What is PensionSMART?
Two of Imperial's workplace pension schemes (USS and SAUL) operate via salary sacrifice. The salary exchange scheme allows both Imperial and its staff to save on their National Insurance contributions.
This salary exchange method is known as PensionSMART.
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 pension's contribution.
In return, Imperial will increase its employer contribution by the same amount. For further details on these contributions, visit the SAUL or USS web pages.
Through salary exchange, your salary is reduced by the amount of your pension contribution. This means you 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 savings you and Imperial would make in National Insurance contributions. You can download the PensionSMART Ready Reckoner.
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 contributions directly rather than sacrificing salary and saving on National Insurance.
If you have already started and use PensionSMART and wish to change how you pay your pension contributions, you should email the pensions team (pensions@imperial.ac.uk), instructing them that you want to do so.
However, you may only opt out effective 1 December each year unless you meet one of the "lifestyle events." If you do not request the opt-out in November of any given year, you will need to confirm which of the life events you meet in your instruction.
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.