1 - Carillion plc

By Katherine Edwards,2014-01-31 04:52
9 views 0
1 - Carillion plc


    1. If I opt for Salary Swap how and my gross pay for payroll is reduced, this will affect my other company benefits won’t it?

It doesn’t. Salary Swap is designed in such a way that it does not affect any salary-

    related payments or benefits, which for these purposes the Company calls your ‘notional pay’ – applies in every other situation where we use your salary to work out a benefit. This includes:

    - additional payments like overtime, bonus, shift allowance, salary increases;

    - levels of pay and pension contributions while you are absent, for example on

    family leave or sick leave; and

    - any death benefits payable if you die in service

    The Company will also give your notional pay if you need to supply your salary figure for a mortgage or loan application.

    In addition if you are an existing member deferred member of a final salary (defined benefit) scheme, your ‘notional pay’ will be used to calculate your pension benefits and not your (net) salary swap gross pay.

    2. Can I use Salary Swap to pay extra contributions?

    Yes, but only if they are regular ongoing contributions. That is because you must swap your right to receive cash salary in return for Company payments to your pension before your pay is due.

    So this means you can ask the Company to pay your chosen rate of:

    - ordinary regular contributions

    - Additional Regular Contributions (if these are an option in your pension


    You cannot use Salary Swap for stand-alone Additional Voluntary Contributions.

    3. I wish to opt-in for Salary Swap, but for some reason it doesn’t appear as

    though I am on my payslip?

     You cannot take part if Salary Swap:

    - reduces your pay below the National Minimum Wage, because you must

    receive at least the Minimum Wage under UK employment law.


    - reduces your pay below the Government’s Lower Earnings Limit, you could

    lose your right to qualify for certain State benefits

    When your circumstances change you will again take part in Salary Swap

    You cannot take part in Salary Swap if you receive one of the following and it is more than half of your total combined pay:

    - Statutory Maternity Pay

    - Statutory Paternity Pay;

    - Statutory Adoption Pay; or

    - Statutory Sick Pay.

    When you return to work and start to receive your full salary again instead of the statutory benefit, you will again take part in Salary Swap.

    You cannot normally take part in Salary Swap if you are an overseas employee.

    332802913.doc 1 OF 8 31/01/2012


    4. National Insurance pays for my State benefits. Will paying less National Insurance mean I lose out?

    The Government sets the level of National Insurance contributions needed to qualify for the full basic state pension, or other State benefits such as the Jobseeker’s Allowance or Incapacity Benefit. This is called the Lower Earnings Limit, or LEL. It is ?4,940 a year for the tax year 2009/10.

    If taking part in Salary Swap means that your earnings fall below the LEL, the Company will let you know and will not agree to you taking part. This may apply to you if you work part-time for example. The Company can re-consider the position each year as your salary changes.

    Please note that Salary Swap does not negatively affect child tax credit or working tax credit.

    5. My Pension Plan is costing me more than I had expected. Is there anything I can do to reduce my contributions now?

    If you have opted in to Salary Swap, it is a scheme requirement of HMRC that your contributions are set for a minimum 12 month period, and initially, as a normal employee, you cannot change your contribution levels until April 2011, (and annually in April thereafter). Only in exceptional circumstances will your contributions be stopped.

     If you have opted out of Salary Swap you are free to change your contributions on a monthly basis.

You can ask the Company to reconsider your Salary Swap Agreement:

    - if you experience a Lifestyle event (see below); or

    - if a change to your financial circumstances means that you are facing exceptional financial hardship. (In this case, please complete the ‘Hardship Request’ form, ask your Line Manager to authorise it and send it to the Head of Reward). It can be found on the intranet at

Lifestyle events can include:

    - Marriage or civil partnership;

    - Divorce, separation or ending a civil partnership;

    - Going on or returning from maternity leave;

    - Birth or adoption of a child;

    - Death of a child;

    - A significant change to your working hours; or

    - Going on or returning from a career break or long-term sick leave. If you wish to change Salary Swap as a result of a Lifestyle Event, please complete a Salary Swap Lifestyle Event form, ask your line manager to authorise it and send it to HR. Hardship and Lifestyle forms can be found on the intranet at

    332802913.doc 2 OF 8 31/01/2012

    SALARY SWAP for DC PENSION SCHEMES FAQ’S 6. What will my payslip look like now?

