By being a member of the Telefónica Pension Plan you don't just benefit from additional employer contributions and tax advantages, you can also benefit from increased employer funded Life Assurance cover.
Telefónica Life Assurance benefit offers you the peace of mind that your beneficiaries will have some protection in the event of your death. Telefónica provides all current employees with a core benefit as a multiple of your salary.
The below table shows the level of employer funded Life Assurance cover:
|Type of Member||Employer funded lump sum||Dependant's Pension|
|Defined Contribution (DC) Pension Plan Members who joined post March 2013||5x Basic Salary||None|
|DC Pension Plan Members who joined pre March 2013 (employees who joined the Telefónica UK Pension Plan within their first months of employment or during a special enrolment window||3x* Basic Salary||30% of Basic Salary|
|Section 1A Members (former final salary employees)||4x Pensionable Pay||30% of Pensionable Pay|
When the flexible benefits window opens you (employees) can choose to change your level of cover to suit your preferences. You can choose to increase your cover up to 7x your basic salary or reduce your cover to a minimum of 2x your basic salary. Please remember, you cannot make any changes to your cover outside of the flexible benefits window. Please visit www.telefonicarewards.com to make any changes to your Pension Plan.
You can only increase your cover in steps equal to 1x salary at each life event or annual flexible benefit window enrolment, subject to a maximum of 2x salary in any one policy year. There are no restrictions on decreasing cover at annual enrolment or under lifestyle events subject to the minimum of 2x cover.
Please note if you opt-out of the Telefónica Pension Plan at any point you're likely to receive reduced employer funded Life Assurance Cover and lose your dependant's pension entitlement. You will also lose the ability to apply for any potential future Income Protection claim. Please see the section on our website titled 'impact on your benefits if you stop contributing' for more details.
*Amnesty - please note for those members who joined pre 1 March 2013 following at least 12 months company service you would be covered for 5x Plan salary at date of death plus your part of the retirement account made up of your contributions and related investment return. This includes those currently active members who were non-pension scheme members and were auto-enroled in April 2013. 5x cover will also apply to those who did not meet the auto-enrolment eligibility but chose to join the pension Plan at their first opportunity.
Did you know you can update your Expression of Wish form at any point?
An Expression of Wish Form allows you to inform the Pension’s Trustees how you would like any lump sum death benefit to be paid in the event of your death. Your Expression of Wish continues until you submit any updated Expression of Wish form. We would always suggest keeping your Expression of Wish form up-to-date, especially if you have a change of circumstances.
By updating your Expression of Wish Form today you can have the peace of mind that your dependents will have a more secure future. Simply click here to update your Expression of Wish form today.