The rules differ for participation in action short of a strike (ASOS) and strike days, depending on which pension scheme you are a member of, as explained below:
USS
ASOS
There is no impact on pension contributions where an employee participates in ASOS which the University does not consider to be a breach of contract. Full pay would be maintained and normal pension contributions would be paid by both the employee and the University.
If an employee participates in ASOS which the University considers to be a breach of contract and withholds a percentage of an employee’s pay, then both the employee’s pension contributions and the University’s pension contributions will be based on the actual (lower) pay received. This will mean that the pension you build up on those days would be lower than it would otherwise have been if you had not participated in the ASOS.
For example, if an employee taking part in ASOS receives 75% of their normal pay because the University has withheld 25% due to undertaking ASOS which the University considers to be a breach of contract, then both the employee’s contributions and the University’s contributions will be made on the 75% of pay received.
We are awaiting confirmation from USS as to what impact the partial withholding of pay on any days of ASOS would have on the death benefits payable and will update this guidance in due course.
Strike days
You can choose to maintain your pension contributions to USS in respect of any day(s) spent on strike if you want to, and if you choose to do so, then the University will maintain its contributions in respect of those days too.
However, accompanying this is a requirement that the University must have your consent to continue your employee contributions in respect of days you are on strike. Without your consent, we cannot make deductions for your contributions and we cannot make our employer contributions. This means that if you do not agree to continue making your employee contributions, you will not accrue benefits in the scheme for the days when you are on strike, although you will still be covered for death in service and incapacity benefits on those days, as long as the total period of absence does not exceed 31 days.
By default, if you participate in the strike but do not confirm on the participation form that you wish to maintain your contributions, your contributions will be suspended. Death in service and incapacity benefits will remain in place for scheme members regardless of whether pension contributions are being made for the days spent on strike as long as the total period of absence does not exceed 31 days. The USS Trustee has reserved the right to review their position on maintaining the provision of death in service and incapacity cover during strike days where no contributions are paid.
University of York Pension Fund
ASOS
There is no impact on pension contributions where an employee participates in ASOS which the University does not consider to be a breach of contract. Full pay would be maintained and normal pension contributions would be paid by both the employee and the University.
If an employee participates in ASOS which the University considers to be a breach of contract and withholds a percentage of an employee’s pay, then both the employee’s pension contributions and the University’s pension contributions will be based on the normal (full) pay that would have usually been received. This will mean that the pension you build up on those days would be unaffected by participating in the ASOS.
For example, if an employee taking part in ASOS receives 75% of their normal pay because the University has withheld 25% due to undertaking ASOS which the University considers to be a breach of contract, then both the employee’s contributions and the University’s contributions will be made on the 100% of pay that would have usually been received.
You do have the choice to fully suspend your pension contributions on days where pay is partially withheld due to ASOS and further information on how to do this will be provided at the time.
Should you die while participating in ASOS for any days where pay is withheld, as pension contributions would be maintained at their full rate, the usual death in service lump sum would be payable. This would be three times your actual salary as at your date of death, unless you are aged 65 or over, in which case it would be five times your accrued annual pension. Any dependant’s benefits due would also be paid at their usual rate.
Strike days
If you are a member of the University of York Pension Fund and participate in strike action, then you will continue to pay the contributions that you would have paid were it not for participating in the strike action (including any AVCs). You will build up membership in the normal way and be covered for death in service benefits should you die while taking strike action.
You can choose not to pay pension contributions for the period that you are participating in strike action. If you choose not to pay contributions for the day(s) that you participate in strike action, you will not build up membership of the scheme. If you are paying added years AVCs, these payments will permanently cease and you will not have any opportunity to restart those payments again in the future. Your added years AVC membership would be calculated pro-rata. You will still be treated as an active member for the purposes of calculating any death benefits, including any death in service lump sum.
By default, if you participate in the strike but do not confirm that you wish to suspend your contributions, your contributions will be maintained.
When completing the participation form, you will be asked whether you want to make pension contributions in respect of days when you are on strike, or not.
NHS Pension Scheme
ASOS
There is no impact on pension contributions where an employee participates in ASOS which the University does not consider to be a breach of contract. Full pay would be maintained and normal pension contributions would be paid by both the employee and the University.
If an employee participates in ASOS which the University considers to be a breach of contract and withholds a percentage of an employee’s pay, then neither the employee nor the University will pay pension contributions for the full day. This will mean that the pension you build up would be lower than it would otherwise have been if you had not participated in the ASOS.
For example if an employee taking part in ASOS receives 75% of their normal pay because the University has withheld 25% due to undertaking ASOS which the University considers to be a breach of contract, then both the employee and the University will make 0% contributions on those days.
Should you die while participating in ASOS for any days where no pension contributions are paid, you would still be treated as an active member of the scheme for the purposes of calculating death benefits, so a death in service lump sum would still be payable. This would be two times your pay received during the previous year. The death in service lump sum would therefore be marginally smaller than it otherwise would have been because of no contributions being paid during any days where ASOS was taken which the University considered to be a breach of contract. Any dependant’s benefits payable would also be slightly lower than would otherwise be the case because of the impact of the reduced membership.
Strike days
If you are a member of NHS Pensions and participate in strike action, the NHS Pension Scheme does not allow you to pay pension contributions in respect of the days spent on strike. In the NHS Pension Scheme, strike days are non-pensionable and no membership is built up in the scheme.
Should you die while participating in strike action, you would still be treated as an active member of the scheme for the purposes of calculating death benefits, so a death in service lump sum would still be payable. This would be two times your pay received during the previous year. The death in service lump sum would therefore be marginally smaller than it otherwise would have been because of no contributions being paid during any strike days. Any dependant’s benefits payable would also be slightly lower than would otherwise be the case because of the impact of the reduced membership.
The People’s Pension (TPP)
ASOS
There is no impact on pension contributions where an employee participates in ASOS which the University does not consider to be a breach of contract. Full pay would be maintained and normal pension contributions would be paid by both the employee and the University.
If an employee participates in ASOS which the University considers to be a breach of contract and withholds a percentage of an employee’s pay, then both the employee’s pension contributions and the University’s pension contributions will be based on the actual (lower) pay received. This will mean that your pension pot will be smaller than it would otherwise have been if you had not participated in the ASOS.
For example if an employee taking part in ASOS receives 75% of their normal pay because the University has withheld 25% due to undertaking ASOS which the University considers to be a breach of contract, then both the employee’s contributions and the University’s contributions will be made on the 75% of pay received.
The death in service cover provided by TPP will be the same irrespective of whether or not you receive lower pay as a result of ASOS which the University considers to be a breach of contract.
Strike days
If you are contributing to TPP and participate in strike action, then neither you nor the University will pay contributions in respect of any days for which you are on strike. This will mean that your pension pot will be smaller than it would otherwise have been if you had not participated in the strike action. The death in service cover provided by TPP will be the same irrespective of whether or not you are on strike.