A GUIDE TO YOUR SCHEME SAVINGS

Transcription

1 A GUIDE TO YOUR SCHEME SAVINGS AGILENT TECHNOLOGIES LDA UK LIMITED PENSION SCHEME

2 Contents Welcome 3 The Scheme at a glance 4 The big picture: know where to start 5 Joining 6 Tools and resources at your fingertips 7 Contributions 8 Investments 9 Retirement 10 Your retirement options in detail 11 Temporary absence and leaving the Scheme 12 Death benefits 13 About the Scheme 14 Glossary 15 TRUSTEE INFORMATION The Scheme is set up under Trust and the assets are held completely separately from those of the Company. The Trustees are responsible for ensuring that the Scheme is efficiently run and that the investment providers are carrying out their duties correctly. The Trustees also ensure that the Scheme is run in accordance with the terms of the Scheme Rules. These set out the legal basis on which the Scheme operates. The Trustees are individuals that have been appointed to act as Trustees and include Member Nominated Trustees that have been selected by the membership. A copy of the annual report of the Trustees containing audited accounts, an investment report and a list of Trustees and professional advisers, is available on epa. You can also request a copy of the Rules of the Scheme from the Trustees or the Pensions Department. THE SMALL PRINT This guide is a general summary of the Scheme and does not replace the formal Scheme documents (see below) which contain the definitive provisions. The more formal documents (Trust Deed and Rules and policies, for example) are the legal documents that govern the Scheme. You can request a copy of these at any time. Contact the administration team for details (see page 14). Where there are any discrepancies between this guide and the Scheme documents, the Scheme documents prevail. The information given in this guide is also subject to the Company s and Trustees right to amend the provisions of the Scheme at any time, and to overriding statutory legislation. The Scheme is established under a trust with Trustees nominated by the Company and the members. The Trustees administer the Scheme on behalf of the members. For details on the Trustees see above. The Scheme is a registered pension scheme for the purposes of Part 4 of the Finance Act The information in this guide is based on our understanding of tax regulations and legislation in force at the time of publication. The provisions may be changed if required by amendments in legislation, taxation, Revenue practice, or Company policy. Before making any decisions, you may wish to seek financial advice. See page 14 for more details about financial advice. 2

3 WELCOME The Company wants to provide all of its employees with valuable benefits. An important part of this is helping employees provide for their retirement. The Agilent Technologies LDA UK Limited Pension Scheme (the Scheme) helps you save for your future. The Scheme is an attractive means of planning for your retirement. It aims to provide you with a savings pot to use when you choose to. It is flexible. You choose how much to save in addition to the Company s contributions, how your contributions are invested and how to take your savings. It is cost effective. Not only are any SMART Pension contributions free from National Insurance, as these are made through Salary Sacrifice, you also receive full tax relief (up to certain limits; see page 8 for details on all contributions). Additional Voluntary Contributions (AVCs) receive tax relief but are not paid through Salary Sacrifice. The Company meets the Scheme s administration costs and you pay the investment management charges. SCHEME COMMUNICATIONS You will receive a number of communications and have access to tools to help you plan for retirement. These will help you to: KEEP YOUR SAVINGS AND INVESTMENTS ON TRACK Each year, we remind you that your contribution rate can be updated on 1 February. You receive a personalised annual benefit statement so you know what you ve already saved and what you re on track to receive. This Scheme guide gives you everything you need to know about the Scheme. The Investment guide provides more detail on your investment options, to help you make an informed investment decision. The decision tree will walk you through the things you need to think about when deciding how to take your savings and how to be invested as you approach retirement. PREPARE FOR RETIREMENT Your Countdown to retirement leaflet will be sent to you eight years before your target retirement age. This lets you know what to expect in the lead up to retirement and what you need to start thinking about. Around six months before your target retirement age, you will receive the Scheme s At-retirement pack giving you detailed information about your options and what you need to do to access your savings. Access all Scheme communications at 3

