Why should I join?
Hopefully, the benefits of joining the pension scheme are made clear in the scheme guide.
These benefits represent excellent value for money and for a relatively small outlay, you will become a member of a generous final salary pension plan which provides a pension for your dependants if you die, valuable life assurance and possible income protection if you fall ill and become unable to work. (See note 1 below).
If you are still in two minds as to whether you should join, give some thought to the following:
- If you want sufficient income when you are old you need to start saving now. If you don˙t join the scheme you will have to make your own pension arrangements, and pay separate costs for life assurance and income protection.
- The pension scheme is a tax efficient savings plan. You will get tax relief at your highest rate automatically if you pay into the scheme and your national insurance contributions will be lower.
- Your employer pays 18% of your pensionable
salary into the scheme. Can you afford to turn down free money? Remember,
your employer will not pay into a personal pension or stakeholder scheme
for you. The company's contribution is probably the best benefit
in kind you will ever get. You don˙t even have to declare it on your
tax return.
- If you leave the scheme within two years you can get the money you paid into the scheme refunded to you (less tax).
Your pension is protected if DMGT goes bust and the scheme can no longer afford to pay you your promised pension. (See note 2 below).
Note 1: The life assurance and income protection benefits are subject to completion of a satisfactory health questionnaire upon joining. Income protection is subject to approval from your employer.
Note 2: The Pension Protection Fund will pay limited compensation in these circumstances.