At 1 April 2018:
- the contribution rate for the DB core element is set at 10% of DB core pensionable earnings*
- the default DC member contribution rate has been set at 7% of the DC top pensionable earnings
*DB core pensionable earnings is £20,000 as at 1 April 2018. This will increase to £20,420 from 1 April 2019.
You can amend what you pay into your DC pot at any time by completing the completing the online application form. You can pay between 3% and 7% into the pension scheme. The company will pay in double what you pay. You can pay more than 7% but this is classed as Additional Voluntary Contributions (AVCs) and is not matched by the Company.
Additional Voluntary Contributions (AVCs)
- You can change/commence AVCs by completing the online application form.
- You receive tax relief on AVCs and if you are in PensionSaver* you will also pay less national insurance so it may not cost as much as you think
- AVCs are added to your DC pot and treated like any other contribution
- The maximum that you can pay into the Scheme (and any other pension arrangement) on a tax efficient basis is restricted by the annual allowance. Please read the annual allowance leaflet for further information
*You can start/stop or amend your AVCs at any time. Any regular monthly AVCs will be made under PensionSaver if you are already in the PensionSaver scheme and make amendments on 1 April or due to a lifestyle event. If you pay a one off lump sum or change the amount and it is not because of a lifestyle event you will be opted out of PensionSaver on the AVC until the renewal date of 1st of April.