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Changes to AVCs from 1 April 2012 13 February 2012 Changes to transfers in from 1 April 2012 13 February 2012 Proposed changes to SAUL 21 December 2011 Is SAUL changing? October update 24 October 2011 Is SAUL changing? September update 19 September 2011 SAUL's latest awards 19 September 2011 New AVC Calculator 15 August 2011 Updates to SAUL literature 15 July 2011 SAUL's latest award 15 July 2011 Tax and National Insurance Changes 6 April 2011 Changes to Pensions Tax Relief from 6 April 2011 17 March 2011 Changes to Addtional Voluntary Contributions 18 February 2011 SAUL's latest award 18 February 2011 Is SAUL changing? December update 21 December 2010 Deadline for paying lump sum Additional Voluntary Contributions in this tax year 21 December 2010 Proposed changes to pensions tax relief 23 November 2010 Launch of Pension Administration Standards Association (PASA) 23 November 2010 Welcome to the new SAUL website 29 October 2010 Changes to pensions increases confirmed 1 October 2010 Is SAUL changing? 15 August 2010
Changes to AVCs from 1 April 2012 13 February 2012 Currently active members of SAUL can make Additional Voluntary Contributions (AVCs) to buy extra Pensionable Service. From 1 April 2012 this will be replaced by a new way for members to build up extra benefits – called Additional Pension. Lump-sum AVCs and monthly AVC contracts for between three and 10 years will be available, which will buy extra pension instead of Pensionable Service. If you would like to make AVCs to buy additional Pensionable Service, SAUL Trustee Company needs to receive your application by Thursday 1 March 2012. Our AVC calculator provides an estimate for buying extra Pensionable Service with AVCs. It shows how much additional Pensionable Service can be purchased by paying a percentage of Pensionable Salary each month until either age 60 or 65. If you would like to make a lump-sum AVC, SAUL Trustee Company must receive your application by Wednesday 29 February 2012. Please speak to your employer’s Pensions Officer or HR Team before this date so they can make sure your application can be sent to us by the deadline. Payment of the lump sum itself must be received by SAUL Trustee Company by 31 March 2012 to ensure that it is credited in this tax year. You can find out more information about the new way of making AVCs by visiting our Frequently Asked Questions (FAQs). Also, our Additional Pension calculator is designed to help active members get an estimate of how much Additional Pension can be purchased from 1 April 2012 on a monthly basis. Please note the factors used to calculate the cost of purchasing Additional Pension will not be finalised until just before April 2012. This means the Additional Pension calculator will give an estimate of the cost of purchasing Additional Pension but this is not guaranteed at this stage.
Changes to transfers in from 1 April 2012 Active members can transfer benefits they have in other pension arrangements into SAUL. Such transfers currently provide additional Pensionable Service in SAUL. The Trustee has decided to alter the way it accepts transfers from arrangements outside the public sector from 1 April 2012. Members will still be able to transfer non-public sector benefits into SAUL, but they will be credited with a fixed pension at retirement instead of additional Pensionable Service. This means that such transfers will provide benefits in SAUL in the same way as the new Additional Voluntary Contribution arrangements that start from 1 April 2012. The change means that both members and the Trustee will know exactly what benefits these transfers will provide on retirement. If you would like to consider a transfer of non-public sector benefits into SAUL to purchase additional Pensionable Service, you have until Friday 30 March 2012 to provide SAUL with a completed Transfer-In Authority Form. You can find more information about transferring pension benefits here. Transfers from a public sector pension scheme will continue to provide additional Pensionable Service in SAUL. If you have any questions, please contact your employer’s Pensions Officer.
