Your pension plan with easyJet
- I’ve been told I’ll be automatically enrolled into the scheme - what is automatic enrolment?
- Can I opt out of being automatically enrolled into the pension?
- How much will be paid into my retirement savings plan?
- Can I change the amount I pay into my pension plan?
- Making contributions through salary sacrifice
- What are the charges?
- How can I see how my retirement saving are doing?
- What age can I take any benefits?
- What happens to my plan if I die before taking any benefit?
- How do I tell you who I’d like you to pay any lump sum death benefit to?
easyJet will enrol you into the Scheme automatically in your third pay period as detailed in your contract. You can ‘opt in’ to the Scheme before this date by contacting firstname.lastname@example.org
What is meant by enrolling automatically?
To encourage more workers to save for their future, the government has introduced rules. Employers now have to:
- automatically enrol all eligible workers into a pension scheme; and
- make relevant contributions into their pension plan where applicable.
Therefore by law easyJet must place most of their employees into a qualifying workplace pension scheme and make a minimum level of contribution. This is known as ‘automatic enrolment’. You can find out more about auto enrolment(Opens new window) on The Pensions Regulator website.
If you don’t want to be a member of the Scheme, you can ‘opt out’ – that is, cancel your policy. If you do this within one month of us sending you the Scheme details, you and easyJet stop contributing to the Scheme and you’ll receive a refund of any contributions paid from your salary to the Scheme in the next available payroll run.
If you opt out you’ll lose easyJet’s contributions and won’t be building up Scheme benefits for your retirement.
If you opt out or stop contributions to the Scheme – but stay with the same employer – current rules state that your employer must automatically enrol you again, usually every three years (as long as you still meet any joining conditions). easyJet will tell you if this happens. You’ll be able to opt out again if you still don’t want to be a member of the Scheme.
The contributions that you and easyJet pay into your retirement savings each month will depend on your employment contract.
However it’s up to you if you want to pay in more. You should think about the level of income you’d like in your retirement and whether the default contribution amount is likely to get you there.
You may get back less than you invested. What you get back depends on several things, for example how your investments perform and how they're taxed.
Yes. The amount of money you’ll have to retire on will, among other things, depend on the contributions you make into your pension scheme. It’s important to pay contributions into your pension scheme at a rate that will allow it to provide the income you want when you retire - and many people do underestimate this!
You can use the My Future Me retirement modelling tool on the benefits4me(Opens new window) online site to check whether you’re likely to be on target with the contributions you’re paying.
Remember that this is just an estimate of your retirement benefits and will, of course, depend on a number of other things including: where you invest; what other savings you already have; how you are taxed; when you choose to retire, for example. And remember that it’s important to contribute an amount that you feel you can comfortably afford.
How do I change my pension contributions?
You can change your contributions at any time after your plan has been set. Simply email easyJetbenefits4me.email@example.com(Opens new window)(Opens new window) and ask to go into the benefits4me(Opens new window) system to do this.
Contributions you make are automatically paid into the Scheme through ‘salary sacrifice’. Salary sacrifice is where you as an employee give up, in advance, a certain amount of salary in return for an extra pension contribution of the same amount from easyJet.
Don’t worry! Despite the term ‘sacrifice’, it doesn’t mean that you’re getting less money – in fact, it will normally mean your take-home pay goes up slightly. This is because you only pay National Insurance on the salary you actually receive – not the amount you’ve given up. It’s also Government approved and lots of UK pension schemes work in the same way.
Find out more about salary sacrifice(Opens new window) on our website.
This is based on our understanding of current taxation law and HM Revenue & Customs practice, which may change.
However, salary sacrifice isn’t suitable for everyone. You should think about other things linked to your level of salary such as the amount of mortgage you can borrow or any other benefits, such as statutory maternity, paternity, sick pay, Working Tax Credit/Child Tax Credit or basic state pension. If you want more information on the suitability of salary sacrifice, you should get professional financial advice.
Salary sacrifice is part of your Terms and Conditions of Employment and, unless you choose to opt-out, you agree to give up this amount of salary until further notice, as long as easyJet agrees to pay the same amount on your behalf as an extra contribution to the Scheme. Your ‘reference salary’ (ie the salary before your sacrifice for pension contributions) will still be linked to your other easyJet benefits.
