PaySmart

This section answers the following questions:

Why is the Company introducing PaySmart?

The cost of providing a pension has risen significantly in recent years. PaySmart is a way for both members of the Lifestyle Plan and the Company to make savings in a way which is acceptable to HM Revenue & Customs. Your savings will increase your take-home pay, or you can use these savings to increase your pension contributions. The Company will use their saving on National Insurance to help pay for the improvements in its contributions.

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Do other companies operate similar arrangements?

Yes, including large employers like Tesco, Sainsburys, BT and Orange.

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Am I eligible for PaySmart?

Most Plan members are automatically eligible for PaySmart. However, PaySmart may have a negative impact on the entitlement to some State benefits for members who earn less than £6,000. For this reason, they are not automatically eligible for PaySmart, although they may participate at their request, having weighed up all the pros and cons.

Any members whose pay would be reduced below the National Minimum Wage as a result of PaySmart would also be excluded in order to comply with this requirement.

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Does PaySmart affect when I can change my level of contributions?

As you will benefit from National Insurance savings, HM Revenue & Customs requirements mean you can normally only change the amount you pay through PaySmart once a year. There are certain limited circumstances when it is possible to change your contributions more frequently.

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How much will I save after the introduction of PaySmart?

The personalised illustration sent to you by post shows the impact on your take-home pay of using PaySmart.

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How much will the Company save after the introduction of PaySmart?

The Company will save up to £0.5m a year in National Insurance contributions through PaySmart. It is using this saving to help fund the improvements in the contribution rates which it estimates will cost over £2m.

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FAQs