Rohde & Schwarz proudly provides a Group Personal Pension plan with Legal & General. Rohde & Schwarz currently allocates 8% of your salary to your pension, at no personal cost to you. From September 2024, Rohde & Schwarz invites you to enhance your saving potential by opting into a Salary Exchange scheme. This initiative is designed to empower you to actively contribute to your financial future while taking advantage of the substantial employer contributions and the tax savings achieved through a Salary Exchange arrangement.

Salary Exchange is a contractual agreement whereby you can opt-in to alter the way you contribute to your pension. At the moment, if you personally contribute to your pension plan with Legal & General, you pay your contributions via a "net pay" basis. Your pension contributions are deducted after tax.

Under a Salary Exchange arrangement, you 'exchange' a portion of your salary (e.g. 5%) in return for an employer pension contribution. This means your exchanged contribution (or 5% of your salary using our example) is deducted from your salary before tax. This means you do not pay income tax or national insurance (NI) on this portion, and neither does your employer. This portion of your salary is paid into your pension by Rohde & Schwarz.

When opting into a Salary Exchange agreement, your salary will be reduced by an amount equivalent to your pension contributions, but your reference salary will remain the same.

Recently, Bowmore Financial Planning Ltd ran an introductory presentation providing you with more information on how a Salary Exchange arrangement works and what this means for you. If you missed this or would like to re-watch it, a recording of the presentation is shown below.