Guide to OSPS Administration for Employers
Guidance for administrators and HR staff at the University and colleges on how to administer OSPS.
Colleges and other participating employers
Eligibility
All new employees under age 75 have to join the scheme from the start of their employment. Even if they are on probation they must still join from the first day. Waiting periods are not allowed under the rules. New employees cannot opt out from the start by signing a form.
There is no minimum earnings threshold for new employees. Do not apply the government auto-enrolment criteria to new employees.
However, you do not have to admit employees who work irregular hours. You do not have to readmit employees who have previously opted out.
If you have a policy of not readmitting employees if they opt out you should make this clear to them if they ask to opt out.
Almost all new joiners should go into the DC section called Investment Builder. A small number retain the right to stay in the DB section in certain circumstances (see below).
New joiner process
This is the process to follow for new joiners.
1) Check if the new employee has come from another OSPS employer, are still employed there or has joined you within a month of leaving. If they have they may still be eligible for membership of the old DB section (see below).
2) If the employee is not eligible for the DB Section (as is most likely) then you should complete and return the new Investment Builder starter spreadsheet to us as soon as possible (there is no starter form). You must include all new eligible employees even if you know they wish to opt out as they cannot sign a form to opt out in advance.
- you can put more than one member on the form or individually;
- the default tier is tier 2, but if the member tells you they want to go onto tier 1 or 3 you can put this on the spreadsheet and deduct at this level – there is no need for a member to complete a form;
- new members can change within three months if they change their mind, in which case they should complete and return form APP5DC (pdf) to us – contributions at the new rate can start at the next available pay period (ie not backdated). After the first three months they will have to wait until the following April;
- please note that new employees already in Investment Builder will have to pay on the same tier as they were on at their old employer;
- if we do not have starter details for a new member we cannot send contributions to Legal and General so the starter spreadsheet should be sent us before you send us your monthly remittance.
3) Please ask the new member to complete and return nomination form NOM1 (pdf).
4) It is possible for Investment Builder members to transfer benefits in from other investment-based schemes, so please give members form TVIN1 (pdf) as well.
5) Information about Investment Builder benefits is available on General information sheet INFSHDC (pdf)
6) Tell new members to look out for an email or a letter at their home address from Legal and General. This will give them details on how to log into their account or opt out (if they so wish).
Pensions Office action
When we have received the starter spreadsheet we will inform Legal and General about the new member(s). We usually do this once a month. At this point Legal and General will send new members an email or starter letter to the address you have given on the starter spreadsheet which will allow them:
- to register and log on to their OSPS account held by L&G and update their details, change investment choices and so on;
- follow the process to opt out (if they so wish) before the short deadline given on the letter, in which case any contributions taken will be returned to you via us for reimbursement to the member.
Opting out
Please read the members' page on opting out.
Please note that employees cannot sign a form to opt out from the start. This means that they will almost certainly have to have contributions taken from their first payslip.
Members who wish to opt out after the deadline on the L&G letter should complete the following form OPT2DC (pdf), but they will not be eligible for a refund. They should give this form to you and you should send it to us together with form OPT3 (pdf). You should also mark them as a leaver on the monthly remittance spreadsheet.
Contribution tiers
New members can change their contribution tier by completing the APP5DC form (pdf) within the first three months. They only need to do this if they want to change from the tier you entered on the starter spreadsheet.
If they have come from the University or another college please contact us and check that they should be in the OSPS Investment builder section. Members cannot change their cost plan in the middle of the scheme year.
Unit transfers
If you know a member has come from the University or another college participating in OSPS please contact us to ensure you put them in the correct section of the scheme and collect the correct level of contributions.
It is far better to do this from the start than try and correct things later.
New joiners in defined benefit section
The only new employees who can join the old DB section are:
- existing members of the DB section who have come to you from another OSPS employer within one month of leaving (these members have to stay on the same cost plan);
- existing members of the DB section at another OSPS employer who are taking a further job with you at the same time (these members can pay on a different cost plan if they wish).
If this does apply we will need starter form APP1 (pdf)
Please consult us if you are not sure about the status of a new employee. It is a lot easier if they go into the correct section from the start as unravelling things can be difficult.
