Your T-Mobile International UK Pension Scheme (the Scheme) makes up an important part of your retirement income and provides you and your family with a valuable range of benefits. As a member, you’ll build up an annual pension that’s payable for life and you can choose how you wish to take this when you retire. This provides you with an opportunity to plan for your future and gives you peace of mind, knowing your loved ones will be financially supported when you die.
The Scheme is a ‘final salary’ pension scheme run by the Trustee, with a legal duty to act in the members’ best interests. The Trustee invests the Scheme assets in line with the Statement of Investment Principles (SIP), which outlines the Trustee’s investment strategy and policies. You can see the current SIP on the News and information section of this website.
For details of the Scheme’s Trustee, please contact HR: DTUK_HR@telekom.com
When you join the Scheme, you don’t pay any contributions. Instead, you agree to reduce your salary by an amount equal to the pension contributions you’d otherwise make to the Scheme (called Salary Sacrifice). Currently the percentage of salary sacrificed is 4.8% of your Pensionable Salary.
Contributing to your pension in this way offers tax and National Insurance (NI) benefits for both you and the Company. Importantly, this salary reduction doesn’t affect your pension benefits, death-in-service entitlements from the Scheme, or any other benefits you receive from the Company (such as pay increases or bonus). These are all calculated based on your salary before any sacrifice is made.
T-Mobile International meets all the remaining costs of providing the benefits, including the administration costs of the Scheme (after allowance is made for member’s contributions).
For more information about your benefits see Your benefits
If you want to, you can increase your pension and/or tax-free cash by paying Additional Voluntary Contributions (AVCs). All AVCs are paid directly from your salary, benefiting from immediate tax relief.
All AVCs are provided by L&G. You can decide how to invest the contributions paid to your L&G Account. Visit L&G Master Trust microsite for further information.
For more information on paying AVCs, contact DTUK_HR@telekom.com
This is the total amount you can save into your pension(s) in each tax year, without incurring a tax charge. For most people the AA is £60,000 for the tax year.
Different rules apply if you have a ‘threshold income’ of more than £200,000 or ‘adjusted income’ of more than £260,000.
For information on the AA please visit https://www.gov.uk/tax-on-your-private-pension/annual-allowance
The AA can also be reduced if you take benefits ‘flexibly’ from your Account or another pension arrangement. The reduced limit, called the MPAA, is the maximum amount you can make to pension arrangements (like the Scheme). From the 6 April 2023, it’s set at £10,000. If you think you might be affected you should consider seeking financial advice.
Irrespective of the AA, your own payments and those from the Government (tax relief) in each tax year will normally be limited to 100% of your earnings, or £3,600 (whichever is greater).
For information on the current AA limits please visit the www.gov.uk/tax-on-your-private-pension/annual-allowance
HMRC require the amount of pension savings to be tested each year over a ‘pension input period’. The Trustee has previously decided that the Scheme’s pension input period should run from each 6 April to the following 5 April and has nominated 5 April in each calendar year as the last day of each pension input period. Pension savings in excess of £460,000 do not qualify for tax relief.
For more information on pension input please visit www.tax.service.gov.uk/pension-annual-allowance-calculator
From 6 April 2024 there’s no Lifetime Allowance (LTA) which limits the amount of pension savings you can effectively build – instead cash sums will be assessed against new allowances, with any excess subject to the recipient’s marginal rate of income tax.
There are two main allowances:
Exceptions, protections, and transitional arrangements may apply:
For more information visit www.gov.uk/tax-on-your-private-pension/lump-sum-allowance
For information on how your pension is taxed see Tax and taking your pension in Plan to retire.
If you leave the Scheme, you’ll no longer earn future benefits, and your death-in-service coverage will stop. As a former member, you’ll become what’s known as a ‘deferred member’ and will be eligible to receive your pension at your Normal Retirement Age (NRA).
Your pension will be calculated in the same way as a normal retirement pension, based on your years of Pensionable Service and Pensionable Salary at the date you left the Scheme. This amount will increase annually from the date you leave until your pension begins.
Your DB pension in the Scheme is a highly valuable benefit, payable for life, and for most people, taking this type of pension is the best option. However, if you’re considering transferring your benefits, we strongly recommend you take financial advice before making any decisions.
If your transfer value (excluding AVCs) exceeds £30,000 and you plan to transfer it to a scheme offering ‘flexible benefits’ (for example a DC pension arrangement), we’re required by law to check you’ve received advice from a financial adviser in relation to the transfer before your transfer can be paid.
Please contact Barnett Waddingham for more information.
Also see ‘Helpful information’ and ‘Useful links’ on the News and information page.
