Building up Benefits

How benefits build up in the DB section of OSPS

If you joined OSPS before 1 October 2017 you are in the DB section and currently build up benefits on a Career Average Revalued Earnings (CARE) basis. This means that each scheme year (April to March) we give you a pension equal to a proportion of your pensionable salary. You also get a tax free lump sum which is three times the value of the pension. The proportion used is called the ‘accrual rate’ and depends on your cost plan.

If you were in the scheme before 1 January 2013 or transferred benefits in after this date from a Public Sector Transfer Club scheme you will also have final salary benefits.

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You can choose between three cost plans; Lower, Standard and Higher. They all have different contribution rates and build up benefits at different rates.

For the current contribution rates, please see the How much does OSPS cost page.

You can change your cost plan from any 1 April by sending form APP6 to the Pensions Office before 31 March.

The benefits you are given each year increase in line with inflation  We then add these up to calculate your total benefits.

CARE benefits are revalued at the end of the scheme year after which you built them up. In other words benefits built up between April 2018 and March 2019 will be increased from April 2020.

As at April 2024 the Trustee's policy on increases for active members is as follows, but this may change in the future:

Accrued pre-1 April 2018

Joined scheme before 1 February 2013     RPI (8% cap)

Joined on or after 1 February 2013            RPICPI (8% cap)

Accrued after 1 April 2018

All members                                                   CPI (8% cap)

RPICPI means the average of RPI and CPI.

This is a simple example, which ignores the different rates that apply to CARE pension built up before and after 1 April 2018.

At the end of year 1

Year Salary Cost Plan Pension Built up Increase Total
1 £20,000 Lower £222 N/A £222

 

At the end of year 2

Year Salary Cost Plan Pension Built Up Increase Total
1 £20,000 Lower £222 £0 £222
2 £20,500 Standard £241 £N/A £241

 

Total pension at end of year 2 is £463 per annum (£222 plus £241).

In this example, the member has chosen to move to the Standard cost plan at the start of year 2.

At the end of year 3

Year Salary Cost Plan Pension Built Up Increase Total
1 £20,000 Lower £222 £7 £229
2 £20,500 Standard £241 £0 £241
3 £21,000 Higher £262 N/A £262

 

Inflation is 3%. The increase on the year 1 pension is therefore 3% of £222, which is £7.

Total pension at end of year 3 is £732 per annum.

In this example, the member has chosen to move from the Standard cost plan to the Higher cost plan at the start of year 3.

At the end of year 4:

Year Salary Cost Plan Pension Built Up Increase Total
1 £20,000 Lower £229 £5 £234
2 £20,500 Standard £241 £5 £246
3 £21,000 Higher £262 £0 £262
4 £22,000 Higher £275 N/A £275

 

Inflation is 2%. The increase on the year 1 pension is therefore 2% of £229, which is £5, and for the year 2 pension it is 2% of £241, which is £5.

The total pension at the end of year 4 is therefore £1,017. There would also be a lump sum of £3,051 or three times the pension.

If you were in the scheme before 1 January 2013, or have transferred in final salary benefits from a Public Sector Transfer Club scheme, you will have final salary benefits.

Up to 31 March 2018, these were linked to salary increases. From 1 April 2018, the final salary link was broken, and these benefits go up in line with inflation each April. Please see the Final Salary members page for more details.

Every year we will send you a benefit statement giving you the current value of your benefits.

The Trust Deed and Rules of OSPS take precedence over anything said on this page.

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Contact Us

 : Pensions Office
       University of Oxford

       c/o Oxford University Press
       Great Clarendon Street
       Oxford OX2 6DP

 : OSPS - osps@admin.ox.ac.uk
 : (01865) 616020