Leaving OSPS

What happens if I leave OSPS before I retire?

You will be treated as leaving OSPS:

• If your pensionable employment ceases and you are not re-employed within one month;
• If you chose to withdraw from OSPS while remaining in pensionable employment;
• If you become a member of USS through promotion or regrading;
• If you become an Irregular Employee and are not invited to join by your employer.

Can I take a refund of my contributions?

If you have less than two years' Qualifying Service, you can either take a refund of the contributions you have made to OSPS, less tax and your share of the cost of buying you back into the State Earnings Related Pensions Scheme (SERPS), or you can ask for a transfer value to be paid to the scheme of a new employer or to a personal pension arrangement.

If your employer operates a Salary Exchange for Pensions Contributions scheme, you should be aware that the value of the refund could be severely reduced. In these circumstances, the refund calculation will only include OSPS contributions made before you joined Salary Exchange . This is because:

Employee contributions under Salary Exchange are nil and therefore cannot be refunded to you.

You will not be able to recover the pay you have given up in order to participate in Salary Exchange.

Hence, if you think your preferred option upon leaving OSPS would be a refund of net contributions, participating in Salary Exchange may not be advantageous to you. In this instance, you may wish to opt out of Salary Exchange.

If you are a University employee and wish to opt opt out of Salary Exchange, you should complete   Salary Exchange Opt-Out Form (82kb) and return it to the Payroll Office within 3 months of joining OSPS. If you are not a University employee, you should ask your employer for their Salary Exchange opt out form and ensure that they receive it before they put you into Salary Exchange.

Can I leave my benefits in OSPS until retirement?

Yes, but only if you have completed two years' Qualifying Service. On leaving you will become entitled to a pension and a cash lump sum payable from age 65. These deferred benefits will be calculated in the usual way but based on your completed Pensionable Service and Final Pensionable Salary at the date you leave.

During the period between leaving and attaining age 65, your deferred benefits will be increased annually in line with increases in the Retail Prices Index.

Note: When you leave OSPS you will be sent a statement showing your deferred benefits and listing the options available to you.

Can I claim my benefits after age 65?

As long as you obtain the Trustees' consent before you reach age 65, you can choose to take your preserved benefits after age 65. If you do this, the value of your benefits will be enhanced to reflect the fact that they are being paid after age 65, and might therefore be paid for a shorter period. Preserved benefits cannot be paid later than age 75.

Can I take my retirement benefits before age 65?

You may request the payment of your benefits at any time after age 50, (age 55 from 6 April 2010 for members joining after 5 April 2006). If you do this, the value of your benefits will be reduced to reflect the fact that you are being paid before age 65 and might therefore be paid for a longer period.

You might also be able to receive your deferred benefits immediately if you satisfy the Trustees that you are likely, due to ill health, to be permanently incapable of doing any paid work. Please contact the Pensions Office for further details.

What benefits will be payable if I die before I draw my deferred benefits?

If you die before payment of your deferred pension commences, a Dependant's pension will be payable equal to two-thirds of your deferred pension. The provisions for payment of this pension, and of children's allowances, are similar to those described for death in service. Your deferred cash lump sum will also be paid.

Can I take a transfer payment to another pension arrangement?

Yes. You can choose to transfer the value of your deferred benefits or accrued benefits in OSPS to your new employer's scheme or to another approved pension arrangement. You should ask your new pension scheme to write to the Pensions Office with your written permission to release details. Further details are available from the Pensions Office.

If the Scheme you are transferring to is a member of the Public Sector Transfer Club, then you must ask them to investigate a transfer within one year, in order to benefit from the beneficial terms.

Can I take a transfer payment to a pension arrangement outside the UK?

Yes. You can transfer your deferred benefits to a non-UK scheme if you are permanently resident in that country and the scheme is a Qualifying Recognised Overseas Pension Scheme (QROPS). A list of these schemes is available here.

How is the transfer payment calculated?

This is calculated in accordance with the guidance of the actuary to OSPS. Broadly speaking, it is the amount of money required now to pay your benefits at age 65, allowing for assumed inflation and investment returns.

Does OSPS deduct anything from the transfer payment?

No, OSPS will not apply any fees to the transfer payment.