SMART Vs Non Smart

When you first join or are automatically enrolled you pay contributions as a Non-SMART Member, however after three months your contributions will be paid via SMART.

What is Non-SMART?

This is a way of paying contributions into the Scheme. The way is it works is that:

  • Your Member Contribution is taken from your Salary each month before tax is applied.
  • You get tax relief on your contributions at your highest rate.
  • The Company also continues to pay its usual Company Contribution.
  • Contributions made via the Non-SMART arrangements will show as Member Contributions and Company Contributions in your Retirement Account.

What is SMART?

SMART is an alternative and often more cost effective way of making contributions to the KPS-MP. Introduced from 1 July 2012 SMART Pensions aims to save you and the Company Tax and National Insurance (NI).

You may view the Kingfisher Pension Scheme – Money Purchase Section SMART Pensions Guide which contains full details of the benefits of SMART Pensions, together with providing answers to a number of frequently asked questions.

  • You stop making Member Contributions into your KPS-MP Retirement Account
  • The Company pays an amount equal to your Member Contributions directly into your Retirement Account.
  • In return, the Company reduces your basic pay by an amount equal to the Member Contributions it makes on your behalf.
  • In many cases, you pay less National Insurance (NI) so your take home pay increases.
  • The Company also continues to pay its usual Company Contribution.

To be put simply, the same amount of contributions are paid by you and the Company, but it all gets paid as Company contributions so both you and the Company pay less National Insurance contributions. The diagram below shows you another way of how you would contribute via SMART works compared to Non-SMART.


*Note: For the purposes of the above example, annual basic pay is assumed to equal annual pensionable salary.


We have created a SMART calculator for you to see how you can benefit. It is found in the Knowledge Centre but here click here to be taken there directly.

Active members of the KPS-MP will automatically participate in SMART Pensions once they have been a member of the KPS-MP for three months. However if you will not benefit you’ll be automatically excluded from SMART Pensions.

  • If you do not wish to pay your contributions via SMART you will need to complete a SMART Pensions Opt Out form and return to Kingfisher Group Pensions Department.
  • If you wish to start paying contributions via SMART after you have stopped, you will need to complete a SMART Pensions Opt In form and return to Kingfisher Group Pensions Department.

If you stop paying contributions via SMART your contributions will paid under the Non-SMART Pensions arrangements and won’t benefit from any reductions in the National Insurance you pay.