Maternity & SAYE

[Nomad]

Also remember that if you have any 'Save as you earn' on the go, these payments will stop when on maternity for a period of 6 months, then they will cancel the issue. You can make arrangements with the share people to pay your monthly subscription on your own.

MM have a habit of not telling this to our pregnant colleagues.

What happens is, you can miss 6 months and it delays completion by 6 months (ie if everyone else gets their shares in Feb 2011 yours will be August 2011) or you can set up a direct debit to pay it yourself from the first one that is missed then your share save will mature at the same time as everyone else. Or you can combine the two eg miss 4 months, pay yourself for the remaining 5 months of your leave. If you choose not to set up your own direct debit then Tenko is correct, your share save will be cancelled and the money returned.  


Thanks to members, Nomad.

[The Mrs]

Save As You Earn
Existing SAYE schemes
If you participate in Save As You Earn, your payslip will usually show the deductions made from your pay. When you go on maternity leave, your deductions from pay will automatically stop. You can take a payment holiday of up to six months and still remain in the scheme, your deductions will automatically re-start from your pay when you return to work. The maturity dates for each of your SAYE schemes will be delayed by one month for every month's worth of deductions missed. You can't make up missed payments in one go.

Alternatively, you can continue to contribute to your SAYE schemes by setting up a standing order with Lloyds TSB Bank plc, or paying by cheque each month. If you return to work after your maternity leave, you will need to cancel your standing order with Lloyds TSB Bank plc and your bank or building society. Whether you've contributed by standing order or by cheque, your deductions will automatically re-start from your pay when you return to work. Paying your contributions whilst on maternity leave will ensure the maturity dates for your SAYE schemes won't be delayed, as you won't miss any payments.

When you have missed 4 months contributions Equiniti will write to you to confirm this and you should take action to ensure payments are made to remain in the scheme. If you miss more than six months' deductions, your option to use your savings to buy shares at the option price will lapse. Equiniti will automatically return a cheque for your savings to your home address.

Action required:
• Think about how long you expect to be on maternity leave for, and whether you can afford to continue contributing to your SAYE scheme
• If you want to take a payment holiday, you don't need to take any further action at the moment. Your deductions from pay will automatically stop.
• If you want to set up a standing order to carry on contributing to your SAYE schemes, call Equiniti for a standing order form with Lloyds TSB Bank plc
• If you want to contribute by cheque each month, you need to send it to Equiniti with a covering letter. The cheque needs to be payable to 'Tesco plc Save As You Earn'. The letter must show your full name and address, and say which schemes the cheque is for, especially if you're contributing to more than one scheme.
• Don't forget! If you miss more than six months' deductions, your option to buy shares at the option price will lapse and your savings will be repaid.
• Check your payslip to ensure that the correct deductions are re-started. If it looks incorrect, you must call the Pay & Benefits helpline straight away.

SAYE schemes maturing while you're on maternity leave
If any of your schemes are due to mature while you're on maternity leave, you should still receive the normal maturity pack by post to your registered address. Check the shares section of your benefits report if you're not sure; it should list your SAYE schemes and the dates they are expected to mature.

Action required:
• Call Equiniti to request a duplicate maturity pack, if you haven't received one. You can exercise your SAYE options as normal within six months of the maturity date, if you remain employed by Tesco plc.
• Send off your maturity instruction to Equiniti, if you want to exercise your option to buy shares at the option price. Your option will lapse if you don't exercise it within six months of the maturity date.

New SAYE scheme invitations while you're on maternity leave
Save As You Earn invitations are normally made each year, during October. You can join if you are employed by the company and have at least a year's continuous service as at the invitation date. You should still receive the normal invitation pack by post to your registered address. There is normally a two to three week period in which you can apply. You can apply by telephone, online or by posting the application form. If you don't get your application in on time, Tesco plc is not legally allowed to include you in the new scheme.

Action required:
• Call Equiniti to request a duplicate invitation pack, if you're concerned that you should have received an invitation pack and it hasn't arrived.
• Make sure you get your application in on time - if you're eligible to take part, a pack will be sent to you. If you want to take part, you must make sure that you apply in time. Late applications can't be included. What happens if I return to work on reduced hours? If you return to work on reduced hours and your salary no longer covers the salary deduction you can continue to pay by standing order for the life of the scheme rather than from your salary. You will however not be entitled to join any future schemes until your salary covers the SAYE deduction.