Paying pension contributions via salary sacrifice results in you sacrificing some of your salary for an extra employer pension contribution. As your salary is reduced you avoid paying tax and NI on the amount sacrificed. Basic rate tax payers will effectively benefit from basic rate tax relief and the NI saving, and if you pay tax at the higher or additional rate and take part in salary sacrifice, you’ll automatically receive tax-relief at your highest marginal rate rather than having to reclaim it from HM Revenue & Customs.
You can choose to opt out of salary sacrifice and still make pension contributions from your monthly salary, and receive basic rate tax relief automatically. If you choose to opt-out of salary sacrifice you won’t benefit from the additional National Insurance saving contribution from easyJet, and if you pay tax at the higher or additional rate you will need to reclaim the extra tax relief above basic rate from HM Revenue & Customs.
How do I opt out of salary sacrifice?
If you want to opt out, contact easyJetbenefits4me.firstname.lastname@example.org(Opens new window) and they can give you the opt-out form to complete. You can do this at any time.
Since salary sacrifice is a contractual agreement, opting out will mean a change to your current employment contract to reflect that you are no longer giving up salary for pension.
Your pension contributions are invested, and how much you’ll have to retire on will depend on how well the investments you choose perform.
It’s up to you how you invest your pension contributions. When you join the scheme your regular contributions will be automatically invested in the scheme’s default fund. You can leave them invested here or if you prefer, you can choose another fund or funds to invest in.
Your scheme's default fund
easyJet have worked with the scheme adviser, Aon Consulting Ltd, and chosen the Universal Lifestyle Collection(Opens new window) as the default fund for your scheme.
Choosing another investment fund
If you’d prefer to invest your contributions in something different you can change your investment choice (known as ‘switching’) once your plan has been set-up. You can invest in a wide range of funds – take a look at the investment list(Opens new window) to find out what your choices are.
You should think carefully about where you invest, as there are risks you need to consider. The value of an investment can fall as well as rise and isn’t guaranteed. You may get back less than the amount originally invested. If you’d like some help with your investment choices you should speak to a financial adviser.
You can visit the investment section to find out more.
You’ll pay an Annual Management Charge (AMC) to cover the cost of administering your plan. The AMC for the easyJet scheme is 0.37%.
It’s taken as a percentage of your pension savings. For example, if you had £50,000 you’d pay about £185 for a years’ worth of annual management fees. However, the provider spreads the charge throughout the year, and normally takes it into account in the fund value.
The government has put in place a charges cap, which means that members investing in a scheme’s default fund(s), can’t be charged more than 0.75% of their fund value each year. And the easyJet scheme is well below this amount.
However some investment funds have an additional charge, and if you choose to invest in one of these funds, you’ll pay this additional investment charge on top of the core AMC of 0.37%. Depending on the amount of the additional charge you may go above 0.75%. Take a look at our fund list to find out which funds have additional charges, these charges may vary in the future. However, there’s a wide range of funds to choose from and only certain funds have additional charges.
Aegon will send you a yearly statement that will show how your plan is doing.
You’ll also be able to log into Aegon's online service(Opens new window)(Opens new window), at any time, and easily see the value of your savings, contribution history as well as details of what funds you’re invested in, all at a glance.
If you’ve not already register to use online services
To register you'll need your plan number and verification code to hand. If you haven't received a verification code with your welcome pack, or have lost it, you can request a code(Opens new window)
- Go to register online
- Enter your details – including your plan number and verification code
- Click ‘register’
- You’ll receive your user ID and password onscreen and you’ll be able to log in straightaway
- Go to benfits4me (Aon’s flexible benefits home screen) and link to the pension section you need
- After you’ve logged in once, ‘single sign on’ will apply in future, so there will be no need to enter your user ID and password each time you visit.
Your ‘default’ target retirement age is 65. You can change this at any time by contacting email@example.com(Opens new window) and asking them to send you a form to change your retirement age.
However, you’re able to take an income from your retirement savings any time from age 55, which is currently the minimum age you can receive your benefits (although you can take them earlier if you’re in ill health). The minimum age is increasing to 57 from 2028 and will go up after that in line with your State Pension Age.
If you die before taking your benefits the fund you’ve built up to the date of your death would be payable to your beneficiaries as a cash lump sum and is usually tax-free.
It’s important you fill in an Expression of wish form(Opens new window) to tell Aegon who you’d like to receive any benefits following your death. Equally, if your personal situation changes, for example, you marry, divorce or become a parent, you may want to update your form. Once completed, please send the form directly to Aegon at Platform Client Services, Aegon, Edinburgh Park, Edinburgh EH12 9SE.