Oracle Payroll slips

    Employee opted in to Salary Swap with an ARC

332802913.doc 3 OF 8 31/01/2012


    Employee opted out of Salary Swap

    Employee opted out of Salary Swap with an ARC

332802913.doc 4 OF 8 31/01/2012


Employee opted out of Salary Swap with an AVC

332802913.doc 5 OF 8 31/01/2012

    SALARY SWAP for DC PENSION SCHEMES FAQ’S Trent Payroll slips

    Salary Swap opt out with ARC

    Salary Swap opt out

332802913.doc 6 OF 8 31/01/2012


    Salary Swap opt in

    Note With the above example, the Trent payroll system (unlike Oracle), cannot show a reduced taxable gross salary (on the left of the payslip) by the employee’s salary swap contribution. Instead, it simply shows a reduced taxable pay (on the right of the payslip).

    7. I have a query about my Pension Scheme, who can I contact to discuss?

    If you have any questions about your Carillion pension, please contact the

    administrator of your Carillion pension arrangement.

    For Carillion Pension Plan members:

    Telephone: 01372 200355

    For Carillion Retirement Plan members

    Telephone: 01372 200355

    For Planned Maintenance Engineering DC Plan members

    Telephone: 01372 200283

    For Carillion Stakeholder Plus members

    Telephone: 0845 880354

    For Alfred McAlpine 2003 Pension Plan members

    Telephone: 0800 0304428

    332802913.doc 7 OF 8 31/01/2012


    8. I have reconsidered and decided I want to leave my Pension scheme

    altogether, can I do this?

    Yes, you are free to leave your Pension Scheme at any point. Please, however, keep

    in mind the following:

    - You may not be able to re-join at a later date.

    - You will be missing out on significant Company contributions.

    - You will lose your life assurance.

     If you still wish to leave the plan, please contact your Pension Scheme Administrator.

    9. If I opt for Salary Swap but leave my Pension Scheme within less than two

    years of membership, would I be entitled to receive a refund of my direct

    contributions deducted from my payslip?

    If you use Salary Swap you will not have any contributions of your own to have

    refunded. If you have opted-out of Salary Swap, and you have made pension

    contributions within the two years, you could elect for a net refund of those

    contributions. If you have opted for Salary Swap and had only employer

    contributions to your pension scheme, you will be treated the same as if you had

    more than two year’s service, and would be entitled to a deferred pension or a

    transfer to another pension.

    10. I pay tax at 40%. At the moment my pension payments go out with 20%

    tax relief and I claim back the difference to 40% off Inland Revenue each

    year. How will this be affected by Salary Swap? (This applies only to some

    Alfred McAlpine Pension Scheme 2003 and Carillion Stakeholder members).

    a. Payroll will gross back up your net contribution rate, and use that grossed up

    figure as your Salary Swap contribution.

    b. You would then in effect be immediately receiving your full tax relief at payroll

    source, and would not need to reclaim any tax back from HMRC

    c. The scheme administrator from this point on, would no longer need to claim the

    net contribution differential from HMRC.

    11. I am about to be TUPE transferred away from Carillion employment. Will I

    be eligible for Salary Swap?

     stIf you are to be transferred to another employer before 31 October 2009, payroll

    will opt you out of Salary Swap. Your new employer may or may not apply a Salary

    Swap arrangement for your pension benefits.

    12. Why is the company auto opting in employees in to Salary Swap? Surely I

    should this should be a decision over which I have full control?

    You do. It is not compulsory and you have the choice to opt-out if you do not want to thparticipate in Salary Swap please advise the Pension Review Team by 30

    September 2009 (send your opt-out form to Alison Kay or Phil Leahy). The decision

    was made to auto opt-in staff to Salary Swap on the basis that the administrative

    and process set-up would be simplified considerably with payroll implementation

    benefits. All Carillion payroll teams have on-going processes for opting out

    employees who may not benefit nor be eligible for Salary Swap.

    332802913.doc 8 OF 8 31/01/2012

Report this document

For any questions or suggestions please email