AVCs (Income booster) and Bonus Sacrifice

 

From January 2016 you can give your Pension a Boost through our 'Income Booster' option, this effectively allows you to contribute a lump sum into your Pension. Our 'Income Booster' option refers to contributions you can make in addition to your normal Pension contributions, effectively allowing you to 'top up' your Pension savings for your retirement.

 

What are the benefits to you?

If you take advantage of the 'income booster' option you benefit from:

  • Tax relief on your contributions (within HMRC limits);
  • Funds accumulate free of income tax and capital gains tax; and
  • Upon retirement, 25% of your overall Telefónica benefits, including your 'income booster', may be taken as a tax-free lump sum (capped at 25% of the Lifetime Allowance).

 

How can you take advantage of this option and make an income booster payment?

Simply email Telefónica Rewards at tefrewards@conduent.com and outline how much you would like to boost into your Telefónica Pension. You may also wish to specify the date you would like this payment to take effect.  

 

Please note:

  • Monetary amount must be in £1 denominations.
  • As the income booster payment is a non-salary exchange option you would not benefit from any National Insurance Contribution savings.
  • An income booster payment doesn’t trigger any additional company contributions.
  • Any income booster payment request would be a one off payment and would cease for the following month.
  • Any income booster payment cannot exceed National Minimum Wage legislation or your other financial commitments such as your National Insurance Contributions (for any particular month).
  • Reductions will commence at the next available pay date; and
  • Income booster payments can be increased at any time.
  • Any income booster payment would be invested in the same fund as your regular Telefónica Defined Contribution (DC) savings plan.
  • Any income booster payment would not be treated any differently to any other savings you've made into the Telefónica Pension Plan when it comes to withdrawing or transferring your savings.

 

The terms of the income booster payment facility are subject to the Telefónica Rules and HMRC regulations, which will prevail if there is any conflict with the information on this website.  If you're unsure about any aspect of investing your income booster payment into the Telefónica Pension Plan, you should seek independent financial advice.

 

Bonus Sacrifice

Over the past few years in February we have allowed our eligible population to sacrifice their annual March bonus into their Pension Plan. You can allocate a % of your bonus into your Pension Plan or the full amount. As this payment is then classed as a one-off employer contribution you would pay no Income Tax or National Insurance Contributions on this investment, consequently your retirement account would receive the full gross amount of any bonus you give up.

 

When the Bonus Sacrifice window is approaching and assuming you're eligible, the Pension's team will be in touch before the window opens to explain more. The payment of any bonus is always subject to the Managerial Annual Bonus Scheme Rules. This page doesn’t guarantee entitlement to a bonus, or any level of payment. The bonus sacrifice initiative is also only open to contributing members of the Telefónica Pension Plan who are part of our Managerial population.

 

You can request to receive between 0 and 100% of your bonus as a one-off employer pension contribution in to the Plan. You’ll need to log into the same website where you make your flexible benefit choices (www.telefonicarewards.com), from this you enter the % of your bonus that you wish to receive via bonus sacrifice. You will have to make a choice on whether you would like to sacrifice your bonus before you know the value of your bonus, which may be zero, so we won’t be able to tell you the monetary value of any bonus sacrifice. Instead, you will have to wait until you’ve been told your bonus to calculate the true value. For the avoidance of any doubt, any % that you sacrifice will then not be paid through payroll.