EXAMPLE-A--WITHOUT-SALARY-EXCHANGE

							Key Points on Salary Exchange for Pension Contributions What you get:
Salary Exchange is an opportunity for:   USS and OSPS members on the University payroll to benefit from a small increase in take-home pay; and the University to benefit from year-on-year cost-savings in National Insurance contributions.

How it works When you participate in Salary Exchange:
     you will not see pension deductions on your payslip (at ‘A’ on the example below); you will see instead a reduction – of the same amount – in the payments column (at ‘B’ on the example below); the University will make additional employer pension contributions to the scheme so that your pension benefits remain unaffected; due to the way National Insurance is calculated you will actually receive slightly increased takehome pay (at ‘C’ on the example below); the University pays less National Insurance and these savings will be passed back to departments.

PAYSLIP EXAMPLE – OPTED OUT OF SALARY EXCHANGE
University of Oxford Employee Name: Mrs S Jones Employee No: 12345678 Payments Description Basic Pay Units Rate Total 3750.00 Deductions Description Tax NI – D USS Ee Total 623.20 274.22 238.13 This Period Description Taxable Pay Pensionable Pay Employers Pension Main Payroll Pay Date: 29/04/08 Tax Period: 1 Tax Code:543L/0 NI No: AB245652D NI Code: D

A

3511.87 3750.00 525.00

Year To Date Taxable Pay Pensionable Pay Tax NI NI’able PAYMENTS 3750.00 DEDUCTIONS 1135.55 NET PAY

3511.87 3750.00 646.53 274.22 3750.00

2614.45

PAYSLIP EXAMPLE – PARTICIPATING IN SALARY EXCHANGE
University of Oxford Employee Name: Mrs S Jones Employee No: 12345678 Payments Description Basic Pay USS – Sal Ex Units Rate Total 3750.00 -238.13 Deductions Description Tax NI – D Total 623.20 271.83 This Period Description Taxable Pay Pensionable Pay Employers Pension Main Payroll Pay Date: 29/04/08 Tax Period: 1 Tax Code:543L/0 NI No: AB245652D NI Code: D

B

3511.87 3750.00 763.13

Year To Date Taxable Pay Pensionable Pay Tax NI NI’able USS Sal Ex PAYMENTS 3511.87 DEDUCTIONS 895.03 NET PAY

3511.87 3750.00 646.53 271.83 3511.87 283.13

2616.84

C

For more information, please refer to the Salary Exchange web pages
Ref: FIN/800/KEY / 3.0