4 THE SCHEME AT A GLANCE YOU JOIN THE SCHEME AND AN ACCOUNT IS SET UP IN YOUR NAME Just complete the Application form we sent to you when you joined the Company. YOU CONTRIBUTE TO YOUR ACCOUNT You can decide to make SMART contributions of between 1%-4%. SMART contributions are made through Salary Sacrifice and can be changed once a year see page 8 for details. You can make Additional Voluntary Contributions (AVCs) at any time during the year. Experts estimate that throughout your career, contributions of around half your age would buy you a secure income of around 66% of your final earnings. THE COMPANY CONTRIBUTES TO YOUR ACCOUNT The amount depends on how much you contribute. If you do not contribute at least 4%, you will not receive the higher Company contribution. YOU CHOOSE HOW TO INVEST YOUR ACCOUNT The Scheme offers a range of different investment options to meet your different needs. Read the Investment guide for full details of your options available at VALUE YOU VE BUILT UP IN YOUR ACCOUNT: Accessing your account at retirement You can access your account at any time from the minimum pension age (currently 55). You can do one or a combination of the following: Buy an Annuity (secure income for life) Whichever option you choose, up to 25% will be tax-free, with the rest taxed as income. Keep your savings invested, taking funds as and when you need them over a period of time Income drawdown Take it all in one go as a Cash lump sum Read more about your retirement options from page 11. THE SCHEME ALSO PROVIDES YOU WITH LIFE ASSURANCE BENEFITS; FIND OUT MORE ON PAGE 13. Find out what happens if you leave the Scheme on page 12. 4

5 A GUIDE TO YOUR SCHEME SAVINGS AGILENT TECHNOLOGIES LDA UK LIMITED PENSION SCHEME WELCOME The Company wants to provide a l of its employees with valuable benefits. An important part of this is helping employees provide for thei retirement. The Agilent Technologies LDA UK Limited Pension Scheme (the Scheme) helps you save for your future. The Scheme provides an attractive means of planning fo retirement with the main intention of providing you with a savings pot to use when you choose to. You choose how much to save in addition to the Company s contributions, how your contributions are invested and how to take your savings. It is cost e fective. Not only are any SMART Pension contributions free from National Insurance, as these are made through Salary Sacrifice, you also receive fu l tax relief (up to certain limits; see page 15 for details on all contributions). Additional Voluntary Contributions (AVCs) receive tax relief but are not paid through Salary Sacrifice. The Company meets the Scheme s administration costs and you pay the investment management charges. Government changes announced in the Spring Budget 2014 mean that you now have complete freedom over how you take your savings any withdrawals wi l simply be taxed as income. See page 11 for details on your options at retirement. Each year, we remind you that your contribution rate can be updated on 1 February. You receive a personalised annual benefit statement so you know what you ve already saved and what you re on track to receive. This Scheme guide gives you everything you need to know abou the Scheme. The Investment guide provides more detail on your investment options, to help you make an informed investment decision. The decision tree wi l walk you through the things you need to think about when deciding how to take your savings and how to be invested as you approach retirement. Your Countdown to retirement leaflet wi l be sen to you eight years before your target retirement age. This lets you know wha to expect in the lead up to retirement and IT IS FLEXIBLE. IT S JUST GOT EVEN BETTER. SCHEME COMMUNICATIONS You wi l receive a number of communications and have access to tools to help you plan fo retirement. These wi l help you to: KEEP YOUR SAVINGS AND INVESTMENTS ON TRACK PREPARE FOR RETIREMENT what you need to star thinking about. Around six months before your target retirement age, you wi l receive the Scheme s At Retirement Pack giving you detailed information about your options and what you need to do to access your savings. Access these at THE BIG PICTURE: KNOW WHERE TO START Retirement may seem a long way off. But if you do not take steps early enough, you could find that your savings are not what you expected. You need to prepare. And you need to check regularly that you re heading in the right direction. The following three simple steps should help you on your way to retirement. It s not about saving more than you can afford or becoming an investment expert it s about having a plan for retirement, making the right choices for your personal circumstances and checking your progress at least once a year. STEP 1 KNOW YOUR TARGET Set yourself a target for what you ll need when you retire, even if retirement is years away. Check the money you ll have coming in from your pension(s), the State Pension and other savings. Then think about your everyday outgoings, like your household bills. Are your sums adding up? The online budget planner will help you put your plan in place. The Financial Conduct Authority (FCA) suggests you need an annual income of around 60% of your basic salary to live on in retirement. STEP 2 ARE YOU SAVING ENOUGH? If you contribute at least 4% through SMART Pension, you can benefit from the maximum Company contribution (8%). Any SMART Pension contributions are free of NI contributions. You can change your SMART Pension contributions (up to 4%) once a year. You can make Additional Voluntary Contributions (AVCs) (contributions over 4%) to build up additional benefits at any time. You receive tax relief on all contributions (up to certain limits). For more information on contributions, see page 8. MAKE A GOOD DECISION TODAY! The Scheme is an extremely valuable way to save for your future. Your account is like a long-term savings plan and you also benefit from tax and National Insurance savings. Use the 3-step plan below to get the most from your account. STEP 1 KNOW YOUR TARGET How much will you need when you stop working? You may need lump sums and/or regular income Agilent Technologies. All rights reserved. STEP 2 ARE YOU SAVING ENOUGH? How much can you save to help meet your target? It might not cost you as much as you think... MAKE A GOOD DECISION TODAY STEP 3 MAKE YOUR MONEY WORK HARD What type of investor are you?... APPROACHING RETIREMENT TAKE ME TO MY ACCOUNT UNDERSTAND HOW IT WORKS? Then see the Scheme guide for more information Manage your account at SCHEME LIBRARY Cookie Policy STEP 3 MAKE YOUR MONEY WORK HARDER Another way to help you bridge any pension gap is to make your contributions work harder by making the right investment choices for you. There s a wide range of investment options and funds to choose from. Whatever your circumstances, there s an option for you. And as with your contribution choice, choosing your investments isn t a one-off decision. Your investment priorities are likely to change as you get older and your personal circumstances change, so you need to keep your investments under review. In addition, your investment choices need to align with how you plan to take your savings from the Scheme. That means you ll will need to think carefully from around eight years before your target retirement age. For more information on investments, see page 9. INVESTMENT GUIDE Read the Investment guide for more details about your investment choices. You can make any changes to how you are invested at UK Pensions IT S YOUR FUTURE......MAKE A GOOD DECISION 5

