The Plan for Your Future

Transcription

1 The TJX UK Pension Plan The Plan for Your Future Pension Booklet

2 2 P age Welcome to the TJX UK Pension Plan To look after your financial future, you need to take a little time out of your present. Setting aside time today allows you to reap benefits in retirement. Take a few minutes now to look through this guide it will be time well invested. Whether you are in your early 20s or late 50s, it s never too early or too late to start planning a more secure future. Of all the benefits offered by TJX UK, the plan is one of the most valuable. It s an important benefit that makes it easy to save for your retirement. Although it may seem a long way off, retirement is something we should all be saving for now. In fact, the earlier you start, the better. The trouble is, most people think it s hard to make the commitment to save, and even harder to find a good way to make your money grow. The government has introduced automatic enrolment - a law designed to help more people save for their retirement. Currently many workers fail to take up valuable pension benefits because they don t apply to join their employer s pension plan. Automatic enrolment aims to overcome this. Automatic enrolment means that every employer in the UK is required by law to provide a qualifying company pension into which they can automatically enrol eligible employees if they aren t already in one. Changes to how you can access your pension savings have also been introduced and the options available under the plan are highlighted in this guide. This guide gives you information on the main features of the plan, a summary of your investment options and to tell you how you join the plan.

3 3 P age Introduction This guide contains the following sections: 1. How your pension account works - includes details of how much you need to contribute as a member of the plan and how much the company will pay into your pension account Page 4 2. Membership of the plan - sets out when you join the plan, including auto enrolment 7 3. Investing your pension account - describes the default fund and the range of funds available for you to choose from 9 4. Your benefits - outlines your options Benefits for your family gives details of the benefits payable to your dependents in the event of your death whilst a member of the plan, and how you nominate your beneficiaries If you leave - sets out your options should you leave TJX UK Joining the TJX UK Pension Plan - some thoughts that might help you make your retirement savings decisions 15 These appendices contain some useful information, and the technical details of the plan: I. Some terms you should know - an explanation of some of the key terms used throughout the guide 16 II. Help and information - what help is available to you, and where you can get this, as well as a brief description of the legal structure of the plan 18 III. Your state pension benefits - a brief outline of how state pension benefits work 22 The plan is managed by Friends Life, the plan administrator.

4 4 P age 1. How your pension account works Key facts You save a core contribution into your pension account - minimum of 1% if joining through automatic enrolment The company pays a matching contribution, and you can increase your contribution with matching from the company The amount of the company s matching contribution depends on your pension group and your length of service The company may pay an additional profit-sharing contribution You can decide how to invest the money in your pension account, otherwise all your contributions will be invested in the Lifestyle Fund. You can contribute Additional Voluntary Contributions (AVCs) to make your pension account grow faster If you do decide to make your own choices when deciding where to invest, you should bear in mind that the value of funds can go down as well as up and is not guaranteed. You may not receive back the full value of contributions. Step 1: Investing your pension account You can decide how to invest your pension account. You can choose from a range of 6 freestyle investment funds carefully chosen by the Trustees. You can choose to spread your investments across the range of freestyle funds to suit your investment objectives or invest in just one fund. Whatever your situation, there should be a fund to suit you. More details of the funds available are given in the Investment Guide. An investment fund is a pool of money from investors like you. A professional manager uses the total amount to purchase individual investments such as shares, bonds or property. You use the contributions paid into your pension account to buy units in one or more of these funds. The units in each fund have a value based on the assets held. This value changes from day to day according to market conditions, and may fall as well as rise. If you don t make a choice about the funds you want to invest in, all your contributions will be invested in the Lifestyle Fund. Step 2: Reviewing your choices You re not locked-in to your initial investment decision. Because your circumstances will change over time, you may change the way your pension account is invested at any time at no extra cost. Step 3: Taking benefits When you take your benefits, the units bought over the years are sold. You then use the amount that has built up in your pension account to buy your benefits, which can be tailored to suit your personal circumstances.

