Company contributions
The Company's contribution rate will depend on your Employment Band and how much you pay in, but we will pay in at least much as you do, up to 6% of your Retirement Savings Pay. (If you don’t know what Band you’re in, your line manager will be able to tell you.)
- If you’re in Band A…
- your employer will match your contributions up to a maximum of 6%.
If you pay in 3%, your employer will pay in 3%. If you pay in 6%, your employer will pay in 6%. If you pay in 7%, your employer will still pay in 6%. Once you have completed three continuous years of Plan membership, and provided you are paying at least 6%, your employer will increase their contribution to 7%.
- If you’re in Band B…
- your employer will DOUBLE-match your contributions up to a maximum of 6%.
If you pay in 3%, your employer will pay in 6%. If you pay in 6%, your employer will pay in 12%. If you pay in 7%, your employer will still pay in 12%.
- If you’re in Band C…
- your employer will pay in two-and-a-half times as much as you do, up to a maximum of 6%.
If you pay in 3%, your employer will pay in 7.5% (3x2.5). If you pay in 6%, your employer will pay in 15% (6x2.5). If you pay in 7%, your employer will still pay in 15%.
There’s more information about the contribution rates in the scheme guide.
Tax relief
Tax relief on your contributions means that for every £100 you want to save, you only pay £80. Tax relief of £20 is then added by HM Revenue & Customs (HMRC), topping your contribution up to £100. If you are a higher-rate taxpayer you may be able to claim additional tax relief.
SMART
Your contributions are automatically paid through SMART. This is a way of making pension contributions that means you (and your employer) pay lower National Insurance (NI) contributions.
There are some people who won’t benefit from paying pension contributions through SMART; we will take them out of SMART and they will pay contributions using traditional payroll deduction.
You can find out more about contributions and SMART in the scheme guide, or take look at our Q&A section to see some common questions about SMART.