Unless you’ve been told otherwise, your Normal Retirement Age (NRA) is 65, this applies to men and women. If you retire from the Company at your NRA, you’ll receive a pension for life, based on your final Pensionable Salary and Pensionable Service:
• The accrual rate for all pension earned before 1 April 2012 is 1/60th
• The accrual rate for all pension earned on or after 1 April 2012 is 1/70th
The pension you receive will be calculated as follows:
(earned before 1 April 2012)
Pensionable service is the number of continuous years, complete months and additional days that you were a member if the Scheme, and cannot be more than 40 years.
At retirement, you can exchange part of your pension for a tax-free lump sum payment, subject to current regulations. Typically, the maximum amount you can exchange is 25% of the total value of your pension, up to a limit of £268,275. This limit applies in total across all of your pension schemes and is not just for this Scheme.
The Trustee and Deutsche Telekom (UK) Ltd have agreed with L&G that, subject certain conditions being satisfied, members may be able to transfer funds back from the L&G Master Trust to the Scheme to help fund (in full or in part) their tax-free lump sum when they start drawing their DB benefits from the Scheme.
For members who previously had Defined Contribution (DC) benefits – also known as the ‘1% top-up’ or AVCs – in the Scheme, these benefits were transferred to the Legal and General (L&G) Master Trust in February 2022.
The Trustee and Deutsche Telekom (UK) Ltd have agreed with L&G that, subject to certain conditions being satisfied, members may be able to transfer funds back from the L&G Master Trust to the Scheme to help fund (in full or in part) their tax-free lump sum when they start drawing their DB benefits from the Scheme. This is known as ‘Switchback’.
Where Switchback is allowed, it would include those benefits which were transferred to the Deutsche Telekom Section of the L&G Master Trust in February 2022, together with any further contributions made as an active member of that section of the L&G Master Trust from 1 November 2021 onwards, and whilst the Member is employed by DTUK. However, it wouldn’t include any amounts transferred into the L&G Plan from other pension arrangements outside the Scheme. Additionally, the amount which can be used for Switchback will be capped at the maximum required to fund the tax-free lump sum in the Scheme.
Please note, the Switchback arrangement isn’t guaranteed, and no Member has a right to use their DC benefits in the L&G Master Trust to fund their tax-free lump sum at retirement. The Trustee and DTUK reserve the right to amend or discontinue the Switchback arrangement in the future.
We’re responsible for covering the costs required to provide the benefits promised under the DB section of the Scheme, as well as its administration expenses, after accounting for members’ contributions.
You don’t make direct contributions to the Scheme. Instead, you participate in a Salary Sacrifice arrangement, where you agree to reduce your salary by an amount equivalent to the pension contributions you would otherwise make. This arrangement benefits both you and the Company by reducing the tax and National Insurance (NI) contributions payable.
Importantly, this salary reduction doesn’t impact your pension or death-in-service benefits under the Scheme, nor does it affect other benefits such as pay increases or bonuses, which are calculated based on your pre-sacrifice salary.
Currently, the percentage of Pensionable Salary sacrificed is 4.8%.
If you want to, you can increase your pension and/or tax-free cash by paying Additional Voluntary Contributions (AVCs). All AVCs are paid directly from your salary, benefiting from immediate tax relief.
All AVCs are provided by L&G. You can decide how to invest the contributions within your L&G Account. Visit the L&G Master Trust microsite for further information.
For more information on paying AVCs, contact DTUK_HR@telekom.com
Since 1 April 2012, the Company has made ‘Money Purchase’ contributions for employed members of the DB section whose basic salary (before Salary Sacrifice) is at least £70,000 per annum (at 1 April each calendar year).
These contributions are set at 1% of the member’s basic salary (before Salary Sacrifice) as at 1 April and are paid monthly in arrears for each full calendar month of Pensionable Service. For the period from 1 April to the following 31 March, the salary used to calculate these contributions remains fixed as of 1 April, regardless of any changes to the member’s salary during that period.
Both the contribution rate and salary threshold may change in the future.
There are a number of ways you can get in touch for help or information about your benefits depending on the scheme you’re in:
| Benefit type | Contributions | Investment | General queries | Retirement options | Benefits in payment |
|---|---|---|---|---|---|
| DB pension | DTUK | N/A | Barnett Waddingham | Barnett Waddingham including Switchback | Barnett Waddingham or annuity provider |
| 1% top up | DTUK | L&G | L&G | Barnett Waddingham if you want to use Switchback or L&G | L&G if funds remain |
| AVCs | DTUK | L&G | L&G | Barnett Waddingham if you want to use Switchback or L&G | L&G if funds remain |
If you die whilst still working for the Company and you’re a member of the Scheme, we’ll make a lump sum payment of four times your pensionable salary. We decide who to pay these benefits to and will take into account, but not be bound by, your wishes given in your Nomination Form. This payment is normally free of inheritance tax.