6 JOINING Joining the Scheme won t take you long and it ll be worth it. You need to be a permanent employee and your employment contract needs to confirm your eligibility. Once you know you re eligible, follow these simple steps: 1. COMPLETE THE APPLICATION FORM You will receive a copy by after you have joined the Company. Here you will choose how much to contribute and how to invest your account. The Trustees may ask you to provide identification and other documents, such as a birth and/or marriage certificate. We will let you know if this is the case. 2. DON T FORGET YOUR BENEFICIARIES AND DEPENDANTS Your beneficiaries and dependants may be eligible to receive benefits in the event of your death, so make sure you also complete and return the Expression of Wish form see page 13 for more details. You will receive a copy with your Application form. You will be able to review and update your details online once you have registered to manage your account. KEY ACTIONS ON JOINING Choose how much to contribute Choose how to invest your account Complete your Expression of Wish details Register to manage your account online 3. REGISTER TO MANAGE YOUR ACCOUNT ONLINE You will receive details of how to access your account online within four weeks of joining the Scheme. Send your completed form and any required documents to the Pensions Department. Find their details on page 14. DECIDED NOT TO JOIN THE SCHEME? Joining is voluntary. If you decide not to join, please note: The Company will not contribute to any other pension arrangement on your behalf. You may be able to join at a later date if this is after one year of joining the Company, acceptance into the Scheme will be at the discretion of the Company and the Trustees, and you will be required to complete a medical questionnaire for our death benefit insurers (this is completely confidential). You will continue to be covered for a lump sum life assurance benefit if you die while in service. This would be four times your Annual Salary as at your date of death. It is important that you complete the Expression of Wish form (see above). Please note however that you will not receive any pension from the Scheme nor will your Spouse, Dependants or Children receive any pension in the event of your death. From 2016, the Company will be required to automatically enrol employees that meet certain criteria. Relevant employees will still be able to opt out of joining the Scheme. TRANSFERRING YOUR BENEFITS FROM ANOTHER SCHEME? If you have benefits in a previous employer s pension arrangement or in a personal pension, you may consider transferring their cash value into the Scheme. This can be done with the consent of the Trustees and the Company on a basis agreed with the Trustees. You will receive a Transfer-in form with your Application form, or you can get one from Before transferring any benefits, we recommend you seek independent financial advice. Details of how to find an adviser are on page 14. 6

7 TOOLS AND RESOURCES AT YOUR FINGERTIPS MAKE A GOOD DECISION Find out more about the Scheme, access other useful tools and resources and manage your account online at MANAGE YOUR ACCOUNT ONLINE You can: Get up-to-date information on your investments, including unit prices and transaction history See your current balance View your contribution and investment decisions Make changes to your investment decisions Update your address and nomination details Access this Scheme guide and the Investment guide You will receive log-in details within four weeks of joining the Scheme. UNLOCK epa S FULL POTENTIAL Read the epa user guide and find out how to download the epa app. You should receive a copy in the post. You can also find it in the Library at HAVING ACCESS PROBLEMS? Contact the administration team; see page 14 for details. 7

