Contributions

You can start your contributions at 3% or 5% of pensionable pay. You can change your contribution in April each year and  after 10 years' service you can choose to pay 6% of pensionable pay.

Lafarge also pays contributions to your pension as set out below:

You contribute
(% of pensionable pay)

Lafarge contributes
(% of pensionable pay)

 

Up to three years

After three years

3%

3%

6%

5%

5%

10%

And after 10 years’ Company service: 6%

12%

Lafarge also pays the cost of life assurance, investment costs and administration costs which could be up to a further 3% of your pensionable pay.

Remember! The actual cost to you is less than this because you get tax relief on your contributions. If you are a basic rate taxpayer and you pay £100 you will get £20 tax relief, so the actual cost to you will be only £80.  You will also reduce the cost even further by paying contributions via PenXchange - an arrangement which can help you make savings on the level of National Insurance Contributions you pay.

Example

For someone earning £22,000 per annum (tax year 2012/13) paying basic-rate tax who decides not to join PensionBuilderplus, their take-home pay would be £1,458 a month and they will have no pension.

The same employee with over three years service who pays at 5% will take home £1,403 a month.  In this case, their net pay will have reduced by £55 but a total of £204 will be invested in their personal investment account every month.

With contributions paid via PenXchange the same employee's take-home pay will be £1,411 a month and his net pay will have reduced by only £47 but a total £204 will be invested.