AonUP. Your pension scheme financial security for the rest of your life

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1 AonUP Your pension scheme financial security for the rest of your life

2 Welcome Your pension scheme 2 Pension savings 3 - Contributions 4 - Installment pension 5 - Life annuity plan 6 Investment 7 - Life cycle product 8 - Link 9 - Average interest rate 10 Insurances 11 - Types of insurances 12 - Overview of insurances 13 If your dream is to still have lots of opportunities in retirement, make sure you have the right pension scheme Health insurance 14 - Quick treatment 15 - How to use the health insurance 15 - Payment and tax 15 - General coverage 16 - Family coverage 17 - General terms 18 Facts on Aon UP 19 If you have any questions 20

3 YOUR PENSION SCHEME My pension scheme should help ensure a higher standard of living in my old age As an employee you have a pension scheme at Nordea Life & Pensions and a number of insurances covering you and your family in case of accident or illness Our pension scheme is always kept up to date reflecting any changes in the pension market. This is carried out in cooperation with our insurance broker Aon Hewitt, who also helps employees with pension planning. It is our wish that you always have the best possible pension scheme, answering to your specific needs. You are always welcome to contact Aon Hewitt if you have any questions or need advice. See more on the last page. 2

4 U Pension FForsikringer savings 3

5 YOUR PENSION SAVINGS Pension contributions You can find the total contributions to your pension and insurances in your employment contract. If you are making your own contributions to your pension they will be deducted from your wages before tax. You can make additional contributions if you wish for larger disbursements when you retire. You can make these arrangements with Aon Hewitt. My pension savings ensure me that I can enjoy a good life all my life If you have a pension plan from previous employment it can be transferred to your new pension plan. It is often financially advantageous to merge old plans, as every individual plan has costs. 4

6 INSTALLMENT PENSION My installment pension ensures me a steady monthly income for a fixed number of years With an installment pension you will receive disbursements every month from the day you retire. Retirement age Death The disbursements must cover a period of at least 10 years. Furthermore, the disbursements must end no later than 25 years after the age for early retirement. In 2014 DKK 50,900 is the maximum for contributions to an installment pension with tax deductions. Upon disbursement the payments will be taxed as ordinary income. 5

7 LIFE ANNUITY PLAN With a life annuity plan I will receive disbursements for the rest of my life no matter how long I live With a life annuity plan you will receive disbursements every month from the day you retire and for as long as you live. Retirement Age Death Contributions to a life annuity plan means deductions for top-rate tax, no matter how much you contribute. Upon disbursement the monthly payments will be taxed as ordinary income. If your contributions to an installment pension exceed DKK 50,000 a year, excess contributions will automatically be transferred to a life annuity plan. 6

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9 LIFE CYCLE PRODUCT A life cycle product gives me the possibility of large returns without the risk of losing everything As a rule, your savings will be placed in Nordea VækstPension. This is a so-called life cycle product, where the return is determined by the development of the financial markets both when they are doing well and when they are not. With Nordea VækstPension your risk is automatically and continuously reduced as you get older, preventing the risk of big losses close to retirement. That way you do not have to keep adjusting your pension plan yourself, trying to maintain an optimal balance between stocks and bonds. If you want more security you can buy a guarantee against losses. It will cost you an annual 0.2 percent of your savings. Scaling down the risk with Nordea VækstPension 8 40 år Number of years until retirement Number of retirement

10 Link I m interested in investment, so of course I want to be able to influence my pension savings With Nordea Link Pension you will have the greatest possible impact on the investments of your pension savings. You can either create your own portfolio of actively managed funds, or let the provider create a portfolio based on your desired risk profile. The return is determined by the development of the financial markets both when they are doing well and when they are not. A greater risk means the possibility of a higher return. However, the risk of losses will increase as well. Unlike the life cycle product, the risk will not automatically and continuously be reduced as you get older you will need to manage that yourself. 9

11 AVERAGE INTEREST RATE Even though the returns are not as high as they used to be, I like the feeling of safety and security Nordea Pension with average interest rate will ensure a stable, but relatively low return on your pension savings. You have no influence on investments. The plan is accompanied by a guarantee, which ensures that you know how much you will receive as a minimum when you retire. The return the deposit interest rate usually varies from one year to the next, but sometimes during the year as well. During years with good returns the provider will set aside money for years with poor returns. This way your will achieve an average rate of return during those years you contribute to your savings. NB At the moment we do not recommend an average interest rate product. The last couple of years average interest rate products have had low returns, and it seems this will not change in the near future. 10

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13 YOUR INSURANCES Loss of working capacity Complete or partial loss of working capacity due to illness or accident will result in disbursements of the chosen percentage of your salary. However, as long as you are still receiving a salary, the company you work for will receive the disbursements. The disbursements will begin no sooner than after three months. During the period where you cannot work at full capacity the insurance will cover your pension contributions, which means your savings will not be affected. In case of death If you pass away before reaching retirement age, your closest relatives usually spouse or partner will receive both insurance and pension savings. Child pension With a child pension you can ensure that your children receive monthly disbursements should you pass away before they turn 21. This is an optional coverage. Critical illness If you are diagnosed with a serious illness there is a good chance you can receive the chosen lump sum payout. The idea of this payout is to help you through the first period after the diagnosis. For instance, it may allow a relative to take time off from work, or it can be used for aids needed in connection with the illness. The terms and conditions of your insurance state which illnesses are covered. You can, of course, make other arrangements by contacting Aon Hewitt. 12