5 5 P age When deciding where to invest, you should bear in mind that the value of funds can go down as well as up and is not guaranteed. You may not receive back the full value of contributions. Service-related Contribution (Optional) Pension Group Core Contribution After 5 Years Max Contribution After 10 Years Max Contribution % % 2.5% 3.5% 3.0% 4.0% % 4.5% 5.0% % % 5.0% 7.0% 6.0% 8.0% The TJX UK match TJX UK will fully match your contributions (excluding any AVCs). If and when you are eligible for the service-related contribution but do not elect it, the company will only match up to your core contribution. Additional Voluntary Contributions (AVCs) If you want to maximise your pension contributions, you can make Additional Voluntary Contributions (AVCs). You invest AVCs along with the other money in your pension account. AVCs are deducted from your pay in the same way as your core contributions - before tax is calculated. Your total contributions to the plan, including your core contributions, service-related contributions and any AVCs, can be up to 100% of your earnings. You should note that if your total contributions (this means contributions paid by you or on your behalf, plus any other contributions to other registered pension arrangements) exceed the annual allowance, a tax charge may apply. Please contact Friends Life for more information. Should you save AVCs? This depends on your personal situation. You need to consider: the level of income you want in retirement if you plan to retire early how much you can afford to save today, and other tax effective investments such as Individual Savings Accounts (ISAs). If you wish to save AVCs, you will need to contact the HR Service Centre. If you have any questions about AVCs, please contact the plan administrator or a financial adviser. A financial adviser may charge you for their services. Like your original investment, any additional investment can fall as well as rise in value and is not guaranteed.

6 6 P age Tax relief Your contributions are deducted from your pay before tax is calculated. This means that you automatically receive full tax relief on your contributions, so the actual cost to you is less. For example, if you are a basic rate tax payer (20%) and contribute 100 to your pension account each month, currently (tax year 2015/2016) it will only cost you 80 a month. If you are a higher rate tax payer (40%) it will only cost you 60. This is because your income tax savings (i.e. 20 or 40) go directly towards improving your pension. Example Cost to you Pension group 1 Pensionable salary 15,000 Monthly core contribution (2%) Tax relief at the current (tax year 2015/2016) basic rate (20%) 5.00 Net monthly contribution Total invested Reduction in take-home pay Tax relief 5.00 TJX UK match Total amount invested in your pension account each month Total annual amount invested in your pension account (your total annual net contribution is ) The amount of contributions which are eligible for tax relief in any year is capped at the Annual Allowance. The Government has announced its intention to taper the Annual Allowance for high earners. You should seek financial advise if you believe that you are affected by the Annual Allowance. Tax details are subject to interpretation, change and individual circumstances. Profit sharing contribution At the end of each financial year, the Board of Directors may determine that the company will pay a further pension contribution (in addition to the core and service-related contribution match) if the company achieves its profit target. The additional contributions are a percentage of your pensionable salary received in the previous financial year, and depend on your pension group, as shown in the table overleaf.

7 7 P age Any profit sharing contribution payable by the company will not require a matching contribution from you. Pension group Profit related contribution** % % % % % % **depending on company profits - will normally be paid in March. 2. Membership of the plan Key facts If you meet the auto-enrolment criteria you will be automatically enrolled. Membership of the plan is voluntary and is not a condition of your employment you may opt out If you join the plan, you save a core contribution (minimum 1%) which the company will match. You can also increase your core contribution which the company will match as outlined in Section 1. If you are an Hourly Paid Associate (Stores and Distribution) you are eligible for pension group 1 If you are a Salaried Associate you will be advised of the pension group level upon joining the company or upon promotion Your membership continues during family leave, authorised absence and sickness How do I join? If you meet the auto-enrolment criteria you will be automatically enrolled to the plan. There are no forms or paperwork to complete - it will happen automatically. You may opt-in to the plan without being auto-enrolled by contacting the HR Service Centre. Making your investment choices When you join the plan you may wish to think about your investment choices. If you do not make a choice, all your contributions will be invested in the lifestyle fund. Please refer to the separate investment guide for details

