire?

You can retire in the LGPS scheme between the age of 55 and 75; you need to have at least 2 years membership to qualify for benefits.

Your Normal Pension Age is simply the age when you can retire and take the pension you have built up in full – for any pension built up from 1 April 2014 your Normal Pension Age is the same as your State Pension Age (but with a minimum of age 65).

If you choose to take your pension before your Normal Pension Age it will normally be reduced, you can use the modellers on your online account to see what impact this will have on your benefits.

If you take it later than your Normal Pension Age it’s increased because it’s being paid later.  Please ensure that you are aware of the effects of any reductions before deciding to retire early, as the reductions can be substantial. 

 

  • How much will I receive if I retire?

The retirement calculator on the Online Service will show you the effect on your pension of retiring across a range of dates, which will help you plan for the future.  You should use this tool for an indication.  If you are considering a date in the next 6 months, you can ask the scheme for a quote to be sent to you.

 

  •  Can I retire and keep on working? 

There is a facility for an employer to allow a member to receive their pension without leaving that employment, by authorising flexible retirement.  In order to qualify for flexible retirement, a member must reduce their hours by a minimum of 20% or reduce their grade.

The University must agree to flexible retirement and an FR1 form should be completed by your Line Manager. Once LGPS receives that form you will be sent an estimate, so you can decide if you want to go ahead.  Be aware that the University has the right to refuse flexible retirement and in most cases there may be a cost to the employer to allow this.  Most employers have a published policy on the criteria that they look for in order to grant flexible retirement – seek guidance from your HR Advisor.

 

  • What if I am made redundant or retired from my employment for efficiency reasons?

If you are over age 55, you will be able to access your pension immediately and unreduced, as long as you have been in the pension scheme more than 2 years.  If you are under 55, then it will be frozen in the pension fund, and you will be offered it at age 60, subject to possible reductions for it being paid before your Normal Retirement Age.

 

USS - Universities Superannuation Scheme

If you have a salaried position, you will be contractually enrolled from the start of your contract, paying via a salary sacrifice** arrangement unless you decide to opt out once you have joined.

If you are on a casual contact (variable time) you will only be entered into the scheme if you trigger eligible job holder status for auto enrolment, unless you request to join.  You will be contacted if you are auto enrolled into the scheme.

**If your contract is less than 2 years duration, you may wish to consider opting out of the salary sacrifice arrangement.  Contributions paid via salary sacrifice cannot be refunded after 3 months membership has passed.

Once you have become a member, you will receive a membership certificate within 10 weeks of joining the scheme.

 

Rates

The contribution rate is 8%, the University pays 18%.

You will receive tax relief on your contributions, so the cost to you will be less than the contributions paid to the scheme. If you are already in receipt of a USS pension you will pay an increased contribution rate up to 19.4%, this is based on your age at re-joining.

From 01/10/2016 USS will introduce a salary cap in the DB section of the scheme; salary over this will go into a DC scheme.  See the website and member newsletter for further information.

 

Salary Sacrifice

Members in USS on the salaries payroll are automatically entered into a salary sacrifice arrangement – contributions paid via this method are not refundable after 3 months, so those on a short term contract (less than 2 years) who may wish to consider a refund, could consider electing not to pay via this method.  If this is the case, you contact the pension team for a form.

Salary sacrifice means that your employer pays your standard pension contribution for you. Your pay is reduced by the amount of the contribution your employer paid for you.

This means you may pay less National Insurance. However, your USS benefits are still calculated using your full salary, before the sacrifice.

 

I am not in the scheme and I now want to join.

You can request to join a scheme by emailing pensions@lboro.ac.uk.  Your email must be from your own email address and has to contain the following statement: "I confirm I personally submitted this notice to join a workplace pension scheme." It will be entered from the next available payroll run -  we will contact you to advise when you will be entered into a scheme.

The scheme you will be entered into will depend on your grade.

 

USS - FAQs and Important Information

  • I’m already a member but want to opt-out.