8 CONTRIBUTIONS By contributing to the Scheme, you can build up valuable benefits for your future. The more you contribute, the bigger those benefits will be. Your contributions will receive tax relief up to the Annual Allowance see tax limits below so they won t cost you as much as you think. SMART Pension contributions are also free of National Insurance (NI). To see the benefit of contributing more, use the Pension Planner by logging on to your account at We encourage you to keep a regular check on the value of your Scheme savings so you can adjust how much you are contributing. Log on to your account at any time at the link above your annual benefit statement also provides details. CONTRIBUTION TYPE SMART Pension contributions IF YOU CONTRIBUTE* THE COMPANY CONTRIBUTES* TOTAL CONTRIBUTION INTO YOUR ACCOUNT* 1% 5% 6% 2% 6% 8% 3% 7% 10% 4% 8% 12% * % of your Annual Salary SMART PENSION CONTRIBUTIONS When you join the Scheme, you ll be automatically enrolled into SMART Pension. SMART Pension is a cost-effective way to make contributions to the Scheme. The minimum SMART Pension contribution is 1% of your Annual Salary. Read how it works on the right. You will normally only be able to change your SMART Pension contributions on 1 February each year (you will receive a reminder). This is unless your personal situation changes significantly known as a lifestyle event. See details on page 15. ADDITIONAL VOLUNTARY CONTRIBUTIONS (AVCS) AVCs help you build up additional savings as 12% (total contributions) may not meet your needs in retirement. AVCs can be invested in exactly the same way as your SMART Pension contributions or you may choose a different investment style. Plus, you can also choose how you would like to use the value of your AVCs, depending on your personal circumstances. Please note, AVCs are not made through SMART Pension. How SMART Pension works You agree to give up a part of your Annual Salary, equivalent to what you choose to be your contribution. The Company then pays an amount equal to this contribution into the Scheme, on your behalf (in addition to its normal Company contribution). It then adjusts your base salary/target pay by an amount equal to the contribution. Normally this means you pay lower NI contributions, increasing your take-home pay. SMART Pension does not however affect your income tax position as contributions to the Scheme are not subject to income tax. TAX LIMITS ANNUAL ALLOWANCE (AA) Although there is no limit on the contributions you can pay, there is a limit on the amount of tax relief you receive on pension contributions each year. For the 2015/2016 tax year, this is 40,000. Read more on page 15. LIFETIME ALLOWANCE (LTA) The Lifetime Allowance limits the amount of tax-efficient pension savings you can build up over your lifetime. This has been set at 1.25 million for the tax year 2015/2016. Read more on page 15. 8

9 WHAT ARE MY INVESTMENT CHOICES? In addition to your contribution choice, you also need to decide how you want to invest your account. You can choose from one of the following approaches: FLEXIBLE LIFESTYLE The Help me do it approach where your Scheme savings are automatically invested in pre-selected funds. DEFAULT LIFESTYLE If you don t make a choice, you ll be invested in the default lifestyle strategy. SELF-SELECT The Do it yourself approach where you decide which funds you d like to invest in and what percentage to invest in each fund. Details of your investment choices, as well as information to help you decide what to do, are set out in the Scheme s Investment guide. Find a copy on > Library You can change how your account is invested at any time via epa. Visit > Take me to my account 9

