Saving into a Pension can be one of the most sensible financial steps you can take - not only are you putting something aside for your retirement, you're also getting free money from the Company and tax savings from the Government.


How does it work?

In 2017 the Telefónica UK Pension Plan was included in the Pensions Insight’s report as a top 50 UK Defined Contribution (DC) Plan. The Telefónica Pension Plan works through you making regular monthly contributions and in return, Telefónica will make additional contributions to your Pension savings, effectively giving you free money towards your retirement. All new joiners will be referred to as a 'Section 1' members of the Plan, click here for more information. 


The Telefónica UK Pension Plan is a trust based pension scheme rather than an arrangement where each member has a direct contract with the provider. The scheme is administered by Standard Life and you can contact them should you have any questions about your Telefónica Pension, their contact details can be found here. By being part of a trust based arrangement you benefit from independent oversight by the Trustee who take independent professional advice to act in your best interests 


By being a member of the Telefónica UK Pension Plan you can make your contributions through salary exchange, this means you can save on National Insurance Contributions. Any Pension contributions are also made before any income tax is deducted from your pay, so a £1 investment into your Pension is even less than £1 of your take home pay. For more information on the tax advantages when contribution to your pension please click here


So what are others getting that I could be missing out on?

Telefónica will at least match or even double your contributions depending on the level of contributions you make into the Plan. Further details on Telefónica's contribution levels can be found below.


Employee contribution of basic salary Employer contribution of basic salary
3% 6%
4% 6%
5% 6%
6% 9%
7% 9%
8% 9%
9% 11.5%


For more information on what Telefónica will contribute towards your pension please click here.


Are there any other benefits I would receive by being part of the Telefónica Pension Plan?

As a member of the Telefónica Pension Plan you don’t just benefit from additional employer contributions and tax savings, you also become eligible for our income protection scheme. The income protection scheme allows you to potentially benefit from additional sick pay should you exhaust your 12 months of Telefónica sick pay. Please note, if you opt-out of the Telefónica Pension Plan at any point you will no longer be entitled to join the income protection scheme, regardless of whether you re-join the Plan in future.


As a member of the Telefónica Pension Plan you will also receive enhanced employer funded life assurance cover. From March 2013 any new members to the Plan will receive cover of 5x your basic salary. Please note you can increase this level of cover during our flexible benefits window, click here.


For more information on the benefits of being a Telefónica Pension Plan member along with the level of Life Cover you would receive simply, click here to find out more.


Sounds great, so how do I join?

There’s two simple ways to join the Telefónica Pension Plan:

  1. Option 1 - auto-enrolment
    When you join Telefónica, provided you meet the eligibility criteria, you will be auto-enrolled into the Telefónica Pension Plan within your first full month of employment. For more information about auto-enrolment click here. Please note, as part of Government legislation you will be auto-enrolled on each of Telefónica's three-yearly re-enrolment dates.
  2. Sign yourself up - elect to join the Telefónica Pension scheme
    If you're not auto-enrolled you can still elect to join the Telefónica Pension Plan through Telefónica Rewards. Please note, when visiting Telefónica Rewards you will need to create a 'life event' to opt into the Plan. More information can be found within the FAQs of Telefónica Rewards. 


Did you know you can also increase your Pension contributions at any point? Simply visit our Flexible Benefits website today to make your changes. 


What's the difference between signing up to the Telefónica Pension Plan through auto-enrolment versus electing to join the Plan?

The main difference is the level of contributions you make towards your Pension. The below table helps to illustrate the contribution levels you would make through auto-enrolment. The percentage of employer contributions is also much lower compared to those members who have elected to join the Plan (see comparison above for an elected members contribution rates).


Time Period Employee contribution (what you will pay) Company contribution (what Telefónica will pay) Total contribution
1 April 2013 - 31 December 2016 1% 2% 3%
1 January 2017 - 31 December 2017 2% 4% 6%
1 January 2018 onwards 3% 6% 9%


If I wanted to make a one-off additional lump sum payment into my Telefónica Pension Plan is this possible?

Yes, you can make what we call an 'Additional Voluntary Contribution (AVC) lump sum payment' into your Telefónica Pension at any point. Click here for more information on the eligibility criteria and how to make your request.


Can I transfer in benefits from my previous Pension arrangements into my Telefónica Pension Plan?


Yes, should you be interested in 'transferring in' your benefits you will need to complete the transferring in benefits form and return this to the Scheme Administrator, Standard Life. You may find it's easier to manage your pension arrangements by having them all in one place. To read more information on 'transfers in' please click here. You may wish to consider taking independent financial advice before taking any action, please click here for more information on how to find a financial adviser. 


If I join the Plan where will be my contributions be invested?

Any new Telefónica Pension Plan member will join our 'DC Pension Plan arrangement'. The Plan works by you putting in an 'employee contribution' (as a percentage of your salary) and in return Telefónica will at least match your contributions, effectively giving you free money into your pension. All of these contributions are then invested until the point you need to access your savings.


When you select your level of pension contribution through Telefónica Rewards you will be able to select how you would like your funds to be invested. The default investment fund is called 'getting ready to purchase an annuity'. This has been selected to try to offer you growth ahead of inflation with smaller drawdowns when compared with the general market. The default investment fund is called ‘SL Mobile Diversified Growth Pension Fund’ and will initially invest in the following funds:


  • 30%: Standard Life Enhanced-Diversification Growth Fund.
  • 70%: BlackRock Diversified Growth Pension Fund.


For more information on your investment choices please click here. You can log into your Standard Life portal at any point to make changes to your investment selections, simply click here and select 'login'. You may wish to consider taking independent financial advice, please click here for more information. 


What are the key websites?



If you have any further questions you can click here to find all the key contact details.


The below video highlights the benefits of investing in a Pension.


2D & 3D Kinetic Typography Pension Animation from Jason Harding on Vimeo.