14 YOUR OVERVIEW OF INSURANCES Insurance Required coverage Optional coverage (maximum) Tax Loss of working capacity 40 % of your salary Up to 80 % of your salary Taxable In case of death (lump sum) 100 % of your salary Up to 800 % of your salary Non-taxable / 40 % tax Child pension - Up to 25 % of your salary Taxable (for children) Critical illness (lump sum) DKK 150,000 Up to DKK 470,000 Non-taxable Required coverage: The minimum coverage determined by your employer. Optional coverage: The extent to which you can increase your coverage. Please contact Aon Hewitt if you wish to increase your coverage. 13

15 14 FForsikringer UPHealth insurance

16 YOUR HEALTH INSURANCE Quick treatment With a health insurance you need not worry about waiting lists you are guaranteed quick and professional treatment of any illness or injury. This means you can return to everyday life sooner. Life is too short for illness but should illness strike, it is good to know that I can get help How to use the health insurance You should, as a rule, always start with an examination at your general practitioner. The next step is to contact Skandia Lifeline at They will make appointments for further examinations or treatments, if necessary. Payment and tax The health insurance costs DKK 2,170 a year. 60 percent of the expense is taxable, regardless of whether it is paid by your company or through your pension contributions. The treatments, on the other hand, are exempt from taxes, regardless of how much they cost. 15

17 GENERAL COVERAGE Treatment at a private hospital or clinic: Preliminary examination, operation, follow-up care Examination and specialist treatment. Second specialist treatment: Psychiatrist, psychologist, physiotherapist, chiropractor, acupuncturist, zone therapist, dietitian Rehabilitation/recuperation Stay at hospice Substance abuse treatment: Prescription drugs, alcohol, narcotics Aids needed in connection with rehabilitation Advice and guidance from health care professionals Domestic care after a major operation Expenses for medical treatment in connection with hospital stay 16

18 FAMILY COVERAGE I m much more at ease now that my family is also covered by the health insurance Any spouse or partner under the age of 65 and any children between 1 and 21 years of age can also be included in the health insurance. Spouse/partner coverage is DKK 1,824 a year, while any number of children can be included for DKK 486 a year. These are annual costs. Please contact Aon Hewitt if you wish to include your family in the health insurance. 17

19 GENERAL TERMS Treatment received through the health insurance must be based on a medical assessment with the prospect of recovery or significant and permanent improvement. If the health insurance is mandatory, you will have full coverage from day one. If the insurance is optional, previous illnesses or injuries will be covered after a qualifying period of 12 months There will always be a qualifying period of 12 months for your spouse/partner and your children. Chronic illnesses which first occurred before the insurance came into force are not covered. The same applies to: Preventive treatment, cosmetic treatment, treatment of obesity, optician, dentist, infertility, effects and risks of pregnancy, injuries sustained in connection with professional sports, emergency treatment of critical cancer or heart diseases as well as alternative treatment. Children and spouse/partner are not covered for psychiatric treatment or substance abuse treatment. 18

20 FACTS ON AON UP Strength in numbers Aon UP is a pool scheme for smaller and medium-sized companies and their employees. Several thousand employees in several hundred companies have gathered their pension savings and insurances, which gives them several advantages. For the companies Aon UP is a unique possibility for offering attractive pension scheme terms, which employees would otherwise only have access to in larger companies. As an employee you do not have poorer pension scheme terms than your colleagues employed in larger companies. With Aon UP both employees and companies will receive professional advice and guidance from fully qualified pension consultants and experts. We can provide this service in person at the company s location, or via mail or phone. We will also continuously provide you with any new, relevant information, ensuring that your pension scheme is not forgotten. Aon UP s pension scheme offers a modern solution where you can contribute to your savings in a way that fits your specific needs. Take a look at our introduction video at 19

21 If you have any questions The information presented here will give you a quick overview of the contents of your pension plan. If you need further information, please do not hesitate to contact our pension consultant Aon Hewitt. You can contact Aon Hewitt by phone at or by mail at pension@aon.dk If you need an individual consultation you can book it at You can log in on Aon Hewitt s online pension portal and see your own details and further information on the pension plan and insurances. If you have a smartphone you can download an app which gives you access to some of the functions of MinPension. You can find the app via the links to AppStore and Google Play below. These links are also available at the home page of Android iphone This brochure, prepared by Aon Hewitt, will give you a quick presentation of your pension plan. Aon Hewitt provides impartial consultancy on pension, as well as advice and service to employees. You will find the details of the terms of the pension plan in AON UP and Nordea Life & Pensions agreement, as well as in the terms of your own insurance policy. Should the information presented in this brochure lead to any questions, the terms of the above-mentioned agreement apply.