Contributions

What contributions can I pay?

• you pay Core Contributions of 4% or 5%
• DC Choice match your contributions (see example below)
• while you are employed by Mitchells & Butlers you can contribute up to age 75
• you may choose to pay additional voluntary contributions (AVCs)

Your 4 weekly Plan Pay	Core Contribution	Matching Credit	Cost to you (after tax relief)*	Cost to you (after tax & NICwise)*	Amount invested for you
£1,000	4%	6%	£32.00	£27.20	£100
	5%	7.5%	£40.00	£34.00	£125
£1,500	4%	6%	£48.00	£40.80	£150
	5%	7.5%	£60.00	£51.00	£187.50
£2,000	4%	6%	£64.00	£54.40	£200
	5%	7.5%	£80.00	£68.00	£250

*Assumes a basic rate tax payer (20% for the 2010/2011 tax year).

NICwise

NICwise is a National Insurance contribution efficient way to make Core Contributions to DC Choice. If you participate in NICwise:

• You will not make any pension contributions to DC Choice.
• Your contractual pay will be reduced by the amount of pension contribution that you would have made.
• The Company will pay an amount equal to your pension contribution direct to your DC Choice account. This amount is in addition to the normal Company contributions to the Plan.
• You will pay less National Insurance contributions as a result of the adjustment to your contractual pay.

Your Notional Salary will continue to be used in the calculation of other benefits such as bonus, annual pay review and certain Plan benefits (e.g. life assurance).

Participation in NICwise may affect your State benefits (including your State Second Pension, Statutory Maternity Pay and Statutory Sick Pay) and income related benefits (such as Council Tax Benefit, Working Tax Credit and Child Tax Credit). The impact is particularly significant if your gross earnings would be brought below the National Insurance Lower Earnings Limit (£5,044 in the 2010/2011 tax year). Any such reductions should be considered by you prior to joining NICwise.

If eligible you will automatically participate in NICwise unless you complete an opt-out form.  Once you have been automatically enrolled you will have the option to opt out from the beginning of each new tax year.  Additionally participants who experience a personal circumstance change (marriage, birth of a child, separation, divorce, death of a partner or child, or change from full time work to part time work) may opt out when that event occurs.

If you are in any doubt as to whether participation in NICwise would be beneficial to you, we recommend that you take independent financial advice.

Further information about NICwise and details of how to opt out are available here.

If you participate in NICwise it may affect your benefits if you leave the Company within the first two years of membership of DC Choice see Benefits Summary for more information.

Additional Voluntary Contributions (AVCs)

You can give your savings a boost by making Additional Voluntary Contributions (AVCs).  As their name suggests, AVCs are entirely optional and are a useful way of increasing your retirement savings.

AVCs can be regular contributions or one-off lump-sum contributions.  It is usually possible to obtain tax relief on contributions (Core and AVC) up to your annual relevant UK earnings for tax purposes (or £3,600 if higher), though you may be liable for tax if you exceed your Annual Allowance.

Any AVCs you choose to make will be deducted from your pay with your Core Contribution.  Therefore, if you are thinking about paying a substantial sum you should discuss this with your Payroll department.

If you wish to start paying or change your AVCs please complete the relevant form below and return it to BlackRock.

MABPP DC AVC Application/Amendment Form

MABEPP DC AVC Application/Amendment Form

Bonus Sacrifice Scheme

The Company operate a tax efficient Bonus Sacrifice scheme that will allow you to sacrifice all or part of any bonus payment, in exchange for an equivalent company contribution to your Mitchells & Butlers pension plan AVC account. For further information please go to the Mitchells & Butlers intranet (My Benefits page).