Nuffield Health Retirement Savings Plan

Welcome to your Nuffield Health Retirement Savings Plan

The Nuffield Health Retirement Savings Plan (NHRSP) is a Group Personal Pension Plan (GPPP). A GPPP is a type of defined contribution plan where you build up a pot of money for when you retire. Your retirement benefits are determined by the accumulated value of your Personal Account (sometimes referred to as your pension pot).

The value of your Personal Account is determined by several key factors:

• Contributions paid by the Company (Employer Contributions)
• Your personal contributions
• The investment performance of your Personal Account

When you choose to retire it is the accumulated value of these investments that determine the value of your Personal Account.

Wherever you are on your savings journey, whether you’re paying into a pension for the first time or topping up your existing savings, we want to make sure you have access to the tools and information you need to help you create your future.

The savings plan is designed to help you build up a pension pot which you can use to take an income and lump sums from age 55 or the date you plan to access your pension savings. This is a personal pension plan which provides a tax efficient way of saving towards retirement and is administered by Aviva, a UK financial services company.

The pension plan has 3 sections:

• Auto Enrolment Section
• Matched Section
• Matched Salary Sacrifice Section

What your workplace pension can do for you

Contributions – you and Nuffield Health pay in, so you can build up your pension savings faster

Tax Relief – the government helps too in the form of tax relief. You can find out more about how this works in Section ‘Tax Relief’.

Access to your money – you can access the money you’ve built up from age 55 or a later date of your choice. You can get some of it tax-free as well.

A portable pension – you can take it with you if you change employment. You may also be able to transfer in any pension savings you have from other jobs. Find out more about transferring in Section ‘Transferring your Pension’.

Reasons to start saving now

The earlier you start saving, the better your chance of having enough to fund the lifestyle you want when you come to take your money.

It’s likely that by the time you want to use the money you’ve saved, the cost of day-to-day things like food and travel will have increased, so you need to make sure your pension pot is big enough to last.

The amount you’ll get will depend on several factors including:

• How soon you start
• How much you pay in
• How well your chosen funds perform
• How much is taken out in charges
• How you choose to take your money and when

Pensions Automatic Enrolment (AE)

The Government introduced rules for all employers that mean we must automatically put some of your pay into a pension and this is called Automatic Enrolment.

You must be enrolled if you are ‘eligible’ which means you must meet the following criteria:

• You’re over age 22
• You’re under State Pension Age
• You earn more than £833 per month

New employees

When you join Nuffield you are ‘assessed’ against the above criteria and if you are assessed as eligible you are placed into a three-month postponement period. At the end of this period, if you are still eligible you will be enrolled into the Nuffield Health Retirement Savings Plan – Auto Enrolment (the “AE Section”)

If you do not meet the above criteria

You are assessed on a monthly basis and when you are assessed as eligible you are placed into a three-month postponement period. At the end of this period, if you are still eligible you will be automatically enrolled into the AE Section and you will start paying into a pension. We can’t stop this from happening, even if you tell us that you don’t want to start paying into a pension. Don’t worry, you can choose to stop paying into your pension and receive a refund - this is called ‘opting out’.

Aviva will write to you at your home address with the details of your account and the options open to you regarding ongoing membership and instructions on how to opt out– see section ‘How do you opt out?’ for more details.

When joining the AE Section you are automatically enrolled on a default contribution basis which has been set by the government, see table below. Employer contributions are based on qualifying earnings thresholds, these can be found here.

How do you opt out?

If you don’t want to be in the pension, there is a 30 day opt out window that applies only within one month of you being Automatically Enrolled. You can only opt out during this window by following the instructions on the joining letter that you will receive from Aviva. By opting out you will receive a refund of any money that you’ve paid in. Nuffield will receive a notification that you have opted out and a refund will be processed in your salary, and you will be treated as if you never joined.

Please note - due to timings and payroll cut off deadlines you may not receive a refund in the next immediate pay run.

It is important to be aware that refunds cannot be processed outside of the opt out window and you cannot apply for a refund at any other time. Once contributions have been invested, they must stay invested until you are at least age 55.

