New members (joining after 1 October 2017)

Introduction

This page summarises the contribution structure and other benefits to be provided by OSPS for new employees from 1 October 2017. It is a defined contribution arrangement. In this type of pension plan, the OSPS Investment Builder fund value you build up for your retirement is based on how much you contribute and how much your employer contributes and how your investments perform.   

The OSPS Trustee will administer the arrangement under the same trust as existing OSPS benefits: the Trust Deed and Rules.  

The new Investment Builder section is being run by Legal & General on behalf of the Trustee. To find out more details about members’ investment and retirement options you can access the L&G website

Contributions                                                               

You contribute a minimum of 4% of your pensionable salary each month and your employer pays at least 6% to your fund. You can pay higher contributions if you wish and your employer will also increase the contributions it makes. 

The contribution rates as a percentage of pensionable salary are as set out below.

 

Employee contribution

Employer contribution

Tier 1

4%

6%

Tier 2

6%

8%

Tier 3

8%

10%

New employees will be enrolled in to Tier 1 and you must “opt up” to get full value for the pension contributions on offer. You may switch contribution tiers once a year in April (and within the first three months on joining).

Other benefits

In addition OSPS provides for death in service and incapacity:

If you die in service before Normal Pension Age:

A lump sum 3x your pensionable salary plus 3 months’ salary to a dependant and the prospective employer contributions (based on your contributions rate) up to normal pension age.

A ill-health benefit if you are too ill to work:

If you qualify for an ill-health benefit you would get as a lump sum a return of your funds and also prospective employer contributions up to normal pension age based on your contribution rate.

Benefits

The OSPS plans to make a number of options available to members when they retire or draw their benefits. These include taking the entire fund saved as cash (subject to tax limits), buying an annuity with a third party or drawing down benefits via a third party. 

Transfer In

It is possible to transfer benefits into the new Investment Builder section of OSPS. Please refer to Legal and General for more details on Investment Builder.

If you would like to investigate a transfer, please complete form TVIN1 and return to the Pensions Office.

Please note that we can only accept transfers from investment-based (D/C) scheme, so transfers from LGPS, NHS and other public sector schemes are not possible.

Automatic enrolment compliance

OSPS is a qualifying scheme for automatic enrolment purposes.