Your contributions
Your rate of contributions is determined according to the Base Pension Level you choose:
 

Changing your Base Pension Level
The Scheme is flexible and allows you to change your level as your needs change. You have the option to change it on an annual basis effective from 6 April subject to meeting the restrictions outlined above. To do this you must fill in an Application to Change Levels form, which you can download from the Forms section and return it before a specified date in February each year. The Scheme Maximum means that overall expected benefits (excluding those arising from Additional Voluntary Contributions) must not exceed 2/3rds of your final earnings. You will not be allowed to change to level 187 or level 200 if that would lead to your benefits at your normal retirement date exceeding the Scheme Maximum. 


SMART Pensions Arrangement
Provided that you are employed by companies wholly owned by BAE Systems plc or participating joint venture companies (JVs), all contributions to the Scheme will be made under the SMART Pensions Arrangement, unless you choose to opt-out. Full details of the SMART Pensions Arrangement can be found in the SMART Pensions section.

Income tax relief
Your contributions are deducted from your pay before tax is calculated; therefore, you automatically receive income tax relief at your highest rate.  Some restrictions apply to high earners.

Company contributions
The rate of Company contributions required is determined by the Trustees in consultation with the Company and with advice from the Scheme’s Actuary, who carries out regular reviews of the financial position of the Scheme.

National Insurance rebates
As the Scheme is contracted-out of S2P, formerly known as SERPS, you make a saving in National Insurance contributions. In addition the Scheme receives a National Insurance rebate from the Department for Work and Pensions as a result of your being contracted-out. This is added to your Protected Rights fund.

Investment returns
Your contributions, together with those from the Company, are credited to the fund and are invested by the Trustees. The proceeds are used to provide benefits for members in accordance with the Rules of the Scheme. The investment returns are the income and capital gains (or losses) obtained from the investments held by the Trustees of the Scheme. The investment returns achieved by the Scheme qualify for certain tax concessions.