For employees who joined the Scheme before 1 February 2013, the contribution rate options are:
|
Your Contribution |
Your Employer's Contribution |
Total saved |
|---|---|---|
|
4% |
6% |
10% |
|
5% |
8% |
13% |
|
6% |
10% |
16% |
If you want to change your contribution rate, you will need to complete a Contribution change form which can be downloaded here. The completed form should then be sent to your Payroll Department.
To help you understand how your contributions are calculated, please see below for an example in pounds and pence based on your highest rate of income tax.
If you pay tax at the current basic rate of 20%, we have provided an example of how contributions are calculated based on a salary of £21,000.
|
Your annual earnings are |
£21,000 |
|---|---|
|
So, your monthly earnings are |
£1,750 |
|
Your contribution of 4% before tax relief is |
£70 |
|
Add in 6% contribution from your employer |
£105 |
|---|
|
Equals: the total paid each month into the Pension Scheme for you |
£175 |
|---|
But, the actual cost to you is lower than £70
|
Part of your contribution is your tax relief |
£70 - £14 |
|---|
|
So, the real estimated monthly cost to you is |
£56 |
|---|
You do have the option to pay more than 4% into your pension if you wish, which would increase the contribution you receive from the Company.
When thinking about how much you wish to contribute to the Scheme, it is important to consider the pension tax limits in place. For further information on tax limits, please click here.
If you pay tax at the current higher rate of 40%, we have provided an example of how contributions are calculated based on a salary of £60,000.
|
Your annual earnings are |
£60,000 |
|---|---|
|
So, your monthly earnings are |
£5,000 |
|
Your contribution of 4% before tax relief is |
£200 |
|
Add in 6% contribution from your employer |
£300 |
|---|
|
Equals: the total paid each month into the Pension Scheme for you |
£500 |
|---|
But, the actual cost to you is lower than £200
|
Part of your contribution is your tax relief |
£200 - £80 |
|---|
|
So, the real monthly cost to you is |
£120 |
|---|
You do have the option to pay more than 4% into your pension if you wish, which would increase the contribution you receive from the Company.
When thinking about how much you wish to contribute to the Scheme, it is important to consider the pension tax limits in place. For further information on tax limits, please click here.
If you pay tax at the current additional rate of 45%, we have provided an example of how contributions are calculated based on a salary of £126,000.
|
Your annual earnings are |
£126,000 |
|---|---|
|
So, your monthly earnings are |
£10,500 |
|
Your contribution of 4% before tax relief is |
£420 |
|
Add in 6% contribution from your employer |
£630 |
|---|
|
Equals: the total paid each month into the Pension Scheme for you |
£1,050 |
|---|
But, the actual cost to you is lower than £420
|
Part of your contribution is your tax relief |
£420 - £189 |
|---|
|
So, the monthly cost to you is |
£231 |
|---|
You do have the option to pay more than 4% into your pension if you wish, which would increase the contribution you receive from the Company.
When thinking about how much you wish to contribute to the Scheme, it is important to consider the pension tax limits in place. For further information on tax limits, please click here.