The pension paid will be 1.9% of your final salary (at date of death) for each year and part year of pensionable service, subject to a maximum of 4/9ths of your pensionable salary at the date of your death.
If you die whilst working for the Company and you’re an active member of the Scheme at the time you die but you have already started to draw a pension from the Scheme, any death in service lump sum will be reduced by the amount of any lump sum payable if you die within five years of starting to draw your benefits.
Dependent children will receive a pension until they are 18 (or 23 if they’re in full-time education or training approved by the Trustee).
If you die while still working for the Company, and you have two or more dependent children, they will receive equal shares of a pension equal in total to 50% of your spouse’s or qualifying partner’s pension – as each child becomes ineligible the amount will be changed. If you only have one dependent child, he or she will receive 25% of that amount.
If there’s no pension payable to a spouse or qualifying partner, we can choose to pay the pension (otherwise payable to a spouse or qualifying partner) to another dependant, such as an elderly parent.
Where there’s no spouse or dependant (other than children) the child’s pension will be double all the amounts set out above.
Children’s, dependants’ and spouses’ pensions increase at the same level as normal retirement pensions.
If you die before drawing your ‘deferred pension’, a lump sum (five times your current annual deferred pension) will be payable. We’ll bear in mind, but not be bound by, any nomination you’ve made stating who you’d like to receive this benefit. This usually means the recipient(s) of this sum will be free from paying inheritance tax on the lump sum.
If you die after leaving the Scheme but before drawing your pension, a spouse’s pension or a qualifying partner’s pension will be payable. Its value will be 40% of the preserved pension (in respect of pensionable service after 5 April 1997) that would have been payable to you at that date (adjusted to take account of inflation).
If you die after leaving the Company but before coming to draw your pension and you have two or more dependent children, they will receive equal shares of a pension equal in total to 33.33% of the preserved pension that would have been payable to you at that date (adjusted to take account of inflation) – as each child becomes ineligible the amount will be changed. If you only have one dependent child he or she will receive 16.66% of your pension.
If there’s no pension payable to a spouse or qualifying partner, we can choose to pay the pension (otherwise payable to a spouse or qualifying partner) to another dependant, such as an elderly parent.
Where there’s no spouse or dependant (other than children) the children’s pension will be double all the amounts set out above.
Children’s, dependants’ and spouses’ pensions increase at the same level as normal retirement pensions.
You should complete an Expression of Wishes form for your DB Benefits to let the Trustee know how you’d like your death in service or deferment benefits to be distributed – visit Pension self-service or contact Barnett Waddingham, the Administrator.
You’ll need to complete a separate form for any DC Benefit you hold, please see the DC Benefits information below.
Please refer visit the L&G Master Trust microsite, which confirms how your DC benefits are paid out in the event of your death: www.legalandgeneral.com/workplace/d/deutsche-telekom-uk/helpful-resources/document-library-page/
You can complete an Expression of Wishes form or to make any changes to your beneficiaries via an online form. Visit the L&G Master Trust microsite: www.legalandgeneral.com/workplace/d/deutsche-telekom-uk/helpful-resources/document-library-page/
Whenever your pension starts, it is guaranteed for five years. This means if you die within five years of your pension starting (as long as you’re still under 75) a lump sum will be paid, subject to certain conditions. This lump sum will be equal to the balance of the remaining guaranteed pension instalments (disregarding any increases).
If you die in retirement and are married (or have a civil partner), your spouse will receive a pension (as long as you’re not separated or living apart when you die). If you’re not married or in a civil partnership but in a relationship which closely resembles marriage (and there’s financial dependency or interdependency) your partner will generally be entitled to the above – however, there may be differences, particularly if there’s also a spouse or civil partner with whom you’re not living with when you die.
This pension will normally be calculated as 66.67% of your gross pension (ignoring any reduction in the amount of that pension because you have exchanged part of it for cash or dependant’s pension). However, this may vary depending on the difference between their age and yours.
If you’ve retired due to ill-health, are receiving a pension from the Scheme, and die before you reach Normal Retirement Age, a lump sum payment will be made as if you had died in service, less an amount equal to the lump sum you received when you retired.
Dependent children will receive a pension until they are 18 (or 23 if they’re in full-time education or training approved by the Trustee).
