For periods after 31 May 2014, the amount you pay will depend on what accrual rate you chose.
If you decided to build up your pension entitlement at 1/60th of Final Pensionable Earnings each year after 31 May 2014, you will contribute 9% of DB Pensionable Salary into the Scheme.
If you decided to build up your pension entitlement at 1/80th of Final Pensionable Earnings each year after 31 May 2014, you will contribute 5% of DB Pensionable Salary into the Scheme.
Certain members may pay a different contribution rate to reflect their different terms and conditions.
Furthermore, the Company contributes to the Scheme as well as you. You pay a fixed rate and the Company pays the variable balance of the cost of providing benefits.
How are my contributions made?
Monthly deductions are made from your DB Pensionable Salary via salary sacrifice.
By paying by salary sacrifice, you make your contributions before Income Tax and National Insurance is applied. This means that you receive tax relief on the contribution that you are making and may also save in National Insurance contributions. Therefore, the overall cost of the contribution from you is reduced.
Can I pay more?
Yes, you can invest in what is known as Additional Voluntary Contributions (AVCs). AVCs are paid in addition to your main contributions and are not matched in any way by the Company.
You can choose where these funds are invested. A range of funds is available to suit your requirements.
AVCs will be paid into the L&G Mastertrust. For more information go to the L&G Mastertrust website. If you wish to pay AVCs you can do this via Wellness Hub.
At retirement, the AVC Pension Investment Account you have built up can be used to enhance the maximum cash lump sum of your DB benefits or can be used separately.