8 8 P age Your other pensions While you are a member of the plan, you can pay into any number of other pension arrangements. If you exceed the annual allowance, a tax charge may apply. Your membership of the plan doesn t affect your entitlement to State pensions or previous pension entitlements you may have from your previous jobs. When you aren t able to work Your membership in the plan continues even when you are absent from work due to: Authorised absence or ill health: The Company s contributions will be based on the actual salary you receive while you are on authorised absence or ill health in accordance with the company absence/sickness policy. Family leave: Absence in connection with maternity, paternity and adoption is referred to as family leave. If you are on ordinary family leave, your pension account continues to receive contributions. The company contributions are based on the pensionable salary you received prior to commencing family leave. Your contributions will continue, based on your actual earnings during ordinary family leave. Once your ordinary family leave ends, the contributions stop. But if you take additional family leave, it may be possible for you to pay contributions for this period when you return to work, If you do decide to make up contributions for your additional family leave, the company will match your core and service-related contributions. Changing your mind about membership If you have been automatically enrolled into the plan, you may opt out of the plan while you are still working for the company by giving an opt-out notice to the company within one month of your joining date or automatic re-enrolment date as the case may be. An opt out form can be obtained from the plan microsite or from Friends Life. The company will refund to you any contributions you have made to the plan and you will be treated as not having become an active member of the plan on that occasion. You will be automatically re-enrolled to the plan on your automatic re-enrolment date unless you again opt out. If you are an active member for more than one month after being automatically enrolled (or re-enrolled) and subsequently decide to leave the plan after you ve joined and while you are still working for the company, you will need to give the HR Service Centre one month s notice. Your pension benefits from the plan will be the same as if you had left the company s employment (see Section 6).

9 9 P age 3. Investing your account Key facts You can choose where to invest your pension account from a range of different funds It is important to choose carefully where you invest your pension account You can change how your pension account is invested as often as you wish to If you do not wish to choose freestyle investment funds you will automatically be invested in the default Lifestyle Fund and investment decisions will be made for you Details of the various funds are set out in the Investment Guide If you do decide to make your own choices when deciding where to invest, you should bear in mind that the value of funds can go down as well as up and is not guaranteed. You may not receive back the full value of contributions. Step 1: Investing your pension account You can decide how to invest your pension account. You can choose from a range of 6 freestyle investment funds carefully chosen by the Trustees. You can choose to spread your investments across the range of freestyle funds to suit your investment objectives or invest in just one fund. Whatever your situation, there should be a fund to suit you. More details of the funds available are given in the Investment Guide. An investment fund is a pool of money from investors like you. A professional manager uses the total amount to purchase individual investments such as shares, bonds or property. You use the contributions paid into your pension account to buy units in one or more of these funds. The units in each fund have a value based on the assets held. This value changes from day to day according to market conditions, and may fall as well as rise. If you don t make a choice about the funds you want to invest in, all your contributions will be invested in the Lifestyle Fund. Step 2: Reviewing your choices You re not locked-in to your initial investment decision. Because your circumstances will change over time, you may change the way your pension account is invested at any time at no extra cost. Step 3: Taking benefits When you take your benefits, the units bought over the years are sold. You then use the amount that has built up in your pension account to buy your benefits, which can be tailored to suit your personal circumstances.

