Frequently Asked Questions
Auto enrolment
What is auto enrolment?
Legislation relating to workplace pensions requires that all employers automatically enrol specific groups of their workers into a pension scheme. For the University of Glasgow, the date from which we were required to implement auto enrolment was 1 April 2013.
What does this mean for you?
If you are already a member of one of the University’s pension schemes there is no change for you as a result of auto enrolment.
The University’s pension schemes include the University of Glasgow Pension Scheme (UGPS), the Universities Superannuation Scheme (USS), the NHS Superannuation Scheme (Scotland), the Scottish Teachers’ Superannuation Scheme, Strathclyde Pension Fund and the National Employment Savings Trust (NEST).
If you do not pay into a pension scheme the University is required, by law, to automatically enrol you into a workplace pension if you are aged between 22 and State Pension Age (currently 66) and have earnings above the statutory minimum amount of £833 per month. If you are not automatically enrolled you will have the opportunity to join a scheme if you wish (see Question "If I'm not autoenrolled can I join a pension scheme).
If you are auto enrolled, you may opt out of the scheme in question, but every three years employers are required to re-enrol all eligible workers who, at that time, are not members of a qualifying scheme.
Is everyone being auto enrolled into a workpalce pension?
No. This depends on whether you meet certain criteria. You will be auto enrolled into a workplace pension if you:
- are not already in a workplace scheme;
- are aged 22 or over;
- are under State Pension age (currently 66);
- earn more than the statutory minimum amount of £833 per month; and
- work or usually work in the UK.
If I'm working outwith the UK or I've been sceonded to the UK from overseas, does auto enrolment apply to me?
If you're working outwith the UK but are being paid by the University then auto enrolment does apply to you as you normally work in the UK.
If you're on secondment to the University from overseas and you're being paid by your overseas employer then auto enrolment does not apply to you as you don't normally work in the UK.
If I meet the criteria, when will I be auto enrolled?
If you meet the criteria from the above question you will be auto enrolled into a workplace pension scheme. We will e-mail or write to you with full details.
Employers are permitted by the legislation to postpone the automatic enrolment date for up to 3 months. This allows for "spikes" in earnings for workers with variable earnings. We will let you know if this applies to you. You will however have the right to join a workplace pension scheme during the period of postponement if you want.
If I'm not auto enrolled can I join a pension scheme?
If you don’t meet the criteria for auto enrolment you can join a workplace pension scheme if you want. The pension scheme that you can choose to join will depend on which category of worker you are. This is detailed in Question 7.
To join, contact the Pensions Section in the Finance Office in writing by sending a letter which has to be signed by you. Or you can contact the pay and pension team via the self service desk, you must include the wording "I confirm I am personally submitting this notice to join a workplace pension scheme".
Which pension scheme will I be auto enrolled into?
That depends on which category of worker you are. The table below shows which pension scheme the various categories of staff will be auto enrolled into, or can choose to join if you don’t meet the criteria for auto enrolment.
| Category of Worker | Workplace Pension Scheme |
|---|---|
| Contracted employees with fixed hours in grades 1 to 5 Fractional employees in grades 1 to 5 |
Prior to 1 April 2014 new employees were enrolled into UGPS From 1 April 2014 new employees will be enrolled into NEST Employees who have previously opted out of UGPS or NEST will be auto enrolled into NEST (see Question 8). |
|
Contracted employees with fixed hours in grades 6 and above |
New employees will be enrolled into USS Employees who have previously opted out of USS will be auto enrolled back into USS |
| Zero hours employees in grades 1 to 5 | Employees who meet the criteria for auto enrolment will be auto enrolled into NEST |
| Zero hours employees in grades 6 and above (except USS re-employed pensioners and flexible retirees) | Employees who meet the criteria for auto enrolment will be auto enrolled into USS |
| USS re-employed pensioners and flexible retirees in grades 6 and above | Employees who meet the criteria for auto enrolment will be auto enrolled into NEST |
| Casual workers in grades 1 to 5 | Workers who meet the criteria for auto enrolment will be auto enrolled into NEST |
| Casual workers in grades 6 and above | Workers who meet the criteria for auto enrolment will be auto enrolled into NEST |
Details of Nest can be found on the Nest website
Details of UGPS can be found in the Member Booklet:
- UGPS Member Booklet (pdf file)
Details of USS and the benefit structure are available on the USS website
Pension Opt Out
How do I opt out of the pension scheme?
