There are many ways in which you can save extra in a flexible and tax-efficient way to boost your retirement benefits:
Added Years
You can, with the Trustee's consent, buy Added Years of Pensionable Service within the Scheme that count towards your pension benefits. When you retire, the additional years and days of Pensionable Service that you have purchased with your extra contributions will be added to your Pensionable Service to provide benefits linked to your Pensionable Salary.
You cannot pay more than 9.5% of your Pensionable Salary each year to buy Added Years. If you stop paying these contributions before you have finished paying for your Added Years, they will be reduced accordingly. You can find out more about this option and get a quote by contacting the pension scheme administrator whose contact details can be found by clicking here.
Paying extra contributions into the Iberdrola Group UK Stakeholder Pension Plan
If you wish, you can pay additional contributions into the Iberdrola Group UK Stakeholder Pensions Plan with Fidelity. This is a Defined Contribution (DC) arrangement and the options available at retirement will be different to those from the ESPS Manweb Pension Scheme. Fidelity will outline the various options that will be available to you at that time, including taking a cash sum or using your account to purchase an annuity. For more information on paying additional contributions, please contact 1HR Direct by emailing 1HR Direct on YourHRTeam@scottishpower.com or starting a live chat through the HR portal.
Is there a maximum that I can contribute to the Scheme?
You can pay tax-free contributions up to 100% of your taxable earnings each year, subject to annual allowance limits set by HMRC.
The Annual Allowance is set at £40,000 per year, and applies to all your pension savings. If you have taxable income over £200,000, you may be subject to a reduced Annual Allowance. If your pension in the Scheme increases above the level of the Annual Allowance in any year, a tax charge will be payable. We will let you know if this is the case. You can request that the Scheme pay this charge in exchange for a reduction in your overall benefits. The pension scheme administrator will let you know if this is the case. You can request that the Scheme pay this charge in exchange for a reduction in your overall benefits. You can find out more about the Annual Allowance at www.gov.uk/tax-on-your-private-pension/annual-allowance