Pensions at Leeds

As a member of our staff you have access to excellent pension benefits. After pay, pension is arguably the most valuable benefit for us all, even though retirement may seem a long way off. Think about how important your pay is to you today; that's how important your pension will be to you when you retire.

You might want to join a pension scheme because:

  • it’s an income for life when you retire;
  • the pension will increase annually in line with inflation (with the exception of the DC Plan where you can choose the type of pension you want);
  • you get a tax free cash sum on retirement;
  • there are early retirement options;
  • you get automatic life assurance cover based on your current salary;
  • there’ll be a pension for your spouse or dependant and/or children on your death (with the exception of the DC Plan where you can choose whether or not you want to include this benefit);
  • there are ill health early retirement benefits if you become too ill to work;
  • the University pays significant employer contributions; 
  • you’ll  be able to increase scheme benefits by paying extra contributions (additional voluntary contributions (AVCs));
  • you might be able to transfer benefits from previous pension schemes to increase the benefits you get.

The cost to you isn’t as much as you might think:

  • You get tax relief at your highest rate on your employee contribution;
  • If you contribute through the salary sacrifice (Pensions+) route your national insurance contributions are reduced even more.

In addition, you might also receive the basic state pension; more details can be found on the gov.uk website at https://www.gov.uk/new-state-pension/overview.

Your retirement might seem like a long way off, but you should also consider the cover the pension scheme provides for your family if anything happened to you.

Scheme options

Which pension scheme you're eligible to join will depend on your type of contract of employment.

There are three main pension schemes offered to staff:

  • The Universities Superannuation Scheme;
  • The University of Leeds Defined Contribution Plan;
  • The University of Leeds Pension & Assurance Scheme. 

Universities Superannuation Scheme (USS)

This is a national scheme for academic and academic related (professional and managerial) staff. If you’re eligible, you’ll automatically join the scheme from your first day of employment.

University of Leeds Defined Contribution Plan (DC Plan)

If you’re a member of support staff and you meet the eligibility criteria, you’ll automatically be put into this scheme. You can find more information on our DC plan page.  

University of Leeds Pension & Assurance Scheme Career Average Section (PAS CARE)

This is an alternative pension scheme for support staff at the University. You won’t automatically join this scheme, but you can opt to do so if you meet certain criteria.

You can find more detailed information about the scheme benefits on our PAS CARE page.  

University of Leeds Pension & Assurance Scheme Final Salary Section (PAS FS)

This section of PAS has now closed to new members. Existing members can find further details on our PAS final salary page.

For details on how your data is used, you can download the PAS Fair Processing Notice and Mercer and Scheme Actuary processing activities as data controller below.

NHS

If you’re employed in a clinical role at the University and have been a previous member of the NHS scheme in the last 12 months, you may be able to join the NHS pension scheme. You’ll find more information about the NHS pension scheme on their website.

Please contact the Pensions department for further details on 0113 343 4146.

Universities Superannuation Scheme

The Universities Superannuation Scheme (USS) is a national scheme for academic and academic-related (professional and managerial) staff. All eligible new staff will be enrolled into the scheme from the first day of employment. 

Full details of the scheme and its benefits can be found on the USS website.

Scheme Benefits

The scheme offers valuable benefits for your future as well as providing protection for your beneficiaries while you are a member of the scheme. 

Contribution rates

The contribution rate is paid as a percentage of your pensionable salary. The current employer rate is 21.6%, and the employee rate is 9.8%.

If you wish to increase your benefits, you can opt to pay contributions to the Investment Builder section of the scheme. 

Opting out

It is possible to opt out of the scheme once you’ve been enrolled.  The process and forms are available on the USS website.

Access further information - MyUSS

To complete the scheme nomination forms and view further details of your benefits, we would encourage you to register for the MyUSS account.

Defined Contribution Pension Plan

If you're a member of support staff and you meet the eligibility criteria, you'll automatically be put into the Defined Contribution Pension Plan (DC Plan) if you're not already in a pension scheme. If you're a new member of support staff, this'll happen three months after you join the University.

About the scheme

The DC Plan is a defined contribution scheme. You and the University pay a percentage of your salary into the scheme, and the money’s invested by The People’s Pension to give you a pot of money when you retire.

More details can be found in the Plan booklet which you can download below, and from The People’s Pension website.

