What does it cost?


Currently, you pay 5.5% of your Pensionable Salary, and the Company pays the bulk of the cost of providing your benefits from the Scheme.

Tax advantages

  • Because of tax-relief, the cost of paying into the Scheme is not as high as you might think and if you participate in Pensions Plus you also save on National Insurance contributions.
  • Under current tax rules, any contributions you pay to your pension up to 100% of your earnings will receive tax-relief (subject to the Annual Allowance).
  • If you are a basic rate taxpayer, this means that for every £1 you contribute to the Scheme, you only pay 80p. If you are a higher rate taxpayer you only pay 60p for every £1 you contribute.

Pensions Plus - Important Note

You have the opportunity to make pension contributions through Pensions Plus. This arrangement can reduce the level of National Insurance contributions you pay, therefore reducing the cost of your Scheme membership. You continue to benefit from tax-relief on your Scheme contributions at the highest rate you pay.

Through Pensions Plus, you do not make contributions to the Scheme. Instead, your Total Gross Pay is reduced by the amount of your Scheme contributions each month known as your Pensions Plus adjustment. The Company then pays an additional contribution equal to your Pensions Plus adjustment straight into the Scheme. This is on top of the Company’s normal contribution payable for you.

If you participate in Pensions Plus, references to member contributions will not apply to you. Contributions payable to the Scheme will be made on your behalf as described above.

For more information about Pensions Plus please refer to the Pensions Plus Guide by clicking here.

If you chose not to participate in Pensions Plus, your member contributions will continue to be deducted from your pay via a deduction from your Total Gross Pay and you will pay National Insurance contributions on your member contributions.

If you wish to participate in Pensions Plus please contact 1HR Direct by dialing 147 (internal) or 0141 614 9980 (external) for details.