What you need to know
Saving for retirement through a company pension plan has always been tax efficient. Smart Pensions is a way of paying your contributions to the Plan in an even more tax-efficient way — one that can save money for both you and PayPal.
How Smart Pensions works
Smart Pensions (also known as Salary Exchange) is the default method for making contributions to the PayPal UK Pension Plan (“the Plan”). As a Plan participant, your terms and conditions of employment will be adjusted to reflect the arrangement. There will be a contractual reduction to your salary of the amount you would otherwise have paid as an employee pension contribution, and, in exchange, you’ll receive an increased employer pension contribution of the same value.
For example, if you exchange 6% of salary, your contractual gross salary will be reduced by 6%, and a corresponding increased PayPal employer pension contribution will be made to your pension.
You do have the option to opt out of Smart Pensions, if you wish.
Your pre-exchange salary will continue to be used for the purpose of all salary-based rewards and benefits — this will not change as a result of Smart Pensions. For more information, view the FAQs below and additional ones here.
Frequently asked questions
What will I receive at retirement?
Please refer to page 9 of the Pension Plan document (accessible within the PayPal firewall).
How are my contributions to the plan invested?
Please refer to page 12 of the Pension Plan document (accessible within the PayPal firewall).
Can I transfer the value of other retirement savings into the PayPal UK Pension Plan?
Yes, usually. Call Scottish Widows to check whether the plan will accept the transfer or for more information. It’s a good idea to speak with a financial adviser to find out the potential benefits and risks of transferring your retirement funds. Please keep in mind that you will be charged for any financial advice you receive.
How do I change my investment fund?
Log in to the Scottish Widows transactional site, where you can change your investment funds online. Select “member log in” to sign in to the site, and then select “my investment funds”. The system will guide you through the process, whether you wish to switch existing funds or redirect new payments.
What happens if I leave PayPal?
If you leave, your employer contributions from PayPal will end. You have a number of options, including continuing to pay directly into the plan with Scottish Widows, keeping your plan invested in your current investment funds, or transferring the full value of your plan to another pension, if allowed.
Provider contact information
PayPal UK Pension Plan (including Smart Pensions)
Calling from abroad: +44 124 266 6271
Monday to Friday, 8.00 a.m. to 5.30 p.m.