retirement planning the retirement you want Heineken UK Flexible Retirement Plan

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1 my retirement planning the retirement you want Heineken UK Flexible Retirement Plan

2 Contents Get an overview of the Heineken UK Flexible Retirement Plan What is the Flexible Retirement Plan? 4 Your benefits 6 Join automatically 7 Your other joining options 8 Consider what you want from your pension How much of my salary should I exchange? 10 Valuable Company contributions 12 SMART Pensions 13 Get an overview of the investment options Where should I invest my pension pot? 14 Get the answers to frequently asked questions Frequently asked questions 17 Take action Next steps 20 Laws and tax rules may change in the future. The information here is based on Standard Life s understanding in April Your personal circumstances also have an impact on tax treatment. The Company means HEINEKEN UK Limited and Scottish & Newcastle Limited. 2

3 Welcome to your pension Plan for the retirement you want with HEINEKEN s help. The Heineken UK Flexible Retirement Plan (the Plan) is a valuable and competitive pension arrangement that s flexible to your needs. The Flexible Retirement Plan is a Group Flexible Retirement Plan provides valuable benefits including: Valuable company contributions into your pension pot Exchange 3%, 4%, 5% or more of your pensionable salary towards your pension, and get double that amount as additional Company contributions (up to a maximum of 10%). Death In Service cover* 5 times your pensionable salary. Ill Health Income Protection* Provides up to 50% of your pensionable salary plus 15% pension contributions until your normal retirement age (or return to fitness). * Death In Service cover and Ill Health Income Protection are provided by the Company in conjunction with other providers. These benefits are not provided by Standard Life. Visit to read your joining pack and use the online retirement planner and risk questionnaire. You will receive login details giving you access to the secure part of the website where you can manage your Plan online. Please see the glossary at or in your joining pack for definitions of some terms you may not be familiar with. 3

4 What is the Flexible Retirement Plan? A summary of the main benefits and an overview of how it works. Valuable company contributions into your pension pot: exchange 3%, 4%, 5% or more of your pensionable salary towards your pension, and get double that amount as additional Company contributions (up to a maximum of 10%). Death In Service cover:* 5 times your pensionable salary. Ill Health Income Protection:** provides up to 50% of your pensionable salary plus 15% pension contributions, payable until your Normal Retirement Age (or return to fitness). If you are in any doubt about joining the Flexible Retirement Plan, you should seek financial advice. There may be a cost for this. * Death In Service cover and Ill Health Income Protection are provided by the Company in conjunction with other providers. These benefits are not provided by Standard Life. The Flexible Retirement Plan has been awarded the Pension Quality Mark Plus. This is awarded by the National Association of Pension Funds to defined contribution pension schemes which meet the highest standards in terms of: Contributions. Investments. Governance. Communications. The Plan received the PQM Plus award before it was even launched the first pension scheme ever to do so. 4

5 How the Flexible Retirement Plan works As a member of the Flexible Retirement Plan, you have your own individual pension pot. You exchange at least 3% of your pensionable salary towards your pension and the Company makes an additional pension contribution of double the amount of pensionable salary you exchange, up to a maximum of 10%. For most employees, contributions into the Flexible Retirement Plan will be made through SMART Pensions, the Company s salary exchange arrangement, which means that you could benefit from National Insurance savings and wouldn t have to reclaim tax from the taxman. For more details about SMART Pensions, see page 13. If you are joining automatically, you will be invested in the Balanced Lifestyle Profile see p8 for more information on your options and how to make your own investment decision. Contributions into your pension pot are invested in funds that you choose. When you come to retire, your funds are used to buy retirement benefits, including a pension. The value of your Plan will depend on the contributions made and the net investment return on your funds. Remember that investment returns can go down as well as up and there is a chance your fund may be worth less than was paid in. Laws and tax rules may change in the future. The information here is based on our understanding in April Your personal circumstances also have an impact on tax treatment. ANY INVESTMENT RETURNS PENSION INCOME TAX FREE LUMP SUM (optional) Based on size of your personal pot less any fund management changes The Company sets the contribution levels. 5