Main benefits of joining

  • The DC Plan can provide you with an income for life when you retire; 
  • You can get a tax free cash sum on retirement;
  • There are early retirement options;
  • You benefit from automatic life assurance cover of 5 times your pensionable salary;
  • There’ll be a return of your investment pot if you die before retirement;
  • There’s an income protection scheme if you become too ill to work;
  • The University pays employer contributions;
  • You’ll  be able to increase scheme benefits by paying extra contributions;
  • You could be able to transfer benefits from previous pension schemes to increase the benefits you get.

And the cost to you isn't as much as you might think:

  • You get tax relief at your highest rate on your employee contribution;
  • If you contribute through the salary sacrifice (Pensions+) route your national insurance contributions are reduced.

Eligibility

You’ll automatically become a scheme member after you’ve worked at the University for 3 months if you:

  • are not already a member of another pension scheme at the University;
  • are over  22;
  • are under state pension age;
  • earn more that £10,000 a year (£833 a month).

Contribution rates

You’ll pay 3% of your pensionable salary into the DC Plan, and the University will pay an employer contribution of 6%. If you choose to pay more, the University will also increase its contribution. The maximum University contribution is 10%.

If you’d like to pay more into your pension, or talk to someone about it, e-mail the Pensions department.

Transferring a pension into the DC Plan

You may be able to transfer benefits from DC pension arrangements you’ve had before into your fund. If you’d like to do this, e-mail the Pensions department to ask for a Transfer Enquiry Form.

Opting out

Your joiner pack, which will be sent to your home address by People’s Pension when you join the DC Plan, contains details of how to opt out of the scheme. You might not get a refund of your contributions if you opt out more than a month after joining the scheme.

Rejoining

You can rejoin the scheme after opting out if you change your mind, or if your circumstances change. Contact the Pensions department and they’ll send you an application pack.

Retirement

If you're over 55, you might be able to access the funds you have built up with The People’s Pension. You’ll need to contact them to get details.

To help you decide whether to use this fund to provide an income, or whether to take it as a cash sum, you might need the help of a financial advisor, or you could use the services offered by the government website.

Life Assurance cover

If you’re an active member of the scheme and you die, your dependant(s) will get a lump sum of 5 times your pensionable salary. You can download and complete a Member Wishes Form below to tell us who you’d like to get the lump sum payment.   

Income Protection Scheme

If you’ve been in the DC Plan for more than 12 months, and you’re off work ill for more than 26 weeks, you might qualify for payments under the income protection scheme, which provides an income of 50% of your salary.  For more information please email the Pensions department.

University of Leeds Pension & Assurance (PAS) Scheme CARE section

This is an alternative to the DC Plan for support staff at the University, who can opt to join if they meet certain criteria.

About the scheme

The Career Average (CARE) section of PAS is a defined benefit scheme, where the benefits built up are worked out using a set formula.  

Joining the Scheme

You can opt to join the scheme if you meet the eligibility conditions below and you’ve been employed by the University for less than 12 months, but you won’t be put into the scheme automatically. Please e-mail the Pensions department for an opt in pack.

If you don’t join within the first 12 months of your employment, you might not be given a further opportunity to join this scheme.

You can download a summary of the main benefits of the CARE section of PAS below, and more detailed information can be found in the scheme booklet, also available to download below. Each year you will receive a statement summarising the benefits you have built up in the scheme at the end of the scheme year, which is 31 March.

Death in service benefits

If you die while you’re an active member of the scheme, a lump sum of three times your pensionable salary will be payable to your dependant nominee. Please download and complete the Member Wishes form below to provide a guide as to who you would like the lump sum to be paid to. 

A spouse’s or adult dependant’s pension may also be payable. This would automatically be paid to your spouse but, if you’re unmarried but have an adult who is financially dependent on you, you should download and complete the potential dependant form below.

Increasing your scheme benefits – additional voluntary contributions (AVCs)

To increase the value of your benefits on retirement, you can pay extra contributions to the scheme. These are known as additional voluntary contributions (AVCs).

AVCs are a very useful way of filling a gap in your pension benefits if you don’t have a lot of benefits from other sources, or you could to use AVC’s to enable you to retire early. They're also a very tax efficient way of improving benefits. They’re deducted from your pay before tax is calculated, so you get tax relief at your highest rate, eg an AVC contribution of £100 only costs £80 to a basic rate tax payer.

The AVC arrangement offered by PAS allows you a choice of investments. You can download the AVC booklet below for details.

If you're considering paying AVCs, please e-mail the Pensions department to request an AVC application form.