10 RETIREMENT CHOOSING WHEN YOU WANT TO TAKE YOUR SAVINGS The earliest age at which you can take your savings is age 55* (younger in cases of incapacity). However, you can delay taking your savings until age 75. So you just need to decide the right age for you known as your target retirement age. The Scheme s normal retirement age is age 60. So unless you choose otherwise, this will automatically be your target retirement age. This age may be too early depending on individual circumstances. *From 2028, this will increase to 57, and then always be 10 years below the State Pension age. THE IMPORTANCE OF YOUR TARGET RETIREMENT AGE Choosing the right target retirement age for you is particularly important when it comes to your investment choices. If you re invested in a lifestyle option, this age determines when your account moves between investing in funds that aim to maximise growth (the Growth phase) and the Pre-retirement phase, where your investments align with how you plan to take your savings at retirement. If your target retirement age is set too early for your circumstances, your investments will change too soon, and you may lose out on potential growth. If it s set too late, you would be exposed to a higher level of investment risk just before you want to take your benefits, leaving you vulnerable to changes in the market. STATE PENSION In addition to the benefits from the Scheme you may be entitled to a State Pension. The basic State Pension is a regular payment from the Government that you can get when you reach State Pension age. If and how much you receive will depend on your National Insurance record. Calculate what you re due to receive and when, using the State Pension Calculator: YOUR RETIREMENT OPTIONS Since April 2015, you now have complete flexibility over how you take your savings. You can choose one or a mixture of the following options: THE VALUE OF YOUR ACCOUNT 25% tax-free cash Whichever option you choose, you re entitled to take 25% as a tax-free lump sum. ANNUITY INCOME DRAWDOWN TAXABLE CASH LUMP SUM Available via the Scheme You ll need to transfer your savings out of the Scheme to take advantage of this option. One-off cash payment available from the Scheme. The Scheme is not able to offer multiple, taxable cash lump sums and you would need to transfer out to make use of this option. GUIDANCE GUARANTEE When you come to retire, you ll receive free impartial guidance via the Government (Pension Wise) about your options. 10

11 YOUR OPTIONS IN DETAIL ANNUITY When it s time to retire, you can take your savings and buy a pension income (known as annuity) with an insurer outside of the Scheme. Annuities work by converting your account to provide an income for the rest of your life. There are a few options to consider when purchasing a lifetime annuity, such as deciding whether to buy an increasing income to keep up with the cost of living or providing an income for your spouse if you were to die first. There are lots of options to choose from and they ll depend on your personal circumstances, so you ll need to shop around. Key facts to consider Income Tax-free cash Income tax Decisions Options Inheritance planning Secured for a fixed period, or for life depending on the type you choose. Before you buy your annuity, you can choose to take 25% of your account as tax-free cash. It s normally paid at the same time as buying your annuity in line with HMRC guidelines. Annuity income (after tax-free cash) is taxed at your marginal rate. Once you buy an annuity, you cannot change your mind. There are many different insurance companies and annuity options to choose from. Chosen beneficiaries would only receive benefits if you select an annuity on a joint-life basis. You can buy an annuity using the whole value of your account, or you can use part of your account and then take the rest using one or both of the other options available: Key facts to consider INCOME DRAWDOWN It s your choice how much and how often you want to draw money from your retirement savings. Income drawdown is not currently offered through the Scheme, so you ll need to transfer your savings to an income drawdown provider. Income Tax-free cash Income tax Decisions Options Inheritance planning You keep your savings invested and withdraw cash as and when you need it. Total tax-free cash of 25% of your account. You can choose to take tax-free cash in a single lump sum or in stages as you draw down your savings. Cash withdrawals (after tax-free cash) are taxed at your marginal rate. You will have ongoing decisions to make over how to invest your savings, how much to withdraw and when. There are many different income drawdown providers; you ll need to shop around. Any undrawn funds would pass directly to your chosen beneficiaries. Before age 75, these will be passed on tax-free. After age 75 undrawn funds will be taxed at a marginal rate of 45%. Key facts to consider CASH LUMP SUM Take your savings as cash in one go You can take all of your account as a cash lump sum. The first 25% will be tax-free with the remainder taxed as income in the year that you take it. Be aware that taking your savings in one lump sum could affect your overall tax rate and therefore increase the amount of income tax you pay. Income Tax-free cash Income tax Decisions Options Inheritance planning You take all of your benefits in one go. You can take up to 25% of the value of your account as tax-free cash. Your savings (after tax-free cash) are taxed at your marginal rate. You should consider how you want to invest your cash once you ve withdrawn it so it doesn t lose value as inflation rises. You have the flexibility over how to spend or save your cash. Any money you do not spend could pass to your estate. We ll send you more information on these options when you re eight years from your target retirement age. 11

