Can I pay more?

You can choose to save more for your retirement. Pensions are a tax-efficient way to do this as you receive tax-relief on your contributions. In the Scheme you can choose from the following two options.

1. Added Years 

If you are a ScottishPower or ESPS member you can, with the Trustee’s consent, buy Added Years of pensionable service within the Scheme. When you retire, the additional years and days that you have purchased with your extra contributions will be added to your pensionable service to provide benefits linked to your pensionable salary. You can pay up to 10% of your earnings each year to buy Added Years of service. If you stop paying these contributions before you have finished paying for your Added Years, only the part you have paid for will count towards your benefits.

To find out more about this option please contact the pension scheme administrator.

2. 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 arrangement which means that your contributions are paid into your own account and invested in the funds that you choose. The amount you have to use at retirement will depend on how much you have saved and the investment returns you have made. You can use your savings to buy a pension, provide a cash lump sum, or leave them invested and draw an income from them. Please contact the pension scheme administrator, for more information. 

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. 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