University of Aberdeen Superannuation
& Life Assurance Scheme (UASLAS)
Questions
11 June 2013
Questions
Question 1
 How many people have joined the scheme since autoenrolment began?
 181 automatically enrolled from 1 May 2013
– 74 opted out before contributions were taken
– also others who have missed the deadline
 3 requests to join from non eligible members
 2 existing members have requested to withdraw
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Question 2
 Due to auto enrolment, with a potential increase in
active members, the University’s contributions will also
increase, and so increase the University’s pay role bill.
– What impact does this have on University’s finance
and
– does this change the University’s view on scheme
viability?
 Irene Bews to respond on behalf of the University
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Question 3
 We are aware of a failed pension payment due to a
systems failure at Prudential last year. It would appear
that there is no single point of contact for pensioners to
direct their queries.
– Could we identify who that contact should be, and
make it public?
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Question 3
 Prudential failure to pay direct debit payments one
month to some pensioners.
 Did not just affect UASLAS.
 Prudential rectified the problem as quickly as they could.
 Recorded message on their telephone line explaining the
problem and what was being done to sort it out.
 There is no nominated point of contact but a call centre.
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Question 4
 The service offered by Prudential since they moved the
Stirling telephone number to the call centre is atrocious.
 They deny you exist when you phone and that is after
being on for over an hour and passed to different
departments. I have been transferred to the USS AVC
department as well as the active member’s
administrators.
 Can we look at moving the pensioner payroll to another
administrator?
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Question 4
 Prudential have been looking into call centre problems.
 We understand that call handlers are to be given extra
training to help them more effectively
– identify plan type and
– deal with calls from UASLAS members... but
 Please keep providing feedback
– To enable us to put pressure on Prudential to improve
service
 Trustees can consider moving pensioner payroll but
– May be costly
– Could require moving “live” administration also
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Question 5
 Page 2 in short report, Returns on Investment, column
two
– should it be 2011/2012 and not 2010/2011?
 Yes
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Question 6
 Page 2 in short report, Income – University Contribution
for 2011/2012 is £159,945 less than 2010/2011 despite
there being 17 extra active members.
– Is this because there are fewer staff above grade 4
than before?
 Scheme year 2011/12:
– 78 new entrants
– 61 exits (10 retired, 33 deferred, 17 refunds, 1 death)
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 Question 6
 More detailed look at contributions paid:
£000
2011/12
2010/11
2,190
2,199
839
886
3,029
3,085
University additional
(early retirements)
-
70
University death-inservice costs
94
128
3,123
3,283
University
Members (salary
sacrifice)
Sub-totals
Totals
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Question 7
 Is it possible to tell us how state pensions post 2016 (i.e.
when the flat rate starts) will be affected bearing in mind
UASLAS is contracted out:
– for members who are already receiving their
superannuation prior to 2016 but will not receive their
state pension until post 2016?
– and
– for members who will not be in receipt of both until
after 2016?
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Question 7
 State Pension is independent of Scheme benefits
 Changes to a member’s State Pension
– Not affected by when member retires from UASLAS
– Depend only on individual’s State Pension date
 Summary of changes:
Before 6 April 2016
From 6 April 2016
State Pension that applies
Current
(SPA before 6 April 2016)
Single-tier
(SPA on/after 6 April 2016)
Contracting-out
Ongoing
Ceases
NI contributions for
employers/employees
Contracted-out rates
Full rates
UASLAS benefits*
Not affected
Not affected
*But most employers expected to review benefits in light of increased NI contributions
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 Transitional arrangements
– NI records translated into single-tier pension at
inception
 “foundation amount”
– Deduction made for contracted-out service
 Similar to current position
 A contracted-out member would not receive the full
SERPS/S2P pension
– If (reduced) “foundation amount” is below full singletier pension
 Further State Penison accrual possible
– If greater than full single-tier pension
 No extra State pension from subsequent qualifying years
 But any excess is “protected” and added to single-tier
pension at State Pension Age
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Question 8
 Can we have some clarification on death benefits if you
are single and a parent of children over 18.
– What exactly does “Trustees discretion mean”?
 Death benefits:
– Lump sum multiple of salary
– Lump sum refund of contributions
– Dependant’s pension is payable to surviving children
 Until youngest child reaches age 23
 Above assumes member is active
 Can provide more specific answer separately if not the case
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 Question 8
 “Trustees discretion” is required for UASLAS to be a
“qualifying” Scheme for tax purposes
 On death of a member Trustees
– Consider a member’s wishes (nomination form)
– But cannot be bound by a member’s wishes
 Usually most relevant to lump sum payments
 In practice trustees typically follow members’ wishes
– But may consider other factors also
 E.g. nomination may have been completed some years
earlier
 Member’s circumstances altered since then
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Question 9
 I am a single deferred with no dependants.
– Can I nominate a friend as a dependant?
– What happens to the refund of contributions in my
case should I die before I retire?
– Can I nominate anyone to recover them or only a
spouses, partner or child?
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Question 9
 Can I nominate a friend as a dependant?
 Can I nominate anyone to recover them or only a
spouses, partner or child?
 Lump sum is payable to one or more “Beneficiaries”
 This includes “any person nominated by the Member as
a Beneficiary”
– But Trustees not bound by this nomination
 So
– Yes can nominate a friend or someone else as a
“Beneficiary”
– Not necessarily spouses, partner or child
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Question 9
 What happens to the refund of contributions in my case
should I die before I retire?
 Payment made at Trustees’ discretion
 Trustees will consider nomination form
 Possibly other relevant information also
– E.g. member’s circumstances
 If no nomination form / dependants
– Payment most likely to member’s “legal personal
representatives” (i.e. estate)
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Question 10
 Does Prudential have to provide the AVCs as they no
longer provide any support to us.
 To be discussed as part of the Trustees meeting
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