12 TEMPORARY ABSENCE ILL HEALTH If you re off work due to ill health and are continuing to receive your salary from the Company, or are receiving income benefits from the Company s Long Term Disability (LTD) Scheme, you ll be required to continue making SMART Pension contributions to the Scheme. If you are in receipt of a LTD income benefit, your SMART Pension contributions will be based on the amount you actually receive. Company contributions will continue on an unreduced basis. MATERNITY LEAVE During your ordinary maternity leave period (and additional paid maternity leave, if taken) the Company will continue to contribute to your account, based on your full Annual Salary. Your membership of the Scheme will continue as normal. You ll be required to make SMART Pension contributions during your absence. These will be based on any pay you actually receive. Please see the Maternity Policy on MEIDAS for further details. ADOPTION OR PATERNITY LEAVE During periods of paid adoption leave or paternity leave, the Company will continue to contribute to your account. These contributions will be based on your full Annual Salary and your membership of the Scheme will continue. You will be required to make SMART Pension contributions during your absence. These will be based on any pay you actually receive. WORKING ABROAD If you take an overseas assignment or work on secondment, whilst remaining legally employed in the UK, both you and the Company will continue to contribute to your account. UNPAID LEAVE If you remain in continued employment and do not receive a salary from the Company, then contributions will not be payable from either you or the Company. LEAVING EMPLOYMENT DEFERRED MEMBERSHIP If you stop working for the Company, you would automatically become a deferred member of the Scheme. This means: You ll no longer be able to contribute to the Scheme. Company contributions will also stop. You ll receive a leaver s statement that shows the units held in your account. Your account will grow in line with the funds in which you are invested. You will be able to change how you are invested at any time. You ll continue to receive annual benefit statements from the Scheme and be able to manage your account at It would be important to keep the administration team updated if you change address. Normally you will not be able to take your benefits until age 55 (57 from 2028). This is unless you suffer from incapacity. TRANSFERRING OUT When you stop working for the Company, you can choose to transfer the value of your account to another registered pension arrangement your new employer s scheme or a personal pension, for example. Please note however that a transfer will only be possible if the other scheme agrees to accept it. TRANSFERRING OUT OF THE SCHEME WHILE STILL WORKING FOR THE COMPANY You may decide to transfer out of the Scheme even if you are still working at the Company. You can do this at any time by giving one month s notice to the Company and Trustees. We recommend you seek independent financial advice if you re considering transferring your benefits. Details of how to find an adviser are on page 14. If you leave the Scheme and later wish to rejoin, you may be able to do so with the consent of the Company. If you wish to transfer your benefits out of the Scheme: You should write to the trustees or the administrator of your new pension arrangement. We encourage you to carefully consider your choices before leaving the Scheme. 12

13 DEATH BENEFITS DEATH IN SERVICE ACTIVE MEMBERS If you die in service, the Trustees will provide the following benefits: A lump sum equal to four times your Annual Salary (before any SMART Pension contribution reductions) at the date of your death. A refund of the value of your contributions (not Company contributions) in your account. This will include your SMART Pension contributions, AVCs or transfers in from previous pension arrangements. Your spouse/dependant will also receive a pension equal to 25% of your Annual Salary at the date of your death, payable for life. YOUR CHILDREN A pension equal to one-third of the spouse/dependant s pension will be paid for each child, up to a maximum of three. If you leave more than three children, the pension will be divided among all of them equally. Please refer to the glossary on page 15 for the definition of a Pensionable Child. DEFERRED MEMBERS If you die after you have left the Company but before you retire and you have not transferred the value of your account out of the Scheme, the Trustees will use your account to pay a lump sum or to provide a pension for your spouse, children or dependants. You may be required to complete a medical questionnaire or attend a medical examination and your benefits may be restricted based on the evidence of health required by the insurer. The results of any medicals are confidential and are not disclosed to the Company. You will be notified if you are affected. AT A GLANCE If you die while you re an active member of the Scheme, a lump sum of four times your Annual Salary and a refund of the value of your contributions in your account will be paid If you die before you take your Scheme savings but you ve left the Company, the value of your savings will be paid as a lump sum or pension If you die in retirement, the benefits paid will depend on the choices you made when you retired WHO WILL THE TRUSTEES PAY MY BENEFITS TO? So that any lump sums payable can be paid free of inheritance tax (under current rules), the Trustees must, by law, be able to decide who to pay benefits to on your death. The Trustees Agilent Technologies LDA UK Limited Pension Scheme Expression of Wish form will always take your wishes into account and you can let them know to whom you d like benefits paid by completing an Expression of Wish form. If your circumstances change, please make sure you review your wishes and complete and return a new form when appropriate Go to to download the form, send it back to the Pensions Department details are on page 14. Please complete in BLOCK capitals and return to: Agilent LDA Pensions, 5 Lochside Avenue, Edinburgh Park, Edinburgh EH12 9DJ. Before you do, we recommend that you read the death-in-service benefits section of the Scheme member guide and please note that benefits under the Scheme are not assignable e.g. as security for a mortgage. All non members of the Scheme should also complete this form. 1. Personal details Full name: Date of birth: Employee ID: Location: Marital status: Telnet: NI number: 2. Your nominations I would like the Trustees of the Agilent Technologies LDA UK Limited Pension Scheme to consider paying the death benefits provided by the Scheme to the people named below. I understand that the Trustees are not bound by my nominations and have complete discretion when deciding to whom the benefits should be paid. If you would like to nominate more than three people, please continue on the reverse. Please make sure your nominations total 100%. You may alternatively request that the Trustees consider paying all or some of your death benefits to your estate; to do so, please write To my estate in the name field below. Full name: Date of birth: Address: Postcode: Relationship: Proportion of benefit: % Full name: Date of birth: Address: Postcode: Relationship: Proportion of benefit: % Full name: Date of birth: Address: Postcode: Relationship: Proportion of benefit: % This form supersedes any earlier nominations that I may have made about death benefits provided by the Scheme. I consent to the above information being held and processed by the Trustees. Signed: Date: 13

