Hallmark Care Homes
Welcome to the Hallmark Care Homes Group Holdings Limited information site for The People's Pension (The Scheme). This site is designed to provide information about The Scheme and help you understand it in more detail.
We all know that the Government provides a State Pension for everyone who pays National Insurance, so why save more for your retirement?
Maybe it’s worth considering how much you will really receive from the Government?
Currently you may be entitled to two parts of the State Pension:
- The Basic State Pension - a flat-rate pension paid to anyone who has paid enough National Insurance Contributions or has enough credits when they reach their state pension age. For further information visit https://www.gov.uk/state-pension
- The Additional Pension – paid in addition to the Basic State Pension, the amount you get will depend on the number of years of National Insurance Contributions you have and your earnings. For further information visit https://www.gov.uk/additional-state-pension
You may be eligible for additional payments, in the form of Pension Credit which is a means tested benefit, and guarantees to provide a minimum level of income to individuals over state pension age.
For further information visit https://www.gov.uk/pension-credit
The state pension since its introduction has gone through many changes and individual entitlement over the years has differed greatly, from how much you receive to when you receive the benefit. The government introduced changes from April 2016.
For more detail regarding these changes please visit https://www.gov.uk/new-state-pension/overview
It is worth remembering that these levels of benefit are not guaranteed to be paid when you retire, as future governments may change the pension policy.
You need to consider whether these benefits will be sufficient for you to enjoy a long and healthy retirement or whether you need further savings or income to maintain your current standard of living.
New auto-enrolment legislation means that all companies need to enrol their employees into a qualifying workplace pension scheme from October 2012. Both the company and the employee will have to make contributions into this pension.
Whilst the new legislation started in October 2012, the start date for employers is being phased in based on their size. This is known as a company’s staging date, and only the largest employers have been enrolling people from October.
Please click here to watch a short video about auto enrolment (you will need to enter the password BandCE70).
The plan is defined contribution multi-employer occupational pension scheme.
It is an efficient way to build up a fund while you are working and can afford to save.
It has been designed to achieve the principles of a Super Trust as outlined by the National Association of Pension Funds (NAPF). These principles require a Super Trust to be a not-for-profit arrangement using its scale to deliver low costs, with an independent trustee ensuring good governance for its members.
The details may also contain hypertext links to websites operated by third parties.
The responsibility for the operation and content of those websites shall rest solely with the organisation identified as controlling the third party website and will be governed by separate terms and conditions.
Links are provided for convenience and inclusion of any link does not imply endorsement in any way of the site to which it links. We accept no responsibility or liability for the content of any linked website.
It is important to appreciate that the information held on this microsite is not controlled when it is in printed format and that the content will be updated periodically to take account of changes such as, but not necessarily restricted to, legislation, regulation, Company practice and product specific terms and conditions. Before you make any decisions based upon printed versions of this content please refer to the latest version of either the microsite or other supporting material that may be in place at that time.
If you would like a printed copy of this material, please contact NFP.
The content of the microsite is the property of NFP and nothing in this microsite assigns any intellectual property rights in any NFP software, documents, or processes or in any other proprietary information or systems NFP uses. NFP reserves the right to take the microsite down at anytime should they have reason to.
Whilst NFP take responsibility to ensure that the information contained within this microsite is accurate and up to date, we do not accept any liability for any errors or omissions. If you are in any doubt as to the validity of information made available within these pages, we recommend you seek verification by contacting NFP.
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Whilst NFP take all reasonable steps to ensure this microsite is always accessible we will not be held liable if, for any reason, the microsite is unavailable for any period. NFP may also have to suspend access to the microsite for routine or emergency updates and maintenance but we will endeavour to keep any disruption to a minimum. In addition NFP cannot warrant that this microsite will be free of viruses or defects of any description and we will not be held responsible for any technical problems you may suffer as a result of your use of this microsite.
NFP is registered with the UK Information Commissioner’s Office and endeavours to follow all the guideline and rules set out in the Data Protection Act 1998. Click here to review NFP’s Data Protection policy statement.
Your Contributions
Her Majesty’s Revenue & Customs (HMRC) will not limit how much you or the Company can contribute to registered pension schemes including the Plan, however, should you or your employer pay in total more than the annual allowance to all registered pension schemes during the tax year, you will be subject to a tax charge.
For the purposes of the annual allowance, relevant UK earnings include basic salary, bonus, overtime, commission and benefits in kind which are chargeable to tax under Schedule E (refer to http://www.hmrc.gov.uk for further information). Please note, employer and employee contributions are based on your pensionable salary only.
