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Section A

What you pay

You pay 6% of your Pensionable Salary each pay period.

These payments are known as your pension contributions and are deducted from your pay automatically. You get full tax relief on your contributions (under current law).

For example, if your salary is taxed at the basic rate of 20%, each £1 you pay into the Scheme costs you 80p. If your salary is taxed at 40%, each £1 you pay into the Scheme costs you 60p, and if taxed at 45% each £1 paid into the Scheme costs you 55p.

You will not receive tax relief on any pension savings that exceed the Annual Allowance.

Alternatively, you can decide to make your contributions through Smart Pensions, which increases your take home pay without changing your pension benefits. For more information please refer to the Smart Pension section.

You stop paying contributions if you leave the Company or when you retire, whichever happens first.

You can find out more about Contributions and Tax relief by referring to the ‘Section A Member Booklet’ in the Document library.