10 10 P age 4. Your benefits Key facts You can take part of your benefit from the plan as a tax-free lump sum Your benefits are based on the amount in your pension account You can take all of your benefit as a cash sum (some of which will be taxable) You may be able to take your benefits early if the company agrees The level of your benefits depends on: how much you and the company have paid in to your pension account how much your pension account has grown how much of your pension account you take as a tax-free lump sum the cost of buying a pension (known as the annuity rate ) should you wish to do so and the options you choose for your annuity (e.g. pension for a surviving dependent, how much the pension increases each year, minimum guaranteed payment periods). When you can take benefits Your normal retirement date is your 65th birthday. But if the company agrees, you can take your benefits early provided you have reached age 55. When you take your benefits early, however, any pension is generally smaller. This is because your pension is being paid earlier and potentially for a longer period of time so the cost of buying a pension is higher. In addition, it is likely you will have less money in your pension account when you take your benefits early, because it will have received fewer contributions and had been invested for less time. If you continue to work for the company past age 65 your pension account would continue to receive contributions until you actually retire. Pensions paid for late retirements are generally larger than those paid at your normal retirement date, because the pension is potentially paid for a shorter period of time, and because your pension account may have received more contributions and investment earnings. In a few cases you may be affected by the lifetime allowance. This affects very few people but if you exceed the lifetime allowance a tax charge will apply.

11 11 P age Your benefit options When you re ready to take your benefits, you ll have a number of benefit options to consider. You can transfer your pension account to a contract based arrangement with Friends Life or another provider and take 25% of your arrangement as a tax free lump sum and flexi access drawdown for the remainder. Flexi access drawdown allows you to draw variable income whilst your pot remains invested. You can take 25% of your pension account as a tax free lump sum (or a lesser amount if you wish) and purchase a guaranteed income policy (i.e. guaranteed regular income for life) with Friends Life or another provider with the remainder. You may, with the Trustees consent, withdraw all of your pension account as an uncrystallised funds pension lump sum (ufpls). 25% of this lump would be tax free with the remainder taxed at your marginal rate of income tax. At present if you wish to take more than one ufpls you would have to transfer your pension account to another provider. If your pension account under the plan is less than 10,000 (small pots payment), this may also be withdrawn as a cash sum and taxed as above. You can transfer all or part of your pension account any time whilst you are an active member of the plan or if you leave at any time before you take your benefits. You can re-join the plan and continue to make contributions in any scenario above where a full payment or transfer of your pension account is made. What decisions do I have to make now? None. You ll get full details of your options when you near retirement. There are no decisions to be made regarding how you would like to receive your benefits until that time. If you want to receive an illustration of your potential benefits you can contact the plan administrator at any time. Their contact details are in Appendix II. You can also get illustrations to show the possible effect on your benefits of paying Additional Voluntary Contributions.

12 12 P age 5. Benefits for your family Key facts If you die while you re still working, the plan pays a lump sum to your family or the people you nominate Don t forget to complete a nomination form and keep it up to date While the main purpose of the plan is to provide you with retirement benefits, it also offers financial protection to your family. If you die before you draw your benefits, the full value of your pension account will be payable to your family or the people you nominated. The value of your pension account is paid as a lump sum or used to buy a pension If you die after you draw your benefits, any benefit paid to your family is determined by the choices you made at retirement. In order to pay the lump sum tax free, the Trustees must have the discretion to decide who receives it. In most cases the Trustees are guided by your wishes. You should complete the Nomination form in your pension pack and send it to the pension administrators. Don t forget to send in a new form whenever your personal circumstances change.

13 13 P age 6. If you leave Not every Associate retires from the company. Some people move on to other jobs before retiring. If you leave the company before you retire, you need to know how your benefits under the plan are handled. The rules that apply to you depend on the number of years you were a member of the plan. If your membership commenced before 1 October 2015 If you have been a member of the plan for less than 3 months you will receive a refund of the value of the contributions you have paid, less tax. The Company s contributions will be returned to the company. If you have been a member of the plan for 3 to 24 months you can elect to transfer the value of your pension account (including company contributions)to another registered pension scheme or you will receive a refund of the value of the contributions you have paid, less tax. The Company s contributions will be returned to the Company. If you have been a member of the plan for two or more years you may leave your pension account in the plan until retirement. You can t contribute any more to your pension account, and the company won t pay any more contributions, but it will remain invested in your choice of funds. If you choose this option and then die after leaving the plan, but before you begin receiving retirement benefits, the amount in your pension account will be available to your dependents. you can choose to transfer the value of your pension account to another registered pension scheme. This is known as a transfer value. The transfer value normally includes your AVCs. If your membership commenced on or after 1 October 2015 If you have been a member of the plan for less than 30 days you will receive a refund of the value of the contributions you have paid, less tax.