Pension estimate

If you’re considering retirement, you might want more details about the benefits you’ve built up in the scheme and the options available to you.  Please e-mail the Pensions department, giving an idea of your planned retirement date, and they’ll provide an estimate for you.

University of Leeds Pension & Assurance (PAS) Scheme Final Salary section

This section of the PAS scheme is now closed to new joiners, but existing members continue to build up further benefits.

About this section of the scheme

The Final Salary section of PAS is a defined benefit scheme, where the benefits built up are worked out using a set formula based on the number of years and days you have as a scheme member and on your final pensionable salary at the date you leave the scheme.

You can download a summary of the main benefits of the Final Salary section of PAS below, and more detailed information can be found in the scheme booklet, also available to download below. Each year you'll receive a statement proving details of the estimated benefits you'll build up if you remain in the scheme until age 65.

Death in service benefits

If you die while you're an active member of the scheme, a lump sum of 3 times your pensionable salary will be payable to your dependant nominee.  You can download and complete the Member Wishes Form below to provide a guide as to who you would like the lump sum to be paid to. 

A spouse’s or adult dependant’s pension may also be payable.  This would automatically be paid to your spouse but, if you’re unmarried but have an adult who is financially dependent on you, you should complete the Potential Dependant Form below.

Increasing your scheme benefits – additional voluntary contributions (AVCs)

To increase the value of your benefits on retirement, you can pay extra contributions to the scheme.  These are known as additional voluntary contributions (AVCs).

AVCs are a very useful way of filling a gap in your pension benefits if you don’t have a lot of benefits from other sources, or you could use AVC’s to enable you to retire early.  AVCs are also a very tax efficient way of improving benefits. They’re deducted from your pay before tax is calculated and so you get tax relief at your highest rate, eg an AVC contribution of £100 only costs £80 to a basic rate tax payer.

The AVC arrangement offered by PAS allows you a choice of investments.  You can download the AVC booklet below for details.

Please e-mail the Pensions department to request an AVC application form.

Pension estimate

If you’re considering retirement, you might want more details about the benefits you’ve built up in the scheme, and the options available to you.  Please e-mail the Pensions department, giving an idea of your planned retirement date, and they’ll provide an estimate for you.   

 

University of Leeds Pension & Assurance Scheme – Statement of Investment Principles

University of Leeds Pension and Assurance Scheme Implementation Statement as at 31 March 2023

Purpose of this statement

This implementation statement has been produced by the Trustee of the University of Leeds Pension and Assurance Scheme (PAS) to set out the following information over the year to 31 March 2023:

  • the voting activity undertaken by the PAS’s investment managers on behalf of the Trustee over the year, including information regarding the most significant votes; and
  • how the Trustee’s policies on exercising rights (including voting rights) and engagement activities have been followed over the year.


Stewardship policy 

The Trustee’s Statement of Investment Principles (SIP) in force at 31 March 2023 describes the Trustee’s stewardship policy on the exercise of rights (including voting rights) and engagement activities. It was last reviewed prior to this date in March 2022 and has been made available online.


At this time, the Trustee has not set stewardship priorities / themes for the PAS but will be considering the extent that they wish to do this in due course, in line with other scheme risks. 


How voting and engagement/stewardship policies have been followed

Based on the information provided by the PAS’s investment managers, the Trustee believes that its policies on voting and engagement have been met in the following ways:

  • With the exception of the segregated Liability Driven Investment portfolio with Schroders, which has no voting rights and limited ability to engage with key stakeholders given the nature of the mandate, the PAS invests entirely in pooled funds, and as such delegates responsibility for carrying out voting and engagement activities to the PAS’s investment managers. 
  • The Trustee has earmarked an allocation of 7.5% of the PAS’s total invested assets to an actively managed Impact fund within the Equity Portfolio, subject to finding a suitable fund.  These are funds that, alongside their return targets, aim to make a positive societal and/or environmental impact through the investments made.  Sustainability considerations have therefore been fundamental throughout this selection process. The Trustee met with three managers of Impact equity funds following the year-end with a view to potentially making an investment into one of the funds during the year to 31 March 2024.  
  • Annually the Trustee receives voting information and engagement policies from the PAS’s investment managers, which is reviewed to ensure alignment with the Trustee’s stewardship policies. The Trustee believes that the voting and engagement activities undertaken by the investment managers on their behalf have been in the members’ best interests.  During the year, the Trustee reviewed each of the PAS’s investment managers’ approaches to ESG and engagement, and carried out monitoring of their activity over the year to 31 March 2022, to ensure this was in line with expectations.  This involved considering Sustainability ratings provided by its investment consultant, as a measure of how the PAS's investment managers take account of Sustainability issues.
  • As part of ongoing monitoring of the PAS’s investment managers, the Trustee uses ESG ratings information provided by its investment consultant, to assess how the PAS’s investment managers take account of ESG issues.
  • Overall, we do not have any material concerns with the ESG and Stewardship activities of the PAS's holdings, and therefore have raised no direct challenges with any of the investment managers relating to their ESG or Stewardship activities during the year.  Most of the PAS’s investment managers were able to provide evidence that they are actively engaging with key stakeholders on behalf of the Trustee where possible, although the nature of some of the funds the PAS invests in means this is not always possible

