Contributing to your pension

If you are age 16 or over but under your State Pension Age, you will be automatically enrolled into the MRC Pension Scheme (the Scheme).

This is a government requirement to help make sure that people save enough for their retirement, and to provide an income other than the State Pension.

If you don’t want to join the Scheme, you can opt out within three calendar months of being enrolled and you will receive a refund of your contributions and you will treated as if you had never joined the Scheme. You need to let your employer know in writing that you wish to opt out.

Please note that your employer must enrol you in the Scheme if you are eligible, even if you do not want to join.

How much do I pay?

You will pay 6.5% of your pensionable salary into the Scheme, however as the contribution is taxed at source and receives tax relief, it will actually only cost you 5.2%. If you are a higher rate tax payer, the actual cost to you is less than 4%.

However, those with a normal pension age of 60 contribute at a rate of 6.25%.

A small minority of members have reserved rights dating back to before September 1997 and are entitled to contribute at the rate of 5%, 5.25% or 6% of pensionable salary and those rates are set out in the Scheme rules.

As well as the contribution you pay, MRC will pay an amount equivalent to 15% of your pensionable salary to the Scheme.