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(This means you are building up pension in the Scheme)

CHANGE SCHEME

Scheme information

The Scheme at a glance

  • The Scheme is a defined benefit pension scheme. A DB pension arrangement is one where your pension is based on your salary, your length of service, and a fraction known as an 'accrual rate'. You and the Company pay into your pension while you are an ‘active’ member. When you retire, you get a pension for life and you can also take a cash lump sum.
  • You and BOC pay into your pension. When you retire, you get a pension for life and can take a cash lump sum.
  • There are three Levels – in each Level, the amount you pay and how your final pension is worked out is a little bit different.
  • As well as your pension, as a member of the Scheme you also are entitled to other benefits, such as ill-health and death-in-service benefits.

Contributions

What you pay

What you pay towards your pension depends on which 'Level' you are in.

There are three Levels of membership in the Scheme – A, B, and C. The Level you are in affects how much you pay and the amount of pension you will receive at retirement.

Level A
You pay Pension formula 'accrual rate'
The lesser of:
• 8% of Pensionable Earnings plus 3.4% of Band Earnings
Or
• 10.5% of Pensionable Earnings
1/60th of Pensionable Earnings for each year of Pensionable Service
Level B
You pay Pension formula 'accrual rate'
8% of Pensionable Earnings 1/70th of Pensionable Earnings for each year of Pensionable Service
Level C
You pay Pension formula 'accrual rate'
4.8% of Pensionable Earnings 1/130th of Pensionable Earnings for each year of Pensionable Service

Contributing costs less than you think

Contributing towards your pension might cost less than you think. Your contributions are deducted from your salary before tax is calculated so you benefit from tax relief.

Plus, if you pay via Salary Exchange, you also make National Insurance savings.

How does Salary Exchange work?

  • Your salary is reduced by the value of your contributions
  • Contributions are then made by the Company on your behalf
  • The reduction to your salary means you pay less National Insurance

What BOC pays

BOC contributes the balance of cost of providing pension benefits (after member contributions and investment returns). This figure is determined by the Scheme’s Actuary and varies over time.

How to boost your pension

Move to Level A

When a Level A member retires, they could receive a pension that is up to 89% higher for future pensionable service compared with a Level C member who has worked for BOC for the same amount of time, and earns the same amount of money.

If you’re in Level B or C, and want to boost your pension, simply:

  1. Download a Membership Level Option form
  2. Fill in the form, selecting 'Level A' in Section 2
  3. Return the completed form to BOC Pension Services
Paying AVCs

If you’re a Level A member, you can boost your pension by paying or increasing your Additional Voluntary Contributions (AVCs). Just download, fill in and return a Joining/Change of AVCs form to BOC Pension Services. Visit the AVCs page for more information.

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Whichever Level you’re in, use the pension and contribution modeller to see what the cost of Scheme membership is to you.

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