OSPS In Summary

Please note that nothing stated in this summary can overide the Trust Deed and Rules.

OSPS is the University's scheme for those of you who are on scales of pay of Grade 5 and below, other than academic and academic-related. The scheme is also open to similar employees of colleges and other institutions that participate in the scheme. It is a Career Average Revalued Earnings (CARE) scheme, though some members may also have Final Salary benefits (see Final Salary section below for further details).

You can join OSPS if:
  • You are an employee with the University or one of the participating employers;
  • You are not on an academic or academic-related scale of pay;
  • Your employer says your job is pensionable; and
  • You are under 75, though in practice no employee can join after age 73 unless they have been in the scheme before;

Employees who work irregular hours can only join at the invitation of their employers.

OSPS is approved by the HMRC and is contracted-out of the State Second Pension (S2P).

The scheme's normal retirement date is the later of age 65 and your state pension age (or your birthday preceding it if it does not fall on your birthday).

Members of OSPS are sent OSPS Booklet (462kb) which provides a more detailed explanation of the scheme, the key features of which are included below. Please note that this booklet is now being revised.

Contributions

Normal Contributions: Your contribution depends on your cost plan: either 5.6% (lower cost plan), 6.6% (standard cost plan) or 7.8% (higher cost plan) of your pensionable salary (usually basic salary). Your employer pays a variable amount (presently 21.5% of the total of members' pensionable salaries) to OSPS in order to fund the balance of the cost of the benefits.

Additional Voluntary Contributions (AVCs): You may increase your retirement benefits by paying AVCs. The options available are:

  • Paying up to an additional 15% of your pensionable salary to purchase extra pension and lump sum within OSPS;

  • Building up additional benefits in a "money purchase" facility provided by Prudential;

  • Building up additional benefits in a "Free Standing AVC" facility or personal pension with the provider of your choice.

The most you can pay, including your normal contributions, is 100% of your earnings in any tax year.

Important: Your contributions to OSPS qualify for tax relief at your highest marginal rate. The relief is given at source through the payroll. You will also pay lower NI contributions if you are a member of OSPS.

Benefits

The principal benefits are:

  • A pension, accrued at the rate of 1/90 (lower cost plan), 1/85 (standard cost plan) or 1/80 (higher cost plan) of pensionable salary for each tax year in that cost plan, together with
  • A tax free cash lump sum of three times that pension.
  • Each year's pension and lump sum is revalued in line with RPI (maximum of 8%) to the date of leaving to give the total pension and lump sum. You can change cost plan every April.

Other benefits are:

  • Early Retirement on the grounds of ill health (after 2 years of contributory service). Members who satisfy the Trustee and Employer that they are permanently incapable of continuing in their present (or financially comparable) employment owing to ill health become entitled to an immediate pension and cash lump sum at the level they might have expected had they worked up to normal retirement date.
  • A Death in Service Cash Lump Sum, equal to 3 years' pensionable salary, payable to a person or persons chosen at the discretion of the Trustee of the Scheme. The Trustee will take into consideration persons previously nominated by the member.
     Member’s wishes concerning disposal of Death in Service lump sum (NOM1) form (23kb) is available from the Pensions Office or from your employer.
    Important: If your circumstances change, please remember to update your nomination by completing a new form.
  • A Dependant's Pension, payable upon death to a surviving spouse or other dependant at the rate of either:
    • On death in service, one half of the pension that would have been payable had the member retired on the grounds of ill-health on the day before death;
    • On death of a preserved pensioner before retirement, one half of the preserved pension; or
    • On death in retirement, one half of the pension in payment, ignoring any elections to take a higher or lower pension at retirement.
  • Up to three Child Allowances, payable on behalf of any of the member's children under the age of seventeen or remaining in full-time education at the date of death. The amount payable to each child depends on the number of children who are eligible, upto the age of 23, and whether or not a dependant's pension is also being paid.

Note:

  • If you wish to make your dependants known to the Trustees you can do so using Registration of potential dependants (NOM3) form (22kb).
  • All pensions and child allowances are increased annually in line with an index chosen by the Trustee, currently the Retail Prices Index (RPI), subject to a maximum increase of 8%.

Final Salary benefits - you will have benefits in the final salary section if:

  • you were a member of OSPS before 1 January 2013;
  • you have paid  or are paying AVCs to buy extra years of pensionable service; or
  • you have transferred in final salary benefits from a Public Sector Transfer Club scheme.

Final salary benefits are calculated using your final pensionable salary and pensionable service. For further details on how final salary benefits differ from CARE benefits, please contact the Pensions Office.

In addition, you should know that all benefits are subject to limits imposed by HMRC. Generally, the limits will apply only if you have total pensions benefits more than £75,000 per annum.

Contacts

If you have any queries, please contact:
Pensions Office
Telephone: 01865 (6) 16020

Secretary to the Trustees of OSPS:
23-38 Hythe Bridge Street, Oxford OX1 2EP
Telephone: 01865 (6) 16164

Documents