Amey Group Flexible Retirement Plan - How the scheme works
How the scheme works - three simple steps
1. Contribute to your Retirement Savings
You contribute to your retirement savings each payday and in most cases so does Amey. Your contributions are normally deducted from your pay using salary sacrifice, also known as salary exchange or SMART Pensions, which is a cost-effective way of making pension contributions. Those contributions normally attract Income Tax relief, but National Insurance would normally also apply. Under SMART Pensions, instead of deducting a member pension contribution from your pay after National Insurance has been applied, you agree to a reduction in your gross pay with a corresponding increase in the pension contribution from Amey. The equivalent value of your member contribution plus Amey’s usual company contribution is paid into your retirement savings account as a single sum of money each pay period. By contributing in this way you don’t pay National Insurance on what would have been your pension contribution.
Note that we will not use SMART pensions if this results in your pay falling below the National Living Wage or National Minimum Wage.
2. Invest your Retirement Savings
Standard Life will pay your savings into your individual member account. The money will be automatically invested in their default investment option. You may select an alternative investment option by logging into your Standard Life account or contacting Standard Life. Please regularly review your investment choice to make sure it is right for you.
3. Draw your Retirement Savings
The default retirement age for the scheme is 65 but you can withdraw some or all your savings at any time from age 55 onwards even if you continue to work for Amey or another employer. The minimum pension age is due to rise to 57 from April 2028. Up to 25% of this is tax free and the rest is taxed at your marginal rate. Alternatively, you can use your savings as a regular income or buy annuity from an insurance company that gives you a guaranteed income for the rest of your life. You can pay annuity as a fixed amount, or it may increase on a yearly basis depending on the option you choose. Standard Life or your financial adviser can tell you more about your retirement options and help you find an insurer who offers the best value. If you don’t have a financial adviser, you can find one at www.unbiased.co.uk.
Cease contributions
You can stop saving towards your pension at any time by contacting People Services. Amey will also stop paying any corresponding Company contribution. The money already paid into your pension account will continue to be invested, as HM Revenue & Customs rules do not normally allow a refund of your contributions under such circumstances.
Pension Transfer
You can transfer pension plans from previous employers to your Standard Life retirement savings account by contacting Standard Life after you have received your member booklet, or via your Standard Life online account. If you are in any doubt about whether transferring is right for you, you may wish to speak to a financial adviser first. If you don’t have a financial adviser, you can find one at www.unbiased.co.uk.