14 ABOUT THE SCHEME ADMINISTRATION DETAILS Find out more about the Scheme, access other useful tools and resources and manage your account online at PENSIONS DEPARTMENT (for questions about the Scheme) ADMINISTRATION TEAM (for questions about your savings in the Scheme) WANT ADVICE ABOUT CHOOSING Writing to: Agilent Technologies LDA UK Ltd Pensions Department 5 Lochside Avenue Edinburgh Park Edinburgh EH12 9DJ Telephone: heather_wright@agilent.com Writing to: Agilent Technologies LDA UK Ltd Pension Scheme Towers Watson PO Box 545 Redhill Surrey RH1 1YX Telephone: agilentldapensions@towerswatson.com If the Pensions Department is unable to deal with your query or if you wish to make a formal written complaint, please request an Internal Dispute Form from the Pensions Department. Once completed and returned, your complaint will be considered by the person the Trustees nominated to review such disputes. You will receive a formal response to your complaint within five weeks, or be sent a letter explaining the reason for the delay and when a formal response will be provided. If you are not satisfied with the decision reached, you can escalate the matter to the full Board of Trustees. Details of this option will be provided with the response. Other professional organisations that can help you are set out below. YOUR INVESTMENTS? Please note that by law, the Trustees, the Pensions Department and the administration team cannot give you financial advice. However, some organisations offer free financial advice; visit articles/free-financial-advice-your-options And if you want to speak with a financial adviser, you can find one near you at All queries about the Agilent Technologies LDA UK Limited Pension Scheme should be raised with the Pensions Department in the first instance. USEFUL INFORMATION PENSIONS OMBUDSMAN The Pensions Ombudsman has the power to investigate and determine complaints or disputes of fact or law in relation to occupational pension schemes. The Pensions Ombudsman will expect the administrators and the trustees of a scheme and TPAS to have been approached, and both stages of the Internal Disputes Resolution procedure have been completed before they will investigate any complaint. The Pensions Ombudsman can be contacted by: Writing to: Pensions Ombudsman 11 Belgrave Road London SW1V 1RB Telephone: Online: THE PENSIONS ADVISORY SERVICE (TPAS) An independent body which is available at any time to assist members and beneficiaries of pension schemes with any pension queries they may have, or with difficulties that they have failed to resolve with the trustees or administrators of their scheme. TPAS can be contacted by: Writing to: The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB Telephone: Online: THE PENSIONS REGULATOR (TPR) TPR is able to intervene in the running of schemes where trustees, employers or professional advisers have failed in their duties and in other circumstances. TPR can be contacted by: Writing to: The Pensions Regulator Napier House Trafalgar Place Brighton BN1 4DW Telephone: Online: THE PENSION TRACING SERVICE Details of the Scheme have been submitted to the Pension Tracing Service who keeps a register of UK workplace pension schemes. This means that if you leave the Scheme and cannot trace the Trustees when benefits are due, you can obtain information about the Scheme from the Pension Tracing Service. This includes an address at which to contact the Trustees. The Pension Tracing Service can be contacted by: Writing to: The Pension Tracing Service The Pension Service 9 Mail Handling Site A Wolverhampton WV98 1LU Telephone: Online: 14