Internal transfers
Some members with previous periods of OSPS membership not linked to their current period choose to transfer these internally into their current period. This is still allowed under certain conditions, so any members who ask about this should contact us and we will look into the matter. It particularly makes sense for DC members with previous DB benefits in OSPS which they are not allowed to keep with us because they were a member for less than two years.
The sections below give information on how to administer active members at colleges.
Transfers
Members of the DB section can transfer benefits into Investment Builder. These benefits can be combined with their DB section benefits as part of a maximum cash calculation at retirement, but none of the transferred funds can be used to purchase additional pension in the DB section.
Investment Builder members can transfer benefits from other investment-based schemes. They should complete and return form TVIN1 (pdf) to start the process off.
Additional Voluntary Contributions (AVC)
Please read the members' page on AVCs.
DB section members
It is possible for DB section members to pay AVCs to Investment Builder, but we will need to set them up with Legal and General first. Please let us know or ask the member to let us know if they are going to start paying AVCs to Investment Builder.
On the monthly remittance please add a duplicate line for the member paying the AVC and change the cost plan to 1. This will allow us to pick up the AVC.
Investment Builder members
Please let us know for our records if a member is going to start paying AVCs into Investment Builder. Please put the amount in the AVC column on the monthly remittance.
Changes in hours or personal details
Please send either Change or verification of personal details CHA1 form (pdf) or Change in hours CHA2 form (pdf) to us with the appropriate certificates. Please also make a note on the monthly remittance.
Investment Builders will have to change their personal details themselves on the Legal and General website using Manage Your Account.
Change in cost plans or tiers
Please make sure that new employees are on the correct cost plan or tier if they have come from the University or another college.
If a member is changing cost plan or tier from 1 April we will let you know as soon as possible after this date. If a member gives you an annual change of cost plan or tier form please forward it on to us.
Monthly remittance
We will reconcile the contributions taken to the salaries declared. Please make sure you tell us if there is a reason why there might be an error, such as maternity pay. If a member has changed their hours please tell us the new hours and whole time equivalent salary.
If there is a new member or a member has left please remember to send the appropriate Starter or Leaver forms. New Investment Builder members should be put on the starter spreadsheet (xlsx).
If you pay by cheque the cheque should be with us by the last day of the month. If you pay by electronic transfer the money should be in our bank by the seventh calendar day of the following month.
Maternity and other family leave
If a member goes onto reduced pay due to maternity or family leave then they pay the contributions on the pay they receive and you make up the difference between this and the full contributions due. This includes any AVCs. Here is an example for a member on the standard cost plan as at May 2019.
| Full Pay | SMP only | |
|---|---|---|
| Actual Pay | £1,800 | £600 |
| Full Pay | £1,800 | £1,800 |
| Employee (8%) | £144 | £48 |
| Employer (19%) | £342 | £438 |
| Total contributions | £486 | £486 |
If a member goes onto no pay neither you nor they pay any contributions. Once they return you should calculate the amount they and you would have paid if they had been at work normally during the unpaid leave period. You should adjust this if they have changed cost plan or tier at 1 April.
You should then ask the member if they wish to pay the missing employee contributions. If they do then you have to pay the missing employer contributions. If they do not you should make a note on the monthly return and send us Notification of absence ABS1 form (pdf).
If a member goes onto reduced pay due to sickness then both you and they have to pay the contributions you would have paid had the member been working normally. Here is an example for a member on the standard cost plan as at May 2019.
| Full Pay | SSP only | |
| Actual Pay | £1,800 | £600 |
| Full Pay | £1,800 | £1,800 |
| Employee (8%) | £144 | £144 |
| Employer (19%) | £342 | £342 |
| Total contributions | £486 | £486 |
If this would cause hardship the member can suspend paying contributions until they return to work provided they let us know in writing.
Sick leave
If a member goes onto no pay neither you nor they pay any contributions. Once they return you should calculate the amount they and you would have paid if they had been at work normally during the unpaid leave period. You should adjust this if they have changed cost plan or tier at 1 April.
