Paying nothing?

If you don’t pay anything to the Plan, the Company will continue to contribute at the fixed rate of 2.5% of pensionable earnings to the Plan on your behalf, as now. Unless you start paying contributions, you’ll be missing out on the improvements.

Our example employee is aged under 40, earns £20,000 a year and pays nothing. The Company pays 2.5% of £20,000, which is £500 a year, into their Lifestyle Account.

This amount does not change as a result of the improvements.

But by starting contributions, our example employee could have £1,300 a year going into their account at a cost to the employee of less than £1 a day.

Here's how:

If the employee pays at the half-rate, that would be 2.5% x £20,000 = £500, but after tax relief the annual cost would be £335, not even £1 a day.

The Company would pay 4% x £20,000 = £800.

Take a look at the pension calculator to see how you could benefit.

You can start paying contributions by filling in the Contributions Form (sent by post with your information pack - contact the Pensions Department if you need another copy).