Voting activity over the year to 31 March 2023 | Summary

This section provides a summary of the voting activity undertaken by the investment managers within the PAS’s Growth Portfolio on behalf of the Trustee over the year to 31 March 2023. 

This does not include the holdings in the WTW Secure Income Fund, Henderson Multi Asset Credit Fund, M&G Real Estate Debt (RED) Funds, Mercer PIP V Infrastructure Fund, or the Polus Pathfinder II Fund, as the holdings in these funds do not typically carry voting rights.  This is also the case of the funds held in the PAS’s Protection Portfolio.

Manager  Legal and General (LGIM)       Ninety One Asset Management 
Fund Name  ESG Paris Aligned World Equity RAFI Multi-Factor Climate Transition Diversified Fund Emerging Markets Equity Fund China A Shares Fund
Structure  Pooled Pooled Pooled Pooled Pooled 
Ability to influence voting behaviour of manager  The pooled fund structure means that there is limited scope for the Trustee to influence the manager’s voting behaviour.          
Number of eligible meetings  1,250 873 9,541 121 110
Number of eligible votes  17,551 12,561 99,252 1,315 1,104
Percentage of resolutions  voted  99.7%  99.5%    99.8%   96.1%  94.6%
Percentage of resolutions  abstained  0.2%  0.3%     0.7%     3.4%    2.5%
Percentage of resolutions voted with management1 78.8%  79.8%     77.4%     90.4%   85.6%
Percentage of resolutions voted against management1 21.1% 19.9%      21.9%    9.7%   14.4%
Proxy voting advisor employed Both managers use the Institutional Shareholder Service (“ISS”) who provide them with research recommendations based on their internal voting policies. The managers consider and discuss this with their respective investment teams to make a decision in the best interest of the shareholders.        
Percentage of resolutions voted proxy voter recommendation 14.8% 15.6%    12.5%    1.5%    2.1%

1 As a percentage of the total number of resolutions voted on. Values may not sum to 100% due to rounding.

Voting activity over the year to 31 March 2023 | Significant votes

The change in Investment and Disclosure Regulations that came into force from October 2020 requires information on significant votes carried out on behalf of the Trustee over the year to be set out.  The guidance does not currently define what constitutes a “significant” vote. However, recent guidance states that a significant vote is likely to be one that is linked to one or more of a scheme’s stewardship priorities / themes. At this time, the Trustee has not set stewardship priorities / themes for the PAS, but will be considering the extent that they wish to do this in due course, in line with other scheme risks.  So, for this Implementation Statement, the Trustee has asked the investment managers to determine what they believe to be a “significant vote”. The Trustee has not communicated voting preferences to their investment managers over the period, as the Trustee is yet to develop a specific voting policy. In future, the Trustee will consider the most significant votes in conjunction with any agreed stewardship priorities / themes. 

LGIM and Ninety One have provided a selection of 10 votes which they believe to be significant.  In the absence of agreed stewardship priorities / themes, the Trustee has selected 3 votes from each manager, that cover a range of themes to represent what it considers the most significant votes cast on behalf of the PAS. To represent the most significant votes, the votes of the largest holdings relating to each topic are shown below. 
 

