Fidante Benefits Package

Will other state benefits be reduced as a result of making Salary Exchange contributions?

As you will not be eligible to make Salary Exchange contributions if this would reduce your pay to less than £22,308, we do not believe there will be any negative impact on other state benefits.

In fact, as your earnings before tax and NI will be lower, you will be more likely to qualify for some state benefits and the value of your state benefits could actually increase.

What about maternity leave?

The calculation of maternity pay will be based on your reduced, post Salary Exchange pay. However, your Salary Exchange contributions will continue to be paid in full (at your pre-Maternity value) by Fidante throughout the period of paid maternity leave (unless you choose to stop participating in Salary Exchange before or during your maternity leave).

As my pay is reduced as a result of making Salary Exchange contributions, will this affect the amount of mortgage or loan I could receive?

Not normally but it depends on your lender. Reference letters provided by Fidante for mortgage or loan purposes will refer to your pay before any adjustments to reflect Salary Exchange contributions. Historically, most lenders have been happy with this.

Will paying Salary Exchange contributions affect my student loan repayments as they are based on my earnings?

Yes. The amount you are required to pay in student loans will be lower as it is based on your pay after the Salary Exchange contribution reduction. If you pay off your loan at a lower rate, you will end up paying it back over a longer period, so it may cost you slightly more in interest.

How often can I change my level of Salary Exchange contributions?

Normally, once a year. Salary Exchange reviews will take place each March thereafter during which time you will have a 3-week period to notify of any changes you wish to make. Any change instructed will be effective from the following month (April) onwards. You will also have the opportunity to make changes in the event of a ‘lifestyle change’ such as buying a new home, marriage/civil partnership, childbirth/adoption, divorce, promotion or significant changes to working hours.

Members wishing to start Salary Exchange for the very first time can do so at any time.

What happens to my contributions in the event of a salary increase/decrease?

The amount you contribute is based on a percentage of salary chosen by you. This percentage will not change unless you request this at the review point, or as a result of the lifestyle changes mentioned. Contributions will therefore increase or decrease automatically in line with your new salary.

25