What is PensionSMART?
Two of Imperial’s workplace pension schemes operate via salary sacrifice (USS and SAUL). Salary sacrifice scheme allows both Imperial and its staff to make savings in the amount of National Insurance contributions they pay. This salary sacrifice method is known as PensionSMART.
Participating in PensionSMART
By paying into a pension scheme through the PensionSMART method, you agree to exchange an amount of your contractual gross pay equal to your member pensions’ contribution. In return Imperial will increase its employer contribution by the same amount – you can visit the SAUL or USS webpages for further details on these contributions.
The benefits
Through salary sacrifice, your salary is reduced by the amount of your pension contribution, which means you then pay lower National Insurance contributions than you would otherwise, and your take home pay will be slightly higher as a result.
Imperial will also benefit as there will be a reduction in the employer's National Insurance contributions.
You can use the PensionSMART Ready Reckoner to see what impact PensionSMART salary sacrifice has on your gross salary, and the saving you and Imperial would make in National Insurance contributions. You can download the Ready Reckoner from the blue icon above.
Opting out
If you are a new member of staff you can opt-out of PensionSMART by indicating that you want to do so in Section G of the “Employee Starter Checklist”. This means that you will still join the pension scheme, but you will pay a contributions directly rather than sacrificing salary and saving on National Insurance.
If you have already started and use PensionSMART and you now wish to change the way you pay your pension contributions, you should send an email to the pensions team (pensions@imperial.ac.uk) instructing them that you want to do so. However, you may only opt-out with effect from 1 December each year, unless you meet one of the “lifestyle events”. If you are not requesting the opt-out in November of any given year you will need to confirm in your instruction which of the life events that you meet.
Additional important information
Please read these documents carefully: PensionSMART-Supplementary-terms-and-conditions-of-employment (pdf) -for full details of the contractual changes
PensionSMART is based on current taxation and National Insurance law and practice. If these change, or if there is no longer a benefit in participating in this arrangement, Imperial reserves the right to withdraw PensionSMART, but would always do so in a way that is not detrimental to your interests.
If you have any questions not covered in Frequently Asked Questions, please contact pensions@imperial.ac.uk.