Make your Nestlé pension
work for you.

The costs

What do I pay?

DC Core

In DC Core you can choose to contribute* between 5% and 8% of your Pensionable Earnings each month into your account. Nestlé will also make contributions to your account. If you choose to make contributions of more than 8%, these are classed as Additional Voluntary Contributions (AVCs). Nestlé doesn’t pay anything towards your AVCs.

DC Start

In DC Start you contribute 1% of your Pensionable Earnings each month into your account. In addition, Nestlé contributes 2% of your Pensionable Earnings, helping to increase the value of your account.

Tax relief

Whichever section you're in, you receive tax relief on your contributions so the actual cost to you is less than the contributions you make. See Joining the Fund/What does it cost? for more information about tax savings.

In DC Start and DC Core, tax relief goes into your account through the ‘net pay arrangement’. This means you don’t need to do anything to get the tax relief paid into your account. It will happen automatically. Information on pension tax relief can be found here: www.gov.uk/tax-on-your-private-pension/pension-tax-relief

What does Nestlé pay?

Your minimum contribution

5%

DC Core

Available to all employees

Nestlé contributes 1.5 times your contribution rate up to a maximum contribution of 12%, helping to increase the value of your account.

You contribute* Nestlé contributes
5% 7.5%
6% 9%
7% 10.5%
8% 12%

*Includes contributions made by Nestlé on your behalf through salary sacrifice.

Transitional support

If you were a member of Lane 2 or Lane 3 at 31 July 2017 and you:

  • moved to DC Core from 1 August 2017;
  • moved to DB Core or DB CorePlus from 1 August 2017 and contribute to DC Core because you have earnings above the Pensionable Earnings Cap; or
  • move to DC Core in the five years up to 31 July 2022;

you are/will be eligible for additional contributions from Nestlé.

Under transitional support, instead of the Nestlé contributions shown above, Nestlé will contribute two times your contribution rate, up to a maximum Nestlé contribution of 16% for the first five years after 1 August 2017 or until retirement or leaving the Fund if sooner. The effect of transitional support on Nestlé contributions is shown below:

You contribute* Nestlé contributes
5% 10%
6% 12%
7% 14%
8% 16%

*Includes contributions made by Nestlé on your behalf through salary sacrifice.

You contribute*

1%

DC Start

Available to employees joining through contractual or auto-enrolment in the future

In DC Start you contribute 1% of your Pensionable Earnings each month into your account. In addition, Nestlé contributes 2% of your Pensionable Earnings, helping to increase the value of your account.

Under Automatic enrolment legislation, the minimum contributions that you pay will change in the future. Currently contributions are set to increase as follows*:

You contribute* Nestlé contributes
From 1 August 2013 to
5 April 2018
1% 2%
From 6 April 2018 3% 3%
From 6 April 2019 4% 5%

*Includes contributions made by Nestlé on your behalf through salary sacrifice.

Increasing your benefits

Unless you’re in DC Start, 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.

Remember, if you’re already building up main pension in DC Core, you should pay the maximum DC Core contribution of 8% before considering paying AVCs, as Nestlé will contribute 1.5 times your DC Core contributions up to a maximum of 12% (8% employee contribution).

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 one month, or two years, depending on when you joined Nestlé.

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 account on your behalf
  • This is in addition to the employer contributions that Nestlé make to your account
  • 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.