How do you put the NI saving towards your pension?

You can put the amount you save in National Insurance contributions towards your pension by paying a higher rate of contributions. Our example employee had NI savings of £110 a year, which means higher take-home pay by that amount.

Because of tax relief, the employee could opt to pay £164 into pension rather than extra take-home pay of £110.

The £164 would count as AVCs, so the Company would pay half as much agian - £82.

So we've turned a £110 NI saving into a total of £246 extra saving into pension!

You can do this by completing Section 4 of the Contributions Form (sent by post with your information pack - contact the Pensions Department if you need another copy).