Do you want to spend less Tax and NI on your 2016 Bonus?
Invest your Bonus into your Pension and you will pay less Tax and National Insurance on your 2016 bonus
Once again we’re offering you the opportunity to pay part, or all, of your 2016 bonus into your Telefónica Pension Plan. If you decide to invest any of your bonus in this way this will be paid as a one-off employer pension contribution rather than you receiving this payment in your March 2016 pay.
Remember, as your bonus becomes a one-off employer contribution you would pay no Income Tax or National Insurance Contributions (NIC) on this investment, your pension will receive the full gross amount of any bonus you give up.
Why get involved?
As well as the Tax and NIC savings, investing more money into your pension may help you sustain the level of lifestyle you’ve enjoyed before retirement.
Am I eligible?
To be eligible for Bonus Sacrifice you need to meet the following criteria:
- Eligible contributing members of the Telefónica Pension Plan.
- Part of our Managerial Population who are eligible for the annual bonus scheme (this excludes RCG and PSG grades).
Please note, if you are eligible you would have received an email inviting you to sacrifice your bonus into your Pension. Telefónica Rewards will also allow you to make a bonus sacrifice payment if you are eligible. See the 'How To Guide' for more details.
How do I sign up?
We’re all about keeping things simple. To take advantage of this benefit log into your account on www.telefonicarewards.com, select the flexible benefits tile and submit your bonus sacrifice request at any point between 8th - 26th February 2016.
Full details on how you can make a bonus sacrifice request are included within the ‘How To Guide'. We’ve also created a handy FAQs document.
If you don’t take any action any bonus entitlement will paid into your March 2016 pay and you will not be able to make a bonus sacrifice payment once the window has closed (after 26th February 2016). Any bonus you are due will then be paid into your March 2016 pay.
If you’re in any doubt about the suitability of this option for you should take external independent financial advice.
The payment of any bonus is always subject to the Managerial Annual Bonus Scheme Rules. This email doesn’t guarantee entitlement to a bonus, or any level of payment. The bonus sacrifice initiative is only open to contributing members of the Telefónica Pension Plan who are part of our Managerial population.
The Telefónica Pensions Team