...does my Employer pay?

  • Your Employer will pay up to 10% of your Benefit Salary depending on how much you decide to contribute.
  • You are not taxed on the value of your Employer’s contributions.
  • Your Employer also provides for the cost of death-in-service and Incapacity benefits.

How much your Employer pays into your Pension Account depends on what level of Standard Contributions you choose to pay and is set out on the table below.

All the figures refer to your Benefit Salary.

Case Study:Tim is 25 and works for Metering. 

Tim earns £18,000 per annum (£1,500 per month).

He has chosen to pay pension contributions at 3%

This means he makes monthly contribution of £45 to his Pension Account, but thanks to the tax relief on contributions, Tim will actually only pay £36.

As Tim contributes 3%, his employer double-matches this to the tune of 6%, so in Tim's case this is equal to monthly contributions of £90. This £90 goes on top of what Tim's paying in himself.

So in reality, thanks to contributions by the taxman and his employer, Tim's Pension Account has £135 paid in per month, when in fact he's only paying £36 of that sum himself. 

 

Case Study:    Stephen is 22 and works for Administration. 

Stephen also earns £18,000 per annum (£1,500 per month).

However, he has chosen to pay pension contributions at 5%

This means he makes monthly contribution of £75 to his Pension Account, but thanks to the tax relief on contributions, Stephen will actually only pay £60.

As Stephen contributes 5%, his employer double-matches this to the tune of 10%, so in Stephen's case this is equal to monthly contributions of £150. This £150 goes on top of what Stephen's paying in himself.

So in reality, thanks to contributions by the taxman and his employer, Stephen's Pension Account has £225 paid in per month, when in fact he's only paying £60 of that sum himself.