14 14 P age If you have been a member of the plan for 30 or more days you may leave your pension account in the plan until age 65. You can t contribute any more to your pension account, and the company won t pay any more contributions, but it will remain invested in your choice of funds. If you choose this option and then die after leaving the plan, but before you begin receiving retirement benefits, the amount in your pension account will be available to your dependants. you can choose to transfer the value of your pension account to another registered pension scheme. This is known as a transfer value. The transfer value normally includes your AVCs. You can ask for the current transfer value of your pension account once a year, free of charge. This value varies with changing investment conditions and is not guaranteed. You ll receive information on how to get a transfer value quotation if you leave. You can transfer all or part of your pension account any time before you take benefits from your pension account.

15 15 P age 7. Joining the TJX UK Pension Plan Because of auto enrolment you will automatically join the plan if you are eligible, if you are not eligible for auto-enrolment you will be informed of this and can still join the pension scheme by contacting the HR Service Centre. When you are automatically enrolled yours and the company s contributions will based on the minimum required under the automatic enrolment legislation and the contributions will be invested in the Default Lifestyle Fund. You can however, decide to contribute more to the plan and obtain a matching contribution from the company and make your own investment choices. Putting aside a little today can add up to a lot tomorrow. You can re-join the plan where full payment or a full transfer of your pension account is made. You can do it... these thoughts may help you: Take your pension planning into your own hands - you can t depend on State benefits to provide for your retirement. Start investing as soon as you can so you benefit from the company s matching contributions. When considering which investment choice is best for you, think about how long it will be until you will access your benefits. If you have more than 10 years before retirement, think about taking a long-term approach more details are available in the investment guide. Take a look at your pension account investments at least once a year and make any necessary changes according to your goals.

16 16 P age Appendix I - Some terms you should know This guide is written as simply as possible. However, there are some words and phrases which have special meaning. These terms are explained here, and they appear in italic type throughout the guide. annual allowance annuity Automatic enrolment date automatic re-enrolment date company core contribution dependants eligible jobholder HMRC jobholder joining date normal retirement date The maximum annual contributions that the law allows to be contributed into all of your registered pension arrangements tax-free. This amount is set by the Government each year. The current amount can be obtained from Friends Life. A form of pension bought for you, your spouse, registered civil partner or dependants, which provides an income. The date on which a person qualifies as an eligible jobholder. The date on which an eligible jobholder who has opted out of the plan will be automatically re-enrolled. Currently 3 years after initial enrolment date. TJX UK and any associated or subsidiary company which participates in the plan. Contribution range allowed based on pension group. This is the percentage of your pensionable salary you are required to save. Normally, your spouse, registered civil partner, children under the age of 18 or in full time education and any other person who is either financially dependent on you, or financially interdependent with you. If you are not married, the Trustees can recognise someone you are living with when awarding pension benefits. A worker who is working in Great Britain under a contract, is aged at least 22, has not reached state pension age and to whom earnings of more than 10,000 (tax year 2015/16) are payable by the company in relevant pay reference period. Her Majesty s Revenue & Customs, formerly known as the Inland Revenue. A worker who is working or ordinarily works in Great Britain under a contract, is aged at least 16 but is under age 75 and is paid gross earnings between 5,824 and 42,385 (tax year 2015/16) by the company in the relevant pay reference Period. A date no more than 3 months after an eligible jobholder s automatic enrolment date. Your 65th birthday

