Benefit Reforms

The 2014 SAUL actuarial valuation showed that the deficit in the scheme had increased since 2011. The SAUL Trustee asked the SAUL Negotiating Committee, made up of representatives from employers and unions, to consider how SAUL should respond to an increased deficit. The Negotiating Committee has proposed changes to SAUL and the Trustee has agreed the proposal.

Following conclusion of a consultation of affected members the following benefit reforms will be implemented from April 2016:
 
  • the SAUL Final Salary Plan will close on 31 March 2016 and all members will build up benefits on a CARE basis from 1 April 2016
  • the Final Salary link will be broken. If you have Final Salary benefits (including transfers into the CARE Plan) they will be calculated using your Pensionable Salary at 31 March 2016
  • members under age 65 who are affected by the salary link breaking, will get an enhancement to their pension
  • all SAUL members will build up a pension at an improved rate of 1/75th of their salary for each year they're in SAUL from 1 April 2016
  • employers will pay more into SAUL - the equivalent of 16% of members' salaries from 1 April 2016.
  • From 1 April 2016, SAUL will leave the public sector transfer club. This means:
  • members who joined before 1 April 2004 will be able to apply for a club transfer into SAUL up to 31 March 2017]
  • current members (and those joining before 1 April 2016) have one year from their date of joining to apply for a club transfer into SAUL
  • members who join from 1 April 2016 will not be able to transfer benefits into SAUL.
  • The changes also mean that, after 1 April 2016, members will no longer be able to combine benefits from previous periods of SAUL service. If you're eligible to combine benefits, you'll need to apply by 31 December 2015.
Further information on the 2014 valuation and the benefit changes to SAUL can be found here.