Joining the Matched Section of the Plan (outside AE)

You can also join the Matched Section of the Plan directly if:

• You don’t meet all the AE criteria, or
• You want to join before the end of the three-month postponement period

Please refer to our guide: How to Join/Opt In to the Nuffield Health Retirement Savings Plan

Joining the Plan directly means you can contribute any percentage of your pensionable pay to the Plan (subject to HMRC and National Minimum Wage limits ) and Nuffield Health will match contributions up to a maximum of 6%. The contribution rates for the Matched Section are below:

All pension changes made in Workday take effect from the 1st of the following month.

Salary Sacrifice

Salary Sacrifice is where you give up part of your salary to the value of your pension contribution, and in exchange the amount you give up is paid by Nuffield Health into the Nuffield Health Retirement Savings Plan on your behalf. As you have given up part of your salary both you and Nuffield Health pay a lower level of National Insurance (NI) contribution. The NI savings mean that your overall take home pay is increased. It may also be referred to as ‘salary exchange’ or ‘smart pay’.

If you are earning over £22,000 per year you will routinely be moved to the Matched Salary Sacrifice Section of the Plan or you can elect to join the Matched Salary Sacrifice Section. It is voluntary so if you are moved into this section you can elect to move back to the Matched Section at any time.

Due to the thresholds in place you will need to contact psc@nuffieldhealth.com to either be moved into or moved out of the matched salary sacrifice section – this cannot be done via Workday in the same way as the other sections.

The result of sacrificing part of your salary is that you have a lower salary. However, Nuffield Health will calculate any salary related benefits, e.g. life assurance, pay reviews, shift and overtime allowances, on your gross salary (pre-sacrifice earnings.)

If your earnings, after Salary Sacrifice, reduce to less than the HMRC Lower Earnings Limit, this could reduce your basic State pension entitlement. However, you will cease to be eligible for Salary Sacrifice if your earnings fall below £22,000.

Movement between Sections

You can move from:

Please note: Changing section will not change your account details with Aviva.

Please refer to our guide: How to move from AE Plan to Matched Contributions

Salary Sacrifice FAQS

• What is salary sacrifice?

  Salary sacrifice (sometimes referred to as ‘salary exchange’ or ‘smart pay’) is a way to save into your pension whilst reducing the National Insurance Contributions that both you and Nuffield Health pay. The NI savings mean that your overall take home pay is increased.
  
  You give up part of your salary to the value of your pension contribution, and in exchange the amount you give up is paid by Nuffield Health into the Nuffield Health Retirement Savings Plan on your behalf.
  
  The Salary Sacrifice arrangement is only open to employees earning over £22,000* per year and employees will be routinely enrolled into the Nuffield Health Retirement Savings Plan – (matched plan - salary sacrifice).
  
  It is a voluntary scheme and if you do not wish to participate in the salary sacrifice arrangement, please contact the Pensions Team - psc@nuffieldhealth.com
  
  *the salary sacrifice threshold is subject to annual review

• Will Salary Sacrifice impact my other workplace salary related benefits?

  Since Nuffield Health will be basing your salary related benefits on your salary before the sacrifice you will not be disadvantaged for other benefits such as group life assurance.
  
  The result of sacrificing part of your salary is that you have a lower notional salary. However, Nuffield Health will calculate any salary related benefits, e.g. life assurance, pay reviews, shift and overtime allowances, on your gross salary (pre-sacrifice earnings.)

• Will my State pension benefits be reduced if I contribute through Salary Sacrifice?

  If your earnings, after Salary Sacrifice, reduce to less than the HMRC Lower Earnings Limit, this could reduce your basic State pension entitlement. We established the salary sacrifice threshold of £22,000 ensure that pay doesn’t fall below the HMRC limits and you would cease to be eligible for Salary Sacrifice if your earnings fall below that threshold, if that is the case, you will be moved into the Nuffield Health Retirement Savings Plan – Matched Plan (non-salary sacrifice).

• What else do I need to consider?

  If you enter into a salary sacrifice arrangement you should consider whether the reduction in pay could impact your right to other benefits and you should check if this will be the case for your personal circumstances.
  