You should then ask the member if they wish to pay the missing employee and employer contributions. If the member is in the Defined Benefit section and you are willing to pay the missing employer contributions then the employee only has to pay the missing employee contributions. If they are in Investment Builder and you are not willing to pay the employer contributions then the member can just pay the employee contributions - please put a note on the monthly remittance to explain the reason for the out of ratio contributions. If they do not wish to pay you should make a note on the monthly return and send us a Notification of absence ABS1 form (pdf).
Other unpaid leave
When a member returns from other unpaid leave the situation is as for returning from unpaid sick leave.
Guidance for colleges on the administration of leavers from the DB section and Investment Builder
Leaver forms
You can find all the leaver forms on the forms for employers page.
These are for members in both sections of the scheme.
Please note that under scheme rules members have to leave employment before they can claim their benefits. The only exceptions are when members reach age 75 and have to leave the scheme or when they claim part of their benefits under flexible retirement.
Guide to completing leaver forms
Please make sure you give us the member’s home address as we will write to DB section members there with their options. Legal and General will contact DC members with their options, so members should make sure their contact details are correct on Manage Your Account. We do not have access to change personal details on Legal and General's website.
Please circle the cost plan or tier you have used for collecting contributions in the relevant scheme year.
If you know a member is leaving you to join the University or another college it would be helpful if you could put this in the appropriate box on the relevant Leaver form.
Opting out
Please read the members' page on opting out.
If a member wants to opt out of Investment Builder from the start they have to do so online. They cannot fill in a form to do this.
If a member opts out online we will contact you and refund any contributions already submitted to Legal and General. You can then refund the appropriate share to the member through your payroll.
Do not refund contributions before being contacted by us. We cannot accept negative contributions on monthly returns for DC members.
If a member gives you form OPT2 (pdf) or OPT2DC (pdf) to opt out after the refund deadline then please send this to us with form OPT3 (pdf) and mark them as a leaver on the monthly remittance.
Leaving employment or leaving to join USS
If a member is promoted into a post in which they have to join USS then it is the same as if they had left employment. It would be helpful if you could write on the form that they have left to join USS.
There is no need for a member to sign an opt out form if they are leaving to join USS.
If you know a member is leaving you to join the University or another college it would be helpful if you could put this in the appropriate box on the relevant Leaver form.
Retirement
Please note that under scheme rules members have to leave employment before they can claim their benefits. The only exceptions are when members reach age 75 and have to leave the scheme or when they claim part of their benefits under flexible retirement.
Please send us a Advance notification of member retiring RET1 form (pdf) as soon as a member tells you they are going to retire. We will then contact them with their retirement options, but not more than three months in advance of the retirement date.
If the member is going on flexible retirement please put the before and after salaries on the form so that we can check it is a valid application.
If the retirement date changes please let us know as soon as possible.
When you have processed the member's final payments please send the Confirmation of Retirement form RET2 (pdf) to us.
Flexible retirement
If you agree, members can reduce their hours or salary by at least 20% and take 20 to 80% of their benefits without leaving employment. The University’s Personnel Services website (SSO required) gives more information.
Ill health retirement
Please look at the ill health sections on the members' pages for DB section and Investment Builder for more information. Please contact the Pensions Office if you have anyone who may need to retire on the grounds of ill health.
You should note that the Trustees do not normally ask for a report from Occupational Health. Even if you think an employee is not capable of doing their job on medical grounds that does not necessarily mean that they will get ill health retirement as the scheme’s criteria may be slightly different.
Remember that the ill health retirement process can take a few months or sometimes longer.
Death in service
If a member dies in service please contact the Pensions Office. In particular it would be helpful if you could give us anything you know about the member's personal background. This will help us and the trustees decide who is potentially entitled to a lump sum and/or pension.
A brief guide to specific aspects of scheme administration. Information about the scheme in general can be found on the members’ pages
It would be particularly helpful if administrators and HR staff at the University could note the following as this is a source of many queries:
- it is not possible for new joiners to OSPS, whether new employees or due to new contracts, to opt out in advance, so please do not tell them that they can do so. See notes below as well.
- please send us form RET1(U) (pdf) to inform us of a member retiring at least one month in advance as we cannot process retirements without this form.
