What will it cost me?

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 your 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.

What are pensionable earnings?

Pensionable Earnings are your basic annual earnings on 1 September in each year, less an amount equal to the basic State Pension for a single person (currently £6,029.40 per annum) at that date. From 1 September 2016 your Pensionable Earnings will be your basic annual earnings on 1 September in each year, less an amount equal to 75% of the single-tier State Pension at that date. For members who join the Scheme on or after 1 November 2006 and subsequently become too ill to work and receive benefits from the permanent health insurance arrangement, Pensionable Earnings will be determined on each 1 September as the Pensionable Earnings at the previous 1 September together with an increase equal to the lower of the increase in the UK Index of Retail Prices for July or 5%. 

Table showing examples of pension contributions

Pensionable Earnings
  Contribution of 8%
(see your payslip)
  Tax Saving   Change to
your take home pay
£1,000   £ 80   £16   £ 64
£1,500   £120   £24   £ 96
£2,000   £160   £32   £128
£2,500   £200   £40   £160
£3,000   £240   £48   £192
£3,500   £280   £56   £224
£4,000        £320        £64        £256







What does the Church pay?

The Church pays 24.1% of your pensionable earnings for pension benefits. The Church only makes a contribution on your behalf if you elect to become a contributory member.

In addition, they contribute a further payment of 1.688% of your basic salary in respect of the Permanent Health Insurance arrangements (PHI).

PHI benefit

This benefit is provided to all contributing members of PASLEMC, however this is not a pension scheme benefit. Payment of such benefit is subject to the Insurer of the scheme (Unum) and subject to any terms that they impose. Full details of the scheme are available below.

Permanent Health Insurance Scheme


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