The RSA Pension Scheme provides tax relief at source via payroll. As well as the tax advantages of the Scheme, the overall cost of the Scheme is reduced further because your National Insurance contributions are lower.
SMART Pensions works like this:
Step 1 – If you choose to pay contributions to the Scheme, this will be done by reducing your contractual base salary by your contribution.
Step 2 – RSA will increase its contribution into your Pension Account by exactly the amount of your contribution, plus the extra matching contribution.
Step 3 – Because your contractual base salary is reduced, you will pay less National Insurance contributions. Therefore your take home salary will be higher than if you contributed to the Scheme directly from your net salary.
More information about SMART Pensions can be found in the leaflet below.