Contribution options

Retirement Account

The Company contribution allocated to your Retirement Account, together with any AVCs you elect to pay, are invested with Standard Life Assurance Limited, who have been appointed by the Trustee.

There are a number of investment fund options from which to choose, and information regarding these can be found in the investment guide. Please remember that the value of these investments may go down as well as up and you may get back less than what was paid in. Any pension at retirement will be calculated by reference to the investment value of your Retirement Account and the Pension Rate applicable at that time.

Additional Voluntary Contributions (AVCs)

You can also choose to pay AVCs* into your Retirement Account. AVCs are paid by salary deduction.

You don’t pay any income tax on the contributions you pay into your Retirement Account, so the amount you see your take-home pay reduce by is less than the actual contribution you choose to pay.

Currently, AVCs qualify for income tax relief at your highest rate, in the same way as your normal Scheme contributions although some restrictions apply to high earners.

AVCs might be of particular interest to those members who joined the Scheme later in their working life, or who are considering the possibility of retiring early. You can start, increase, decrease or stop paying money purchase AVCs at any time.

*Please be aware of how this may affect your annual allowance limit. For more information, please visit gov.uk.

Increase your payments regularly

A simple way of boosting your pension is to increase the amount you pay in each year through AVCs. So why not set an annual reminder in your diary to increase your payments? There may be restrictions, for example your annual allowance or tapered allowance, on when and how you can increase your payments, so check with the Pension Service Centre.

If you get a pay rise, this might be a good time to think about increasing your payments too. Regular increases can keep your payments manageable, in line with inflation and have a big impact on how much you could get back.

Increasing your AVCs by a small percentage each year could make a big difference. For example, if you start your payments at £150 a month and increase your payments by 5%, then the next year you pay £157.50 a month. Over time, this can add up.

*Please be aware of how this may affect your annual allowance limit. For more information, please visit gov.uk.

Make a lump-sum payment

There are advantages to putting a one-off payment into your pension. For example, if you receive a bonus and pay it into your pension, you'll get tax benefits from the Government.

As with the payment of regular AVCs, if you pay a lump sum AVC via payroll, tax relief is automatically applied. You do not have to do anything to get the full tax relief. This is your employer's preferred route. Alternatively, you can pay a lump sum AVC by bank transfer, however as this will not be transacted via payroll, it will be your responsibility to reclaim the tax back via a Self-Assessment tax return or by contacting HM Revenue & Customs (HMRC) if you don’t normally fill in a tax return.

The reclaiming of tax can be time consuming and also involves a process that will be unfamiliar to most. It is therefore recommended by your employer that whenever possible if you wish to pay AVCs you do this via payroll.

Check your pension’s progress

The pension calculator is a handy tool that helps you work out what your pension could be worth – and see if you're saving enough.

How much might you get? >

Useful guides:

Investment Guide for the BAE Systems Executive Pension Scheme - 2006 Section (PDF, 578KB)

The Trustee has provided you with the following useful documents. Standard Life Assurance Limited are not responsible for the content of these documents.

AVC Application and Amendment Form (PDF, 180KB)

Investment Instruction Form (PDF, 292KB)

Transfer In Enquiry Form (PDF, 181KB)

Do you need help?

Contact the Equiniti Pensions Service Centre

0800 917 9568

If calling from overseas: +44(0)121 415 0891.

Email: farnborough.pensions@equiniti.com

Get some guidance

Members over 50 can get free retirement guidance from the government’s Pension Wise service.

Visit Pension Wise >