Making contributions
When you join the DC Section you will automatically pay the default 1% member contribution. The Company will make pension contributions, known as Employer Credits, of 8% of your Pensionable Pay on your behalf. The Company will also pay Matching Employer Credits of 1% of your Pensionable Pay.
Use our Contribution Calculator to see what effect a change to your contribution level would have on your take home pay and the overall amount that is invested in your Personal Account, once tax savings and the effect of contribution matching are taken into account.
Employer Credits
The Company will make pension contributions, known as Employer Credits, of 8% of your Pensionable Pay monthly on your behalf.
This contribution will be paid regardless of whether you choose to pay any contributions or not.
Personal contributions
How much can I pay?
You can choose to pay personal contributions up to 100% of your Pensionable Pay.
Tax Relief
Personal contributions are normally deducted from your earnings before the calculation of income tax. This means that the actual cost to you will be less, as you will receive tax relief at your highest rate of tax on any contributions you choose to pay. You can use our Contribution Calculator to see the impact of different levels of personal contributions on your take home pay.
Important note: HM Revenue & Customs set limits as to how much you can contribute each year (the Annual Allowance) and the total you build up as pension savings (the Lifetime Allowance). You can find more information about these limits on the Limits and taxation page of this website. If you exceed these limits you will become liable to pay an additional tax charge.
Matching Employer Credits
If you choose to pay contributions, the Company may pay additional contributions that match the value of any contributions you make. This is subject to a maximum matching contribution of 5% of Pensionable Pay.
These additional Company contributions are called Matching Employer Credits.
The table below shows the total contribution that could be paid into your Personal Account if you choose to pay contributions.
|
Your Contributions |
Employer Credits |
Matching Employer Credits |
Total paid into your Personal Account |
|
6% (or above) |
8% |
5% |
19% (or above) |
|
5% |
8% |
5% |
18% |
|
4% |
8% |
4% |
16% |
|
3% |
8% |
3% |
14% |
|
2% |
8% |
2% |
12% |
|
1% |
8% |
1% |
10% |
|
0% |
8% |
0% |
8% |
Pensions Plus contributions
If you participate in Pensions Plus, your salary will be reduced by the amount of your Pensions Plus contributions. You and the Company may pay less in National Insurance contributions if you elect for Pensions Plus.
If you choose not to participate in Pensions Plus, your personal contributions will be deducted from your salary.
For more information please see the Pensions Plus Guide.
How do I change the contributions I pay?
At any stage you can increase, reduce or stop your personal contributions or Pensions Plus contributions via Workday.