It's important to understand your pension is a long-term investment so its value can go down as well as up and you could get back less than was paid in.
Laws and tax rules may change in the future. Your own circumstances and where you live in the UK have an impact on tax treatment.
Plan details
Your employer is offering you the opportunity to join the Centrica Savings Plan - a Trust Based Pension plan provided by Standard Life Assurance Limited.
It's important you make an informed decision so you should read the key documents at the bottom of this page.
And you can find answers to common questions in our FAQs
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How joining this plan will work
Joining as part of your employment contract
Centrica offers this pension plan as one of the benefits of working there.
Centrica will let you know when you’ll join the plan - this will happen from the last day of your second month of employment. You can join the Plan before if you wish through MyPension .
What you need to do
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Make sure it's right for you
Paying into a company pension can be a great way to save for the future - especially since your employer pays in too. But you may decide it's not right for you. Once you've joined, you'll have a month to opt out. And you can stop or change your contributions in the future if you need to through MyPension .
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Decide how much to pay in
It's up to you how much you pay in as long as you meet the minimum amount set by your employer.
Contribution options for this plan
You'll be able to change your contributions once you've joined this plan.
Centrica will contribute up to 10%* of your pensionable salary. This could depend on how much you pay in - see the table below.
When you’re first enrolled into the Plan you’ll pay in 5% of your salary. You can change this amount after you have joined through MyPension . Centrica will contribute up to a maximum of 10% of your pensionable salary, depending on which section you are a member of and your contribution rate.
Please see the tables below for more information on the Sections and maximum contribution rates. You can select a lower contribution rate if you prefer, however this will reduce the amount Centrica contributes too.
*There is a different contribution rate for CSP C
CSP A
| Years a member of the plan | Your contributions | Your employer’s contributions | Total contributions |
|---|---|---|---|
| 0-2 years | 5% | 5% (maximum) | 10% |
| 2 years + | 5% | 10% (maximum) | 15% |
CSP B
| Your contributions | Your employer’s contributions | Total contributions |
|---|---|---|
| 5% | 10% (maximum) | 15% |
CSP C
| Years a member of the plan | Your contributions | Your employer’s contributions | Total contributions |
|---|---|---|---|
| 0-2 years | 6% | 6% (maximum) | 12% |
| 2 years + | 6% | 12% (maximum) | 18% |
When you're first enrolled in this plan you'll pay in 5% of your salary. You can change this amount after you join through MyPension . You also can make additional voluntary contributions (AVCs) via MyPension which is a great way to give your retirement savings a boost. Please note Centrica do not match any AVCs.
Contribution methods
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Contributions into your pension plan will be made by SMART Pay. This means contributions will be taken from your salary before tax and National Insurance (NI) are calculated. You and your employer will pay less NI and you won't need to reclaim any tax relief from the government manually. It's important to remember that SMART Pay isn't right for everyone. It's a change to your terms of employment and could affect your entitlement to state benefits or your ability to borrow.
You might be able to change the way you make contributions into your pension plan - there is a guide available on MyPension under the ‘Good to know’ section with more information and details of how to opt out of Smart Pay if you wish to.
Pension allowances
There's a limit to the amount that can be paid into your pension plans each tax year without paying a tax charge - for most people this is normally 100% of your earnings, capped at £40,000. But in some circumstances it could be lower.
There's also a lifetime allowance on the total value of your UK pensions. It's not a limit though - you can save more if you want to. You will only start paying the extra tax when you take more than your allowance from your plan, not just when your pension pot reaches it. At the moment, the lifetime allowance is £1,073,100.
These allowances aren't an issue for most people, but it's a good idea to check. For more information download our Guide to tax relief, limits and your pension (PDF 359KB)
Opting out
A company pension is one of the most rewarding ways to save for the future. But it's your choice and you can opt out if you want to.
You can't opt out until you join
You can only opt out once you've been enrolled into this plan by your employer. This is a government rule to encourage people to save into their pension plan. You'll be notified once you've been enrolled and will receive details about how to opt out at that point.
If you opt out you can still join later
Government rules may mean that you get auto-enrolled back into your company pension plan in the future. This normally happens every three years, but you can ask your employer if you'd like to join sooner.
You can re-join the plan at any time via MyPension if you wish to. If you are auto-enrolled back into the plan in the future and being a member still isn’t right for you at that time you will still have the option to opt out again.
The downsides of opting out
If you opt out, you won't receive any contributions from your employer. You may also lose some of the tax benefits if you put your money somewhere else.
Investment choices and charges
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Important documents
These documents will help you understand how this plan works, so you can decide if it's right for you. It's a good idea to keep or save a copy of each one.
These documents are provided by Trustee of the Centrica Savings Plan: