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 2022
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 2022:
• 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.
Trustee policies on voting and engagement
The Trustee’s Statement of Investment Principles (SIP) in force at 31 March 2022 describes the Trustee’s policy on the exercise of rights (including voting rights) and engagement activities as follows:
Investment managers are expected to exercise rights and voting powers with the objective of preserving and enhancing long-term shareholder value. In addition to the exercise of rights and voting rights, investment managers are expected to engage with key stakeholders (which may include issuers of debt or equity, corporate management, regulators and governance bodies) relating to their underlying investments in order to improve corporate behaviours and governance, improve performance and social and environmental impact and to mitigate financial risks.
With the exception of the segregated Liability Driven Investment portfolio with Schroders (previously River & Mercantile), 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. As such, the Trustee has delegated responsibility for carrying out voting and engagement activities to the PAS’s investment managers.
Summary
The Trustee believes that its policies on voting and engagement have been met over the year. In particular:
- At the start of the year, the Trustee completed a review of the PAS’s Responsible Investment Policy, which included consideration of how Environmental, Social and Governance (ESG) issues are taken into account within the PAS’s investment strategy. This also included considering the extent to which the Trustee will seek to achieve consistency with the University’s Responsible Investment Policy.
- As part of a wider review of the PAS’s Equity Portfolio, and following the review of the PAS’s Responsible Investment Policy, the Trustee made investments in the LGIM RAFI Multi-Factor Climate Transition Fund and the LGIM ESG Paris Aligned World Equity Fund towards the end of the year. These investments were made to reflect the Trustee’s Responsible Investment Policy, in particular to address climate risk.
- The Trustee communicated the changes made to the PAS’s investment strategy to incorporate ESG as part of its annual newsletter and is committed to communicating its approach to ESG with members on a regular basis.
- 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 own 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 2021, to ensure this was in line with expectations. This involved considering ESG ratings provided by its investment consultant, as a measure of how the PAS's investment managers take account of ESG issues.
- As part of ongoing monitoring of the PAS’s investment managers, the Trustee uses ESG ratings information available within the pensions industry or 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 there are no direct challenges we propose to raise with any of the investment managers relating to their ESG or Stewardship activities. 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.
Towards the end of the year, the PAS made a number of changes to the funds within the Equity Portfolio, which involved disinvesting fully from some funds and making investments in new funds. This report does not show the voting and engagement activity of the new funds that the PAS invested in, as these investments were made towards the end of the reporting period. The Implementation Statement produced next year will include full reporting for the new funds.
Stewardship policy
The Trustee’s Statement of Investment Principles (SIP) in force as at 31 March 2022 describes the Trustee’s stewardship policy on the exercise of rights (including voting rights) and engagement activities. It was last reviewed in March 2022. The Trustee has delegated the exercise of rights attaching to investments, including voting rights and in undertaking engagement activities, to the PAS’s investment managers.
Voting activity over the year to 31 March 2022 | 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 2022.
| Manager | Legal and General (LGIM) | Ninety One Asset Management | First Eagle Investment Management | ||
| Fund name | LGIM UK Equity (5% Capped) Passive Fund | World (ex UK) Developed Equity Index Fund | Ninety One Global Core Equity Strategy | Ninety One Emerging Market Multi Asset (EMMA) Fund | First Eagle Amundi International 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 | 763 | 2,931 | 96 | 131 | 115 |
| Number of eligible votes | 10,720 | 34,024 | 1,284 | 1,443 | 1,653 |
| Percentage of resolutions voted | 100% | 100% | 97% | 94% | 92% |
| Percentage of resolutions abstained | 0% | 1% | 1% | 4% | 0% |
| Percentage of resolutions voted with management * | 93% | 79% | 90% | 90% | 97% |
| Percentage of resolutions voted against management * | 7% | 20% | 10% | 6% | 3% |
| Proxy voting advisor employed* | All three managers use 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 | 5% | 14% | 3% | 2% | 5% |
*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 2022 | 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, so for this Implementation Statement the Trustee has asked the investment managers to determine what they believe to be a “significant vote”. The PAS’s equity managers have provided a selection of votes which they believe to be significant, and in the interest of concise reporting a summary of some of the key votes provided by the investment managers is set out below, across environmental, social and governance issues.
