How the Scheme works
Salary sacrifice
Cadent continues to offer a pensions salary sacrifice arrangement to the Cadent Gas Pension Scheme, in the same way as when you were a member of the National Grid UK Pension Scheme.
This means your salary is reduced by an amount equivalent to your pension contributions, so you pay income tax and National Insurance on a lower amount. In return, your employer will pay your contributions on your behalf.
How it’s calculated
Laura earns £24,000 a year.
Without salary sacrifice
| Laura's monthly Capped Pensionable Salary: | £2,000 |
| Tax: | £171.67 |
| NI: | £145.00 |
| 5% pension contributions: | £100.00 |
| Take-home pay: | £1,583.33 |
With salary sacrifice
| Laura's monthly Capped Pensionable Salary: | £1,900 |
| Tax: | £171.67 |
| NI: | £133.00 |
| 5% pension contributions: | £100.00 |
| Take-home pay: | £1,595.33 |
Laura is £12 a month or £144 a year better off with salary sacrifice.
Based on 2020/2021 tax year and personal tax allowance.
A small number of members may not benefit from salary sacrifice, for example, if you’re over the State Pension Age or you earn less than the Lower Earnings Limit*.
If you’re eligible for the flexible benefits scheme, MyChoices, and take part in salary sacrifice, then you’ll automatically re-join every December. If you don’t want to re-join, you’ll need to deselect the salary sacrifice option when you’re asked to renew (usually around November).
Please note, you can still use your pre-salary sacrifice salary when applying for a mortgage or other financial products.
*The Lower Earnings Limit is set by the Government, and is the threshold used to determine if you qualify for certain State benefits and if you need to pay NI contributions.
This is Laura
Laura earns £24,000 a year