21 December 2011 The SAUL Employers and the Unions representing members - UNISON and Unite – have negotiated proposals to make changes to SAUL. Details of the proposals can be found in our news update of the 24 October 2011. However, since then the proposed date for the changes to be introduced has been moved to 1 July 2012. In addition the SAUL Employers have agreed to a request by the Trade Unions to retain existing redundancy rights for current members. The Employers and Trade Unions are also discussing which elements of pay will be pensionable under the new basis. By law, the SAUL Employers are obliged to formally consult SAUL members and those eligible for membership. The consultation will open on 10 January 2012 and close on 9 March 2012. If you’re affected by the proposals your Employer will send you full details of the planned changes on or before 9 January 2012. You will have an opportunity to give your views about the proposals during the consultation. From 9 January 2012 the SAUL website will provide:
All comments received will be considered by the SAUL Employers. It is important to note that the benefits of members who are deferred or pensioners at the date of change will not be affected by these proposals. The SAUL Employers remain strongly committed to maintaining quality pension provision. The proposals are supported by the Trade Unions, UNISON and Unite the Union. They aim to ensure that SAUL remains affordable, sustainable and an attractive Defined Benefits scheme for current members and future generations.
Is SAUL changing? October update 24 October 2011 The SAUL Employers have made proposals for changes to SAUL to the Unions representing members - UNISON and Unite. The Trade Unions are consulting their members about the proposed changes and will provide their response at a meeting of the SAUL Negotiating Committee in November 2011. If there is agreement between the Employers and Unions about the proposed changes there will be a formal period of consultation with SAUL members on an individual basis as required by law. Any changes cannot be made until SAUL members have been consulted. The current proposed date to implement these changes is April 2012 but this date is subject to negotiation and may change. The current Employer proposals can be summarised as follows: Members who join after the date of change will build up benefits in a new Career Average Revalued Earnings (CARE) scheme. CARE benefits are based on salary each year and built up on a year by year basis. Each year’s benefit is then increased by an agreed inflation index to the date of retirement. The CARE section will have different terms for early retirement and retirement as a result of redundancy. The Normal Pension Age will be 65 with future increases linked to increases in State Pension Age. Existing members at the date of change will continue to build up final salary benefits as at present and continue to contribute 6% of Pensionable Salary. Existing members who leave SAUL after the date of change and rejoin within 30 months of leaving will rejoin the final salary section of the Scheme. For benefits built up after the date of change, increases to pensions in payment will be limited in respect of any increase in the Consumer Price Index above 5%. This is a brief summary of the proposals and full details of all the proposals can be found in the letter from the SAUL Employers to the Trade Unions. It is important to note that the benefits of members who are deferred or pensioners at the date of change will not be affected by these proposals. Please note that SAUL Trustee Company does not participate in the negotiations between the Employer and Trade Unions. Our role is to implement any changes if and when they are agreed. If you have any questions please contact your Pensions Officer or Trade Union representative.
Is SAUL changing? September update 19 September 2011 The SAUL Employers have made formal proposals to the Trade Unions on possible changes to the SAUL benefit structure. Nearly all of the current proposals will affect new members only – including the potential introduction of a Career Average Revalued Earnings (CARE) scheme. CARE benefits are based on salary each year and built up on a year by year basis. Each year’s benefit is then increased to the date of retirement. So that the discussions between the employer and the trade unions are not prejudiced, we are unable to provide further information about the specific proposals at this time. The Unions are now consulting with their colleagues on those proposals and it is hoped that the subsequent negotiations between the Unions and the Employers will be concluded in the Spring of 2012. Whatever the outcome of these negotiations, benefits already built up in SAUL by active, deferred or pensioner members up to the date of the benefit change cannot be altered.
19 September 2011 We are delighted to announce that SAUL Trustee Company has won three awards at the Pension Scheme of the Year Awards. These were:
Welcoming the awards, SAUL’s Deputy Chief Executive, Kim Brooks, said “winning three awards is a fantastic achievement by the whole team - from the administrators to the Trustee Board - and it recognises their hard work and efforts over the year. It demonstrates that SAUL is well placed to meet the current economic and demographic challenges to occupational pension schemes. However, we are never complacent and always strive to build upon the success that these awards represent. We are especially thrilled to be awarded Best Administration for the third year in a row, recognising the consistent hard work we put into offering our members the highest level of service. Also it’s particularly pleasing to be recognised with the award for Large Scheme of the Year, not least because we hope it shows our members and sponsoring employers the value that SAUL brings to their pension provision." You can find out more information about the Pension Scheme of the Year awards here.
