Plan details
You are being offered the opportunity to join the Aberdeen Group Pension Scheme - an occupational Trust Based Pension plan. The DC benefit provider for the Aberdeen Group Pension Scheme is Phoenix Life Limited, trading as Standard Life.
It's important you make an informed decision so you should read the key documents at the bottom of this page.
And you can find answers to common questions in our FAQs
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Contribution options for this plan
You'll be able to change your contributions once you've joined this plan.
Aberdeen will contribute up to 18% (plus a 10% enhancement of your contribution) of your pensionable salary. This could depend on how much you pay in - see the table below.
| Your contributions | Aberdeen contributions | Matched contribution by Aberdeen | 10% Aberdeen enhancement of your contribution | Total contributions |
|---|---|---|---|---|
| 0% | 16% | 0% | 0.00% | 16.00% |
| 1% | 16% | 1% | 0.10% | 18.10% |
| 2% | 16% | 2% | 0.20% | 20.20% |
| 3% | 16% | 2% | 0.30% | 21.30% |
| 4% | 16% | 2% | 0.40% | 22.40% |
| 5% | 16% | 2% | 0.50% | 23.50% |
| 6% | 16% | 2% | 0.60% | 24.60% |
| 7% | 16% | 2% | 0.70% | 25.70% |
| 8% | 16% | 2% | 0.80% | 26.80% |
| 9% | 16% | 2% | 0.90% | 27.90% |
| 10%+ | 16% | 2% | 1.00% | 29.00%+ |
When you're first enrolled in this plan you'll pay in 0% of your salary. You can change this amount after you join through Aberdeen Benefits Platform.
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How contributions are made
Contributions into your pension plan will be made by Salary Sacrifice. This means contributions will be taken from your salary before tax and National Insurance (NI) are calculated. You and your employer may pay less NI and you won't need to reclaim any tax relief from the government manually. It's important to remember that Salary Sacrifice isn't right for everyone. It's a change to your terms of employment and could affect your entitlement to state benefits or your ability to borrow.
You can see examples of how Salary Sacrifice could increase your pension contributions or your net take home pay in these documents:
- Your guide to salary exchange - Increase your net take home pay
- Your guide to salary exchange - Increase your pension payment
You might be able to change the way you make contributions into your pension plan - please speak to Aberdeen to find out what your options are.
The government has announced that from April 2029, there will be changes to how Salary Sacrifice pension contributions are taxed. Only the first £2,000 of contributions through Salary Sacrifice each tax year will be exempt from NI; contributions above this will be subject to NI. The full details of how this will work are still to be confirmed.
Increasing your contributions
You can increase your contributions beyond 2% but Aberdeen will contribute a maximum of 18% (plus a 10% enhancement of your contribution). However, increasing your contributions could still make a big difference to your lifestyle in retirement.
Pension allowances
There's a limit to the amount that can be paid into your pension plans each tax year without paying a tax charge - for most people this is normally 100% of your earnings, capped at £60,000. But in some circumstances - including if you have taken income from one of your pension plans - it could be lower. You can find out more about the Annual Allowance on standardlife.co.uk.
Lifetime allowance
Up until 5 April 2024 the Lifetime Allowance was the maximum amount of pension savings you were allowed to build up during your lifetime and take some of the benefits tax-free.
The limit for the 2023/24 tax year was £1,073,100 but could be higher if you are registered for any form of Lifetime Allowance Protection.
From 6 April 2024 onwards the Lifetime Allowance was replaced with limits on the tax-free benefits instead.
It’s important that you understand how these changes may affect your retirement planning.
Lump Sum Allowance and Lump Sum and Death Benefit Allowance
From 6 April 2024 onwards HMRC have placed limits on the amount of tax-free benefits that can be taken from pension schemes both during your lifetime and on your death.
The standard Lump Sum Allowance is £268,275 and the standard Lump Sum and Death Benefit Allowance is £1,073,100. These allowances reduce each time you take benefits.
If you hold one or more of the Lifetime Allowance Protections given by HMRC then you will be entitled to higher allowances that reflect this.
There’s more information on these allowances on standardlife.co.uk, and we’ve also created Questions and Answers to help explain the changes and you can visit the HMRC gov.uk/tax-on-your-private-pension.
These allowances aren't an issue for most people, but it's a good idea to check. For more information download our Guide to tax relief, limits and your pension.
Opting out
A company pension is one of the most rewarding ways to save for the future. But it's your choice and you can opt out if you want to.
You can't opt out until you join
You can only opt out after you've been enrolled into this plan by your employer. This is a government rule to encourage people to save into their pension plan. You'll be notified once you've been enrolled and will receive details about how to opt out at that point.
If you opt out you can still join later
Government rules may mean that you get auto-enrolled back into your company pension plan in the future. This normally happens every three years, but you can ask your employer if you'd like to join sooner. Though you may have to wait up to 12 months before you can join again.
The downsides of opting out
If you opt out, you won't receive any contributions from your employer. You may also lose some of the tax benefits if you put your money somewhere else.
Investment choices and charges
Important documents
These documents will help you understand how this plan works, so you can decide if it's right for you. It's a good idea to keep or save a copy of each one.
A guide to your pension
A "Welcome" guide to the Aberdeen Group Pension Scheme and the available investment options.
Product Information
Read these documents to understand the features of your employer's pension plan in detail.
Useful forms
You can download a form to help manage your plan.
This form should be completed if you wish to instruct the Trustees to pay part or all of your Annual Allowance tax charge from your plan.