Member Presentation – Department of Chemistry July 2019 Debbie Hough Cambridge University Assistants’ Contributory Pension Scheme (CUACPS) https://www.pensions.admin.cam.ac.uk/cps Member Presentation – Department of Chemistry July 2019 Debbie Hough

Agenda How to contact us Your pension – pre 2013 joiners Your pension – post 2013 joiners Retirement Topping up your pension Death benefits Leaving the scheme early Your questions

University Pensions Office CUACPS administered by University Pensions Office. Based at Greenwich House, Madingley Road. Office open 09.00 – 17.00 Phone: Cambridge (01223) 332214 E-mail: PensionsOnline@admin.cam.ac.uk Website: www.pensions.admin.cam.ac.uk

Your CUACPS Pension Defined benefit scheme Benefits relate to your earnings Index linked benefits Scheme provides death benefits All of you have a DB pension in the CPS.

Career Revalued Benefit (CRB) Members Let’s start with members who joined the CPS on or before 31 December 2012.

CRB Members Pension is in two parts: Final salary benefits up to 31 December 2012 Career Revalued benefits (CRB) from 1 January 2013

Final Salary pension Benefits are based on your pensionable salary and pensionable service Pensionable service ceased accruing on 31 December 2012 Pensionable salary calculated as at date of retirement and not frozen as at 31 December 2012.

Final Salary pension Pre-December 2009 joiners: 1/60th x Pensionable Salary x Years of Membership to 31/12/2012 Post-November 2009 joiners: 1/80th x Pensionable Salary x Years of Membership to 31/12/2012

Pensionable Service Calculated in years and days from the date you joined the scheme Can also include service from transferred in benefits Will also include service from any added years Additional Voluntary Contributions (AVCs) that you pay. These are different to Cambridge Building Society AVCs If you work part-time, your pensionable service will not be the same as your period of service with the University.

Career Revalued Benefit (CRB) Pension Under CRB you earn a block of pension (and lump sum) each year that increases with inflation up to your retirement date. This protects your benefits against future inflation and maintains the purchasing power of your pension.

Career Revalued Benefits (CRB) Accrual rate of CRB 1/95th of pensionable earnings from 01/01/2013 to 31/12/2017. Accrual rate changed to 1/100th of pensionable earnings from 01/01/2018. Automatic cash payable equal to three times CRB pension Annual CRB pension revalued in line with Retail Prices Index – subject to maximum of 5% per annum

Total CUACPS pension Your pension will be the sum of your final salary pension and CRB pension You will also receive automatic cash of three times CRB pension payable in addition Post-2009 joiners also get automatic cash of three times their final salary pension Possible to take higher cash and reduced pension at retirement

Early Retirement Early retirement can be taken between age 55 & Normal Retirement Age Pension will be reduced by an early retirement factor. Retirement before age 60 requires the consent of the employer and the trustee. Retirement on health grounds available at any age, but suitable medical evidence required.

Normal Retirement Normal retirement age is 65 Final salary pension can be paid without reduction from age 60 CRB pension will be reduced if taken before age 63 years CRB pension for post-2012 joiners will be reduced if brought into payment before age 65 Final salary and CRB pensions have to be taken at the same time

Hybrid members Now onto members who joined the CPS on or after 1 January 2013 – the hybrid members

Hybrid Members Also have a CRB pension As with the pre 2013 joiners, you earn a block of pension (and lump sum) each year that increases with inflation up to your retirement date. This protects your benefits against future inflation and maintains the purchasing power of your pension. Accrual rate of CRB 1/150th of pensionable earnings.

Hybrid members Automatic cash payable equal to three times CRB pension Annual CRB pension revalued in line with Consumer Prices Index – subject to maximum of 5% per annum Also the option to take a higher lump sum and lower pension on retirement. There is also an additional part to your pension…

Hybrid Members Defined contribution pension scheme with SEI Capita – Cambridge University Assistants Defined Contribution Pension Scheme (CUADCPS) Employer contribution only Dealt with separately to your CRB pension, queries should be directed to SEI Final pension based on the value of your fund

Early Retirement – Hybrid CRB only Early retirement can be taken between age 55 & Normal Retirement Age Pension will be reduced by an early retirement factor. Retirement before age 60 requires the consent of the employer and the trustee. Retirement on health grounds available at any age, but suitable medical evidence required.

Normal Retirement – Hybrid CRB only Normal retirement age is 65 CRB pension will be reduced if the pension is paid before your 65th birthday

Retirement - CUADCPS Will be dealt with by SEI Capita You will need to contact them Benefits can be taken separately to your CRB pension but no earlier than your retirement from the University Pension freedoms apply to this type of pension.

SEI Capita contact details Email: SEIC@capita.co.uk Telephone: 0800 011 3540 Address: SEI Mastertrust, Capita, Hartshead House, 2 Cutlers Gate, Sheffield, S4 7TL Log-in and manage your DC pension: www.hartlinkonline.co.uk/sei

Topping up your Pension You can pay Additional Voluntary Contributions (AVCs) AVCs are paid to your DC fund with SEI If you are a pre-2013 joiner, you will need to apply to SEI to set up a pension Please contact the Pensions Office for the necessary paperwork Can pay in up to your total University earnings, must be processed through payroll

Death Benefits All members should complete an Expression of Wish form which should be returned to the Pensions Office Please update this regularly The form guides the Trustee should we need to pay benefits Benefits are paid at the discretion of the Trustee and any lump sums outside of your estate

Death Benefits – lump sums Pre 2009 joiners – a lump sum of 4 x salary Post 2009 joiners – a lump sum of 3 x salary Post 2013 joiners – a lump sum of 5 x salary plus fund value with SEI

Death Benefits - Pensions Pre 2009 members – spouse’s pension payable of 2/3rds Final Salary pension plus 75% of CRB pension Post 2009 members – spouse’s pension of 50% of your pension Post 2013 members – spouse’s pension of 50% of your pension For all members – a provision for child’s pensions

Leaving the scheme early What happens to your pension depends on how long you have been in the scheme.

Leaving the scheme early More than two years in the scheme Preserved pension Pension will be revalued in line with inflation You can transfer your pension

Leaving the scheme early Less than two years in the scheme You will have two options Refund of contributions Transfer of benefits Transfer could be to a new employer’s scheme, another approved arrangement or to CUADCPS.

% of Pensionable Salaries Your Questions What contributions are paid into the scheme? % of Pensionable Salaries Members % Employers % Pre-2013 members 5.0 11.5 Post-2013 members 3.0 5.8

Your Questions At what age can we take a one-off payment or a cash chunk from our pension? This is not possible from your final salary or CRB pension. You must take your lump sum at the same time as receiving your monthly pension. Other options are available for DC benefits on retirement.

Your Questions How can I find out what I will receive when I retire? Please contact the Pensions Office for a retirement estimate. We will need to know the date of your anticipated retirement.

Your Questions What is the pension shortfall and when will the deficit be wiped out? You should have received the 2018 Summary Statement recently. This gives information on the scheme’s funding position. It can be found by following the link below. https://www.pensions.admin.cam.ac.uk/files/cuacps _summary_funding_statement_2018_final.pdf

Finally… Any other questions? We are here to answer any questions on an individual basis. Thank you for your time today.