If you have been a member for more than three months you can opt-out of the scheme at any point, even if you haven’t left employment, but you must give your employer sufficient notice. You will need to contact your employer directly and they will make the necessary arrangements.  You will need to give a full months’ notice, so payments will continue for a month after you have supplied the completed Normal Withdrawal Form

 

  • I am leaving the University, what do I need to do?

For general information on leaving, please click here. For USS specific information please see below:

If you are moving to employment with another USS institution, contact the Pension Team and we will complete a transfer form to mover your membership to your new employer.

If you are not moving to another USS employer, please see below:

  1. If you have less than two years membership, and have not completed a transfer in from another pension, and have not paid via salary sacrifice, you may be offered a refund from the scheme, minus any deductions for tax that should have been paid.
  2. If you have more than 2 years’ service, you will have a deferred membership. You will be sent a statement of the value of your pension benefits each year to tell you by how much your benefits have increased. 

You will therefore always need to let the USS scheme know if you change your address. You will be contacted at retirement age and offered the benefits.

 

  • When can I retire?

The normal pension age (NPA) in USS is currently 65. However, you could retire before or after this age.  Please refer to the Retiring from the scheme guide and the Retirement factsheet for full information on retirement and the different types.  (Benefits accrued at Loughborough up to 30/09/2011 were based on a NPA of 60)

If you retire at your normal pension age (NPA) you can take your USS Retirement Income Builder benefits in full.

The NPA in USS will rise in the future, broadly in line with increases to the State Pension age for men and women. The government has already confirmed that the State Pension age for men and women will rise to 66 by October 2020. This will become the USS NPA from that date. This means that the USS Retirement Income Builder benefits for service after October 2020 will be reduced if you retire before age 66. The USS Retirement Income Builder benefits built up before this date will only be reduced in line with the earlier NPA.

The same principle will apply to any further increase to State Pension age in the UK. 

  1. Early retirement - If you want to retire before the NPA, it may be possible under the scheme's early retirement terms. The earliest age you can retire is 55, but if you're made redundant you may be able to retire from age 50. If you retire before the scheme's NPA (excluding retirement due to ill health), any pension you receive from the USS Retirement Income Builder section will be reduced. As an indication, current early retirement reduction is approximately 4% for each year you take your benefits before the NPA. There are exceptions to this, in particular for some former final salary section members. Please see the retiring from the scheme guide for full information on how the early retirement calculations work.
  2. Late Retirement - You can choose to retire later than the NPA. If you do, you will continue to pay into both the USS Retirement Income Builder and USS Investment Builder sections (full contributions). If you continue to pay into USS, your employer will also continue to make their contribution. For more information please refer to the retiring from USS guide. Any USS Retirement Income Builder benefits built up at NPA (including your benefits in the former final salary and CRB sections) will be increased for each month they are delayed beyond NPA. Any funds invested in the USS Investment Builder will continue to be invested up until you retire. See the USS website and fact sheets for more information.

 

  • Ill Health Retirement

Please click here, or see the USS website. Further queries can be directed to the Pension team

 

  • Can I claim my pension and keep working?

The only way this is possible is to take Flexible retirement. This allows you, with your employer's agreement, to take up to 80% of your USS Retirement Income Builder savings as long as you agree to reduce your hours and salary by at least 20%. You can take your benefits in two stages and continue working. Your pension may be reduced for early payment if you are taking it before the scheme's NPA.  You continue paying into the scheme on your reduced hours, so will still accrue more benefits.

 

  • How much will I receive if I retire?

The retirement modellers on the USS website will show you the effect on your pension of retiring across a range of dates, which will help you plan for the future.  You should use this tool for an indication. If you are proposing to retire within the next 12 months, you can ask the pension team to request a quote for you – these typically take 4 – 6 weeks to arrive.

TPS - Teacher's Pension Scheme

Teacher’s Pension Scheme

The Teachers’ Pension is a closed scheme at the University, with only LUSAD lecturers employed prior to 1998, and already active members of the scheme at Loughborough University eligible to remain in this scheme.

