How much does it cost?

This page contains information on the OSPS cost plans and contribution options for members who joined on or after 1 October 2017.

Choice of contribution tiers

You can choose between three contribution tiers; Tiers 1, 2 and 3. They have different contribution rates as per the below table.


Employee Contribution Rate

Employer Contribution Rate










New members can pick their contribution tier on Pension Choice Form (APP5 DC) (78kb) If you do not choose a tier you will be put in Tier 1. Current members can change their cost plan from any 1 April by sending Change of contribution tier (APP6 DC) (63kb) to the Pensions Office before 31 March.

The real cost

If you pay tax and/or NI you will pay less of both if you are in the scheme. Here is an example for an employee on £1,731 gross per month using standard tax and NI rates for 2015/6.


Tier 1 Contribution

Not in OSPS

Gross Pay












Take home pay



In this case the real cost is £54 per month not the £69 that appears on the payslip. The cost would be £8 less if this member were in Salary Exchange.

You can use the OSPS Calculator to check your own pay (applicable up to 31 March 2018).

Salary Exchange

The University and some colleges use Salary Exchange for employee contributions. If you are in Salary Exchange your employer pays your pension contributions and reduces your pay by the same amount. This means that if you take a refund on leaving any contributions taken through Salary Exchange cannot be refunded.

If you are an employee of a college that operates Salary Exchange you should contact them about their opt out procedure.

Employer contributions

The employers support the scheme by paying significant contributions and currently pay 19% in total contributions. In the case of OSPS DC members either 6%, 8% or 10% is paid to Legal & General as specified in the contribution table above with  further amounts used for ancillary benefits on death and ill-health and administration costs and the remaining amount is retained for funding purposes. The level of employer contributions is decided at the scheme valuation which takes places every three years.