WHAT ARE THE Benefits of being a member OF THE TELEFÓNICA PENSION PLAN?

 

We know the majority of our employees are taking advantage of Telefónica's free employer contributions but if you're not already a member of the Telefónica Pension Plan did you know you can join at any point by visiting Telefónica Rewards? Alternatively, if you have already joined the Telefónica Pension Plan through auto-enrolment you can use Telefónica Rewards to increase your monthly contributions.

 

What other benefits can I receive by being a member of the Telefónica Pension Plan?

Being a member of the Telefónica UK Pension Plan brings a range of benefits for both you and your dependants. Not only do you build a Pension pot for your retirement but you also become entitled to a range of other benefits such as the following:

 

Sick pay/ Income Protection

Every employee is eligible for twelve months’ sick pay from Telefónica regardless of whether or not they are in the Telefónica Pension Plan. Our sick pay covers six months at full pay and six months at half pay.
 

By joining the Telefónica Pension Plan you also become a member of our Income Protection scheme which is set up to provide additional sick pay should you exhaust your initial twelve months of Telefónica sick pay (subject to eligibility criteria, medical assessment within a rolling four year period).

 

Our income protection scheme provides an additional two years of sick pay at half pay and then, if you still cannot come back to work and continue to meet the eligibility criteria, you can leave Telefónica with a 1x basic salary lump sum. 

 

Please note, this insured policy is only available for employees who are contributing members of Telefónica UK Pension Plan. You won't be eligible for any income protection if you opt-out of the Telefónica UK Pension Plan (even if you choose to re-join the Telefónica UK Pension Plan at a later date). For more information on the implications of opting out of the Plan please click here

 

Life Assurance

 

As a member of the Telefónica UK Pension Plan you will also receive enhanced employer funded life assurance cover. From March 2013 any new members to the Plan will receive cover paid by Telefónica of 5x your basic salary. Please note you can increase this level of cover during our flexible benefits window, click here to find out more. Non-Pension members would still receive employer funded life assurance cover but this would reduce to an overall cover of 2x your basic salary.

 

Type of member Employer Funded Lump sum Dependant's position
Non-members 2 x basic salary None
Core DC members who joined after March 2013 (auto-enrolled)
5 x basic salary None
Core DC members who joined before March 2013
 
Employees who joined the Telefónica UK Pension Plan within their first 12 months of employment or during a special enrolment window
3 x basic salary 30% of basic salary
Core DC members who joined before March 2013
 
Employees who joined the Telefónica UK Pension Plan after their first 12 months of employment
2 x basic salary None
Ex-final salary members
4 x pensionable pay
30% of pensionable pay
 
50% of deferred final salary Pension

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax advantages of the Plan

The Plan is a registered Pension scheme under the Finance Act 2004. This results in the following tax advantages.

 

  • Both your contributions and those of Telefónica qualify for some tax relief.
  • Your lump sum payable at retirement is tax-free.
  • Tax advantages in respect of the Plan’s investment income and capital gains.

 

Members of the Telefónica UK Pension Plan who make their contributions through salary sacrifice (our default option) are likely to save on National Insurance Contributions. Any Pension contributions are also made before any income tax is deducted from your pay, so a £1 investment in your Pension is even less than £1 of your take home pay.