The Plan is a partnership between you and your employer. You have an Account to which both you and your employer pay contributions and you benefit from the current tax relief and exemptions on your savings (subject to your Annual and Lifetime Allowance). Contributions are based on your basic salary subject to the Plan Earnings Cap (currently capped at £132,700 per annum).
How much does the employer contribute? (Standard terms for new entrants)
The amount your employer pays depends on how much you choose to pay.
The minimum contribution you must pay is 5% of your basic salary (currently capped at £132,700 per annum). Your employer's minimum contribution is equal to 7% of your basic salary (currently capped at £132,700 per annum).
The employer currently also pays for the cost of the life assurance premiums and administration costs (excluding investment management charges).
You can attract higher employer contributions by paying Additional Regular Contributions (ARCs). Your employer will match each additional 1% (whole percentages only) you pay, up to a maximum of 3%. This brings your total employer contribution up to 10% of basic salary, if you pay 8%.
You may opt to pay by deduction from your pay and receive tax relief at your highest marginal rate on your contributions being or you will normally be automatically enrolled as a member under "Salary Swap" and the employer will pay the total contribution due on your behalf.
Former Carillion 2009 Pension Plan Members
Details of your contribution rates can be found in the 'Choices guide' issued to you by your employer or by contacting JLT Employee Benefits ("JLT"), the Plan administrator.
This is a contractual arrangement between you and your employer. If you do not want it to apply, you need to tick the opt-out box on the application form when joining the Plan.
Any queries over Salary Swap should be addressed to AskHR. This is not a provision under the Plan Rules.
Tax Relief (if you opt out of Salary Swap)
Your contributions are taken from your salary before tax is deducted. You will benefit from tax relief at your highest marginal rate as long as the total value of all your savings under registered pension arrangements (excluding State pensions) is within your Annual Allowance and you have taxable UK earnings.
Further details can be found at www.gov.uk/government/organisations/hm-revenue-customs
Can I pay more than 8% of basic salary?
You can choose to pay more than this. These contributions are known as Additional Regular Contributions (ARCs) if you agree to pay them for at least a year at a fixed rate or Additional Voluntary Contributions (AVCs) if you pay them occasionally. Your employer will not contribute more than 10%.
In addition, or as an alternative, you can pay into any registered pension scheme alongside your Plan pension. Members are recommended to consider seeking independent financial advice over their savings options.
Normally you can only change your standard rate of contribution and any ARCs once a year at 1 April (only) on the payroll, however the Head of Reward can consider any requests for mid-year changes and authorise these, when appropriate. If you want to change your contribution rates please complete a "changing contributions" form and send this to Core HR at Carillion House, 84 Salop Street, Wolverhampton WV3 0SR.
Please contact the administrators for a copy of the changing contributions form.
Plan Earnings Cap
Your contributions to the Plan are limited by the Plan Earnings Cap. The current Plan Earnings Cap is £132,700 per annum.
The Plan Earnings Cap is kept under review and is determined by the Company.
Control Version: 26 April 2017