What it costs you
Q. What is the Core Contribution rate?
A. It's your choice …
Once you've joined RS section, an AccountHolds the Core Contributions, Company Match and Extra Contributions. The Account is held in your name and is invested until you transfer, take your pension or die. is opened in your name. You build up your savings by the contributions made to your Account.
You choose your rate of Core Contributions3%, 4% or 5% of your Benefit Salary. Core Contributions are the payments made to your Account by the Company on your behalf through Salary Exchange (or by you if you do not participate). Core contributions qualify for the Company Match. - 3%, 4% or 5% of your Benefit SalaryIt is your weekly or monthly earnings before tax and any other deductions notified by your employer as pensionable for Core Contributions. It includes any amount notified by the Company in relation to a salary sacrifice or profit-related pay arrangement. In Salary Exchange, this is also known as your Reference salary.. The CompanyThe BOC Group Limited. will pay twice the Core Contributions each time - trebling your savings.
In Salary Exchange, your salary is reduced by the value of your Core Contributions, which are then made by the Company on your behalf. The reduction to your salary means that you pay less National Insurance (NI).
In Salary Exchange, you also pay less tax because your salary is reduced. If you opt out of Salary Exchange, you make the same tax saving because contributions are deducted from your salary before tax is calculated.
The table below illustrates how much it actually costs you to save with RS section, and the savings that you would invest, for different example levels of Benefit Salary.
| Monthly Benefit Salary |
Core Contributions |
Company Match |
Cost to you after tax* and NI savings |
Monthly amount you invest for retirement |
|---|---|---|---|---|
| £1,000 | 3% | 6% | £21 | £90 |
| 4% | 8% | £28 | £120 | |
| 5% | 10% | £35 | £150 | |
| £2,000 | 3% | 6% | £41 | £180 |
| 4% | 8% | £55 | £240 | |
| 5% | 10% | £69 | £300 | |
| £3,000 | 3% | 6% | £62 | £270 |
| 4% | 8% | £83 | £360 | |
| 5% | 10% | £104 | £450 |
*Assumes a basic-rate tax payer at 20%.
Change - In Salary Exchange you can change your rate of Core Contributions on 1 April each year or following a significant change in lifestyle. You can download a 
Change of Core Contributions form or request one from BOC Pension ServicesYou can contact us by writing to:
BOC Pension Services
The Priestley Centre
10 Priestley Road
The Surrey Research Park
Guildford
Surrey
GU2 7XY
On the Helpline:
0800 096 3214
(BOCTEL 750 4745)
Or by email: pensions.uk@boc.com.
Continue - The Company MatchThe Company's payment of double the Core Contributions into your Account. will continue while Core Contributions are being made but will stop when you leave RS section.
Stop - You can choose to leave RS section at any time while a Company employee; Core Contributions will then stop, and so will the Company Match. If you leave RS section while still an employee of the Company, the death and IncapacityAn illness or disability which in the Trustee's opinion prevents you from following any employment and is considered permanent because you are unlikely to recover to any substantial degree. benefit supplement added to your Account will not be available (although you will still be covered for the lump sum death-in-service benefit of four times your Benefit Salary earned over the 12 months before death).
You can access the interactive contribution calculator to see how much it costs to be a member of RS section, which might be less than you think because you can make tax and NI savings.
Making Extra Contributions
Q. Can I increase my savings in RS section?
A. Yes you can…
Extra ContributionsAdditional contributions (above the Core Contributions) that you can have made to your Account by the Company on your behalf through Salary Exchange (or that you can make if you do not participate). In Salary Exchange, the Company pays an additional 5% of any Extra Contributions into your Account. can give your savings a boost. They are an optional but useful way of boosting your retirement savings when you can afford to.
Extra Contributions will be paid by the Company on your behalf in the same way as Core Contributions (unless you opt out of Salary Exchange). The reduction to your salary means that you pay less tax and NI. Extra Contributions differ from Core Contributions in that you will not receive a Company MatchThe Company's payment of double the Core Contributions into your Account. for Extra Contributions. However, in Salary Exchange, the Company will pay an additional 5% of any Extra Contributions into your Account.
When you retire, the money you've saved from Extra Contributions can count in calculating the maximum lump sum allowed from your Account.
Extra Contributions can be regular contributions or one-off lump-sum contributions. In Salary Exchange you can change your rate of regular Extra Contributions or make a one-off lump sum contribution every 1 April or following a significant change in lifestyle.
You can download a Starting/Changing Extra Contributions Form or contact BOC Pension Services to request a form.
RS section contributions summarised
With RS section, you'll come across three different types of contributions:
| Contribution type | Who pays? | How much? |
| Core Contributions | The Company (having reduced your salary) | 3%, 4% or 5% of your Benefit Salary |
| Company Match | The Company | Double the Core Contribution |
| Extra Contributions | The Company (having reduced your salary) | As you choose, plus an extra 5% of the Extra Contribution from the Company |
*Assumes participation in Salary Exchange.
Note: You cannot take a refund of contributions when you leave RS section.
From 1 June 2009 contributions will be made through Salary Exchange unless you opt out.
Download the forms and documents relating to RS section.
Need help working out how well off you'll be in retirement? See the Planning and education section for more information.