Thanks A Million payments FAQs

1. How do I pay my Thanks A Million payment into the O2 Pension Plan?

It couldn't be easier. There are just four steps;

Join the O2 Pension Plan if you are not already a member.
Print out the form here.
Complete it, choosing your investments.
Send it to the Pension Centre at the address on the form by 31st January 2008. Late forms will not be accepted.

2. What happens to my Thanks A Million payment if I choose to put it into the O2 Pension Plan?

Your contribution is paid into the O2 Pension Plan and invested in accordance with your wishes until you retire. If you are a Section 1 member (in the defined contribution or 'money purchase' part of the Plan, who joined after April 2001), it will be invested with your other contributions.

For those in Section 2 and 3 (the defined benefit or ‘final salary’ part of the Plan that you joined before April 2001), your Thanks A Million payment will be put into an investment fund and invested in accordance with your instructions. This means it is invested as a ‘money purchase’ or defined contribution pot. If you already make Additional Voluntary Contributions (AVCs) then you’ll be familiar with this concept, however your Thanks A Million payment is slightly different and held separately from any AVC fund as it is classified as an employer contribution.

Whichever section of the 2 plans you belong to, on your retirement you can use the proceeds of the invested fund to buy a pension. You can also choose to take 25% of it as tax free cash. If you leave O2, subject to having at least 3 months service in the O2 Plan, you can transfer your fund to your new pension scheme (subject to the consent of the trustees of your new pension).

3. I just want to put part of my Thanks A Million payment into my O2 pension, can I do that?

Unfortunately not, it’s all or nothing. We are asking that you decide to put either the whole Thanks A Million payment into the O2 Plan or it’s all taken as a cash payment and not put into the O2 Plan at all.

4. Why isn’t my Thanks A Million payment tax free anyway?

The Thanks A Million payment is a payment in cash and therefore is subject to tax and NI in the same way as salary, bonuses, overtime payments, etc.

5. I get bonuses from O2, can I pay them as pension contributions?

No. O2 is always looking at ways to help improve choice for people, but right now this facility is not available.

6. I don’t want to pay my Thanks A Million payment into my pension this year but I’d like to with other future payments, can I?

No. It is not currently possible to put other types of payment into the O2 Pension Plan in this way.

7. Why do I have to make my decision without knowing the amount of the Thanks A Million payment?

The reason is timing. To make sure that the process works smoothly and the administration is all in place, we need you to make a decision early, before you know what your actual Thanks A Million payment is.

Most eligible employees can have a good idea of what their Thanks A Million payment will be - check out VitalO2 for the payment criteria click here.

8. I don’t know my APR rating yet. What happens if I find out in January that I am APR 4 and therefore won’t have a Thanks A Million payment?

If you want to take advantage of this offer we recommend you complete a form and send it to the Pensions Centre anyway. If it turns out that you do not qualify for the Thanks A Million payment because of your APR rating, then your form will not be processed.

9. What happens if I change my mind and decide not to put my Thanks A Million payment into my pension?

You can change your mind up until the end of January by submitting a revised form or contacting the Pension Centre in writing to cancel your previous instruction. After 31 January 2008 it will be too late - whatever instructions we have from you at that date will be actioned.

10. What about if I leave before the Thanks A Million payment date?

You will not receive your Thanks A Million payment, regardless of whether you have chosen to put it into pension or not.