From January 2016 you can give your Pension a Boost through our 'Income Booster' option. This allows you to contribute a lump sum into your Pension to 'top up' your 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 email@example.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.
- 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 attract 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).
- Any income booster payment would be treated the same as your savings in the Telefónica Pension Plan.
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.
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 between 0% and 100% of your bonus into your Pension.
The Pension team will issue internal communications with more information shortly before the Bonus Sacrafice window opens. The bonus sacrifice initiative is also only open to contributing members of the Telefónica Pension Plan who are part of our Managerial population. Note that this page doesn't guarantee entitlement to a bonus, or any level of payment.