pension smart

PensionSMART

PensionSMART is a salary sacrifice scheme which allows both the College and its staff to make savings in the amount of National Insurance contributions they pay. As a member of the Universities Superannuation Scheme (USS) or the Superannuation Arrangements of the University of London (SAUL) you are automatically enrolled into this scheme.

Participating in PensionSMART

By paying into a pension scheme through  PensionSMART, you agree to give up an amount of your contractual gross pay equal to your standard member pensions’ contribution.  In return the College will increase its employer contribution by a corresponding amount.  This is known as a “salary sacrifice” or "salary exchange".

The benefits

As your salary will be reduced by the amount of your pension contribution, you will pay lower National Insurance contributions than you would otherwise and your take home pay will be slightly higher as a result.

The College will also benefit as there will be a reduction in the employer's National Insurance contributions. These savings will be used directly to support the College’s academic mission.

Opting out

To opt-out of participating in PensionSMART, you should email the Pensions team at pensions@imperial.ac.uk to request an opt-out form. You should read the implications of being included in the scheme and of ‘opting-out'. You can opt-out of PensionSMART initially on joining the College, or thereafter on the PensionSMART scheme anniversary on 1 December.  By opting out you will continue to receive your existing salary (and make pension contributions under the normal arrangements), however you will not benefit from the reduced National Insurance contributions and a higher take home pay.

Additional important information

Please read these documents carefully:

Note

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, the College 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 the Pensions team at pensions@imperial.ac.uk.