Legal and General - Passive Equity funds
| Vote 1 | Vote 2 | Vote 3 | |
| Company name | Apple Inc | JD Sports Fashion Plc | Mitsubishi UFJ Financial Group, Inc. |
| Summary of the resolution | Report on Civil Rights Audit | Re-elect Peter Cowgill as Director | Amend Articles to Disclose Plan Outlining Company's Business Strategy to Align Investments with Goals of Paris Agreement |
| How the manager voted | For | Against | For |
| Rationale provided for the voting decision | LGIM supports proposals related to diversity and inclusion policies as they consider these issues to be a material risk to companies. | LGIM has a longstanding policy advocating for the separation of the roles of CEO and board chair. These two roles are substantially different, requiring distinct skills and experiences. Since 2020 they have voted against all combined board chair/CEO roles. | LGIM expects companies to be taking sufficient action on the key issue of climate change. |
| Outcome of the vote | 53.6% supported the resolution | 84.8% of shareholders supported the resolution | 22.7% of shareholders supported the resolution |
| 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. | LGIM will continue to engage on this important ESG issue. | |
| Criteria on which the vote is considered “significant” | LGIM views gender diversity as a financially material issue for their clients, with implications for the assets they manage on their behalf. | LGIM considers this vote to be significant as it is an example of them escalating their voting policy on the topic of the combination of the board chair and CEO. | LGIM views climate change as a financially material issue for clients, with implications for the assets they manage on their behalf. This was also a high-profile proposal in Japan, where climate-related shareholder proposals are still rare. |
Ninety One - Global Core Equity Fund
| Vote 1 | Vote 2 | Vote 3 | |
| Company name | Microsoft Corporation | AutoZone | Ferguson Plc |
| Summary of the resolution | Prohibit Sales of Facial Recognition Technology to All Government Entities | Report on Annual Climate Transition | Authorise UK Political Donations and Expenditure |
| How the manager voted | Against | For | For |
| Rationale provided for the voting decision | Ninety One believed that the vote against was warranted as there did not appear to be strong evidence to suggest that management and the board are neglecting a material risk, and the proposal’s request is overly prescriptive. | The requested report and targets will allow investors to better assess how the company is managing climate-related risks. | The Company states that it does not intend to make overtly political payments but is making this technical proposal in order to avoid inadvertent contravention of UK legislation. |
| Outcome of the vote | Passed | Passed | Passed |
| Criteria on which the vote is considered “significant” | Political vote | Thematic shareholder resolution (environment) | Political vote |
Ninety One - Emerging Market Multi Asset (EMMA) Fund
| Vote 1 | Vote 2 | Vote 3 | |
| Company name | Vale SA | Anglo American Plc | Fubon Financial Holding Co., Ltd. |
| Summary of the resolution | Approve Agreement to Absorb Companhia Paulista de Ferroligas (CPFL) and Valesul Aluminio S.A. (Valesul) | Approve Matters Relating to the Demerger of Thungela Resources Limited | Approve Merger of the Company and Jih Sun Financial Holding Co., Ltd. |
| How the manager voted | For | For | For |
| Rationale for the voting decision | Ninety One believe the vote was warranted because the company effectively owns 100% of its subsidiary. In addition, the absorption will not result in any transfer of cash or shares away from the company and the company has presented reasonable rationale for the transaction. | Ninety One believe that the strategic rationale provided by the board was compelling, noting the benefits of running the two businesses independently and enabling shareholders to tailor their desired exposure to thermal coal. Existing shareholders could still participate in the potential upside of the demerged business | A vote for the transaction was warranted as it was strategically sound and the pricing fell within the range advised by an independent valuer and was deemed reasonable. |
| Outcome of the vote | Passed | Passed | Passed |
| Criteria on which the vote is considered “significant” | Significant corporate transaction | ||
First Eagle - Amundi International Fund
| Vote 1 | Vote 2 | Vote 3 | |
| Company name | Danone | Microsoft | Colgate |
| Approximate size of Fund's holding as at the date of the vote (as % of portfolio) | 1.6% | 1.5% | 1.3% |
| Summary of the resolution | Re-elect Cecile Cabanis as Director | Report on Gender/Racial Pay Gap | Reduce ownership threshold for shareholders to call special meeting |
| How the manager voted | Against | Against | Against |
| Rationale for the voting decision | First Eagle opposed this director because her role at the company has been reduced and they do not understand the importance of her continued presence on the board. | First Eagle believe that the company's current disclosures, which address how the Company is monitoring and managing issues related to pay equity and gender representation throughout its organisation, are sufficient, and that disclosure of a potentially misleading figure could present significant risks for the Company with respect to its retaining, motivating, and attracting employees. | While First Eagle support a threshold lower than the current 25%, they felt that a 10% threshold does not incorporate enough of the shareholder base to support such action and the 10% threshold seemed excessive. |
