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.
Flexible Retirement Option Guidance
This guidance applies to colleagues who are members of the Scottish Teachers Pension Scheme or Lothian Pension Fund, aged 55-75 with a minimum of two years continuous employment with the University. Scheme rules are applied to individual pension schemes, interested colleagues are encouraged to consult individual pension schemes for further information on their eligibility to apply for flexible retirement.
Types of Retirement | SPPA (pensions.gov.scot)
Types of Retirement | LothianPensionFund (lpf.org.uk)
Applications for flexible retirement should be made in line with the University's Flexible Working Policy, as this requires a contractual reduction in salary whether through a change in hours or change in grade. All requests will be considered in line with the operational requirements of the School/Service.
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.