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Payflex+
Payflex+ is a Salary Exchange scheme for USS and KSS members. For the majority of those taking part in the scheme, Payflex+ will increase your take-home pay and make savings for the University*.
Payflex+ can only be offered to staff who are members of either USS or KSS. It is not possible to operate Payflex+ for members of non-University pension schemes (e.g. Staffordshire County Council Local Government or NHS pension schemes).
Payflex+ creates savings by reducing the amount of National Insurance Contributions (NIC) you and the University pay on your pension contributions but without affecting your USS/KSS pension benefits or state benefit entitlements (such as the Basic State Pension) in any way.
Payflex+ works on the basis that you no longer pay your USS/KSS pension contributions and instead, the University will increase its pension contribution by an amount equal to those contributions. In this way the University will pay an amount equal to both the employers’ and employees’ pension contributions. You then agree to reduce your pay by that amount. As you have reduced your pay you will pay less NIC and, as pension contributions made by the University are not subject to NIC, Keele will make NIC savings as well.
Although you agree to reduce your pay, your pension benefits, pay rises, overtime and other similar benefits will continue to be based on your pay before the reduction (Base Pay) and so will not change. Taking part in the scheme will not affect your future entitlement to state benefits, such as the Basic State Pension. Your Base Pay (ie pay before the Payflex+ reduction) will continue to be shown on your payslip (please see FAQs, Annex A, Sample Payslips
Additional Voluntary Contributions (AVCs) are not currently included in this scheme
*USS and KSS members who do not pay NIC (because they are over the state retirement age) will not make savings but will still be included in the scheme as this will not disadvantage them.
A small number of USS and KSS members may not be included in Payflex+ based on their individual earnings from the University. For example those whose salary is close to the National Minimum Wage or Earnings Threshold for NIC may not be eligible. These staff either have been or will be notified separately of their individual circumstances.
Due to the amount of preparation required to implement the scheme and to ensure that it opens at the start of the relevant pension scheme year, it has not been possible for all USS and KSS members to be included at the same time. The timetable for the roll-out of Payflex+ is as follows:
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USS monthly paid staff |
Included from April 2010 |
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KSS monthly paid staff |
Included from August 2010 |
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USS weekly paid staff |
Included from April 2011 |
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KSS Weekly paid staff |
Included from August 2011 |
FURTHER INFORMATION
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Documents |
Other Links |
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Scheme Summary (included with individual letters) Explaining how Payflex+ works Frequently Asked Questions Gives further detail on the scheme such as:-
Please remember that all of the above refer to the standard employee pension contributions which were current at the time of publication. |
Advice on a wide range of financial issues is available Advice on pensions and retirement A register of Financial Services Authority registered financial advisors
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For any other queries or information please contact |
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