  Salary Sacrifice should not affect your tax credits and means tested benefits will be either unaffected or you may be more likely to qualify for these, but you should check accordingly. Further information on these benefits may be obtained from the Tax Credit Helpline (0345 300 3900) or the Pension Service (0845 60 60 265).

• I earn under £22,000 per annum, why can’t I enjoy salary sacrifice?

  Employees earning under £22,000 per year are not being defaulted into a salary sacrifice arrangement in order to protect entitlements to certain state benefits based on National insurance contributions. In addition, Nuffield Health have a responsibility to ensure sacrificed earnings do not take employees below the National Minimum Wage.

• I am already in the Nuffield Health Retirement Savings Plan making non-salary sacrifice contributions

  All pension plan members earning more than £22,000 will be entered into a salary sacrifice arrangement for pension contributions on a routine basis. Salary sacrifice is a voluntary scheme, and you can opt out of salary sacrifice at any time by contacting the Pension Team psc@nuffieldhealth.com

• What if my earnings fall below £22,000 a year?

  If your earnings fall below £22,000 a year, you will cease to participate in the salary sacrifice arrangement, and you will be moved to the Nuffield Health Retirement Savings Plan – Matched Plan on the same contributions basis. You will re-enter the salary sacrifice arrangement when your earnings exceed this limit.

• Is there any limit to the amount I can contribute as a result of Salary Sacrifice?

  There is no limit to the amount you contribute through Salary Sacrifice, so long as you do not reduce your taxable earnings to less than £22,000 per year. You can contribute any percentage of your pensionable pay to the Plan (subject to HMRC limits) and the Company will match contributions up to a maximum of 6%.
  
  Nuffield Health will undertake checks where employees salary sacrifice over 19% to ensure they do not go below the National Minimum Wage.

• If I were to die in service, my pension contributions would be refunded – will this still happen if the contributions are paid via a salary sacrifice arrangement?

  Yes, the Nuffield Health Retirement Savings Plan is set up as a group personal pension plan, and as such Aviva who are the administrators of the fund would pay the value of your fund to your next of kin or dependents.
  
  Any entitlement to group life cover would also be paid based on your full pre-salary sacrifice earnings.
  
  Please note that you should ensure you have completed two Beneficiary Nomination forms - one for Aviva in respect your pension contributions and one for Nuffield Health in respect of your group life cover.

• How do I know I am participating on a salary sacrifice basis?

  You will see a change on your payslip and your pension contribution line item will move from the deductions section to the earnings section as a minus figure. This shows the amount you have ‘given’ up.

• How can I see my pension contributions?

  You can log into your Aviva MyPension account to view the contributions being paid in and these will show as Employer contributions because Nuffield Health are contributing for you and the Company.
  
  If you don’t have access you can request this by contacting Aviva who are the Plan Administrators, quoting scheme reference N10027
  Email mymoney.questions@aviva.com
  Phone 0345 600 6303

• Will contributing through Salary Sacrifice affect my student loan repayments as they are based on my earnings?

  Yes. The repayments you are required to pay in respect of student loans will be lower as it is based on your pay after the Salary Sacrifice reduction. You should be aware that, if you pay off your loan at a lower rate, you may end up paying it back over a longer period.

• How often can I change my level of pension contributions through Salary Sacrifice?

  You can revise your pension contributions once a month (minimum) by making changes through Workday.

• How will Salary Sacrifice affect maternity pay and pension contributions?

  If you are in receipt of Occupational/Company Maternity Pay your salary sacrifice contributions will continue to be deducted via salary sacrifice.
  Nuffield Health is not permitted to make deductions from Statutory Maternity Pay (SMP) so when you transition to SMP pension contribution deductions will be taken from any earnings you are in receipt of including car allowance, bonus or any other occupational pay (for example KIT days). If you are in receipt of full SMP, Nuffield Health must continue to pay contributions and will therefore make contributions covering the full amount including any contributions that would have been taken from earnings.
  This also applies to paid parental, paternity or adoption pay.