How you receive tax relief will depend on how you decide to make your contributions. You will receive basic rate tax relief on your single contributions. Contributions are paid net of basic rate tax with the tax relief being credited to your pension fund once it is received by the Hallmark Care Homes Group Holdings Limited.
There are two ways that you can pay regular contributions into your company pension; net contributions from net pay or Salary Sacrifice.
Salary Sacrifice is the term that Her Majesty's Revenue & Customs (HMRC) describe as a contractual arrangement whereby an employee gives up the right to receive part of their cash remuneration, usually in return for their employer’s agreement to provide some form of non-cash benefit. Salary Sacrifice can be known as Smart Pay, Salary Exchange, and Salary Conversion. For the purposes of this microsite the term will be referred to as Salary Sacrifice.
Payments into your pension via this method are made after tax from your take-home pay.
The payments are collected from your take home pay, paid to The People's Pension, and as soon as your contribution is paid into the pension, you receive basic rate tax relief at 20%.
Higher and additional rate tax payers are entitled to claim back their further rates of tax relief via Self-Assessment.
Salary Sacrifice is the default method of contributing to your The People’s Pension and is only available via your company pension.
Paying via Salary Sacrifice provides the benefit of full tax relief immediately at source, even for higher and additional rate taxpayers who usually claim this via Self-Assessment. If you opt for Salary Sacrifice and have previously reclaimed higher or additional rate tax relief you will need to notify your local tax office of this change.
This is because you agree to forgo part of your gross pensionable salary to your employer, on the understanding that your employer pays this directly into your pension on your behalf as an employer contribution.
As this is paid as an employer contribution it is not subject to PAYE taxation or National Insurance costs for you or your employer.
Should you be in any doubt as to whether the Salary Sacrifice method of contribution is suitable for your individual personal circumstances you should seek independent advice from a specialist in this area.As this is paid as an employer contribution it is not subject to PAYE taxation or National Insurance costs for you or your employer.
Your participation in The Plan through Salary Sacrifice will not reduce salary-related payments or benefits that you receive from the Company (e.g. bonus, overtime, pension, permanent health insurance, Group Life Assurance etc.) These benefits will continue to be based on your original salary, which will be known as your ‘reference’ pay. Future pay increases and mortgage reference letters will also continue to be based on your reference pay.
If you do not opt out of the Salary Sacrifice on first joining the Plan, you may not be able to opt out for 12 months, unless you experience a ‘lifestyle event’, which may be decided at the discretion of your employer, typically in the instance of ;
- marriage / establishing a partner relationship
- divorce / separation
- birth or adoption of a child
- death of a spouse, partner or dependent child
Should you be in any doubt as to whether the Salary Sacrifice method of contribution is suitable for your individual personal circumstances you should seek independent advice from a specialist in this area.
Considerations before entering into a Salary Sacrifice arrangement;
- Salary Sacrifice represents a change in your terms and conditions of employment; as a result of funding your pension by the Salary Sacrifice arrangement the contributions which you have made are instead made as employer contributions in return for a reduction in your gross contractual salary.
- as a result of Salary Sacrifice, because you forgo a percentage of your pay, your earnings may fall below the Lower Earnings Limit (LEL) and your entitlement to some state benefits may be reduced. You can check the current LEL by visiting the HMRC website at: http://www.hmrc.gov.uk/rates/nic.htm.
- for those employees choosing Salary Sacrifice, benefits such as statutory maternity pay may be affected, and therefore NFP recommend that you visit Her Majesty's Revenue & Customs (HMRC) website (http://www.hmrc.gov.uk) or the Department for Work & Pensions' website (http://www.dwp.gov.uk) where further information regarding Salary Sacrifice can be obtained.
- if you do not want to pay into the plan via Salary Sacrifice you need to contact NFP.
