Fidante Benefits Package

Overview

To help individuals genuinely impacted by the TAA, Fidante offers the Personal Contribution Waiver (PCW) program. A benefit allowance is also available to those with existing protections against the LTA. An individual should carefully check to see if they are impacted by the TAA. It is important to remember that standard pension membership is most likely to be the best of the available options. Only if standard pension membership is negatively impacted by the TAA should an individual consider applying for the CIL. Rules are in place to prevent non-essential requests for participation.

How Does PCW Work and What Are The Rules of Participation?

TAA Impacted Individuals

• The key objective is to help individuals facing restricted annual pension contribution allowances (as a result of the TAA). • For individuals that qualify for (and opt-in to) PCW, the Fidante employer pension contributions continue at the normal level. This is 8% of salary up to a maximum of £10,000 per year (the amount of pension contribution that can be paid, no matter how severely an individual is impacted by the TAA). • For those genuinely impacted by the TAA, the requirement to contribute personally will be waived (the PCW). • To emphasise, the most efficient contribution of all is the employer pension contribution (as opposed to using some of the limited allowance with mandatI seeory personal contributions). • For individuals who are only partially affected by the TAA (where standard pension contributions are still within the partially tapered allowance or where sufficient carry forward allowance remains to justify full pension membership for at least another year), PCW should possibly not be selected (you can elect to switch to PCW at a subsequent review point). • Individuals with an annual salary of £100,000 or greater (and have total taxable income of >£260,000) can request to participate in the PCW Program. • The key objective here is to offer a Benefit Allowance (BA) to individuals who conclude that they need to stop pension funding altogether (as a result of previous LTA restrictions). The BA (pre deductions) will be equivalent to the rate of Fidante’s employer pension contribution entitlement. • Only if an individual has applied for Fixed Protection 2016 (or any of the previous versions - 2014, 2012 or Enhanced Protection) can they request the BA instead of standard pension membership. Where Fixed Protection is not in place, the option is not available. • The BA will be paid through payroll each month and is considered a cash payment. • The BA will be reduced by 13.8% to take into account the current level of corporate National Insurance Contributions (NIC) Fidante must pay on this type of payment. It should be noted that corporate National Insurance does not normally apply to pension contributions whereas it will apply to BA since they are cash payments. Please note that if the rate of corporate NIC rate changes, this deduction will change accordingly. Those with Existing Protection Against the Historic LTA

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