If you wish to opt out of NEST you can do this online at www.nestpensions.org.uk.
If you wish to opt out of USS you can download a scheme opt out notice from www.uss.co.uk which you can complete and return to the payroll section via the self service help desk.
If you wish to opt out of UGPS please contact the Pay & Pensions team vie self service help desk.
If I opt out, can I rejoin at a later date?
Yes, you can rejoin the relevant workplace pension scheme at any time. To do so, contact the Pensions Section in the Finance Office in writing by sending a letter which has to be signed by you. Or you can contact the pay and pension team by submitting an enquiry, you must include the wording "I confirm I am personally submitting this notice to join a workplace pension scheme".
How long does my opt-out last for?
Your pension opt out will last until the University's next auto-enrolment re-enrolment date.
Due to government legislation on pensions auto-enrolement The University needs to re-enrol people who have opted out of a scheme, back into a pension scheme every three years.
The University's next auto-enrolment re-enrolment date is April 2026.
I have opted-out of my pension and am transferring post, is my opt-out still valid?
If you are staying within the same pension scheme the opt out is still valid. So, if you are in Nest pension and are transferring to another Grade 1-5 post which is also in Nest you will remain opted out.
If you are moving from a Grade 1-5 (Nest pension) to a Grade 6 and above post (USS pension) you will automatically be enrolled in USS.
The opt out in this case is not valid anymore and if you wish to you would have to opt out again of the USS pension scheme.
I have opted-out of my pension scheme and I am starting a second appointment now. Do I need to opt out for this second appointment as well?
If your second appointment is also with the same pension scheme you opted out of you do not need to opt out again. However, if your second appointment is on a grade with a different pension scheme you will be contractually enrolled into that scheme and would have to opt out again.
Nest
What is NEST?
NEST – the National Employment Savings Trust - is a pension scheme established by the Government to support the introduction of auto enrolment. NEST is a low cost pension scheme which attracts low charges and is portable. Once you are a member you can contribute to your pension regardless of employment status or employer within the UK.
The Government will also pay into your NEST pension in the form of tax relief. This means some of your money that would have gone to the Government as tax goes into your pension instead. For example, if you make a £100 contribution you only need to pay £80. NEST will reclaim the £20 basic rate tax relief from the Government, making the total contribution up to £100.
As the tax relief is paid in this way, contributions to NEST cannot be paid through Pensions Plus (for details see Pensions Plus).
More details on NEST can be found on the NEST website.
How much will I pay into NEST if I am auto enrolled?
Both you and the University will pay a percentage of your earnings into the scheme. The University is going to increase the amounts being paid over the next few years in line with the Government’s minimum standards.
The contribution rates are as follows:
| Your contribution | University's contribution | Government contribution | Total contribution |
|---|---|---|---|
| 4% | 3% | 1% | 8% |
Please note that these rates apply only if you have been auto enrolled or have chosen to join if you don't meet the criteria for auto enrolment.
Different rates apply if you are either a contacted employee with fixed hours in grades 1 to 5 and have been enrolled in NEST, or you are a zero hours employee in grades 1 to 5 and have chosen to join NEST, in accordance with the terms of your contract of employment.
Who do I contact if I want to change my contribution?
You can contact the payroll team via the self-service helpdesk.
How do I log into NEST?
You can log into your Nest account via the website Workplace Pension Scheme | Nest Pensions. If you have not activated your account, you will have to do this first. Once you are enrolled you will receive a welcome email and a pack in the post. This will walk you through the steps of activating your account.
If I had a NEST pension in my old job and am back in NEST now, are they automatically together or are they still separate?
Nest keeps track of your pension by using your National Insurance number so multiple pensions from different employers can be recognised and kept together. You can check your Nest savings on their web site.
How does NEST pension work once I retire?
The pension calculator on Nest shows you an estimate of how much money you might have once you retire. With Nest you have three options once you retire, the self-managed option, Nest guided retirement fund and or you can use your nest pot to access options from other providers. More details can be found here Your choices at retirement | Nest Pensions
Can I continue to pay into my NEST pension once I am transferred to USS through a grade change?