15 August 2011 We have launched a new calculator to help active members get an estimate for buying extra pension benefits in SAUL with Additional Voluntary Contributions (AVCs). It shows how much additional Pensionable Service can be purchased by paying a percentage of Pensionable Salary each month until either age 60 or 65. We hope this will help members to plan for the cessation of new AVC contracts which buy additional Pensionable Service from 31 March 2012. When the new way of building up extra benefits (called Additional Pension) is agreed we’ll add a calculator to allow members to compare their AVC options. If you have an AVC contract to buy extra Pensionable Service in place at 1 April 2012 , your contract can be continued, reduced or stopped but not increased. You can access the new AVC calculator here. If you have any questions about AVCs or would like to start an AVC contract please refer to the AVC section of our website or speak to your employer’s Pensions Officer.
15 July 2011 SAUL has updated two of our documents which provide information for members. The leaflet “It’s your future” provides a short summary of the benefits of SAUL and the advantages of membership. We appreciate feedback from our members about all of our publications. If you have any comments you can provide them here.
15 July 2011 We are pleased to announce that SAUL Trustee Company was highly commended for “Team Excellence in Administration” at the Engaged Investor Awards. SAUL’s Deputy Chief Executive and Head of Benefits, Kim Brooks, welcomed the latest award commenting that “it reflects the hard work that everyone at SAUL Trustee Company has put into ensuring that SAUL members receive the highest standards of administration service. Everyone at SAUL Trustee Company works together to offer a caring and personal service for our members and the latest award for our team demonstrates this commitment.” You can find a full list of our awards here.
Tax and National Insurance Changes 6 April 2011 From the 6 April 2011 the Government has made changes to tax and National Insurance. Class 1 National Insurance contributions increase from 6 April 2011 from 9.4% to 10.4% for SAUL members. Employees who have opted out of SAUL pay a higher rate of National insurance which will increase from 11% to 12%. This increase is partially offset by a rise in the primary threshold – the level at which you start paying National Insurance - which has been increased from £5,720 to £7,228. If you earn over £42,484, you’ll pay National Insurance of 2% on earnings over this level (up from 1% in 2010/11). SAUL members will continue to pay less National Insurance than those who choose not to enjoy the benefits of membership. If you’re in your employer’s Salary Sacrifice arrangement you’ll pay even less because your National Insurance contributions are based on your salary after your SAUL contributions have been sacrificed. Tax thresholds are also changing, the Personal Allowance - the level at which you start paying tax - has been raised from £6,475 to £7,475. The level of salary at which 40% tax is paid has been reduced from £43,876 to £42,476 to offset this change. SAUL members will continue to pay less tax than non-members because your tax is based on your salary after your SAUL contributions have been deducted. You can find out more information about the tax and NI changes in 2011/12 by visiting the HMRC website. As a result of these changes the SAUL take home pay calculator has been updated. It shows the difference in take home pay between a SAUL member and someone that has opted out of membership and that the actual cost of membership is less than the 6% SAUL contribution. If you’re in your employer’s Salary Sacrifice arrangement there’s a take-home pay calculator for you too.
Changes to Pensions Tax Relief from 6 April 2011 17 March 2011 The Government recently announced new rules that affect how pension savings are taxed from 6 April 2011. We have written to all active members of SAUL about these changes and the letter can be found here. For SAUL members the increase in the value of your pension benefits from 1 April to 31 March each year is measured against an ‘Annual Allowance’. If your benefits increase by more than the Annual Allowance you may be taxed. Although the legislation has not yet been finalised, you can find full details of the planned changes here. Very few SAUL members will be affected unless:
We are considering how these changes might affect future ill-health retirements. SAUL Trustee Company will contact you in June each year if the growth in your SAUL benefits exceeds the Annual Allowance. For more information please visit the Annual Allowance section of the website. If you still have questions, please contact your employer’s Pensions Officer.
