Your Deutsche Telekom (UK) Ltd DC Pension Plan makes up an important part of your retirement income.
For further information, please visit the L&G Master Trust microsite.
As a member of the DC section of the Scheme, you don’t pay any contributions directly to the L&G Master Trust. Instead you participate in a Salary Sacrifice arrangement, where you agree to reduce your basic salary by an amount equivalent to the pension contributions you’d otherwise make. Contributing to your pension in this way is beneficial to you and the Company from a tax and National Insurance perspective.
For example, if you earn £30,000 per year and make a 5% employee contribution (the Company match your contribution with a 5% employer contribution):
| Take home pay | Before Salary Sacrifice | After Salary Sacrifice |
|---|---|---|
| Gross pay | £30,000 | £28,500 |
| Tax | -£3,486 | -£3,186 |
| National Insurance | -£1,394 | -£1,274 |
| Employee pension payment | -£1,500 | £0 |
| Company pension payment | -£1,500 | £3,000 |
| Net pay | £23,920 | £24,040 |
Contributions are paid into your Account by your employer and you (you usually contribute via Salary Sacrifice)
You’re able to choose your own investment funds from the range of funds offered by L&G. If you don’t wish to choose a fund you’ll automatically be invested in the default fund (Target Date Funds).
The value of your Account will depend on the contributions received and the investment returns. Its important you understand the value of invested funds may decrease as well as increase.
Please refer to the L&G microsite about your retirement options.
Currently, the options (expressed as a percentage of your pensionable earnings), are set out in the table below:
| You pay | Deutsche Telekom (UK) Limited pays | Total paid |
|---|---|---|
| 5% - 12% | 5% - 12% | 10% - 24% |
| 12% or more | 12% | 24% or more |
You can change your contribution rate by giving the Company at least one month’s written notice. The Company will then adjust their contribution accordingly. To change your contribution rate, email HR at DTUK_HR@telekom.com
You can make an additional one-off contribution to your Account. If you’d like to make an additional contribution, you must notify the Company one month in advance by emailing HR at DTUK_HR@telekom.com
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.
When you join the pension plan, the contributions you and /or Deutsche Telekom (UK) Ltd make are invested in either a default fund or a lifestyle profile that has been chosen for you, known as the Target Date Fund.
Although it’s considered an appropriate option for most members, the default investment option doesn’t take into account your personal circumstances or future plans. With this in mind, given you can make your own investment decisions, it’s worth considering whether it’s currently the right place for your savings to be invested.
You have the option to move your pension from the DTUK pension plan to another plan, such as a new employer’s pension scheme, as long as it meets the legal requirements for pension transfers.
You might consider this to:
However, keep in mind that another plan might not offer the same benefits as the DTUK plan. We strongly recommend you take financial advice before making any decisions.
For more information visit the L&G microsite.
Certain events can impact your pension such as, you:
If you’ve had a change in circumstances, visit the 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.