17 17 P age pension account pension group pensionable salary plan plan administrator plan service relevant pay reference period worker without qualifying earnings Your pension account comprises: your core contribution the company s matched contribution service-related contributions any Additional Voluntary Contributions you have made investment returns on these contributions profit sharing contributions. You will be advised separately which pension group applies to you. Your basic pay plus bonus payments, where applicable. The TJX UK Pension Plan. Friends Life are the appointed administrators. You can contact Friends Life on the helpline or by (see Appendix II). The length of time you have been a member of the plan. means the company s normal pay cycle. A worker who is working or ordinarily works in Great Britain under his contract, is aged between 16 and 74 and earns less than 5,824 (tax year 2015/16) from the company in a relevant pay reference period.

18 18 P age Appendix II - Help and information The trustees want you to know about the plan and how your pension grows. The plan year runs from 1 July to 30 June, and after the end of each plan year you ll get a personal statement showing the value of your pension account. This guide is intended as a summary only and is not legally binding. The full rules governing the plan are set out in a legal document known as the Trust Deed and Rules which will always override this guide. You can ask for a copy of the plan s Trust Deed and Rules. You can also see the plan s annual Report and Accounts and the Trustees Statement of Investment Principles by contacting the Trustees through the HR Service Centre. Further information Friends Life, as the plan administrator, will be able to answer any general questions you may have about the plan. You can contact them via the helpline on You can also Friends Life at: ngp.questions@friendslife.co.uk The link to the Friends Life microsite is as follows: Please note, however, that Friends Life is only able to give you general guidance and cannot give you financial advice under the terms of Financial Services legislation. If you need financial advice, please contact a financial adviser. If you do not have a financial adviser but want to contact one, visit Financial advisers may charge you for their services. If you do not have internet access at home, most libraries have computers with internet access for the public use. How the plan is set up The plan is set up as a trust. Its assets are completely separate from those of the company and may only be used for the benefit of plan members and their families or dependants. The Trustees of the plan regularly monitor the plan s available investment options and are responsible for the proper management of the plan. The plan is a registered pension scheme under the Finance Act This means that contributions to the plan receive full tax relief. In exchange for this favourable tax treatment, the HMRC imposes certain tax thresholds on the plan s contributions and benefits. All benefits described in this guide are subject to these tax thresholds.

19 19 P age Details of your pension record are held on computer. The Data Protection Act 1998, gives you the right to inspect your record. For further details, contact the HR Service Centre. You cannot assign your benefits under the plan or use them as security for a loan. Transfers in You may transfer benefits from previous pension arrangements into the plan, provided the trustees give their consent. For further information, please contact Friends Life. Friends Life s charges Friends Life apply both a scheme charge and an additional fund charge to all investments under management. This fee is taken by deducting units from your pension account. Further details can be found in the Investment Guide. Internal complaints procedure If you are dissatisfied with anything to do with the plan, in the first instance you should contact the HR Service Centre, who will arrange for you to receive details of the complaints procedure. These details will be sent to you within 14 days. Once you have submitted your complaint you will normally receive a formal response within one month. If your complaint is not dealt with within one month, you will receive a letter explaining the reason for the delay and when you should expect a full response. If your complaint is not resolved to your satisfaction, you have the right to ask the Trustees to consider the matter. You should make a written application to the Trustees within six months of receiving the decision. Your application must enclose a copy of the decision and explain why you are dissatisfied with it. The Trustees will acknowledge receipt of your complaint within 14 days, and you will normally receive a formal response to your complaint within one month. If your complaint is not dealt with within one month, you will receive a letter explaining the reason for the delay and when you should expect a full response. If you feel that your complaint has not been dealt with to your satisfaction, you are able to contact the following organisations.