• Special note for higher rate taxpayers

  As you will not pay tax on Nuffield Health’s pension contributions, effectively you will automatically benefit from higher rate tax relief on your contributions if you contribute through Salary Sacrifice.

• Without Salary Sacrifice:

  • The contribution is deducted from pay after income tax and the amount deducted is calculated minus basic-rate tax
  • Basic rate tax relief is reclaimed by the pension provider and added to your pension account.
    To receive full higher rate tax relief on your contribution, you would need to contact HM Revenue & Customs to have your tax code adjusted or reclaim the difference between the basic and higher rate of tax on your tax return.

• With Salary Sacrifice:

  • Your pay before income tax deduction is reduced by the full (gross) amount of your contribution.
    This means that, while the amount contributed to your pension is the same as if you paid employee contributions outside of Salary Sacrifice, the equivalent of full higher rate tax relief is automatically reflected in your take home pay.

Changing your contributions

This can be done on a monthly basis and all changes are effective from the next calendar month.

Please refer to our guide: How to Change Retirement Savings Plan Contribution Rate

You can also stop contributions completely via Workday, please refer to our guide: How to Stop Contributions to the Retirement Savings AE Plan

Pension Contribution Rates

The best way to make sure you get the most out of your pension is to make regular contributions. It means you’ll get the benefit of a contribution from Nuffield Health and help from the government in the form of tax relief.

Contributions can be made into the Plan until you reach 75 years of age.

Tax Relief

To encourage saving for retirement, the government pays tax relief on pension contributions. This means that your pension provider can claim tax back from HMRC and add that amount to each contribution you make. From your point of view, it’s like receiving a bonus on everything you save.

You’ll receive tax relief on your pension contributions up to the annual allowance as set by the government. Any payments above the annual allowance will be subject to a tax charge.

Understanding the annual allowance and how it could affect you is important for keeping your pension savings on track. If you think your contributions might exceed the annual allowance, we would recommend speaking to a financial advisor.

The Nuffield Health Retirement Savings Plan is a personal pension plan and pension tax relief at source is applied. This means that If you’re paying into a pension through your employer, your employer will take 80% of your pension contribution from your salary (technically known as ‘net of basic rate tax relief’). Your pension scheme (Aviva as the Plan Administrator) then sends a request to HMRC, which pays an additional 20% tax relief into your pension. Under this system, higher and additional-rate taxpayers must complete a self-assessment tax return to receive the extra relief due to them.

Tax relief is paid on your pension contributions at the highest rate of income tax you pay. So:

• Basic-rate taxpayers get 20% pension tax relief
• Higher-rate taxpayers can claim 40% pension tax relief – Aviva will only claim 20% tax relief back from HMRC.  You will need to submit the other 20% on your Self-Assessment Tax Return
• Additional-rate taxpayers can claim 45% pension tax relief – Aviva will only claim 20% tax relief back from HMRC.  You will need to submit the other 25% on your Self-Assessment Tax Return

Any contributions you make to the Plan after age 75 won’t receive tax relief.

What are Qualifying Earnings?

Qualifying earnings is the name given to a band of earnings that Nuffield use to calculate contributions for auto enrolment. The figures are set by the government and reviewed every year.

These are a section of your earnings before Income Tax and National Insurance contributions are deducted. For the current earning thresholds please click here.

Qualifying earnings include:

• your wages or salary
• commission
• bonuses

What is Pensionable Pay?

Pensionable pay is defined by the rules of the pension scheme. Typically, pensionable pay is basic salary, not including elements of your earnings such as commission, bonuses and overtime.

What are the charges that apply to my pension?

The charges that apply to your pension are detailed in your annual statement.

Transferring your pension

Can I transfer my pension to another provider?

Yes, you can transfer your Aviva pension pot to another provider. Transferring your pension is a big decision. We recommend you get financial advice to help you make decisions about your pension savings and your retirement options.

Can I transfer pensions held with other providers to this one?

You may be able to transfer pensions from other providers to your Aviva account. Please speak to the provider of your other pension before you do this. You may lose important guarantees and benefits, there may also be additional charges that will apply.

