Make your Nestlé pension
work for you.

The costs

What do I pay?

In DB Core, you contribute 6% of your Pensionable Earnings each month and in DB CorePlus you contribute 9% of your Pensionable Earnings each month. The contribution rates are reviewed roughly every three years and might change in the future (see below).

What does Nestlé pay?

Nestlé pays the balance of the cost of providing the benefits you build up and also makes additional payments as required to cover any funding shortfalls.

Contribution sharing

The cost of building up benefits in DB Core and DB CorePlus is shared between Nestlé and members. This allows Nestlé to share some of the risk involved with providing Defined benefit (DB) pension arrangements with members.

In DB Core, Nestlé pays two thirds of the contributions (currently 12% of Pensionable Earnings) and members pay one third (currently 6% of Pensionable Earnings). In DB CorePlus, Nestlé makes the same contribution as it does for DB Core and members of DB CorePlus pay the remaining cost (currently 9% of Pensionable Earnings).

Contribution rates are reviewed after each financial health check, or ‘actuarial valuation’. A valuation normally takes place every three years. As part of these valuations, Nestlé and member contribution rates are reviewed and changed if necessary.

The next time the rates could change is likely to be in 2020 after the 2018 valuation. If the contribution rates change, you will be given at least three months’ notice and have the opportunity to change sections if you want to.

Increasing your benefits

You have the option to pay Additional Voluntary Contributions (AVCs). AVCs are contributions that you can make on top of your main contributions to provide additional benefits at retirement. AVCs are particularly useful if you are thinking of retiring early or if you wish to make up for times when you were not building up pension. Nestlé doesn’t pay anything towards your AVCs.

As they are paid into DC Core, AVCs build up on a Defined Contribution (DC) basis. See DC Benefits for information about how DC Core works. For details of how AVCs work and how to make them see Benefits of AVCs.

Salary Sacrifice

Unless you choose to opt out in advance, you will automatically be entered into a salary sacrifice arrangement after you have been a member of the Fund for two years.

Salary sacrifice is a tax efficient way of making contributions to your pension savings. It is an arrangement between you and Nestlé where you agree to a reduction in your salary and in return you receive a benefit. In this case the benefit is a contribution to your pension. All contributions to the Fund (including any Additional Voluntary Contributions (AVCs)) automatically receive tax relief. But with salary sacrifice, you can save on National Insurance (NI) contributions as well. It works like this:

  • You stop making pension contributions and agree to reduce your gross monthly pay by the value of those contributions (including AVCs)
  • In return, Nestlé pays an equivalent amount directly to your pension on your behalf
  • This is in addition to the employer contributions that Nestlé make to your pension
  • You save on both tax and NI contributions as your taxable income is reduced by the amount you agree to give up
  • Nestlé also saves on NI contributions as your pay is lower.

Salary sacrifice is not currently available to employees of Galderma and Osem.