20 20 P age The Pensions Advisory Service (TPAS) TPAS helps members and beneficiaries of pension schemes sort out any difficulties about their pension arrangements which they have failed to resolve with the plan s trustees or plan administrator. Contact TPAS at: 11 Belgrave Road London SW1V 1RB Telephone: Fax: Website: The Pensions Ombudsman If your complaint or dispute cannot be resolved using the internal complaints procedure or TPAS, you can apply to the Pensions Ombudsman for a final decision. The Ombudsman can investigate and determine any complaint or dispute of fact or law involving occupational pension schemes. The services of the Ombudsman are available to plan members, beneficiaries and prospective members of schemes. The Ombudsman s address is the same as for TPAS. Telephone: Fax: enquiries@pensions-ombudsman.org.uk Website: The Pensions Regulator The Pensions Regulator can take action on certain reported breaches of pension legislation. They aim to get problems put right and make sure schemes comply with the law. If issues are not put right quickly then they can impose civil penalties on those responsible. They have the power to take criminal breaches of pension law to court. You may wish to visit their website pensionsregulator.gov.uk for further information. Staying in touch The Pensions Tracing Service It s important for you to stay in touch with TJX UK, even if you no longer work for the company, so that the trustees can give you information on the plan from time to time. If, for some reason, you lose touch with the company, the Pension Tracing Service can help you re-establish contact.

21 21 P age The Pension Tracing Service s main purpose is to provide a tracing service for ex-members of schemes with pension entitlements (and their dependants) who have lost touch with earlier employers. The tracing service is free and enquiries can be made by phone ( ) for an application form or online at Changing or closing the plan Although the company expects to continue the plan, it can change the plan with the consent of the Trustees. If the plan is wound up, the Trustees have to use the plan s assets for the benefit of members and other beneficiaries, as set out in the Trust Deed and Rules. The information in this guide relating to HMRC tax thresholds and State benefits is based on current legislation. These details are subject to change. Guidance following the introduction of the new flexibilities The Government is keen that individuals making the decision on how to draw their pension savings should have access to information on the decision-making process. A formal "guidance guarantee" called Pension Wise is available to provide guidance. Broadly speaking, all individuals with money purchase savings are entitled to receive (at no cost) guidance at the point of taking benefits about the options they have. The guidance providers are the Citizens Advice Bureau (CAB), who will provide members with face to face guidance and the Pensions Advisory Service (TPAS), who will provide telephone guidance. A Pension Wise website has been created and you can find it at the following link: You should be clear though that whilst guidance will give you information on the decision-making process, it will not amount to advice (i.e. a recommendation) as to what is best for you. That would require a detailed examination of your personal circumstances by a qualified financial adviser. The Trustees are not authorised to give you that advice but you can find a qualified financial adviser in your own area at: Alternatively, you can speak with a qualified financial adviser from the plan s Pensions Advisers, JLT Employee Benefits, through a request to the Trustees. You should note that the cost of financial advice will have to be borne by you personally.

22 22 P age Appendix III - Your state pension benefits The State currently provides two levels of pension: Basic State Pension: This is a flat-rate pension that is paid to everyone with a sufficient record of National Insurance contributions. Your membership in the plan does not affect your entitlement to the basic State Pension. Basic State Pension benefits begin at your State retirement age (see below). State Second Pension (S2P): This is an earnings related State pension scheme payable in addition to the basic State Pension. Please see the Department for Work and Pensions (DWP) website for more details at The government has announced that for those reaching state retirement age from 6 April 2016 a new simpler flat rate state pension (a payment of about 144 a week in today s prices) will replace the current basis. State retirement age State retirement age is currently 65 for men. From 6 April 2010, State retirement age for women started to increase gradually from 60 to reach 65 by November The state retirement age for both men and women will then start to increase from December 2018, to reach 66 by April 2020 and will increase to age 67 by March Eventually, state retirement age is due to reach age 68 for those born on or after 6 April Further details regarding the new flat rate state pension and the state retirement age can be found at