No, you will automatically be enrolled in USS and your enrolment with Nest will end.
UGPS
How do I access the UGPS pension scheme?
UGPS pension scheme is closed to new members and cannot be accessed. At retirement Pay & Pensions will contact the scheme administrators who will provide a quotation of your benefits.
How do I contact UGPS?
UGPS can be contacted by raising a helpdesk request via Pay & Pensions.
Is it possible to make additional contributions to my UGPS pension, and if so, how can I do that?
Yes, you can pay additional voluntary contributions (AVC’s). Contact Pay & Pensions via the helpdesk and request a pack.
USS
What does the projected pension on the USS website mean? Will I get the payments only for a certain amount of time after I retire?
Your retirement income builder shows what you will get once you retire. This will be paid until you die. You get a guaranteed income for life and a one-off cash lump sum. There are also other benefits like life cover and ill health cover.
What is the investment builder on USS?
The Investment builder is the defined contribution part of your USS. Scheme You and your employer contribute on your salary over the salary threshold, you can choose to make extra contributions to the investment builder. This is a flexible savings pot for your future which you can use alongside your guaranteed income form the retirement income builder.
How can I increase my USS contribution?
Log into your USS account and under the Investment builder you can update your monthly contributions or make a one-off lump sum payment. Ticking the salary sacrifice option will provide you with National Insurance savings.
Retiring
Whom do I notify when I plan to retire?
When you decide you want to retire the first step is to discuss the date with your line manager. Your line manager should inform HR who in turn inform Pay & Pensions who will notify the appropriate scheme.
After deciding when I want to retire, when should I begin the process, and how much time should I allocate for planning?
Ideally you should be providing the Scheme with four months’ notice.
General Pension Questions
Am I not too young to start thinking about pensions?
No. It may seem early to start planning for later life, but remember you could have many years of retirement and you will need an income. A workplace pension is one way to provide that income. Usually the longer you pay into a pension scheme the better the benefits will be.
I am paying into a personal pension already, can I continue with this?
It is possible to have both a workplace pension and your own personal pension, so you could choose to continue paying into both.
What if I move abroad and plan to stay there?
Personal and workplace pensions can be paid to you wherever you live. Whatever you pay in now before you move abroad will be kept in the pension for you and paid to you once you retire. You may have the option to transfer your pension savings to a provider abroad if it is recognised by the UK tax authority (HMRC). You can find more details on the moneyhelper website Moving a UK pension overseas or moving an overseas pension to the UK | MoneyHelper.
What happens to my pension if I do not retire at my target retirement age?
You can continue to work and pay into your pension. You will only receive tax relief up to the age of 74.
What happens if I want to go on working past retirement age?
You can usually work for as long as you want and you can keep on working past your state pension age. You can claim you pension while you are working as long you have reached state pension age (for your state pension) or the age agreed with your pension provider if it is a personal pension or workplace pension.
Is my private pension age different from the state pension age?
The minimum age for a private pension is 55, this will raise to 57 from 2028. Different schemes may have different normal pension ages though most are aligned to state pension age.
What happens if I retire early? How much will my pension be reduced?
This will depend on the scheme that you are in and how much before your normal pension age you decide to access your benefits. The earlier you access your benefits the more they will be reduced.
There is no reduction in benefits for members of NEST.
How do I move my old pension into my new pension? Whom do I contact and what information do I need?
To transfer from one pension provider to another you need to contact your current pension provider and the one you want to transfer to. You need to make sure your existing scheme allows you to transfer some or all your pension pot and that the new provider will accept the transfer.
Can I combine different pension funds I have from different jobs?
You can transfer money from other pensions into most of the schemes that the University uses, with the exception of UGPS. If your previous pension was a defined contribution pension (a pension savings pot like NEST) and your current pension is USS (a defined benefit scheme) you can transfer pensions savings into the investment builder on USS. You might want to seek guidance before making the decision. You can either seek independent financial advice or visit the MoneyHelperWebsite.
How do I know what I would get when I retire?
For USS and Nest you can log into your online account where you will be able to details of the benefits that you have built up. Other schemes will provide a quotation on request.