The Investing Plan explained
If you are an active member, you can choose to join the Investing plan to provide extra benefits on top of your Career average plan benefits:
- The Investing plan is a "defined contribution" arrangement.
- The types of contributions that can be paid into the account are:
- Extra voluntary contributions on top of your normal contribution rate;
- The contributions Unilever pays to match your extra voluntary contributions (up to a limit); and
- Unilever contributions
- You can pay whatever you want as Extra Voluntary Contributions into the Investing plan and you do not pay income tax on your contributions (up to limits set by HMRC).
- Tax allowances - HM Revenue & Customs apply two allowances to your contributions and benefits. If you go over them, you must pay a tax charge on the excess. The lifetime allowance is the total amount of tax approved or "registered" pension scheme retirement benefits you can build up over your working life. It is currently £1,073,100 with effect from 6 April 2021. The annual allowance is the amount of registered pension savings you can make each year (over a 12 month period - known as the "pension input period"). It is currently £40,000 for pension input periods ending in the 2021/22 tax year.
- Unilever will match your contributions to the Investing plan, up to 2% of your matched contribution salary.
- Your matched contribution salary is the lower of your pensionable earnings and a certain limit which is reviewed annually, currently £58,000 if you work full time.
- If you have pensionable earnings above the upper level covered by the Career average plan (£63,800 at 1 April 2021), then Unilever will pay up to 12.5% of your earnings above £63,800 into the Investing plan.
- You build up a "pot" of money in your own Investing plan account with your contributions, any contributions from Unilever, and any investment returns.
- You decide how much is paid into your Investing plan account and how you want the money in the account to be invested.
- You then decide what benefits to take from your account when you retire from the Unilever UK Pension Fund.
You can get more information on the Investing Plan from the Unilever Pension Fund website:
Investing Plan videos
The series of videos below provide more detailed information on how the Investing Plan works and the choices available to you.