Instead of making contributions in the usual way by a deduction from your gross salary, you can use an arrangement we have set up called SMART Pensions. So as well as the tax advantages of the various schemes, the overall costs are reduced further because your National Insurance contributions are lower.
SMART Pensions works like this:
Step 1 – If you choose to pay pension contributions, this will be done by reducing your contractual base salary by your contribution (if any).
Step 2 – RSA will pay appropriate contributions to maintain the CARE Schemes (RIGPS, SAL, Bradford) or in the case of the Stakeholder Plan, appropriate contributions within the agreed limits.
Step 3 – Because your contractual base salary is reduced you will pay less National Insurance contributions so your take home salary will be higher than if you contributed to the Plan directly from your gross salary.
More information is available in the SMART leaflet, available for download - see below.