- please ensure the home address is correct for new joiners as that is the address Legal and General will write to.
New employees
From 1 October 2017, new employees will be enrolled in the defined contribution section of OSPS called Investment Builder.
Please see the Investment Builder page for general information.
It is essential that you put the new employee’s date of birth on HRIS. We cannot register their membership without this. If you do not know a new employee’s NI number please make every effort to obtain it from them.
If a new employee is joining from one of the colleges, please ask them to contact the Pensions Office.
Re enrolment
If an employee has a change of contract, such as regrading, taking on a new post or being made permanent, then they will be automatically enrolled into OSPS.
If they have previously opted out they will need to follow the opt out procedure if they want to opt out again. They cannot fill out a form to opt out in advance. Please remember to tell employees about this if you are making a change to their contract.
Opting out
All new support staff employees should be enrolled into Investment Builder from the start of their employment. At the University this applies to all new contracts and appointments.
Opt out from the start
It is not possible to opt out in advance. There is no form for opting out from the start.
New joiners get a starter letter from Legal and General at their home address. Please make sure the address is accurate. This gives enrolment codes for their account.
Members who do not wish to join from the start should log on using the enrolment codes before the deadline given on the letter (about one month) and opt out. They will then get a refund through the payroll in due course.
Withdrawal after the deadline
After the deadline Investment Builder members can withdraw from the scheme by completing form OPT2DC (pdf) and sending it to the Pensions Office. Members withdrawing will NOT get a refund.
DB section members can withdraw by completing and returning form OPT2 (pdf) to the Pensions Office.
Promotion and regrading
If an employee takes on a post that is grade 6 or above then they have to join USS on that post.
This does not apply if they are seconded to a post which is grade 6 or above. In these circumstances they will stay in OSPS unless they move to that post permanently.
If an employee’s current post is regraded to grade 6 or above then they will have to leave OSPS and join USS.
Certain employees on grade 6 or above remained in OSPS following the single spine mapping process in 2006 and 2007. However, if they take on a higher grade post they will have to move to USS.
Please remind members who leave to join USS that their benefits will not be transferred to USS automatically. If they wish to transfer their OSPS benefits they will first of all need to fill in a USS Transfer Inquiry Form. Any benefits transferred to USS will go into their investment-based section.
Maternity and other unpaid leave
For members who return from unpaid (sick) leave we will assume that you do not wish to pay your share of the contributions unless we hear to the contrary.
Please see the Investment Builder and Defined Benefit member pages for more information on this.
Change of address and personal details
Please update these on HRIS as soon as possible. We do not get notified of any of these changes. We do not need to know about changes of address for active members. If members want us to change their name we will need to see copies of the relevant certificates.
When DB section members leave we will write to them at the home address given on HRIS so it is important that it is up to date. Investment Builder members should ensure their personal details are correct on the Legal and General website using Manage Your Account.
We do not hold home addresses for active members. For mailings we use the payslip addresses on HRIS, so it is especially important that these addresses are correct.
Flexible retirement
Please refer to the Personnel Services website (SSO required) for more information.
Ill health retirement
Please see the Investment Builder and Defined Benefit member pages for more information on this. The process is the same for DB members and Investment Builder members, but the benefits are different. Please contact the Pensions Office if you have anyone who may need to retire on the grounds of ill health.
You should note that the Trustees do not normally ask for a report from Occupational Health. Even if you think an employee is not capable of doing their job on medical grounds that does not necessarily mean that they will get ill health retirement as the scheme’s criteria may be slightly different.
Remember that the ill health retirement process can take a few months or sometimes longer.
Retirement
Please send in form Advance Notification of Retirement RET1(U) (pdf) as soon as an employee gives in their notice and tells you their retirement date. If you do not send this form we cannot process the employee’s retirement benefits.
If the date of retirement changes please let us know as soon as possible.
Death in service
If a member dies in service please contact the Pensions Office. In particular it would be helpful if you could give us anything you know about the members’ personal background. This will help us and the trustees decide who is potentially entitled to a lump sum and/or pension.
Contact us
University of Oxford
Great Clarendon Street
Email: [email protected]
Phone: (01865) 616020