The basics explained

Paying money into a pension scheme is a long term investment that helps you save for your retirement.

The Baptist Pension Scheme (BPS) is a Defined Contribution (DC) scheme. DC schemes are also often referred to as “Money Purchase” schemes.

When you join the BPS, both you and your employer make regular monthly contributions to your pension fund. These contributions are a fixed percentage of your income.

In addition, to encourage you to save for retirement, the government allows tax relief on your contributions. This means that when you pay your contributions, they are taken from your pensionable income before tax is deducted.

The contributions are invested on your behalf, by an Independent Pension Provider. The Baptist Pension Scheme has selected Legal and General, one of the UK’s leading Pension Fund Managers, to do this for you.

Your pensions savings are initially invested in a default investment fund, but if you wish to actively manage your investments, you can choose from a range of Legal and General investment funds.

When you decide to retire, you use the accumulated fund to purchase your retirement benefits.

Because investment values can fall as well as rise and government taxation rules may change in the future, no one can know in advance how much your fund will be worth when you retire or how much income you will receive each year.

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