About the L&G Mastertrust > How will I pay into the L&G Mastertrust > How will my pension pot be invested? > How will I be able to use my pension pot?
How will I pay into the L&G Mastertrust?
Paying into the L&G Mastertrust will be just as simple as it is today.
How will I pay into the L&G Mastertrust?
Paying into the L&G Mastertrust will be just as simple as it is today.
Sibelco will continue to take your pension payments from your pay each time you’re paid, and the amount you pay will continue to be shown on your payslip. The money that you and Sibelco pay in, will be paid into your L&G Account – just like what happens now.
The amount you and Sibelco pay in will stay the same
You and Sibelco will continue to pay in the same amount that you pay in today. And, you’ll have the same options that you have now to change what you pay in if you wanted to.
You will start to pay into the L&G Mastertrust from September 2025.
What you pay in will continue to be worked out as a percentage (%) of your Pensionable Earnings
Your Pensionable Earnings will continue to be used to work out how much you (and Sibelco) pay in.
Your Pensionable Earnings = your salary
excluding any bonuses or benefits-in-kind you might get (and before you give up any salary under Smart Pension).
You’ll continue to pay in by Smart Pension (sometimes known as ‘salary sacrifice’) by default
Smart Pension is a tax-efficient way of paying into a pension scheme. This means that you give up the part of your pay that you would otherwise have paid into your pension, and Sibelco pays that amount into your pension instead. As a result, most members pay less in National Insurance and less tax.
For most people, paying into your pension by Smart Pension makes sense. But some people (for example those on lower salaries where their salary would be reduced below minimum wage or below the National Insurance Contributions threshold of £12,570 per year if they paid through Smart Pension) may not be eligible or may choose to opt-out of paying in this way.
You’ll continue to be able to make changes to what (and how) you pay in by the 1st of each month
You will continue to have the option to change how much you pay in and whether you pay in through Smart Pension or not by contacting the Human Resources team. To make a change to what (or how) you pay in, you’ll need to let the Human Resources team know before the end of the 1st day of each month for those changes to take effect the next time that you’re paid.
Remember, the rules around how much you can pay into the L&G Mastertrust will continue to depend on whether you are currently a member of the DC Section or the Stakeholder Plan (or eligible to join the Stakeholder Plan). You can find the rules for your current Sibelco pension scheme through the links on the ‘What do the confirmed changes mean for me?’ page.
