USS and Salary Sacrifice

1. USS and Salary Sacrifice Tim Fuery Assistant Director of Finance 2010

2. USS and Salary Sacrifice USS made the necessary changes to the scheme rules to allow for the introduction of salary sacrifice some time ago A number of universities have introduced it and bother the staff and the Universities have made substantial savings in national insurance as a result Birmingham has operated it for two years and is now looking to change to an opt out basis to increase the level of savings in national insurance for the University Widely adopted for other purposes and the University is experienced at operating Sal Sac but it is more complicated for pensionsWidely adopted for other purposes and the University is experienced at operating Sal Sac but it is more complicated for pensions

3. HMRC Section 62 ITEPA 2003 A salary sacrifice happens when an employee gives up the right to part of the cash remuneration due under his or her contract of employment. Usually, the sacrifice is made in return for the employer's agreement to provide the employee with some form of non-cash benefit. The sacrifice is achieved by varying the employee's terms and conditions of employment relating to remuneration. In the past, the term salary sacrifice was mainly used to refer to the giving up of rights to future cash remuneration in return for the employer's contributions to a registered pension scheme.

4. What is �salary sacrifice�? Your pay is reduced by value of your pension contribution You and the University pay lower National Insurance Contributions as a result Your net pay increases dependent upon the amount of National Insurance you save The University then pays the employee pension contributions directly into USS Your original salary is still used to calculate your USS benefits

5. What is �salary sacrifice�?- the present position