1. Member Presentation – Department of Chemistry July 2019 Debbie Hough
Cambridge University Assistants’ Contributory Pension Scheme (CUACPS)
Member Presentation – Department of Chemistry
July 2019
Debbie Hough

2. 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

3. University Pensions Office
CUACPS administered by University Pensions Office.
Based at Greenwich House, Madingley Road.
Office open – 17.00
Phone: Cambridge (01223)
Website:

4. 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.

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

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

7. 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

8. 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

9. 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.

10. 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.

11. 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

12. 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

13. 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.

14. 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

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

16. 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.

17. 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…

18. 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

19. 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.

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

21. 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.

22. SEI Capita contact details
Telephone:
Address: SEI Mastertrust, Capita, Hartshead House, 2 Cutlers Gate, Sheffield, S4 7TL
Log-in and manage your DC pension:

23. 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

24. 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

25. 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

26. 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

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

28. 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

29. 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.

30. % 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

31. 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.

32. 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.

33. 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.
_summary_funding_statement_2018_final.pdf

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