Reminder – Final Salary and Section 1A Pension Supplement is changing
Final Salary and Section 1A Pension Supplement changes
Following changes we made to our UK Pension arrangements we informed our Final Salary and Section 1A members how your Pensions Supplement would change on 1st July 2016 from 21% to 16% of pensionable pay, payable monthly thereafter. This change of Pension Supplement is now less than six months away.
Please note this update doesn’t impact our Section 1, Defined Contributions (DC) members of the plan. If you’re unsure which Section of the Plan you belong to then please contact EPSC (full contact details below).
Our Final Salary and Section 1A members don’t need to take any action on this update however you may wish to consider how this change of Pension Supplements may impact you from July.
To make life easier, we’ve included the below table to remind you of the changes.
|Changes||Impact on me?|
|Your Pension terms||Section 1A members receive the following:
- Pension Supplement of 21% of pensionable pay until 30 June 2016 and then,
- Pension Supplement of 16% of pensionable pay thereafter.
You can use the Pension Supplement to make contributions to Section 1A of the Plan paid through salary sacrifice which, under current tax rules, is free of tax or National Insurance Contributions subject to tax limits, or subject to the auto-enrolment provisions below, take all or part of the Pension Supplement in take home pay (less applicable taxes and National Insurance Contributions).
|Auto re-enrolment||If you're not a member of the Pension Plan and take all of your Pension Supplement as cash you will be auto re-enroled as at 1st April 2016. This will mean 3% of your current 21% Pension Supplement would be allocated into your pension.
Please remember this is government legislation and you cannot opt-out in advance. We will be sending you a separate email on auto re-enrolment in March.