LGIM | ESG Paris Aligned World Equity

   Vote 1  Vote 2  Vote 3 
Company name Amazon.com, Inc NVIDIA Corporation Alphabet Inc.
Approximate size of fund's holding as at the date of the vote (as % of portfolio) 2.0%    1.8%     1.2%
Summary of the resolution Elect Director Daniel P. Huttenlocher    Elect Director Harvey C. Jones    Report on Physical Risks of Climate Change
How the manager voted Against  Against  For
Rationale provided for the voting decision Human rights: A vote against was applied as the director is a long-standing member of the Leadership Development & Compensation Committee which is accountable for human capital management failings.  Diversity: LGIM expects a company to have at least 25% women on the board with the expectation of reaching a minimum of 30% by 2023. LGIM are targeting the largest companies as they believe that these should demonstrate leadership on this critical issue. 
Independence: LGIM expects a board to be regularly refreshed to maintain an appropriate mix of independence, relevant skills, experience, tenure, and background.
Shareholder Resolution - Climate change: LGIM expects companies to be taking sufficient action on the key issue of climate change.
Outcome of the vote 93.3% voted for     83.8% voted for     17.7% voted for
Implications of the outcome LGIM will continue to engage with their investee companies, publicly advocate their position on this issue and monitor company and market-level progress  
Criteria on which the vote is considered “significant” LGIM pre-declared its vote intention for this resolution, demonstrating its significance. LGIM views diversity as a financially material issue for their clients, with implications for the assets they manage on their behalf. LGIM considers this vote significant as it is an escalation of their climate-related engagement activity and their public call for high quality and credible transition plans to be subject to a shareholder vote.

 

LGIM | RAFI Multi-Factor Climate Transition

   Vote 1  Vote 2  Vote 3 
Company name Pfizer Inc.     UBS Group AG The Coca-Cola Company
Approximate size of fund's holding as at the date of the vote (as % of portfolio) 1.6%     0.1%     1.2%
Summary of the resolution Elect Director Albert Bourla     Approve Climate Action Plan     Require Independent Board Chair
How the manager voted Against Against  For (management recommendation: against).
Rationale provided for the voting decision Joint Chair/CEO: LGIM expects companies to separate the roles of Chair and CEO due to risk management and oversight. Climate change: LGIM positively note the company’s progress over the last year and its recent commitment to net zero by 2050 across its portfolio. However, LGIM have concerns with the strength and coverage of the Climate Action Plan’s Scope 3 targets and would ask the company to seek external validation of its targets against credible 1.5°C scenarios. Gaining approval and verification can help demonstrate the credibility and accountability of plans. Shareholder Resolution - Joint Chair/CEO: LGIM expects companies to establish the role of independent Board Chair.
Outcome of the vote 94.6% voted for     77.7% voted for     27.8% voted for
Implications of the outcome LGIM will continue to engage with their investee companies, publicly advocate their position on this issue and monitor company and market-level progress.    
Criteria on which the vote is considered “significant”  LGIM considers this vote to be significant as it is in application of an escalation of their vote policy on the topic of the combination of the board chair and CEO (escalation of engagement by vote).  LGIM considers this vote significant as it is an escalation of their climate-related engagement activity and their public call for high quality and credible transition plans to be subject to a shareholder vote. LGIM considers this vote to be significant as it is in application of an escalation of their vote policy on the topic of the combination of the board chair and CEO (escalation of engagement by vote).

 

NLGIM | Diversified Fund

  Vote 1  Vote 2  Vote 3
Company name Union Pacific Corporation       NextEra Energy, Inc.  Royal Dutch Shell Plc
Approximate size of fund's holding as at the date of the vote (as % of portfolio) 0.4%     0.3%     0.3%
Summary of the resolution Elect Director Lance M. Fritz    Elect Director Rudy E. Schupp     Approve the Shell Energy Transition Progress Update
How the manager voted Against      Against Against  
Rationale for the voting decision Joint Chair/CEO:  LGIM expects companies not to recombine the roles of Board Chair and CEO without prior shareholder approval. Diversity: LGIM expects a company to have at least 25% women on the board with the expectation of reaching a minimum of 30% by 2023. LGIM are targeting the largest companies as they believe that these should demonstrate leadership on this critical issue. 
Independence: LGIM expects a board to be regularly refreshed to maintain an appropriate mix of independence, relevant skills, experience, tenure, and background.
 
Climate change: A vote against was applied, though not without reservations. LGIM acknowledge the substantial progress made by the company in strengthening its operational emissions reduction targets by 2030, as well as the additional clarity around the level of investments in low carbon products, demonstrating a strong commitment towards a low carbon pathway. However, LGIM remain concerned of the disclosed plans for oil and gas production, and would benefit from further disclosure of targets associated with the upstream and downstream businesses.
Outcome of the vote 91.7% voted for   85.9% voted for  79.9% voted for
Criteria on which the vote is considered “significant” LGIM considers this vote to be significant as it is in application of an escalation of their vote policy on the topic of the combination of the board chair and CEO (escalation of engagement by vote).  LGIM views diversity as a financially material issue for their clients, with implications for the assets they manage on their behalf.  LGIM considers this vote significant as it is an escalation of their climate-related engagement activity and their public call for high quality and credible transition plans to be subject to a shareholder vote.

