SMART guide - Sainsburys Pensions

SMARTandyour pensionSainsbury’s Pension SchemeFor Final Salary, Career Average and Cash Balance membersApril 2013NEXT PAGE

How does SMART work?1. You choose to sacrifice your gross salary equal to the normal contributionrate of the Scheme you are in2. Sainsbury’s pays this amount directly to the Scheme for you3. SMART reduces your contractual pay that is used to work out how muchNational Insurance you pay4. You pay slightly less National Insurance5. So the cost of being in the Scheme is less.This is a change to your terms and conditions of employment effective from yourdate of joining the Scheme.The increase in your take-home pay depends on your current pay and normalpension contributions.3 Sainsbury’s Pension SchemeNEXT PAGE

Can being in SMARTaffect my pay?Salary Sacrifice means accepting a lower annual basic salary so Sainsbury’s usesa Notional Salary to calculate your salary-related company benefits. This meansSMART won’t mean a reduction in benefits which would normally be based on yourannual basic salary – including pay increases, sick pay, maternity pay, redundancycompensation and death benefits.Your Notional Salary is your salary that you receive before the SMART deduction.Can being in SMART affect my State benefits?SMART may affect:• Statutory Maternity Pay• Statutory Adoption Pay• Statutory Sick Pay• Statutory Paternity Pay.We will take you out of SMART if you receive any of these benefits and instead wewill deduct normal contributions. If we deduct normal contributions, you’ll see onyour payslip that your contributions will appear in the middle column.If you are not receiving any of these benefits and your being in SMART would nottake you below the Pay Protection Limit or the National Minimum Wage, we will thenput you back into SMART.5 Sainsbury’s Pension SchemeNEXT PAGE

Can being in SMART affect my tax credits?Any tax credits such as child tax credit or working tax credit you receive may beaffected as the total pay shown on your P60 will be lower than if you were notin SMART. Your P60 will show your total pay less the amount you’ve sacrificed.If you’re unsure of the effect on your tax credits, check on www.gov.uk.How will SMART affectmy income tax position?SMART will not affect your income tax.6 Sainsbury’s Pension SchemeNEXT PAGE

Does SMART affect the amountI can pay into my pension?No, you pay a set amount of your pensionable pay to be in the Sainsbury’sPension Scheme.SMART could affect the amount you pay into your pension if you’re thinking aboutpaying Top Up contributions or if you contribute to a pension outside Sainsbury’s.The maximum contribution which can be made to your pension without payingextra tax changes from year to year. The maximum limit for most people is yourtotal taxable earnings each year (there are new limits for higher earners. Checkwww.gov.uk or ring the Pensions Department if you are a higher rate tax payerand need more details).Being in SMART will reduce the amount you can pay only if you want to contributeall of your pay into the Scheme as your total pay is reduced by the amount you havesacrificed into the Scheme.If you wish to pay close to the maximum allowance, you may wish to consideropting out of SMART or getting financial advice. You can find independent financialadvisers in your area by contacting IFA Promotions Limited through their websitewww.unbiased.co.uk.7 Sainsbury’s Pension SchemeNEXT PAGE