UK employees with five years’ service who receive pension contributions at 12.5% can, if they wish to, ask CISI to convert up to 3.5% of their employer pension contribution to a pension allowance.
The employee will receive the pension contribution less the employer’s national insurance contribution (NIC) as a pension allowance with their monthly salary and this is subject to all statutory deductions.
Further information is available from HR.
This is an option CISI is offering to employees and you may wish to get financial advice if you have any questions regarding changing your pension contributions or your pension arrangements.
Q&As
Question: Am I able to convert some of my pension contributions to a pension allowance if I do not have 5 years service and am not receiving pension contributions at 12.5%?
Answer: Only UK employees with five years’ service who receive pension contributions at 12.5% can, if they wish to, ask CISI to convert up to 3.5% of their employer pension contribution to a pension allowance, as the minimum level of contributions required by CISI’s scheme is 9%.
Question: How do I apply to convert up to 3.5% of my employer pension contributions to a pension allowance?
Answer: Please complete the form with your instructions and return it to HR.
Question: I am currently required to make 1.5% pension contribution under the salary exchange scheme as part of contract of employment, will this change?
Answer: The 1.5% pension contribution you are making under the salary exchange scheme can continue. It has the advantage that you do not pay tax and NIC on these contributions. If you wish to stop making contributions via salary exchange, please complete the form with your instructions and return it to HR.
Question: Can I decide the amount I would like to convert to a pension allowance?
Answer: Yes, you can convert any amount up to 3.5%
Question: Is there the option to change the amount I convert?
Answer: Yes, you can make two changes to the amount you convert each year, and you have the option to cancel the pension allowance and revert to 12.5% employer pension contributions.
Question: How can I calculate what I would receive as a pension allowance?
Answer: If you are converting 3.5%, you can calculate 3.5% of your annual basic salary and then divide it by 12, to get the monthly amount, employer’s national insurance is deducted and you are paid the net amount as a pension allowance, which is subject to all statutory deductions.