As a member you will contribute 6% of your Pensionable Pay to the Plan. Diageo will pay whatever is required to meet the balance of the cost of the benefits provided under the Plan.
Please refer to the benefits modeller for details of the monthly cost of membership.
How do I pay my pension contributions?
Pension contributions not deducted through the Salary Exchange for Pensions arrangement are automatically deducted from your Pensionable Pay before tax is deducted. This means you will get tax relief on your contributions at the highest rate appropriate to your pay.
What is Salary Exchange?
Salary Exchange gives you and Diageo an opportunity to save money by the way your pension contributions are paid to the Plan. Whilst contributions deducted from your Pensionable Pay attract income tax relief you will still pay National Insurance (NI) on this part of your pay. Under Salary Exchange, Diageo pays your pension contributions to the Plan by reducing your salary by the amount of your pension contributions. This means that you pay reduced tax and both you and Diageo pay lower NI contributions.