Lay Employees' Pension Scheme

  

These pages are for centrally employed Lay Employees of the Methodist Church only.  Locally employed lay employees - Pension arrangements for locally employed lay employees are managed locally and are not covered by these pages.  For further details of the arrangements that are available to locally employed employees please click on this link.

 

Pension & Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC)

Why Join?

  • It's a good way of saving for a better future.
     
  • It's tax efficient, the major advantage that pension schemes in the UK have over other types of investment is that contributions (including Additional Voluntary Contributions or AVCs) are not subject to income tax and act like an additional personal allowance or tax free pay. In an employers pension scheme, contributions are deducted from salary before the calculation and deduction of income tax.
     
  • The earlier you start contributing, the better pension you get.
     
  • It's a defined benefit, so you know what you are likely to get at retirement. This helps you plan for your retirement.
     
  • You are also covered for life assurance as part of the package.

What will it cost me?

  • You will contribute 8% of your pensionable earnings to become a member of the Scheme. This means for every £100 of pensionable earnings, you will contribute £8. This shows as "Lay Employees Pension" on your payslip.
     
  • Members' contributions (including Additional Voluntary Contributions or AVCs) are not subject to income tax. 

Your pension scheme contributions are deducted from salary before the calculation and deduction of income tax. This means that for every £1 paid into the pension fund is split between 80 pence from the member and 20 pence from the taxman.

Higher rate taxpayers get an even better deal, they put in 60 pence out of every £1 and the taxman puts in the other 40 pence. This is not a completely "free ride" because when the pension comes into payment it is subject to income tax.

Basically, the taxman only lends the money when the contribution is made then takes it back when the pension becomes payable.

  • Reasons to Join the PASLEMCAn overview of the key benefitsRead more  
  • What will it cost? You will contribute 8% of your pensionable earnings to become a ...Read more  
  • InvestmentsTrustees support for the Financial Reporting Council's (FRCs) Stewardship Code and the Socially Responsible Investment (SRI) policy operated. Read more  
  • PASLEMC Forms Application to Join the SchemeRead more  
  • PASLEMC Jargon buster Contained in this section are some terms and names associated with...Read more  
  • PASLEMC PublicationsPublications and Guides for the Pension & Assurance Scheme for Lay Employees of the Methodist ChurchRead more  
  • Information for PensionersInformation for pensioners of the Pension and Assurance Scheme for Lay Employees of the Methodist Church (PASLEMC)Read more  
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