Joining OSPS

You can join the Oxford Staff Pension Scheme (OSPS) if:

  • You are an employee with non-academic status;
  • Your employer says your job is pensionable; and
  • You are under age 75, athough in practice no employee can join after age 73 unless they have been in the scheme before.

You will be automatically admitted as an Active Member of OSPS with effect from the date you become eligible to join. You will be asked to provide some information to help set up your membership.

If you work irregular hours you will not be automatically admitted to OSPS. If your employer classifies you as an employee and invites you to join OSPS, then you may choose to accept or decline this invitation. If you are in this situation, please contact the Pensions Office for further information.

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Can I choose not to join?

If you do not want to join OSPS then you can give notice to your employer within three months of becoming an employee. Note that once you have been a member of OSPS for 3 months you have to give 28 days notice, and your last day of membership will be the end of the pay period in which the 28-day period ends.

Forms to opt out of OSPS are available for download:

OSPS University Opt Out Form (OPT1U) (83kb): For University employees only.
Use this form to opt out of OSPS during the first 3 months of service.

Election not to join OSPS (during first 3 months of service) (OPT1A) form (84kb)
Use this form to opt out of OSPS during the first 3 months of service.

Application to withdraw from OSPS (while in pensionable service) (OPT2) form (57kb) : For University and non-University employees.
Use this form if you wish to withdraw from OSPS while remaining in pensionable service, and you have already completed your first 3 months of service.

OSPS provides valuable benefits to you and your dependants. The Trustees urge you to think very carefully and take advice before giving up the benefits provided through membership of OSPS.

For further information regarding Occupational Salary related schemes, can be found on the Financial Services website.

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Why should I reconsider opting out?

Common reasons for opting out are as follows:

It is too expensive

Currently you pay between 5.6% and 7.8% of your pensionable pay depending on the cost plan to be an active member of OSPS. However, if you pay tax and National Insurance (NI) the real cost is about 2%-2.5% less. This is because if you are in OSPS you pay less tax and NI. It is extremely unlikely that you could get a similar level of pension and life assurance benefits privately for the same cost.

I am on a short-term contract and do not see the point

If you are in OSPS your employer currently puts 21.5% of your pensionable pay towards your pension. If you opt out you are giving up this large contribution towards your future retirement income.

If you leave within two years you can normally have (i) a refund of all your contributions (provided you opt out of Salary Exchange) less statutory deductions or (ii) a transfer of the cash equivalent to a pension scheme of your choice that is willing to accept a transfer. The transfer value is almost always significantly larger the amount of money you have paid in, as it indirectly takes account of the large contributions put in by your employer.

If your contract is extended, by remaining in the scheme you will have already made a start towards achieving the two years service needed to keep your benefits in OSPS. If you wish to buy this service in the future it will cost you a lot more than the contributions you would have paid into the scheme.

I am going to live or retire abroad and do not need a UK pension

OSPS pays pensions to pensioners living abroad, though currently they need to be paid into a UK bank account.

You can transfer your benefits to any overseas scheme approved by HMRC which appear on this list. Please note that it is not possible at the moment to transfer pension benefits to the USA.

I already have a personal pension

You can contribute to OSPS and a personal pension at the same time. If you contribute to OSPS your employer currently pays 21.5% of your pensionable pay into the scheme as well. It will not pay this money into your own personal pension, so you are missing out on this money if you opt of OSPS. Once you leave OSPS you will probably be able to transfer the cash equivalent (which indirectly takes account of the large employer contribution) into your personal pension if you think this is a good idea. Hence, by opting out of OSPS you could be reducing the potential size of your personal pension funds.

If you leave OSPS with an entitlement to preserved benefits and choose to leave them within OSPS you would have an additional pension to add to your personal pension.

OSPS is not good value for money

As a general rule, the net contributions you pay into OSPS are roughly equivalent to the tax free lump sum you will accrue. On top of this you will get an inflation-proofed pension for life. Please contact the Pensions Office if you would like a personal illustration.

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Can I choose to join later?

If you change your mind you may be able to opt back in, write to your employer if you want to do this. Special conditions may be imposed at that time regarding your joining or rejoining.
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Can I transfer my benefits from a previous pension scheme?

Yes. It is possible, subject to the discretion of the Trustees, to arrange to transfer benefits into OSPS from a previous pension arrangement. You should contact the Pensions Office for more information.

If you would like the Pensions Office to investigate a transfer, please complete and return the Inquire into transferral from a previous pension arrangement (TVIN1) form (19kb).

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Alternatives to OSPS

If you decide not to join OSPS, or having joined decide to withdraw, your alternatives are:

  • Membership of such top-up pension arrangements that may be provided by the State. If you pay the full rate of National Insurance you will normally become a member of such a scheme.
  • A personal pension which you must arrange yourself. Please note that your employer is not obliged to make any contribution whatever.

In certain circumstances it may be possible to contribute to both OSPS and a personal pension.

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Contact Details

The Pensions Office (University access only)
Telephone: 01865 (6) 16020
Fax: 01865 (6) 16021
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