Important Reminder - Pension Supplement changing on 1st July 2016
Your Pension Supplement is changing on 1 July
Earlier this year we told all Section 1A members (Chicago/ ex-final salary/ Defined Benefit/ DB) that your Pension Supplement would automatically reduce on 1 July 2016 from 21% to 16% of pensionable pay (see news article on 17 Feb 2016 or click here). You may not need to take any action but we wanted to give you another reminder. Please note, this message doesn't apply to any individuals who have left Telefónica or any individuals who are Section 1 members (Defined Contribution/ DC/ Money purchase members). Section 1 members do not receive this Pension Supplement.
What does this mean for me?
This depends how you chose to allocate your Pension Supplement. If you currently allocate the full 21% of your Pension Supplement into your Pension this will automatically change to 16%. You don’t need to take any action to make this happen. You can continue to make 21% contribution to your Pension savings by funding the additional 5% through your own employee contributions e.g. from your salary. To do this you can increase your contributions through www.telefonicarewards.com before 30 June. You can increase your contributions at any time but please remember that any additional employee contributions wouldn’t entitle you to any additional employer contributions.
If you have chosen to take the full cash allowance of 21% instead of making any pension contributions this will automatically reduce to 16% on 1 July.
If you have a combination of allocating your supplement to your pension and cash the minimum of 9% pension contribution will still apply. Your cash allowance will therefore reduce from 12% to 7% from 1 July.
If you still have any outstanding questions having read the attached FAQs guide please contact Xerox on Tel: 0800 731 2638 and select option 2, alternatively, you can email Xerox on email@example.com.