Superannuation Arrangements of the University of London (SAUL)

SAUL is the recommended occupational pension scheme for CRA and related staff.

SAUL is a final salary, contracted out, occupational pension scheme. Contributions are 5% of pensionable salary for the member and 10.50% for the School. Members get tax relief on their contributions and pay a lower rate of National Insurance.

As membership is not compulsory, staff who choose not to join should consider carefully whether they are making the right decision, ideally they should seek independent financial advice as to what is the best option for them.

A complete guide to the benefits provided by SAUL can be found on the SAUL website and in the booklet SAUL - Building for your Future. The booklet can be obtained from the Superannuation Office Room H401 or by contacting Jenny Casey.

Benefits

A brief description of the benefits provided by SAUL are as follows:

Basic benefits are calculated based on the number of years service up to a maximum 40 years and the salary earned in the final year. There is also a tax free lump sum of three times the pension.

A member retiring with the maximum 40 years service and a final years salary of
£16000 would expect to receive:

40 Years/80 of £16000 = £8000 Pension PA plus a tax free lump sum of £24000

A member on the same salary with 20 years service would expect:

20 Years/80 of £16000 = £4000 Pension PA plus a tax free lump sum of £12000

SAUL pensions are increased annually in line with the Retail Prices Index.

Additional voluntary contributions (AVCs)

Members with potentially less than the maximum 40 years service may have the option of paying AVCs to increase their pensionable service. This can be done either by regular monthly deductions or a lump sum payment at the end of the tax year, please contact the Superannuation Office for details.

Ill-health retirement

Members are covered for ill-health retirement once they have two years service, service transferred in would count towards the two years.

Death in service

Cover for death in service begins on the first day of membership. A tax free lump sum equal to four times salary plus a refund of contributions is payable.

There is provision for a spouses pension plus annuities for up to 2 two qualifying children. It is advisable to nominate a beneficiary who will receive a lump sum payment in the event of death whilst in receivable service.

Resignation

Members who resign may have the option of transferring their SAUL benefits to their new employers occupational pension scheme, or to a personal pension or a stakeholder pension. If a transfer cannot be arranged the benefits can be left with SAUL. If the member has less than two years pensionable service a refund of contributions can be requested.

Useful links

SAUL