OSPS Contributions
How much will I have to pay?
You contribute 6.35% of your pensionable salary. This applies whether you work full time or part time. Your take-home pay may be reduced by less than 6.35% for two main reasons:
- Your contributions are deducted from your pay before tax. This gives you automatic tax relief at your highest rate.
- OSPS is contracted out of the second tier of
State pension, so you also pay lower National Insurance (NI)
contributions unless:
- you are over State pension age and therefore pay no NI; or
- you are a married woman paying reduced-rate NI, in which case you pay the same NI as if the scheme were not contracted out.
Some employers pay member contributions to the Scheme on your
behalf through Salary
Exchange. If you opt out of Salary Exchange, you will not benefit
from the NI savings that are available under Salary Exchange. It may
benefit you to opt out of Salary Exchange if you think you are likely to
claim a refund of contributions when you leave. Please refer to pages
17 and 18 of the OSPS Booklet 
(462kb)
How are my contributions paid?
Your contributions will be deducted from your pay, giving you immediate automatic tax relief.
Can I choose to pay more?
Yes. You may be able to pay extra contributions known as Additional Voluntary Contributions (AVCs).
How much does my employer pay?
The contributions you make to OSPS would not be enough to meet the cost of all the benefits promised to members. Your employer pays the balance of the cost of providing these benefits. Your employer's contributions are determined on the basis of the advice of the Scheme's actuary.
All the contributions to OSPS are invested under the guidance of professional investment managers who are appointed by the Trustees. Every three years the OSPS Actuary values the fund to make sure that there are enough assets to pay all of the pensions promised.
What are the tax advantages of OSPS?
OSPS has been approved by the Inland Revenue under Chapter 1, Part XIV of the Income and Corporation Taxes Act 1988.
This approval currently confers the following tax advantages:
- Full relief from income tax on your contributions to OSPS; and
- The cash lump sums payable on retirement and death are free of tax.
The limits that currently apply vary according to the date you effectively joined OSPS.