You pay 6% of your salary in to SAUL.
The money you pay in to SAUL is taken from your annual salary plus any permanent (for example, London weighting or responsibility allowance) and overtime. Bonuses and commissions aren't included.
Your employer pays towards your pension too. They pay 16% of your salary in to your pension each month.
Your payments in to SAUL are deducted from your salary before tax. This means you pay less tax.
Our take home pay calculator shows you the difference paying in to SAUL will make to the money you receive each month.
Can I pay more?
Yes, you can pay more than 6% of our salary in to SAUL.
If you pay more in to SAUL, you'll get additional pension and tax-free lump sum when you retire.
You can get additional pension in units of £250 a year. You'll also get £750 of tax-free lump sum for every £250 of additional pension.
When we work out your additional pension, we assume you'll receive it from the last day of the month before your 65th birthday. If you retire earlier or later, the additional pension and tax-free lump sum amounts will be different.
The maximum additional pension you can get is £5,250 a year. The maximum additional tax-free lump sum is £15,750.
You can choose to pay more in to SAUL over three to ten years. You'll take out a contract with SAUL and pay more in to your pension each month for the length of the contract.
You can also make lump sum payments in to SAUL if you wish.
You can increase, reduce or stop additional payments in to SAUL at any time but you can't start making additional payments while you're on sick leave.
Your additional payments in to SAUL won't be taxed.
To find out how much more you could get from SAUL (and how much you'd pay each month) please use our Additional Pension calculator.
If you'd like to pay more in to SAUL, please speak to your employer.
You don't pay tax on your payments in to SAUL but there is a limit on the amount of tax-free pension savings you can make each year.
This limit is set by the Government and is called the Annual Allowance and is currently £40,000 from the 2016/17 tax year for most people. For some high earners it can be even less; as little as £10,000 for people earning more than £150,000.
Very few members of SAUL will be affected by the Annual Allowance.
To find out more, please click on the 'Will I be affected by the Annual Allowance?' drop down below.
Will I be affected by the Annual Allowance?
We'll write to you if your pension savings in SAUL exceed the Annual Allowance.
You may be affected if your SAUL pension goes up by £2,106 a year.
This could happen if:
- you're a high earner
- you've been a member of SAUL for a long time
- you get a large pay rise
The Annual Allowance applies to all pension payments you make. You may be affected by the Annual Allowance if you pay in to more than one pension.
If you're concerned about the Annual Allowance, the SAUL Actuary can offer you guidance on your individual circumstances.
Some SAUL employers allow members to pay in to SAUL by Salary Sacrifice.
Instead of paying 6% of your salary in to SAUL, your salary is reduced by 6% and your employer pays this money in to your pension for you.
Before agreeing to take part in Salary Sacrifice, you need to think carefully about what this means for you:
- you'll pay less National Insurance
- we'll work out your SAUL pension based on your salary before the sacrifice, so your SAUL pension will be the same whether or not you choose Salary Sacrifice
- you won't be able to get a refund of any money paid in to SAUL as part of Salary Sacrifice, unless you leave within three months of joining SAUL
- lower National Insurance could mean lower State pension and might affect means-tested benefits like tax credit
- if you apply for a mortgage or other loan, this will be based on your lower salary so might affect the amount you can borrow.
If you're interested in Salary Sacrifice, please contact your employer. Not all SAUL employers offer Salary Sacrifice.
Paying in to SAUL after age 65 or for more than 40 years
Unless you opt out of SAUL, you'll continue to pay in until whichever of these happens first:
- you leave your SAUL employer, or
- you retire from SAUL.
If you're still working for a SAUL employer after age 65 or once you've paid in for 40 years, you can choose to stop paying in.
If you stop paying in, we won't start paying your pension until you stop working for your SAUL employer.
If you and your employer keep paying in, you'll continue to build up SAUL pension.
You can't keep paying AVCs on an existing contract after age 65. If you're still paying in to SAUL after age 65, your AVC contract will stop.
You can find out more in the Benefits Guide.
You might also want to use our pension calculators to find out what you can expect to get from SAUL.
If you've been paying in to SAUL for almost 40 years or you're approaching your 65th birthday, you might like to speak to your employer about your options.