Reforms in April 2016 introduced the new State Pension. Most people reaching State Pension Age this year won’t be entitled to the full amount. How much will your State Pension be?
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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.
Please select from section A, B or C
For members who joined the Scheme before 1 December 1971
For members who joined the Scheme before 1 December 1971 and 31 March 1986
For members who joined the Scheme on or from 1 April 1986 but before the Scheme closed on 31 March 2001