Changes to Additional Voluntary Contributions 18 February 2011 Currently active members of SAUL can make Additional Voluntary Contributions (AVCs) to buy extra Pensionable Service. From April 2012 this will be replaced by a new way for members to build up extra benefits – called Additional Pension. Lump-sum AVCs and monthly AVC contracts for between three and 10 years will be available, which will buy extra pension instead of Pensionable Service. If you have an AVC contract to buy extra Pensionable Service in place at April 2012 , your contract can be continued, reduced or stopped but not increased. If you would like to pay AVCs to buy extra Pensionable Service or increase an existing contract before April 2012, please visit the AVC section of our website or speak to your employer’s Pensions Officer. While Additional Pension has been agreed in principle, the SAUL Rules have not yet been changed and the way we calculate these benefits has not been agreed. When this happens we’ll let you know.
18 February 2011 We are delighted to announce that SAUL Trustee Company won the Trustee Excellence award at the recent Pensions and Investment UK Schemes Awards. The judges commented that SAUL “ excels in not only training trustees, but monitoring and measuring their performance in agreed financial quality targets. The Judges were impressed with a methodical and rigorous approach to trusteeship that encourages active participation”. Welcoming the award SAUL’s Deputy Chief Executive, Kim Brooks, said “winning this award is wonderful news. It recognises the hard work of the Trustee Board in ensuring that its knowledge of the legislative and financial framework in which SAUL operates is comprehensive and up-to-date. The award also demonstrates that when acting on behalf of our members, Board decisions are well-considered and made in an informed way.“ You can find details of all our awards here.
Is SAUL changing? December Update 21 December 2010 The Trustee of SAUL announced in August that it had asked the SAUL Negotiating Committee to consider options for the Scheme in the event that the 2011 Actuarial Valuation shows a shortfall in funding. Discussions are continuing between the employers and trade unions and, while nothing has been decided, these conversations are constructive. At this stage the Trustee is unable to say when the Negotiating Committee will be in a position to make recommendations, however, it will not be until the initial results of the 2011 Actuarial Valuation are known in summer 2011. At this stage discussions are centred around amending the benefit structure of SAUL for new entrants and it is anticipated that the way in which benefits are built up by existing members will be unchanged. If you want to find out more about the Actuarial Valuation and how SAUL is funded please visit the Scheme Funding section of our website.
Deadline for paying lump sum Additional Voluntary Contributions in this tax year 21 December 2010 If you’re an active member of SAUL and would like to buy additional Pensionable Service by making a lump sum Additional Voluntary Contribution (AVC) in this tax year (2010/11), SAUL Trustee Company must receive your application by Friday 26 February 2011. Please speak to your employer’s Pensions Officer or HR Team before this date so they can make sure your application can be sent to us by the deadline, otherwise we cannot guarantee it will be completed in this tax year. Payment of the lump sum itself must be received by SAUL Trustee Company by 31 March 2011 to ensure that it is credited in time.
Proposed changes to pensions tax relief 23 November 2010 HM Revenue and Customs (HMRC) has announced changes to the way in which tax relief is provided to pension scheme members. From 6 April 2011 tax relief is to be limited to a lower Annual Allowance which sets the maximum pension savings amount at £50,000 a year (reduced from £255,000). Any savings over £50,000 will incur a tax charge - although unused Annual Allowance from the previous three years can be used to offset excess savings. How this charge will be paid has yet to be finalised. You could be affected by the new Annual Allowance if the value of your basic SAUL pension increases by more than £2,631 over a year (after allowing for your benefits at the start of the year being increased in line with prices). It is proposed that the year for SAUL’s purposes will be the 1st April to 31 March. Most likely to be affected are active members who:
The test looks at your total pension saving in the tax year so, if you have other pension arrangements, these also need to be taken into account.
