Plan details
You are being offered the opportunity to join the Eaton UK Pension Plan - a Group Additional Voluntary Contributions (GAVC) Plan provided by 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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How joining this plan will work
Invitation from your employer
You should get an invitation from Eaton once you start work.
When you start working for Eaton, you’ll be invited to join this pension plan. There may be a waiting period before you join - please speak to your employer if you have any questions about this.
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Make sure it's right for you
Paying into a company pension can be a great way to save for the future. And you can stop or change your payments in the future if you need to. If you decide you want to join, speak to your employer about next steps.
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Decide how much to pay in
It's up to you how much you pay in as long as you meet the minimum amount set by your employer.
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Payment options for this plan
You can make regular monthly payments into this plan. You can also make single payments at any time. You can change the amount of your regular payments at any time, subject to:
- Our minimum payment level
- Any requirements set out by your employer
Details of the minimum payments are available from your employer. You can stop making payments at any time, or take a payment break and restart them again later if you're still eligible.
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How payments are made
Payments into your pension plan will be made by Salary Deduction. This means your employer will deduct your pension payments from your salary after National Insurance (NI) has been calculated but before your income tax has been worked out. Because your payments are taken 'before tax' you won’t need to reclaim any tax relief from the government manually. This is also known as a "net pay arrangement".
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 payments 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 Eaton UK Pension Plan and the available investment options, including with-profits.
Product information
Read these documents to understand the features of your employer’s pension plan in detail.