In this type of pension plan, the fund value you build up for your retirement is based on how much you contribute, how much your employer contributes and how your investments perform.
The OSPS Trustee administer the arrangement under the same trust as existing OSPS benefits: the Trust Deed and Rules.
The new Investment Builder section is being run by Legal & General on behalf of the Trustee. To find out more details about members’ investment and retirement options you can access the L&G website.
Under OSPS rules all new support staff employees under age 75 should be enrolled from the start of their employment regardless of earnings level - this is called contractual enrolment. There are no exceptions for short-term contracts or probation periods. However, employers have discretion over employees working on paid-as-claimed hourly contracts. Employers who use OSPS for government auto-enrolment should note that new joiners should be treated in the same way as new employees if they meet the auto-enrolment criteria.
Are you paying enough to fund your retirement?
The trustees of OSPS believe that the previous default contribution rate (tier 1) chosen by the employers was not sufficient to provide adequate funds for members in their retirement. They strongly recommend that these members elect to move to tier 2 or tier 3. The default rate for new members from 1 October 2020 is tier 2 and they can change in the first three months. Other members can change from 1 April and 1 October each year.