- Your employer will make a contribution of 10% of your Pensionable Earnings (2012) into your Member Account.
- Your contribution will be deducted automatically from your earnings and tax relief is received at your highest rate on any pension contributions up to the Annual Allowance limit.
- If you choose, your contributions may be met through salary sacrifice; this is called "SMART Pension". Your basic salary will be reduced, currently by 6%, and your employer will pay an equivalent amount as an employer contribution to the Scheme on your behalf. Because your salary is lower you will usually pay lower National Insurance contributions.
- The income tax you pay will be unaffected by SMART Pension. This is because income tax is always applied to earnings after any pension contributions have been deducted.
- For some members (e.g. those on low pay or receiving State benefits) SMART Pension may be disadvantageous. If you want to know more about SMART Pension, you should contact your Human Resources representative.
- "Top-Up Contributions (TUCs)" are available to those employee members who wish to top up their Scheme benefits by way of additional voluntary contributions. TUCs are not payable under SMART Pension arrangements. If you are interested in joining the Scheme's TUCs arrangement and require further information you can access the DC members' TUCs application form here.