SMART Pensions means more money in your pay

The Company introduced an arrangement known as SMART Pensions with effect from 1 January 2006 and the majority of the Company’s eligible employees have joined.

SMART Pensions results in employees and the Company paying lower National Insurance (NI) contributions. The majority of employees receive higher take home pay and the Company pays its NI savings into the pension scheme for the benefit of all pension scheme members.

A brief summary of SMART Pensions is shown below and you can also download the SMART booklet and forms.


What is SMART Pensions?
SMART Pensions is simply a more efficient way of paying contributions to the pension scheme. It works by eliminating the NI contributions that you and the Company would otherwise have to pay on the amounts paid into the pension scheme. Under SMART Pensions, the overall amount of money going into the pension scheme does not decrease and your pension scheme benefits are unaffected.

It works like this; if you do not participate in the SMART Pensions arrangement then both you and the Company pay NI contributions on your total salary, including the part you pay into the pension scheme. Participation in SMART Pensions will reduce these NI contributions.

Who can't benefit from SMART Pensions?
There are a few employees who are not eligible to participate in SMART Pensions including:

• Any employees whose hourly rate would fall below the National Minimum Wage as a result of the salary sacrificed under SMART Pensions.
• Employees whose annual gross rate of pay is less than £6,000 or who fall below this level at any time during the year. This is because they could lose entitlement to certain State benefits.
• Expatriate or overseas employees, other than those on short term assignments, for whom different taxation and/or social security arrangements apply.
• Employees not in BAE Systems pension schemes.

If you believe you may be adversely affected by SMART Pensions we recommend that you take independent financial advice.

How do I join?
New employees (unless you are one of those employees specifically excluded from participating) will be automatically included in the SMART Pensions from their first pay date after joining the pension scheme, unless they choose to opt out.

Existing employees will be able to opt in to SMART Pensions during September each year.

What if I change my mind?
You will be able to opt in or out of SMART Pensions during September each year. Normally the change will take effect from the November payroll. The relevant form can be downloaded below but SIPS and Alvis members should use the SMART forms on the Forms section of their own part of this website.

In exceptional circumstances (for example, a change in working hours or earnings) you will be able to, at the Company’s discretion, opt in or out of SMART Pensions during the course of the year. Contact the Pensions Service Centre to discuss this if this applies to you.

Please download a copy of the SMART Pensions booklet below for further details on how SMART Pensions affects you, including possible savings you could make.

Please remember that if you are unsure about whether you should join, the Trustees and the Company cannot give you advice. If you need advice, please contact an Independent Financial Adviser.

Downloads

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Download all files in a single zip file
SMART Booklet Level 100+	354.42KB	15/03/2011	Download
SMART booklet (all schemes)	371.58KB	15/03/2011	Download
SMART opt out form	20.28KB	01/09/2011	Download
SMART opt in form	20.35KB	01/09/2011	Download