​University Pension Schemes

The University administers 2 pension schemes: 

Lothian Pension Fund for Research, Technical and Support Staff 

Scottish Teachers' Pension Scheme for Academic Staff​

For new members both of these are CARE schemes (Career Average Revalued Earnings). CARE schemes are similar to a Defined Benefit Pension Scheme, however it differs in the way your 'pensionable earnings' are calculated - this is based on your 'average earnings' over the course of your active membership in the scheme.​

Pay in Lieu of Pension Policy

Pension benefits earned by individuals in the UK, which qualify to receive tax relief, are restricted to maximum allowances permitted by HM Revenue & Customs (HMRC).   Changes to pension taxation have meant that pension benefits earned in a single year or over a working lifetime that exceed the Annual Allowance or Lifetime allowance can lead to excess tax charges.  While we are under no legal obligation to offer and in no way seek to incentivise pension opt out due to personal tax liabilities, we recognise that limits placed on these allowances are such that it may suit employees (from a personal tax liability perspective) to cease the build-up of further pensionable service, or other accrual of benefits due to taxation relating to their pension. 

This Policy applies to both our pension schemes, Lothian Pension Fund and the Scottish Teachers Superannuation Scheme, however is only available to those who have reached the Lifetime allowance set by HMRC. Pay in lieu of pension contributions is not available for those who chose not to go into the pension for any other reasons

Further information is available in the Pay in lieu of Pension Policy.​

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