When you join the BTRSS your payments will be made through the Salary Sacrifice arrangement known as SMART Pensions.
SMART Pensions is designed to increase the take home pay of BT people by reducing National Insurance Contributions without affecting pension benefits from the BTRSS.
SMART Pensions involves a restructuring of the way in which you make pension payments. You exchange a percentage of your salary for pension payments which BT will then make on your behalf into the BTRSS.
Payments through SMART Pensions will permanently alter the Terms & Conditions in your contract of employment and will reduce your gross salary (but will not affect non-pension benefits with BT, such as bonus, overtime, holiday and pay reviews). It may affect other statutory/state benefits, transactions and borrowing levels that are based on salary.
For further information and to see how SMART Pensions may affect you, please see the Information about SMART Pensions guide, which has been produced by BT.
If you make your payments through SMART Pensions you will be able to reduce your payment levels once each year in October, or if you have a 'Lifestyle Event'. You can increase your payment levels at any time.
Examples
Employee earning £25,000 per annum and paying 5% to the BTRSS and receiving a further BT payment of 8%.
The figures in the table are intended to demonstrate the potential increased net pay of joining SMART Pensions. They are not intended to be an accurate calculation of take home pay.
Employee earning £50,000 per annum and paying 5% to the BTRSS and receiving a further BT payment of 8%.
The figures in the table are intended to demonstrate the potential increased net pay of joining SMART Pensions. They are not intended to be an accurate calculation of take home pay.
If you are still unsure on how SMART Pensions will affect you, we recommend that you speak to an independent financial adviser. You may have to pay for this advice. If you do not have your own financial adviser, you can find one in your area by visiting unbiased.co.uk.
Tax relief depends on your personal circumstances and the rules may change in the future. The information given is based on Standard Life’s understanding of current law and HM Revenue & Customs practice.
