Making contributions

As a member of the Plan, you must pay a minimum contribution rate of 4% of your basic salary. The Company will also contribute 4%, which, along with your contributions, will be paid into your Retirement Account. You may also make additional contributions and the Company will match any regular additional contributions you are making above 4% up to an overall maximum Company Contribution of 10%.

You may pay contributions up to a total of 100% of your Plan Salary provided that you are able to meet your other financial commitments from your salary (such as the payment of National Insurance). You should also give consideration to the annual allowance and lifetime allowance and pension tax relief restrictions if you are a high earner and thinking about making substantial contributions.

You may increase or decrease your contribution rate (but not below 4%). If you would like to change your contributions you should call European People Services. Alternatively there are two specific times when you are able to amend your contributions through the flexible benefits website, which can be accessed at www.o2rewards.com. They are -

1. Annual enrolment - opens each year during November only.
2. Life event - a defined life changing event such as a promotion, moving house, getting married, having children etc.

More information is available on www.o2rewards.com.

Your contributions will be deducted from your pay before tax, giving you tax relief at your highest rate. Therefore, for example, if you pay tax at the rate of 20%, every £1 that you contribute only costs you 80p. If you are a higher rate tax payer, the net cost of every £1 you pay is only 60p.

There are some restrictions on pension tax relief that you should be aware of if you are a high earner. We recommend that you discuss these with your Independent Financial Adviser if you have total taxable income of £130,000 or more per year.

In addition you are able to save National Insurance when making your pension contributions – see salary sacrifice.