15 GLOSSARY A number of special terms are used in this guide to describe your benefits. Here are their brief definitions to help you understand more about the Scheme. For more information about investments and your investment choices, see the Scheme Investment guide. ADDITIONAL VOLUNTARY CONTRIBUTIONS Member contributions which are paid in addition to ordinary member contributions. The Company does not match these contributions. SMART Pension does not apply to Additional Voluntary Contributions. ANNUAL ALLOWANCE This is the limit on the amount of pension benefits you can build up and receive tax relief on each year. For the 2015/16 tax year, the maximum amount of pension contributions on which you can receive tax relief is 40,000. This includes payments to all pensions including the amount paid by you and the Company to the Scheme and any other pension contributions you pay outside of the Scheme. If your pension savings exceed the Annual Allowance in the relevant Pension Input Period (see below), you may be liable to pay an additional tax charge. ANNUAL SALARY Your yearly rate of salary, excluding shift allowances, overtime and any other fluctuating payments. If you are receiving benefits under your employer s Long Term Disability scheme or are on Maternity Leave, for the purposes of determining the Company s contributions, it means the notional Annual Salary as determined by your employer. If you are contributing to the Scheme through SMART Pension, this is the salary you receive before the SMART Pension adjustment. ANNUITY The name given to your pension, a series of payments, which may be subject to increases, purchased with the proceeds of your personal account from an insurance company (or financial institution) on your behalf by the Scheme Trustees, (or your independent financial advisor). Annuities cease to be payable after the death of a Member, unless a contingent spouse s annuity has been purchased. ANNUITY RATE The unit cost of a pension purchased from an insurance company or financial institution. Annuity Rates are linked to interest rates: the higher the current rate of interest, the lower the cost of the pension. Conversely, the lower the current rate of interest, the higher the cost of the pension. Annuity rates are also dependent upon gender and age. DEPENDANT Anyone who the Trustees agree is financially dependent on you at the time of your death. LIFESTYLE EVENTS FOR SMART PENSION This includes the following: 10% or more increase or decrease in salary change in working hours maternity/paternity/adoption leave marriage or divorce death of a dependant. If you need to discuss a lifestyle event in terms of the impact on SMART Pension, please contact the Pensions Department, details available on page 14. LIFETIME ALLOWANCE This is the amount of pension savings you can build up and receive tax relief on over your life time. This includes any personal pensions and pensions from other employers as well as your pension under the Scheme, but excludes State Pension. For the 2015/16 tax year, the Lifetime Allowance is set at 1.25 million. If the combined total of all your pension funds is higher than the Lifetime Allowance when you retire, you will have to pay an additional tax charge on the excess. At retirement, you will be able to take the value of benefit above the Lifetime Allowance as a lump sum payment and pay tax at your individual rate (55% if you are a higher-rate tax payer paying 40% for example) on that amount. Alternatively, you may be able to take the value of benefit above the Lifetime Allowance as a pension, in which case a charge of 25% tax will be deducted from the excess at retirement and your remaining pension will be subject to income tax (again at your individual rate). PENSIONABLE CHILD Any child (or children) of the member at the date of his/her death (including a legally adopted child or stepchild who is financially dependent on the member at the date of death) or any other children who the Trustees agree to treat as pensionable children. Benefits are usually paid up to age 18, and for a child in full-time education or training approved by the Trustees, may be paid up to age 23. However, in certain circumstances, benefits may be paid beyond age 23. PENSION INPUT PERIOD The Pension savings in the Pension Input Period will be included in an annual test against the Annual Allowance. This includes payments to all your pension savings, including the SMART Pension contributions and the contributions paid by the Company to the Scheme, any Additional Voluntary Contributions and any personal contributions you make outside of the Scheme to any other pension arrangement. If you complete a self-assessment tax form, you will be able to fill in the information needed to pay the relevant sum of tax, which will be incurred on the excess above the Annual Allowance and will be based on your marginal tax rate. Alternatively, if the amount of pension savings in the Pension Input Period in this Scheme alone exceeds 40,000 and the total tax surcharge (across all pension savings you made) is greater than 2,000 you can elect to pay it through the Scheme pays option. Under this option, you can direct the Trustees to pay the surcharge and to make a deduction for the same amount from your account. Please note, the Pension Input Period for the Scheme runs from 1 February to 31 January each year. Any contributions paid into the Scheme from 1 February to 31 January will be tested against the annual allowance of the appropriate tax year. Therefore, any: contributions paid in the year to 31 January 2015 are assessed against the Annual Allowance for the 2014/15 tax year. contributions paid in the year to 31 January 2016 are assessed against the Annual Allowance for the 2015/16 tax year. ACCOUNT This means your account in the Scheme which contains all of your contributions and the contributions made by the Company, along with any investment returns you have received.

16 April 2015