Benefits in employment
The benefits you earn in employment will depend on when you worked for Lilly. This is because the way benefits were calculated was different before and after 2011. The calculation used to work out the benefits is called the ‘Accrual Rate’
- Accrual Rate before 2011 = 1/60th of your ‘Pensionable earnings’ less 1/80th of the Basic State Pension. No employee contribution required
- Accrual Rate after 2011 = 1/80th of your ‘Pensionable earnings’. No employee contribution required, or 1/60th of your ‘Pensionable earnings’ with a 5% employee contribution required, or for certain higher earners 1/120th of ‘Pensionable earnings’ with a salary supplement of 6.5% of ‘Pensionable earnings’
- Any employee contribution is made by ‘Salary Sacrifice'
For some working examples of how the pension benefits are calculated, please read the Plan’s member booklet
At Lilly we believe saving for your retirement is one of the most important things you can do during your working life.
Saving during your working life means that in retirement you will not be relying just on state benefits to support you
and you are more likely to able to afford the lifestyle you want.
As well as building retirement benefits in the Lilly Plan you may choose to make additional contributions. At Lilly you
can do this by selecting Special Employer Contributions in Lilly Flex. These are known as SpECs. Historically you may have made Additional Voluntary Contributions known as AVCs.
You can check the value of your investment online at myReward, start or change your SpECs monthly using LillyFlex and change your investment choices any time on myReward. SpECs and AVCs are one way to save and may be tax efficient for you. More information on the taxation of pensions can be found on the HMRC website.
SpECs are different from your regular pension from the Plan - the additional benefits you will receive will depend on many factors, including the following:
- Investment return
- Whether any charges are payable
- The age at which you take your benefits
- The cost of taking these benefits as an annuity
You can control how your SpECs are invested. Please visit the ‘My Investment Choices’ for more information on the choices available to you.
If you die while you’re working for Lilly and you’re a Plan member, the following benefits will be payable:
- A cash lump sum: equal to two times your basic annual salary at death – this can be increased to up to eight times through LillyFlex. This is payable, at the discretion of the Trustee, to one or more of your beneficiaries.
- A pension for your spouse/partner/civil partner and/or other dependant: 50% of your prospective pension. The Trustee would consider any individuals (other than a child of the member) who were, at the time of your death financially dependent on you because of disability or had a financial relationship of mutual dependence with you.
- A child’s pension: 12.5% of your prospective pension may also be payable to up to four children. Childrens’ pensions are payable up to the age of 16 or 23 if the child remains in full time education or vocational training.
- A return of SpECs and AVCs: If you have made any additional retirement savings in the Plan the balance in your account will be paid to one or more of your beneficiaries.
For more detailed information on your Dependant Benefits, please read the member booklet
This section of the website is designed to provide you with the key information about your benefits in employment. In our member booklet we have some further information about how your pension benefits might be affected if you’re:
- A high earner; or
- Flexible worker
There is also some further information on opting out from the Plan and a summary of your choices. The member booklet can be found here