 

Ninety One | Emerging Markets Equity Fund

  Vote 1 Vote 2 Vote 3
Company name Anglo American Plc    Atacadao SA     Saudi National Bank
Approximate size of Fund's holding as at the date of the vote (as % of portfolio) Not provided  Not provided Not provided 
Summary of the resolution Approve Climate Change Report     Approve Acquisition of Grupo BIG Brasil S.A. (Grupo BIG)    Amend Social Responsibility Policy
How the manager voted For  For  For 
Rationale for the voting decision The Company meets expectations in terms of disclosure and governance surrounding climate change. The Company's long-term goals have a shorter time frame than many peers (2040, as opposed to 2050). Its ambition is for carbon neutrality across operations by 2040. Although the Scope 3 ambitions do not include a net zero target, it has provided targets to 2040, accompanied by clear descriptions of the challenges it faces and its intended actions to decrease its scope 3 targets. There has been accelerated progress towards Scope 1 and 2 emissions reduction. The company has provided a sound strategic rationale for the proposed acquisition. The 5.55% full dilution to current shareholders is reasonable and there are no known concerns about the terms of the transaction. Given the sufficient level of disclosure and the absence of significant concerns, this item warranted support.
Outcome of the vote Passed Passed Passed 
Criteria on which the vote is considered “significant” Ninety One describes significant votes as those with significant client, media or political interest, material holdings, those of a thematic nature (i.e., climate change) and significant corporate transactions that have a material impact on future company performance, for example approval of a merger.

 

Ninety One | China A Shares Fund

  Vote 1  Vote 2  Vote 3
Company name PetroChina Company Limited       China Automotive Engineering Research Institute Co., Ltd.   Guangzhou Tinci Materials Technology Co., Ltd.
Approximate size of fund's holding as at the date of the vote (as % of portfolio) Not provided Not provided  Not provided 
Summary of the resolution Approve Guarantees to be Provided to the Subsidiaries and Affiliated Companies of the Company and Relevant Authorization to the Board Approve Guarantee Provision Plan Approve Establishment of Wholly-owned Subsidiary to Invest in Construction of Lithium-ion Battery Electrolyte Project and Lithium-ion Battery Recycling Project
How the manager voted Against Against For
Rationale for the voting decision A vote against this resolution was warranted because the company failed to disclose pertinent details regarding the proposal A vote against was warranted because the level of guarantee to be provided to one of the guaranteed entities is disproportionate to the level of ownership in the entity. The company has failed to provide any justification for their actions. A vote for was merited because no concerns were identified.
Outcome of the vote Passed  Passed Passed 
Criteria on which the vote is considered “significant”   Ninety One describes significant votes as those with significant client, media or political interest, material holdings, those of a thematic nature (i.e., climate change) and significant corporate transactions that have a material impact on future company performance, for example approval of a merger.

 

Engagement activity over the year to 31 March 2023

The investment managers may engage with investee companies on behalf of the Trustee. The tables below provide a summary of the engagement activities undertaken by each manager during the year for the relevant funds. Engagement activities are limited for the PAS’s Protection Portfolio due to the nature of the underlying holdings, so engagement information for these assets have not been shown.  

Engagement overview | Equity Portfolio

Manager Legal and General   Ninety One  
Fund name ESG Paris Aligned World Equity     RAFI Multi-Factor Climate Transition      Emerging Markets Equity Fund   lChina A Shares Fund
Does the manager perform engagement on behalf of  the holdings of the fund Yes Yes Yes Yes
Number of engagements undertaken on behalf of the holdings in this fund in the year 336    298     95*    95*
Number of engagements undertaken at a firm level in the year 1,088      503  

*This figure reflects engagement with the wider emerging market universe, not just the Fund’s holdings.

