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• Making Contributions

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Making contributions

As a member of the Plan, you pay contributions at the rate of 6% of your Plan Salary until you have completed 40 years of pensionable service.

Whilst contributions are expressed as 6% of your Plan Salary, the actual effect on your pay is reduced because you receive tax relief on your contributions. As the Plan is "contracted out" of the State Second Pension (S2P) National Insurance Contributions (NIC) are also charged at a lower rate.

Example

• A member is 30 with a Plan Salary of £20,000 and a monthly pay (gross) of £1,667
• At 6% contribution (gross) (£100.00), less basic rate tax relief of 20% (£20.00)
• As members of Section 2 and 3 are contracted out (see above) the member saves National Insurance of £17.78
• Member chooses to Salary Sacrifice making a further National Insurance Saving of £9.40
• The "true" cost to the member is £52.82

The Company meets the balance of the cost of providing the benefits you and your Dependants are earning under the Plan. The Company Contribution rate is decided by the Company, after having obtained advice of the Plan Actuary.