If you die in retirement and you have two or more dependent children, they’ll receive equal shares of a pension equal in total to 50% of your spouse’s or qualifying partner’s pension – as each child becomes ineligible the amount will be changed. If you only have one dependent child, he or she will receive 25% of that amount.
If there’s no pension payable to a spouse or qualifying partner, we can choose to pay the pension (otherwise payable to the spouse or qualifying partner) to another dependant, such as an elderly parent.
Where there’s no spouse or dependant (other than children) the child’s pension will be double all the amounts set out above.
Children’s, dependants’ and spouses’ pensions increase at the same level as normal retirement pensions.
You should complete an Expression of Wishes form to let the Trustee know how you’d like your death in service or deferment benefits to be distributed – visit Pension self-service or contact Barnett Waddingham, the Administrator.
On reaching your Normal Retirement Date, you will receive a lifetime income based on your membership in the Scheme. The amount will be determined by the total years and months you were a Scheme member, your Pensionable Salary, and the accrual rate, which specifies the portion of your Pensionable Salary you’ll receive as a pension for each year of membership.
If you were an active member of the Cable & Wireless Superannuation Fund on 29 February 2000 and joined the Scheme on or after 1 March 2000, you can retire at any time from your 60th birthday onwards without requiring consent. Your pension will not be reduced if taken on or after age 60.
For further details on your retirement options at your Normal Retirement Age, see Plan to retire section, or contact Barnett Waddingham.
If the Company agrees, you can start receiving benefits from the Scheme before age 65, with a minimum age of 55 (rising to 57 in 2028). If you decide to retire before your Normal Retirement Age, your benefits may be reduced to take account of being paid a retirement income for longer.
If you’d like to retire early and start to take your benefits, you should contact the Scheme Administrators Barnett Waddingham, for an early retirement quote to understand what this means for you.
You may receive an enhanced pension if you have to retire early due to ill health. If you’re unable to keep working in any occupation (not just your current job with us) due to ill-health you might be able to draw your pension early (as long as we and the Company agree and have received appropriate medical certification).
The pension calculation is the same as for normal retirement, but you’ll also be credited with your potential service to your normal retirement date (based on your final Pensionable Salary at the date of leaving).
Ill-health pensions in payment are reviewable and may be stopped or changed at the discretion of the Trustee.
For more information on ill health retirement, you should contact the Scheme Administrators Barnett Waddingham by phone or email, this can’t be actioned via Pension self-service.
If you decide to retire later than your Normal Retirement Age (NRA), your pension may be increased to reflect the fact the Scheme expects to pay your pension for a shorter period.
If you’re an active member of the Scheme and the Company agree to you working past your NRA you’ll continue to be a member of the Scheme and earn further benefits, up to age 75 at the latest. You’ll receive a pension when you retire from the Company, or 75 if earlier. If you continue to work past your NRA, you’ll still be covered by the death-in-service benefits.
For more information, contact Pension self-service.
If you’re looking to retire soon, you may be able to view a retirement illustration online by logging in to Pension self-service. Illustrations can’t be produced for a small number of members. If this affects you, please contact Barnett Waddingham on 0333 11 11 222 for more information.
Your retirement options will vary depending on your Scheme membership.
The options available to you are as follows:
For more information on your retirement options contact Barnett Waddingham.
If you’ve paid Additional Voluntary Contributions (AVCs), the funds you’ve built up can be taken as tax-free cash subject to current regulations and conditions.
For more information see Switchback’, in the Your Benefits section.’
When you receive your pension benefits through the Scheme, they’ll be taxed through the PAYE system.
HM Revenue & Customs will let you and the T-Mobile UK International Pension Scheme know which tax code to use. If you have any queries about tax codes, you should contact the tax office listed below, quoting the reference and your National Insurance Number.
Pay As You Earn and Self Assessment
HM Revenue and Customs
South Wales Area
16th Floor, Phase 11 Building
Ty-Glas
Llanishen
Cardiff
CF14 5YA
United Kingdom
Call 0300 200 3300 (+44 135 53 9022 if overseas) quoting the reference: 120/ZE13457
Your pension statements will tell you what your estimated retirement income will be.
Once you know what your retirement income is likely to be, and what retired life could look like, you’ll need to consider whether your pension savings are enough.
There’s lots of useful information on retirement planning on the MoneyHelper website
You can also get help from a regulated and impartial financial adviser.
Certain events can impact your pension such as you:
If you’ve had a change in circumstances, contact L&G Master Trust microsite
To report a death please call or email Barnett Waddingham directly.
Know how to identify, avoid and report a scam.
Let us know if something’s changed. It’s important to keep your details up to date.
You can name and update your nominated beneficiaries by logging into your online account.