MAKING CONTRIBUTIONS
MONEY PURCHASE SECTION
Contributions you must pay, contributions you can choose to pay and what the Company will pay into your Retirement Account.
One of the attractions of saving in a pension with an employer is the tax benefits. Your regular payments will be deducted directly from your salary, before you are assessed for income tax, so you gain tax relief at the highest rate you are liable for.
Another advantage of the KPS-MP is that the Company will match your contributions, depending on your grade and how long you have worked for the Company. How much the Company will contribute to your Retirement Account is explained in more detail below.
CORE CONTRIBUTIONS
Upon joining the KPS-MP, you must pay 3% of basic salary. This is called your Core Contribution.
ADDITIONAL CORE CONTRIBUTIONS
If you want pay more than the 3% Core Contribution, you can pay Additional Core Contributions of a whole percentage of your Salary. These may be matched by the Company, depending on your grade and how long you have worked for the Company.
COMPANY CONTRIBUTIONS
The table shows you how much the Company will match compared to the total Core and Additional Core Contributions that you pay. The maximum match available is highlighted.
If you are a… |
If you contribute... |
3% |
4% |
5% |
6% |
7% |
8% |
Non-manager, with less than 5 years Company service |
3% |
3% |
3% |
3% |
3% |
3% |
Non-manager, with more than 5 years Company service |
3% |
4% |
5% |
5% |
5% |
5% |
Manager, with less than 5 years Company service |
3% |
4% |
5% |
5% |
5% |
5% |
Manager, with more than 5 years Company service |
3% |
4% |
5% |
6% |
7% |
8% |
Your HR adviser will be able to confirm whether you are a management grade employee.
ADDITIONAL VOLUNTARY CONTRIBUTIONS (AVCS)
You can pay AVCs, and these will be invested in your Retirement Account in the same way as your other contributions. You can pay AVCs as a fixed £ amount, a percentage of salary, or even a one-off payment. AVCs do not attract a company contribution the way that additional core contributions do.
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