The following examples show how this works in practice for a contribution costing you £100 per month from your take home pay:
Net contributions from net pay:
Basic, Higher and Additional Rate tax payers
Basic, Higher and Additional Rate tax payers
NET CONTRIBUTION (Difference to take home pay) |
EMPLOYEE TAX RELIEF (at 20%) |
GROSS CONTRIBUTION (Figure on payslip) |
TOTAL CONTRIBUTION PAID TO The People's Pension |
|---|---|---|---|
£100.00 |
£25.00 |
£125.00 |
£125.00 |
Higher and additional rate taxpayers are able to reclaim a further 20% or 25% tax relief via Self-Assessment
Salary Sacrifice:
Basic Rate tax payer
Basic Rate tax payer
NET CONTRIBUTION (Difference to take home pay) |
EMPLOYEE NI RELIEF (at 12%) |
EMPLOYEE TAX RELIEF (at 20%) |
GROSS CONTRIBUTION (Figure on payslip) |
TOTAL CONTRIBUTION PAID TO The People's Pension |
|---|---|---|---|---|
£100.00 |
£17.65 |
£29.41 |
£147.06 |
£161.77 |
Higher Rate tax payer
Higher Rate tax payer
NET CONTRIBUTION (Difference to take home pay) |
EMPLOYEE NI RELIEF (at 2%) |
EMPLOYEE TAX RELIEF (at 40%) |
GROSS CONTRIBUTION (Figure on payslip) |
TOTAL CONTRIBUTION PAID TO The People's Pension |
|---|---|---|---|---|
£100.00 |
£3.45 |
£68.96 |
£172.41 |
£189.65 |
Additional Rate tax payer
Additional Rate tax payer
NET CONTRIBUTION (Difference to take home pay) |
EMPLOYEE NI RELIEF (at 2%) |
EMPLOYEE TAX RELIEF (at 45%) |
GROSS CONTRIBUTION (Figure on payslip) |
TOTAL CONTRIBUTION PAID TO The People's Pension |
|---|---|---|---|---|
£100.00 |
£3.77 |
£84.91 |
£188.68 |
£207.55 |
Calculations will depend on your individual tax and National Insurance bands, and therefore your individual salary.
CONTRIBUTION CALCULATOR
To see how much you can contribute just fill in the details below
| Your Salary | £ | |||||||
| Percentage of salary you wish to contribute | % | |||||||
| NET PAY | SALARY SACRIFICE | |||||||
| Difference to take home pay | £ | £ | ||||||
| Employee tax relief | % | £ | £ | % | ||||
| Employee NI relief | % | £ | £ | % | ||||
| Your employer give back NI | % | £ | £ | % | ||||
| Percentage of salary your employer contributes | % | % | ||||||
| Calculate | ||||||||
| NET PAY | SALARY SACRIFICE | |||||||
| TOTAL CONTRIBUTION: | £ | £ | ||||||
Yes, you are able to make single payments into the Plan.
The Company will not match any single contributions paid by you into the plan. Please contact NFP should you wish to make one-off payments.
You may also be asked to provide verification of identity to satisfy current Anti Money Laundering legislation when making single contributions.
Disclaimer
About the Information Contained on this microsite
The content of this microsite is targeted at consumers based within the UK. The information contained therein should not be regarded as an offer or solicitation to conduct investment business in any jurisdiction other than the UK. Investors who are resident in or citizens of, countries other than the UK may be subject to different legislative and regulatory restrictions or to consumers who are not employed by your Company.
The information contained within this microsite should not be viewed in isolation and is based on NFP's views and understanding of current UK legislation, which is subject to change, without notice at any time and should be read in conjunction with other relevant literature which is available within the public domain.
Any figures provided on the microsite are for illustrative purposes only and are not guaranteed.
The views or opinions expressed within this document are provided for information only purposes and are based upon NFP’s experiences of the financial services market place at this time and should not be viewed as financial advice.
NFP is registered with the UK Information Commissioner's Office and endeavours to follow all the guideline and rules set out in the Data Protection Act 1998.
A master trust is a long-term investment. There is no guarantee that the benefits from the master trust will be sufficient for your retirement needs. You should review your potential benefits on a regular basis.
Please note that past performance is not a guide to future performance. Potential for profit is accompanied by the possibility of loss. The value of investment funds and income from them may go down as well as up and investors may not get back the original amount invested.
The content of this material is provided for information purposes only and is based upon our experience and understanding of the financial services market place at this time. The content should not be viewed as financial advice, but is intended to provide an overview of possible considerations or options.
NFP is not the appointed advisers for the scheme and therefore take no responsibility for the suitability, including but not exclusive to the investment management and charging structure.
If you are in any doubt as to how the content of this microsite meets your needs you should seek financial advice.NFP has joined alliances with specialist business associates who are able to provide personal financial advice, upon request. These carefully selected business partners reserve the right to charge a fee for these services which would be agreed in advance before they undertake any work.
If you change your mind after applying to join the Plan you have 30 days to cancel your application and / or opt-out of the scheme following confirmation of your membership. Cancellation details will be provided with your policy documents.
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