 

Engagement overview | Non-Equity Growth Portfolio

Manager LGIM M&G* Mercer** Willis Towers Watson Polus (previously Cairn)  Janus Henderson***
Fund name Diversified Fund    
 
Real Estate Debt
(RED) Funds
IV and V  
 PIPV
Infrastructure      
Secure Income Fund       Pathfinder Fund
II
Multi-Asset Credit Fund
Does the manager perform engagement on behalf of  the holdings of the fund Yes    Yes*      Yes   Yes     No     Yes
Number of engagements undertaken on behalf of the holdings in this fund in the year 985    n/a     Not tracked      48   n/a     56
Number of engagements undertaken at a firm level in the year 1,088      150   Not tracked     Not provided  65    680

*M&G's ability to control and dictate ESG initiatives at the borrower level is limited once an investment has been made, as they do not hold a controlling equity interest where they would be more readily able to influence policy. However, engagement on ESG related issues forms part of the due diligence and initial negotiation process prior to the investment being executed.


**As a fund-of-funds provider, although Mercer engage with the underlying fund managers, they do not engage directly with the underlying holdings within the fund, nor do they currently keep a record of the engagements undertaken by the underlying fund managers. This is partly due to the differing reporting provided by the underlying fund managers on engagement activities within private markets, which makes it difficult to collate and compare between different providers. Mercer are working with the underlying fund managers to improve this reporting for future years.


***The Janus Henderson firm level engagement figure has been provided using data available over the year to 31 December 2022.

A message from the PAS Trustees concerning COVID-19

The Trustees of PAS are writing to you at this unsettling time to provide you with reassurance regarding your pension benefits in light of the outbreak of COVID-19.

Please be assured that we are working with our advisers to closely monitor developments. We’re sending you this update because you may be understandably concerned about the impact of the current instability on PAS.

Pension administration service

We are working closely with Jill Nimmo, Pensions Manager, and the Pensions and Payroll team at the University to make sure there is no disruption to the service you receive. For those members who are currently in receipt of a pension, your pension will continue to be paid as normal. The payroll team have contingency plans in place to ensure that payments will not be disrupted.

If you have reason to contact the Pensions team at this time, the contact details are:

Email: pensions@adm.leeds.ac.uk

Telephone: 0113 343 4146

Beware of pension scams

The Pensions and Payroll team are all working from home in line with Government guidelines. Whilst this should not lead to significant delays in processing member requests, you may be asked to provide additional information and/or asked further security questions than you would normally. This is being done to ensure that steps are taken to counter the possibility of fraudulent activity at this time. Please be patient whilst we work through the coming weeks.

Your pension

You will no doubt have seen articles in the press regarding COVID-19 and the impact that it could have on you financially and on pensions. Pension schemes have been impacted by the uncertainty that we have seen in stock markets because they hold large amounts of money in investments, such as equities, which have suffered losses.

PAS has seen falls in the value of the assets that we hold. However, as we hold a diversified range of assets, some of which are designed to help protect against risks, the funding position of PAS has been protected from the full extent of the volatility in the markets. The Trustees are conscious of the risks that continue to exist and we are working closely with our investment advisers and Scheme Actuary to ensure that we are monitoring the funding position and taking action when required.

We are also in contact with the University and aware of the robust plans that they have in place to ensure that they can continue to support PAS now and in the future. We will continue to monitor this and take action if the position changes.

We have heard reports of pension scammers trying to take advantage of pension scheme members worried about the current investment market turbulence.

Please be extremely wary of any uninvited approaches about your pension savings. These could be by telephone, email or text and may pretend to be from a legitimate source, such as HMRC.

If you are concerned about scams, please click here for more information.

May 2020

Pensions+

Pensions+ is a way for you to further reduce the cost of paying your pension contributions, and it can be applied to all of our pension schemes.

Pensions+ is a salary sacrifice scheme which has been given approval by HM Revenue & Customs.  It means that your pension contributions can be deducted from your salary before national insurance contributions are calculated.

You already get tax relief at your highest rate.  By contributing to the scheme through Pensions+, you can make even more of a saving on your national insurance contributions.

For examples of the savings and detailed information about the scheme, you can download the Pensions+ booklets on PAS/USS and the DC Plan below.

When you join USS or PAS, you’ll automatically pay your pension contributions through Pensions+ if you meet the minimum earnings criteria, unless you ask not to.

If you’ve joined the DC Plan, you’ll only contribute via Pensions+ once you’ve been in the scheme for more than 3 months.

IMPORTANT: If you're a member of PAS or USS and you pay into the scheme through Pensions+, you won’t be able to get a refund of your contributions if you leave within 2 years. You must opt out of Pensions+ within 3 months of joining the scheme to retain the right to a refund.

You can still be a member of a pension scheme even if you opt out of Pensions+.

