You will automatically become a member of the DC Section when you join the Company provided that you are aged at least 16 and are under age 74.
To encourage people to save for their retirement the Government requires employers to automatically enrol their UK workers into a workplace pension scheme. Legislation requires employers to operate a pension scheme that meets specific minimum requirements (a Qualifying Scheme).
Under the terms of your employment contract, you were enrolled into the DC Section from your first day of employment and you will not be required to do anything. If you do not meet the eligibility conditions for Automatic Enrolment and are not automatically enrolled, it may be possible for you to still join the DC section but you will need to contact your HR department.
You may, at any time increase, reduce or stop paying contributions. If you pay personal contributions the Company may pay additional contributions (known as Matching Employer Credits) of up to 5% of your Pensionable Pay. You can choose to pay higher contributions than this but they will not be matched by the Company. You can use the Contribution Calculator to understand the impact of you paying personal contributions.
You can choose not to pay personal contributions but remain an Active member of the DC Section. The Company will continue to pay 8% of to your Personal Account but you will not benefit from the additional Matching Employer Credit.
To opt out of paying the default 1% member contribution you should make this election on either PruSelect or GHOSelect. If you do not have access to these websites you can complete an Opting out of Paying the Default 1% Member Contribution Form.
The Contribution Calculator will help you decide what is the right level of contribution for you to pay.
Where your Personal Account is invested can have a significant impact on the value of your Personal Account you have available at retirement. Please refer to the Investments section for more information.
The Scheme provides a level of financial security for your loved ones. Any death benefit payment would not normally form part of your estate and therefore is not usually liable to inheritance tax. Although it is for the Trustee to decide who such benefits are paid to the Trustee will consider your wishes when deciding to whom the payment should be made. Please take the time to complete an Expression of Wish Form.
It is also very important that you update your Expression of Wish Form when your circumstances change – for example if you get married or have children.
If you join the DC Section and then decide it is not the right choice for you, you can leave at any time.
Please be aware that (as noted above) if you choose to opt out, because of Automatic Enrolment requirements the Company may be required to re-enrol you later (although you will be able to opt out again if you want).
You can choose to opt out of the Scheme by downloading and completing the Opting Out of The DC Section Form. Please be aware that:
If you opt out within one month of joining:
You will be treated as if you had never joined the Scheme. Any contributions paid by you will be refunded.
If you opt out more than one month after joining:
You must give the Trustee one month’s notice of your decision to opt out. You will be treated as having left the Scheme on the last day of the calendar month in which your notice expires, and will become a Deferred member.
Once you have opted out you can only ask to re-join the Scheme once in any 12-month period, unless you are automatically re-enrolled under the Automatic Enrolment legislation.
The following benefits will become payable:
The return of the value of any Personal Account you may have (if any) plus
A lump sum death benefit of four times Pensionable Pay at the date of death will be paid (unless you have elected not to be treated as a death benefit member of the DC Section).
Please be aware that no additional benefits will be secured for your Spouse, Civil Partner or Dependant(s).