Frequently asked questions
- Is there a catch?
- Have the USS trustees agreed to Paysave?
- Have the trade unions agreed to Paysave?
- Is there any other change to my terms and conditions?
- Do I need to sign a new contract?
- Why is the University doing this?
- How long will Paysave last?
- Will Paysave affect my pension benefits?
- Will additional voluntary contributions be included in Paysave?
- What happens if I leave the University?
- Will Paysave affect overtime or future pay increases?
- What if my salary changes during the year?
- If I have been automatically opted out can I choose to opt in?
- Will Paysave affect my income tax position?
- Will Paysave affect any benefits I get from the state?
- Will Paysave affect the amount of state pension I receive?
- What happens if I go on maternity / paternity leave?
- What happens if I have multiple assignments or more than one post at the University?
- Does it matter if I also participate in the childcare voucher scheme?
- Will Paysave affect mortgage references?
- Will sick pay be affected if I am absent from work?
- Will Paysave affect student loan repayments?
1. Is there a catch?
No - Paysave is recognised by the HMRC (formerly known as the Inland Revenue) and we have also notified the HMRC that we will be implementing it.
2. Have the USS trustees agreed to Paysave?
Yes.
3. Have the trade unions agreed to Paysave?
Yes.
4. Is there any other change to my terms and conditions?
No - the only change is in relation to Paysave as described in the booklet.
5. Do I need to sign a new contract?
No.
6. Why is the University doing this?
To produce savings for staff and the University.
7. How long will Paysave last?
Indefinitely - however, if tax, NI or pensions law or practice change, or if it is no longer viable to operate, we may withdraw Paysave.
8. Will Paysave affect my pension benefits?
No.
9. Will additional voluntary contributions be included in Paysave?
No.
10. What happens if I leave the University?
If you leave the University and have been a member of the Pension Scheme for two years or more, there is no change.
If you participated in Paysave for three months or more and then leave the University you will be entitled to preserved benefits in USS, which you can choose to transfer to another pension scheme.
If you participated in Paysave for less than three months you will receive a cash payment (less tax and NI) to ensure you are no worse off.
11. Will Paysave affect overtime or future pay increases?
No.
12. What if my salary changes during the year?
If you are initially in Paysave and your salary reduces to below the Lower Earnings Limit (around £5,000) or National Minimum Wage, you will automatically be opted out of Paysave.
If you are automatically opted out of Paysave and you subsequently receive a salary increase taking you above the Lower Earnings Limit and/or National Minimum Wage, then you will be automatically opted in to Paysave from the following pay period.
13. If I have been automatically opted out can I choose to opt in?
If you have been automatically opted out of Paysave it is unlikely that you will benefit from opting back in. However, if you want to participate please contact Lisa Harley by emailing LJH10@st-andrews.ac.uk.
14. Will Paysave affect my income tax position?
No.
15. Will Paysave affect any benefits I get from the state?
No – however if you are one of the few staff it will impact you will be automatically excluded (please refer to section 2).
16. Will Paysave affect the amount of state pension I receive?
No.
17. What happens if I go on maternity / paternity leave?
There will be no impact provided you are eligible for occupational maternity pay.
If you go on maternity leave you will not participate in Paysave from the time you begin to receive statutory maternity pay. When you return to work you will then take part in Paysave.
Because your actual salary reduces under Paysave this could affect the calculation of your Maternity Pay. However, the University will work out the difference between what you would have been paid before Paysave and the new calculation and ensure that you are no worse off.
18. What happens if I have multiple assignments or more than one post at the University?
If you have more than one assignment or more than one post with the University your total basic pay for your multiple assignments will be taken into account.
If you opt out of Paysave you will be opted out for all assignments or posts in the University.
19. Does it matter if I also participate in the childcare voucher scheme?
Childcare Vouchers work in a similar way to Paysave and therefore the same Lower Earnings Limit and National Minimum Wage checks will be applied.
As you will be participating in both arrangements you will be making a greater reduction in your earnings (i.e. both pensions and childcare). Depending on your total earnings it could therefore be more likely that you will be automatically excluded from Paysave.
If you currently receive childcare vouchers, are near the National Minimum Wage and alter the amount you receive on a regular basis, you should contact the Salaries Office to establish the impact on your eligibility for Paysave before making any changes with your childcare voucher provider.
20. Will Paysave affect mortgage references?
No. Certain lenders (for example Alliance & Leicester, Nationwide) have implemented this arrangement and are therefore familiar with it.
21. Will sick pay be affected if I am absent from work?
There will be no impact while in receipt of occupational sick pay. If you receive only Statutory Sick Pay then you will be automatically opted out of Paysave.
22. Will Paysave affect student loan repayments?
Student loan deductions are based on NI'able pay. If NIable pay in the month is £1,250 or above student loan deductions are made. Because Paysave reduces your NI'able pay (and hence the NI you pay), the amount of student loan repayment an employee makes may therefore reduce.
Also, Paysave may result in earnings falling below the monthly threshold of £1,250 in which case no repayments would be made.
Any other payments which are similarly based on NI'able pay may also be affected.