Launch of Pension Administration Standards Association (PASA) 23 November 2010 SAUL participates in the Raising Standards of Pensions Administration (RSPA) initiative which aims to advance knowledge and learning in pensions administration to improve the service delivered to pension scheme members. RSPA has announced that it intends to become the Pensions Administration Standards Association (PASA) and develop into an independent accreditation body by establishing and assessing administration standards within the pensions industry. This development should further encourage good practice in pensions administration and improve the service pension schemes offer their members. PASA is being led by SAUL’s Chief Executive, Penny Green, and is expected to build its strategy by June 2011 before launching formally in 2012. For more information about PASA please visit the Raising Standards of Pensions Administration website.
Welcome to the new SAUL website 29 October 2010 We’ve relaunched our website to provide more information about SAUL and its benefits. We hope you find the new look attractive and that the information now available is comprehensive and accessible. We now explain all the options available to SAUL members whether you’re still contributing to SAUL, have left the Scheme and not yet retired or receiving your pension. If you’ve just joined a SAUL employer, or opted out of SAUL previously, and are wondering whether or not to take advantage of membership we have a dedicated section which explains your options. Our website now includes a glossary section which helps to explain pensions jargon - terms explained in the glossary are highlighted throughout the website. Our news section features regular updates about SAUL and pensions in general - with a rapidly changing pensions and tax environment we recommend that you stay up to date with our news articles. We‘ve also improved the external links section, so our website is accessible to and from relevant government, pensions and retirement advice websites. In addition, all our publications are now in one place, so whether you want information about your benefits, a summary of the Scheme or details of SAUL's financial performance everything is easy to find. We have a new take-home pay calculator for members who are participating in their employer's salary sacrifice arrangements which shows the real difference that SAUL membership makes to take-home pay – you’ll find the actual cost is less than 6% of salary because of tax and National Insurance savings. If you’re not participating in salary sacrifice there’s a take-home pay calculator for you too. There are further improvements planned over the coming months so make sure you keep visiting us - or register to receive regular emails - to discover our forthcoming updates and find out the latest news. We value your feedback so if you would like to comment about the new website by complimenting us or suggesting improvements please complete our feedback form. Tell us what you think!
Changes to Pension Increases Confirmed 1 October 2010 The Government has announced that it intends to change how pensions increase - from using the Retail Prices Index (RPI) to using the Consumer Prices Index (CPI). This will affect the statutory Pensions Increase (Review) Orders and Occupational Pensions (Revaluation) Order. The SAUL Trustee has determined that, since SAUL Rules link directly to these laws, these changes will apply to SAUL benefits. Therefore, from 2011, increases on both SAUL pensions in payment and deferred benefits will be linked to any change in the CPI.
15 August 2010 The 2009 funding review showed that the financial position of SAUL has weakened. It is anticipated that the 2011 Actuarial Valuation is likely to show a deficit and the Trustee will need to take action to resolve that. There are a number of options available and the Trustee has asked the SAUL Negotiating Committee to look at the options and to develop a plan that can be put into action in the event that there is a deficit. It is hoped that if a plan is necessary it will apply to new entrants to SAUL only, and not to existing members, although this is still under review by the Committee. Benefits built up in SAUL cannot be changed by any future rule amendments. The law only allows changes to benefits earned after a rule has been changed, and for new members joining SAUL. This means that as long as SAUL exists, pensioner and deferred members’ benefits will not change, nor will benefits earned to the date of any rule change. The SAUL Negotiating Committee is made up of equal representatives from the Employers and the recognised Trades Unions. Its deliberations are still on-going. However, both sides have made it plain that they are committed to keeping SAUL open to new members and a defined benefit pension plan and affordable, attractive and sustainable. |
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