“The Plan” a “Money Purchase Pension Plan” and is a tax efficient way to save for your retirement. Membership is not compulsory, and you can cease membership at any time if you wish, but you will be enrolled automatically again in 3 years’ time.
When you are enrolled into “The Plan” an investment account is opened automatically in your name.
When enrolled, you start at a 4% pension contribution of your basic salary with a 6% employer contribution. This will be invested in the default investment fund or you can choose from a range of investment funds that are available to you. You have 3 months to change your contribution amounts to 5% or 6% with an employer match of 7% and 8% respectively. After your first three months, you are only able to change your level of contributions every April.
Your pension contributions are made under a salary sacrifice pension arrangement where the employer pays your pension contributions and your salary is reduced by this amount.
You may top up your retirement benefits by paying Additional Voluntary Contributions (AVC’s). You are free to contribute as much as want provided you have enough monthly pay to cover the AVC contributions. These are not deducted under salary sacrifice, but you still benefit from tax relief on these contributions. AVC’s can be used to provide cash or extra pension on retirement.
There is a 6 times your annual earnings death in service benefit. Please complete an Expression of Wish Form to help the Trustee decide who any death benefits should be paid to.
AVC’s are administered by Legal & General. Your AVC’s can be found at Manage your Account and AVC.
If you aren’t a member and wish to join, please email firstname.lastname@example.org.
For further scheme information, please refer to the UK Pension Plan Booklet and to dedicated FAQ page.