Frequently Asked Questions

Who can benefit from having a “MAC SMART” Pension?

• Employers - by decreasing their NI contributions and the potential sharing of the NI savings, which can be up to 12.8%
  
  
• Employees – by increasing their take-home pay, within certain limits

Who should not participate in a “ MAC SMART” Pension?

• Employees whose annual gross rate of pay is less than the Isle of Man Low Earnings Threshold.
  
  
• Expatriate or overseas employees, other than those on short term assignments, for whom different taxation and/or social security arrangements apply.

Impact on state pension if establishing a “MAC SMART” Pension:

• Once a “MAC SMART” pension has been established, any existing State Second Pension and any other state benefits may be reduced or affected by virtue of your salary sacrifice and related reductions in NI contributions.  This is primarily for low earners.
  
  
• In this regard, the team at MAC will provide specific impact information on a case by case basis and where necessary refer your query to the relevant area in the DHSS.

How can my firm establish a “MAC SMART” Pension?

• The process for establishing a SMART pension within your firm has been significantly simplified by the team at MAC and we can assist in the initial transition process.