Contribution rates
The earnings thresholds for automatic enrolment
These are set by the government and are reviewed each year.
If you meet the earnings trigger for automatic enrolment into The People's Pension, then standard contributions are calculated on qualifying earnings between the lower and upper levels. This means that you don't pay contributions on the first £520 of your pay each month, unless you have chosen to change this. Anything earned above the upper level of qualifying earnings is not taken into account when calculating contributions.
Monthly automatic enrolment earnings thresholds
| 2022/2023 | 2023/2024 | |
|---|---|---|
| Lower level of qualifying earnings | £520 | £520 |
| Earnings trigger for automatic enrolment | £833 | £833 |
| Upper level of qualifying earnings | £4,189 | £4,189 |
Qualifying earnings include salary, wages, statutory payments (such as statutory sick pay, statutory maternity, paternity and adoption pay), bonuses, overtime and commission.
Contribution rates
Changing your contributions
The standard rate contributions are only taken from your pay above a threshold set by the government, currently £520 a month. This means that, unless you have asked to change it, neither you nor the University is paying pension contributions on the first £520 of your pay each month. You will be paying 3% of your pay above the threshold and the University will be paying 6% of your pay above the threshold.
Instead, you can choose to make contributions of 3% on all of your pay. Doing this will mean that the University will also pay its 6% contribution on all your pay. We call this option Level 1.
Alternatively, you could choose to pay more towards your pension: 5% of your pay above the threshold. If you do this, the University will increase its contributions to 10% of your pay above the threshold. We call this option Level 2.
The final option is to pay 5% of your whole salary. If you do this, the University will contribute 10% of your total pay. We call this option Level 3.
| Employee contribution | Employer contribution | |
|---|---|---|
| Standard | 3% on pay above the threshold | 6% on pay above the threshold |
| Level 1 | 3% on all pay | 6% on all pay |
| Level 2 | 5% on pay above the threshold | 10% on pay above the threshold |
| Level 3 | 5% on all pay | 10% on all pay |
Take a look at our modelling tool on the website to see what these different rates mean for your pay.
If you want to choose one of the other options, complete the form below. The changes will be applied in the next available pay period.
Change your contribution amount
Flexibility for your contributions
You can also choose to change your contributions at any time. So, you can choose to pay more this month, and decrease them again in the future. Or, you can pay the standard rate for now, and choose to increase your contributions at some future date.
Annual management charges and bands
The Annual Management Charge (AMC) is made up of three parts:
- An annual charge of £4.50
- A management charge of 0.50% of the value of your pension pot
- A rebate on the management charge where your pot is worth over £3,000.
The rebate means that, as your pot with The People's Pension grows, your overall management charge will be less. The amount of the rebate will depend on how much of your savings fall into each band, shown in the table below.
Current rates and rebates
| Amount in savings | Rebate amount |
|---|---|
| Up to £3,000 | No rebate |
| £3,000 to £10,000 | 0.1% |
| £10,000 to £25,000 | 0.2% |
| £25,000 to £50,000 | 0.25% |
| over £50,000 | 0.3% |