| Outcome of the vote | Passed | Failed | Failed |
| Implications of the outcome | n/a | First Eagle will continue to monitor this issue. | n/a |
| Criteria on which the vote is considered “significant” | This was against the ISS’s recommendation and a top holding in the fund. | ||
First Eagle Amundi International Fund
| Vote 1 | Vote 2 | Vote 3 | |
| Company name | Exxon | Comcast | Richemont |
| Date of vote | 15 May 2020 | 2 June 2020 | 31 August 2020 |
| Summary of the resolution | Reduce Ownership Threshold for Shareholders to Call Special Meeting | Require Independent Board Chair | Re-elect Johann Rupert as Director and Board Chairman |
| How the manager voted | Against | Against | For |
| Rationale for the voting decision | Last year there was a proposal to reduce the ownership threshold for being able to call a vote to 10%. In response to this proposal, Exxon lowered the threshold from 25% to 15%. This was a substantial reduction, and the new level now compares favourably with direct peers. First Eagle believed the new proposal to lower the threshold to 10% was unnecessary given the efforts put forth by the board in response to the previous proposal, especially when compared with governance best practices. | A shareholder proposal submitted in 2020 requested that the company adopt a policy that the chair of the board be an independent director. First Eagle look at these situations on a case-by-case basis. In this case, Comcast has a lead independent director (Edward Breen) who is empowered to call meetings with all the other independent directors without the CEO present. First Eagle believe this is an effective counterbalance to a non-independent board chair. | ISS (the proxy voting service used by First Eagle) recommended voting against Johann Rupert because of the failure to establish a sufficiently independent board and because he holds an excessive number of mandates at listed companies. First Eagle believe that family-controlled businesses tend to invest with a 10- or 20-year time horizon concentrating on what they can do now to benefit the next generation and mitigate the downside risk. Richemont’s emphasis on patience, long-termism and financial prudence dovetails with First Eagle’s own investment philosophy and timeframe, so they supported Mr. Rupert in his re-election. |
| Outcome of the vote | Failed | No vote was reported because it was not presented at the annual meeting by the shareholder proponent and therefore, was not acted upon by the shareholders. However, if the shareholder proposal had been acted upon, this proposal would have been defeated by over a majority of the votes cast based on proxies delivered prior to the closing of the polls for the annual meeting | Passed |
| Criteria on which the vote is considered “significant” | First Eagle’s criteria for determining whether a vote is "significant" is whether engagement with the issuer in respect of corporate governance may have had an impact on the voting decision. First Eagle also take into consideration the size of the holding to determine whether a vote is "significant". | ||
Engagement activity over the year to 31 March 2022
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 LDI 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 Asset Management | Ninety One Asset Management | First Eagle Investment Management |
| Fund name | LGIM passive equity funds | Ninety One Global Core Equity | Ninety One EMMA | First Eagle Amundi International |
| 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 | n/a* | 52 | 33** | 250 |
| Number of engagements undertaken at a firm level in the year | 696 | 337 | 337 | 1,062 |
*LGIM did not provide fund level engagement figures for their passive equity funds. This is because they carry out engagement across all passive equity holdings together, rather than carrying out engagement separately for each individual fund.
**This figure reflects engagement with the wider emerging market universe, not just the Fund’s holdings.
Engagement overview | Non-Equity Growth Portfolio
| Manager | M&G | Mercer** | Willis Towers Watson | Cairn | Janus Henderson*** |
| Fund name | Real Estate Debt (RED) Funds II, III, 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 | No | Yes |
| Number of engagements undertaken on behalf of the holdings in this fund in the year | n/a* | Not tracked | 48 | n/a* | 117 |
| Number of engagements undertaken at a firm level in the year | 179 | Not tracked | 150 | 34 | 686 |
*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 2021.
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
If you're considering retirement, it might help you to attend one of the University's pre-retirement courses.
The Pensions department runs a half day pre-retirement course twice a year, usually in March and September, to help you plan for your retirement, and all members of staff who are over the age of 60 are invited to attend because it’s a useful planning tool in the run up to retirement.
The course covers:
- Health & wellbeing in retirement
- University pension benefits
- State pension benefits
- Financial matters
Places are limited so, once you receive your invitation, send your acceptance form back as soon as possible to reserve a place. You’ll only be able to attend the course once.
If you’re retiring before the age of 60, you’ll need to let the Pensions department know because you won’t automatically be invited.
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.