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Salary Sacrifice

Salary Sacrifice for Pension Contributions

If you are a Member of PACE, you can fund your pension in an alternative way to the payroll deduction method, which could result in an increase in your take-home pay by reducing your National Insurance contributions. This alternative is known as 'Salary Sacrifice'.

How does it work?

Salary Sacrifice changes the way you fund your pension:

• If you choose to fund your pension by Salary Sacrifice you will no longer pay your contributions to PACE by the traditional payroll deduction method.
• Instead, your gross salary will be reduced by the amount of your pension contributions.
• Your Employer will then meet the cost of providing your benefits under PACE.
• Your take-home pay should increase as you pay less in National Insurance contributions.

Salary Sacrifice is branded differently depending on if you work for the Trading Group or if you work for Co-operative Financial Services.

Co-operative Financial Services (‘CFS’) employees,

You are a CFS employee if you work for the Co-operative Insurance Society (‘CIS’) or for the Co-operative Bank.

If you are a CFS employee you can choose to pay your pension contributions by Salary Sacrifice by completing the ‘CFS payment method change form’ which you can download from the bottom of this page. You can also download a CFS Salary Sacrifice factsheet, which provides more information about how Salary Sacrifice would work for you.

Trading Group Employees – NIC Efficient (‘NICE’) Pensions

If you are a Trading Group employee the arrangement that is available to you is known as NICE Pensions. If you are an employee who can benefit from NICE Pensions you will automatically be included in NICE Pensions.
If you would like more information about how NICE Pensions works you can call the Group Pensions Team on the NICE Pensions helpline: 0800 050 1100, or you can download the NICE Pensions frequently asked questions at the bottom of this page.

Salary Sacrifice Calculator

You can have a look at how much your take-home pay could increase if you fund your pension by Salary Sacrifice by using the Salary Sacrifice calculator in the 'Joining' section of this website. The calculator applies to all Trading Group and CFS employees including those employed by Trading Group who are included in NICE Pensions.

Factsheets

If you would like more information on how Salary Sacrifice or NICE Pensions works, factsheets are available for employees of the Trading Group and CFS and these can be downloaded from the bottom of this page.