The employee's contribution rate is dependent on salary.

If you a TP member and are joining the University from another institution you will be entered into USS/LGPS – dependant on your grade.  Please see your contract for information about the scheme and enrolment process.

Pension Auto-Enrolment - FAQs and Important Information

  • What is autoenrolment?

In a move to encourage greater long-term saving of the UK population towards their retirement, new legislation (The Pensions Act 2008) will require the University to automatically enrol people into a pension scheme if they are not already in one. The aim is to help more people have another income, on top of the State Pension, when they retire.

In June 2016 we are required by law to complete a 3 year re-assessment for Auto Enrolment.  We will be required by law to re-enrol eligible job holders into a qualifying pension scheme on the assessment date. The date that you will be assessed will depend on the payroll that you are on.

  • What does this mean for Loughborough University employees?

The University must enrol all eligible staff into a pension scheme, if you are not in a qualifying scheme, even if you have opted out since 1st April 2013, if you are assessed as an eligible job holder, we have a duty by law to enrol you into a scheme.

Am I an eligible job holder?

  • You earn over £769 per 4 weeks or £833 per month
  • You are aged 22 or over and
  • You are under state pension age.

For the 3 year re-enrolment - all employees who are currently active members of one of the University’s pension schemes there will be no change and no action will be required. 
(Members of the LGPS 50/50 scheme and USS enhanced opt out are not qualifying schemes, and will be subject to re-enrolment, you will be contacted directly if this affects you.)

If you don’t meet the criteria for “Eligible job holder” you can still request to join a scheme by emailing pensions@lboro.ac.uk.  Your email must be from your own email address and has to contain the following statement: "I confirm I personally submitted this notice to join a workplace pension scheme." We will contact you to advise when you will be entered into a scheme.

 

  • What are the legal requirements of Auto-Enrolment?

If you are not a member of the workplace pension scheme, the University is required under the legislation to make an assessment against a set of criteria, and inform you if you will be automatically enrolled, further information on this can be found by clicking here. The qualifying earnings thresholds will be reviewed by the Government periodically. 

 

  • I am an existing member of USS/LGPS/Teachers Pension - Do I need to do anything?

No, your membership will continue as previously.

 

  • I have previously opted out of USS - Do I need to do anything?

All eligible employees who have previously opted out of USS will be assessed.

For the 3 year re-enrolment, if assessed as an eligible job holder; you will be auto-enrolled into the scheme in June 2016. We will write to you by email to your University email account when you have been assessed to let you know the outcome.

If you wish to stay in the scheme, you will not need to do anything and we will start to deduct contributions to your pension from your June salary.  If you do not want to be in the scheme we will need you to complete the opt out form. Forms must be sent to the Payroll/Pension Department at the University or scanned/emailed to pensions@lboro.ac.uk

 

  • I have previously opted out of LGPS - Do I need to do anything?

We were able to apply transitional arrangements to people who have previously opted out of LGPS before 1st April 2013, if this is applicable to you, you will be exempt from re-enrolment until October 2017. We will contact you nearer the time to explain how this will affect you.

For the 3 year re-enrolment - If you opted out after 1st April 2013, you will be assessed.  If you are assessed as an eligible job holder you will auto-enrolled into the LGPS scheme from June 2016. We will write to you by email to your University email account when you have been assessed to let you know the outcome.

If you wish to stay in the scheme, you will not need to do anything and we will start to deduct contributions to your pension from your June salary.  If you do not want to be in the scheme we will need you to complete the opt out form. Send the completed form to Payroll and Pensions; see the contacts section on this webpage for an address and contact details for the Pensions Team.

 

  • What happens if I am Auto-Enrolled but in subsequent months my earnings fall?

Once enrolled in a workplace pension scheme you are member of that scheme unless you notify the scheme that you wish to leave.

 

  • What happens if I don't trigger on the 3 year re-enrolment?

You will continue to be assessed as part of the normal monthly auto-enrolment process.  You will be entered into a pension scheme if you meet the criteria for enrolment.

