When you join the Scheme, you are invited to give up part of your salary so that HBOS can pay the equivalent amount into the Scheme on your behalf – sometimes referred to as your ‘notional contributions’.
This way, you won't pay NI or tax on this element – reducing the cost to you, while still saving the same amount towards your retirement.
You are free to choose the amount of salary you give up towards your pension – anything from 2% of your basic salary. And don't forget that HBOS also makes significant contributions towards your retirement, depending on your choice.
If you don't want to give up part of your salary in this way, you can choose to make monthly contributions from your gross pay instead. You will still get income tax relief, but these contributions will be subject to NI deductions.
Details of contributions are shown below - and why not have a look at our on-line Pension Planner to see exactly what you could get for your contributions.
Contributions
| Levels 1 to 4 |
||
Your Notional Contribution |
HBOS Contributes |
TOTAL Contribution |
| 2% |
3% |
5% |
| 3% |
4.5% |
7.5% |
4%* |
6%* |
10%* |
| 5% |
7.5% |
12.5% |
| 6% |
9% |
15% |
| 7% |
10.5% |
17.5% |
| 8% |
12% ** |
20% |
| 9% and above |
12% ** |
21% |
|
Levels 5 and 6 |
||
|
Your Notional Contribution |
HBOS Contributes |
TOTAL Contribution |
| 2% |
4% |
6% |
| 3% |
6% |
9% |
4%* |
8%* |
12%* |
| 5% |
10% |
15% |
| 6% |
12% |
18% |
| 7% |
14% |
21% |
| 8% |
16% ** |
24% |
| 9% and above |
16% ** |
25% |
* The contribution level that will automatically apply when you become a member of the Scheme, unless you tell us differently.
** The maximum contribution that HBOS will make on your behalf.
In the tax year 2008-09 the maximum total contribution (including contributions from HBOS) must not exceed the lower of 100% of your gross salary or £235,000.
more about contributions
