Pension
Putting a little aside now for your future
Saving for your future has never been more important, putting a little aside now can really help. Membership of the SAP pension scheme is a tax-efficient way to do this.
When you join SAP, you’ll be automatically put into the SAP scheme. This is known as automatic enrolment and is a legal requirement for employers. Your automatic enrolment contribution rate is 3% of your basic salary. SAP pays 6% of your basic salary – this is the Pension Lite category.
Key points:
- The earlier you start the more time your savings have to grow.
- If you pay in 5% or more of your basic salary, SAP will add 9% of your basic salary, bumping up the money going into your pension to 14% of your basic salary (plus the NI passback on top of this - see below). If you don’t think you can commit to paying in 5% of your basic salary, Pension Lite may be the answer.
- Your payments will be taken via salary sacrifice which means they are taken from your salary each month before tax – so you pay less income tax and NI.
- Because SAP saves employer’s National Insurance by using salary sacrifice, they will also pay an additional 7% of whatever you pay into your pension each month. SAP calls this NI passback.
- The SAP pension scheme is a low cost, flexible group personal pension. This means that you’ll have your own pension policy within the SAP pension scheme. It’s in your name, you can make use of the scheme’s default investment strategy or select your investments from the range on offer, if you wish.
Pension is a part of the ‘Savings Choices’ SAP offer to help you get the savings habit. The other three are Pension Lite, Student Loan and ISA. Click here to find full details of how Savings Choices work.
How to join
If you wish to join the pension please log onto the benefits portal and click on the pension tile. If your pension tab shows that you are yet to join the scheme, select the Opt in button and choose how much you wish to pay. This will then set the SAP contribution of 6% or 9% and confirmation of when your pension will start will be shown on the page.
At a glance
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Tax savings
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Flexible benefit
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FAQ
Tax savings
The money you pay for some benefits (such as your pension) is taken from your salary before tax and National Insurance are deducted. This means you don’t pay any tax on the money you use to fund these benefits. For some other benefits (such as tax-free saving for childcare) the tax is added back on to your contribution when the benefit is provided.
Employee funded (EE)
A benefit which you choose to join at an additional cost to you.
Employer funded (EF)
A benefit that is funded by the Company, at no cost to you.
Limited time benefit
You can only sign up to limited time benefits during March, or within three weeks of joining SAP.
Flexible benefit
You can sign up for flexible benefits at any point during the year. Be aware that you can’t always make changes to these benefits at any time during the year, so check on the conditions when you sign up.
