Bonusplan
Bonusplan is a type of Additional Voluntary Contribution (AVC) arrangement for Pension Plan members of Section C only. Members can make contributions based on £3,328 (i.e. the 1998/99 rate of the Lower Earnings Deduction(LED), which was frozen at this level by the Company). This is the part of your earnings not otherwise included in your Contributory Pay or Final Pensionable Pay.
With Bonusplan you decide where your contributions are invested and choose your investment options (these are the same options as for Flexiplan).
When you retire, the money is used to provide additional benefits. If you die before you retire, your Bonusplan fund will be paid as a lump sum in the same way as your main Pension Plan death-in-service lump sum payment.
What are the benefits?
Your employer matches your contribution pound for pound up to an annual salary of £15,282. Their contribution then reduces up to a salary of £30,563 when it ceases. You make a relatively small annual contribution, your money builds up in your account and when you retire you can use it to buy additional benefits.
How much can I pay into Bonusplan?
Each year, you can pay 4.5% (about £150) of the Lower Earnings Deduction (LED) into Bonusplan or a proportion of this if you work part-time.
Once you start paying into Bonusplan, you must continue your contributions during your Reckonable Service. When you cease Reckonable Service, your AVCs must stop.
Where can I get more information?
If you have any queries, please contact the Pensions Service Centre.