Contact the Pensions department if you'd like a Pensions+ opt out form.

Leaving the pension scheme

If you leave the University or decide to opt out of a pension scheme, you'll stop paying contributions. Contributions you've made may either be paid back to you, held as benefits in the scheme until you retire, or you might be able to move them to another scheme, depending on how long you've been a member.

You can opt out of any of our schemes at any time, and if you leave the University’s employment you’ll automatically leave the scheme and stop paying contributions. If you’re a member of the DC Plan, you can choose to continue paying your own contributions, but the University contributions will end.

Depending on which scheme you're in and how long you've been paying in, you might be able to get a refund of your contributions; otherwise you'll need to either leave the benefits where they are or move them to another suitable pension scheme.

If you're in USS or PAS and have been paying in to the scheme for:

  • less than 3 months: you’ll receive a refund of your contributions, minus a deduction for tax and national insurance, or you can opt for leaving service benefits or transfer the benefits to another suitable pension arrangement;
  • less than 2 years: you might be able to have a refund of your contributions minus a deduction for tax and national insurance, or you can opt for or leaving service benefits or transfer the benefits to another suitable pension arrangement;
  • more than 2 years: you’ll be entitled to leaving service benefits or you can transfer the benefits to another suitable pension arrangement.

If you're a member of the DC Plan and you've been paying in for more than 1 month, you'll be entitled to leaving service benefits or you can transfer your fund to another suitable pension arrangement.

To find out more information on calculation and payment of the benefits on leaving, take a look at our scheme specific pages.

You’ll receive a letter from the scheme once you’ve left. This will show the benefits you’ve built up while you were a member and will give details of any options available to you.

How to opt out

Our scheme specific pages will give you details on how to opt out of each scheme.

Because of pensions legislation, the University might have to put you back into a scheme in the future, but you’ll be told about this in advance.

Transfer option

You might be able to transfer the benefits you’ve built up to a new employer’s pension scheme or to a personal pension arrangement. The transfer value would be the capital value of your deferred benefits at the date you transfer.

Contact details

If you’ve got any queries or need any further information, contact details for the schemes are as follows:

If you’re a PAS scheme member, contact the Pensions department either by email or by post to Pensions Department, Level 11, Worsley Building, University of Leeds, Leeds, LS2 9LU.

If you’re in the DC Plan, you’ll need to contact The People's Pension.

If you’re a USS member, you should contact USS.

For NHS enquiries, contact NHS Pensions.

Pre-retirement course

There are no pre-retirement courses planned at present. This page will be updated once these recommence.

Retirement

There's no longer a specific age when the University will ask you to retire, but there are certain things you'll need to do if you're considering it.

The normal retirement age under the rules of USS, PAS and the DC Plan is 65, although you may continue to work at the University beyond this age. If you do decide to go on working, you’ll still pay pension contributions, the University will continue to pay employer contributions, and you’ll build up more benefits in the scheme until you do retire.

To get your pension benefits you:

  • must be over the age of 55;
  • can be any age if you've been granted an ill health retirement pension;
  • will need the approval of the University if you're in PAS and want to receive payment of your pension benefits before age 65.

USS and PAS: arranging for payment of your pension benefits

For both the USS and PAS schemes:

  • you need to leave the service of the University to access pension benefits;
  • you can ask for a retirement quote from the Pensions department before you make a final decision about your retirement date;
  • to retire you need to hand in your letter of resignation to your School/Service, giving the appropriate period of notice;
  • once you’ve decided what date you want to retire, you’ll need to let the Pensions department know and they’ll arrange for the payment of your benefits.

In addition, if you’re in the PAS scheme and you want to retire before you’re 65, you’ll need the University’s consent. Contact the Pensions department and they’ll make arrangements for the University to consider your retirement request; once it’s been agreed, you can decide what date you want to retire.

DC Plan: arranging for payment of your pension benefits

You can contact The People's Pension, who'll arrange for a quotation of benefits to be provided to you. You don’t have to leave the University to access these benefits, but you must be over age 55.

There’s more information on our DC Plan pages.

USS Flexible retirement

Under USS rules it is possible for you take a portion of your benefits as long as you also reduce the number of hours you work. You can take up to 80% of your benefits as long as you reduce your hours by at least 20%.

However, you need to have discussed the change in hours and had this agreed by your Head of School/Service before contacting USS about this, as it’s a change to your terms and conditions of employment and not an automatic right.

See the link below for more details about the flexible retirement benefits on the USS website.