 

  • If I choose to opt out of the scheme, can I re-join at a later date?

Yes. You can request to join a scheme by emailing pensions@lboro.ac.uk.  Your email must be from your own email address and has to contain the following statement: "I confirm I personally submitted this notice to join a workplace pension scheme." We will contact you to advise when you will be entered into a scheme.

 

  • I have tax protection - how will this affect me?

It may be the case that you have some form of tax protection – such as enhanced or fixed protection – which requires that you do not begin a new pension arrangement if you wish to keep the protection. In the table below is a summary of the auto-enrolment implications of each tax option, and where there is a duty for you to be auto-enrolled comments on opting out are included.

There are other forms of tax protection and USS tax options. We do not envisage that auto-enrolment will have any impact upon HMRC primary protection or individual protection 2014, or the USS defer and restart option.

However, the very small number of members who have opted for temporary cessation of accrual as at their employer’s staging date should discuss this issue with their employer.

Please see the table below:

 

Brief description

Auto-enrolment implications

Opting out

Enhanced opt out

You opted to cease accruing benefits while paying a special contribution rate to maintain death in service and ill health cover, most likely alongside electing for HMRC fixed protection.

 

If you are an eligible jobholder then your employer may be obliged to enrol you into the scheme.

If you opt out within 3 months of being enrolled then you will not be treated as having recommenced service, however if you also have fixed protection then if you do not want to lose that protection, you would need to opt out within one month – please see below.

Fixed protection 2012 & 2014

You elected for protection prior to 6 April 2012 (or 6 April 2014 for fixed protection 2014) and so will have a lifetime allowance of £1.8 million (or £1.5 million for fixed protection 2014), provided that there is no benefit accrual (other conditions also apply).

If you are an eligible jobholder and are not an active member of the scheme, or have also taken enhanced opt out, then your employer may be obliged to enrol you into the scheme.

HMRC has issued guidance on this topic, however, the situation is not clear cut.  In order to guarantee that protection is not lost you would need to opt out within one month of being enrolled.

HMRC Enhanced Protection

You elected for protection prior to 6 April 2009 and so will have no liability to the lifetime allowance charge, provided that there is no further relevant benefit accrual (plus other conditions).

 

If you are not an active member, or have also taken USS enhanced protection, then if you are an eligible jobholder your employer may be obliged to enrol you into the scheme.

HMRC has not published guidance on this topic in the way it has in relation to fixed protection, however we understand that it has written to individuals with this protection regarding this issue. It would appear that in order to guarantee that protection is not lost you would need to opt out within one month of being enrolled.

USS Enhanced Protection

You opted to cease accrual and have benefits potentially capped while paying a special contribution rate to maintain death in service and ill health cover.

If you are an eligible jobholder and have taken USS enhanced protection then your employer may be obliged to enrol you into the scheme.

If you opt out within three months you will not be treated as having recommenced service, and you revert to paying the 1% contribution as a USS enhanced protection member

General Information on Pensions

Where can I get more information?

Individual communication will be sent to each Loughborough University employee explaining how pension reform will affect you.

Contacts: Pensions Team

Name Position Contact
Jon Wright Payroll & Pensions Manager

Email - j.r.wright@lboro.ac.uk

Phone - 01509 228098

Karen Higgins Pensions Supervisor

Email - k.higgins@lboro.ac.uk

Phone - 01509 222054

Paul Hyde Senior Pensions Assistant

Email - p.a.hyde@lboro.ac.uk

Phone - 01509 222021

John Macleod Temporary Pensions Assistant

Email - j.macleod@lboro.ac.uk

Phone - 01509 222922

If you have a general enquiry that is not covered by the information on this webpage, please email pensions@lboro.ac.uk  

If you have a query regarding autoenrolment in a pension scheme, please email pensionsautoenrolment@lboro.ac.uk 

Address: Payroll and Pensions Office. (203.1.09), Rutland Building, Loughborough University, LE11 3TU

 

Contact us

Tel: 01509 222169

Fax: 01509 223903