To discuss possible transfers in from other pension arrangements, please contact Aviva directly as we do not have access to individual accounts. Aviva are the Plan Administrators and the relevant team at Aviva can be contacted at mymoney.questions@aviva.com or by phone at 0345 600 6303, and the scheme reference for the Nuffield Health Retirement Savings Plan is N10027. You can also request to have MyMoney access activated so that you can view your account online.

We recommend you get financial advice to help you make decisions about your pension savings and your retirement options.

Life Assurance

Nuffield Health employees are automatically covered for 1 x annual salary in the event of their death, for the duration that they are employed by Nuffield Health.

If you are a member of the Nuffield Health Retirement Savings Plan and elect a pension contribution rate of 6%, you will be covered for the higher level of 3 x annual salary life assurance (subject to conditions or restrictions imposed by the insurance company providing the benefit cover).

Nominate a beneficiary

You will be able to nominate a beneficiary by completing the Aviva Nomination Beneficiary form. To get a copy of the relevant form please contact Aviva directly.

Changing personal details

The pension team do not have access to individual accounts with Aviva who are the scheme administrators and we would ask that you contact Aviva directly for them to update your record accordingly via email: mymoney.questions@aviva.com or by phone at 0345 600 6303.

Tri-Annual re-enrolment

Every three years, to encourage everyone to save more for their retirement, anyone who previously opted out, ceased active membership or reduced their pension contributions to below the minimum statutory level of 8% (combined), is automatically put back into a pension scheme at the minimum level. This process is called re-enrolment.

Contribution thresholds

The Government requires those who currently pay into a workplace pension to automatically pay a minimum total contribution of 8% of earnings towards their retirement savings. This is made up of an employee saving a minimum of 5% of their qualifying earnings and their employer paying a minimum of 3%, as set by the Government. For the 2022/23 tax year, qualifying earnings is the amount earnt between £6,240 and £50,270 a year.

Who is impacted?

You will be impacted if you have:

• previously been automatically enrolled and elected to opt out (more than 12 months ago)
• ceased active membership by stopping contributions, or
• reduced your contributions and you currently pay less than a minimum total contribution of 8% of your monthly earnings into the Plan.

Following re-enrolment, you can keep paying into your retirement savings at this new rate or make a change to your contributions and opt to reduce or increase the amount you pay into the Plan. Any changes you make to your contribution amount will be effective from 1st of following month and will be reflected in your pay.

There will be no change for anyone already paying 4% or more into the Plan. This is because, together with Nuffield Health’s contribution, your contribution will already meet the statutory minimum of 8%.

What happens next

Aviva (our pension scheme administrator) will write to you at your home address if you are directly impacted.

If you have any questions about re-enrolment, please speak to your line manager, People Partner, Consultant or the People Support Centre. Or you can email: psc@nuffieldhealth.com

Keeping track of and accessing your savings

For more information on how to access and keep track of your savings, please contact Aviva (who are the Scheme Administrators) at mymoney.questions@aviva.com or by phone at 0345 600 6303. The Scheme reference for the Nuffield Health Retirement Savings Plan is N10027. You can also request to have MyMoney access activated so that you can view your account online.

If you can’t work due to illness or injury

You can stop contributions completely via Workday, please refer to guide: How to Stop Contributions to the Retirement Savings AE Plan.

Please email the AVIVA team if you have any questions on mymoney.questions@aviva.com or by phone at 0345 600 6303. The scheme reference for the Nuffield Health Retirement Savings Plan is N10027.

If you die before taking your benefits

Whilst employed by Nuffield Health employees in the Retirement Savings AE Plan are automatically covered for 1 x annual base salary in the event of their death.

If you are a member of the Nuffield Health Retirement Savings Plan, please ensure you also complete the Aviva Expression of Wish form. The Aviva form will provide a record of your wishes for the management of your pension fund in the event of your death, this can be found on: My Money (avivamymoney.co.uk).

Leaving the Plan

If you are thinking of leaving the plan, please contact the AVIVA team for advice on mymoney.questions@aviva.com or by phone at 0345 600 6303. The scheme reference for the Nuffield Health Retirement Savings Plan is N10027.