Terms and Conditions of Employment
If you join or are currently a member of the Universities Superannuation Scheme (USS) or the Oxford Staff Pension Scheme (OSPS), you will be included in Salary Exchange automatically on or around three months after your date of joining and the following shall apply.
If you wish to opt out of Salary Exchange, you must
complete and return an opt-out form no later than two months after the
date of joining. The Salary Exchange Opt-Out Form 
(82kb) is available online or you can contact the Payroll Team, tel: 01865
(6)16301.
The terms and conditions of employment for all eligible employees have been notified either in original employment contracts or by means of a letter from the Director of Personnel Services which includes a variation to original contract in accordance with the provisions of Section 4 of the Employment Rights Act 1996. The effect of this notification or variation is to recognize that salary entitlement is given up. Additional employer contributions will be paid to the pension scheme. For participating employees, Salary Exchagne may only be revoked for future and not for retrospective salary entitlement.
Please note that, if you do not opt out within two months of joining, you will be unable to do so until 1 April in the calendar year following that in which you join, unless you experience a life change event (as described in question 20 of the Questions and Answers section.
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Basic Salary |
The statement of terms and conditions in your contract of employment with the University of Oxford sets out the salary scale for your grade and your Basic Salary or refers to a fixed salary which is personal to you. The changes under Salary Exchange mean that your Basic Salary will be reduced with effect from 1 June 2008 by 6.35%. The University will increase its employer pension contribution into USS by the equivalent amount. Reviews of your Basic Salary against the salary spine or fixed rate will continue to be undertaken. Should your rate of pay change as a consequence of such a review, you will be advised of your revised rate of Pre-Salary Exchange Basic Salary. |
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Pensionable Salary Pensionable Pay |
Your Pensionable Salary is the sum of your Pre-Salary Exchange Basic Salary and any other pensionable pay elements using the pre-Salary Exchange values in every case. Your Pensionable Salary and all entitlements to benefits under USS are unaffected by participation in Salary Exchange. |
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Other pensionable pay elements |
Under Salary Exchange, any other pensionable pay elements you receive will also be reduced by 6.35%. An equivalent amount will be paid by the University as an employer pension contribution into USS or OSPS. |
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Adjusted Salary |
Your Adjusted Salary is the sum of your Post-Salary Exchange Basic Salary and other pensionable pay elements, reduced by 6.35%, plus any non-pensionable payments you may receive (the latter are unaffected by Salary Exchange). PAYE and NIC calculations will be made on your Adjusted Salary. These statutory deductions, together with some other statutory and voluntary deductions (e.g. season ticket loan repayments) are deducted from your Adjusted Salary to produce your net take-home pay. |
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Overtime, etc. |
If you are entitled to additional pay for overtime working, shift allowances, on-call, and similar pay supplements, these will continue to be calculated by reference to the relevant Pre-Salary Exchange Basic Salary values. |
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Holiday Pay |
Any holiday pay which you are entitled to receive in cash on leaving the University's employment will be based on your Pre-Salary Exchange Basic Salary. |
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Sick Pay Maternity Pay Paternity Pay |
In accordance with statutory requirements, Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP) will be based on your Adjusted Salary. Your SMP will be calculated using your Adjusted Salary, in line with statutory requirements. University maternity, paternity and sick pay will continue to be based on your Pre-Salary Exchange Basic Salary. Provided you continue to participate in Salary Exchange, you will sacrifice an amount equivalent to 6.35% of your Pensionable Salary, provided that this does not reduce your Adjusted Salary below the statutory amount (i.e. the SSP, SMP, or SPP level calculated above). The University will ensure that no one in receipt of Statutory Sick Pay, Statutory Maternity Pay or Statutory Paternity Pay will be adversely affected by participating in Salary Exchange. |
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Salary Exchange |
The University of Oxford reserves the right to amend or discontinue Salary Exchange should the University determine that it is appropriate for it to do so, taking into account such relevant matters from time to time including changes to UK tax and National Insurance Contributions legislation. |
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Joining date |
The date on which you join the University; if you are already working for the University, the date on which you join the USS or OSPS pension scheme. |