6 your Benefits What could the Plan mean for you? Valuable Company contributions towards your retirement As a member, you exchange a minimum of 3% of your pensionable salary towards your pension. You will then receive an additional pension contribution from the Company worth double the amount of pensionable salary you exchange, up to a maximum of 10%. Specially designed investment options A number of investment options have been specially designed by the Company in conjunction with its advisers and Standard Life. These investment options are overseen by the Company s Governance Committee, which is made up of employee and independent representatives, as well as Company representatives. If you re looking for more investment options, there s a wider range of competitively priced funds you can choose from. Find out more about your investment options on page 14. Death In Service cover As a member of the Flexible Retirement Plan, you will be eligible for Death In Service cover of five times your pensionable salary. This would be payable to your beneficiaries as a tax-free lump sum, subject to legislation at that time. This benefit is provided by the Company in association with another provider. If you do not join the Flexible Retirement Plan, one times your pensionable salary will be payable to your beneficiaries as a tax-free lump sum if you die whilst employed by the Company. Ill Health Income Protection As a member, if you suffer extended ill health whilst employed by the Company, you could receive up to 50% of your pensionable salary until either you return to fitness or reach Normal Retirement Age, whichever occurs first. In addition you could also benefit from contributions into your pension pot worth 15% of your pensionable salary. Payments are subject to medical approval and are in addition to any sick pay you are entitled to. This benefit is provided by the Company, in conjunction with another provider. It is only available if you join the Flexible Retirement Plan. Auto Enrolment The Company has new employer responsibilities to join employees into the Plan. You ll have the option to opt out, but you should think about what you d be missing out on. 6

7 Join automatically What could be easier than doing nothing? You don t have to do anything more to join the Flexible Retirement Plan you ll automatically become a member, unless you tell us otherwise. At any time during your first 50 days of employment, you can let us know if want to make changes to how you join, for example if you would prefer to join right away or if you do not want to join the Plan at that time. However, you should be aware that if you choose not to join the Plan, the Company may be required, under new legislation, to automatically enrol you at a later date. If this affects you, the Company will let you know and if you still don t want to join, you will have the option to opt out again. If you join by the automatic route: You start by exchanging 3% of your pensionable salary towards your pension through the payroll this goes straight into your pension pot on your behalf. In addition, the Company contributes double this amount a further 6% of your pensionable salary. The amount of salary you exchange will be increased automatically. Company contributions will also increase until they reach a maximum 10% of pensionable salary. The Company calls this contribution structure Step up to Max. See the illustration below. Step 1 Step 2* Step 3 onwards Your salary exchange Company contributes an additional 3% 6% 4% 8% 5% 10% * Contributions will increase automatically. However you must have been a member of the Plan for at least 12 months at the renewal date before Step 2 applies. You can change your contribution level annually, or sooner if you experience a significant lifestyle event such as having a baby or getting married. Your pot will be invested in the Balanced Lifestyle Profile. For more details, please see the booklet Choosing the right investment options for your pension at We ll assume that your preferred retirement age is 65. You can change this at any time. After you have been employed for 50 days, contributions into your pension pot will start from the next available payroll. You can choose to join earlier if you wish. For more details, visit Contributions will be made through SMART Pensions, the Company s salary exchange arrangement. See the SMART Pension booklet for more information. 7

8 Your other joining options If you prefer to be a little more hands-on... Automatic joining is designed to make things easier for you if you do nothing this is how you will join. However, if you prefer, you can make changes to how you join online at You can make these changes at any time until 50 days after you start employment with the Company. Choose your preferred contribution level You can choose the contribution level you want to apply by using the amendment form available at You exchange 3%, 4%, 5% or more of your pensionable salary towards your pension, and get double that amount as additional Company contributions (up to a maximum of 10%). See page 12 for more information. You will be able to change your contribution level annually or if you experience a significant lifestyle event such as having a baby or getting married. Choose your preferred investments Your individual pension pot belongs to you, and you can decide where it s invested. As a member of the Flexible Retirement Plan, you have a wide range of investment funds to choose from. For more about your investment options, go to and read the booklet Choosing the right investment options for your pension. Your investment options include the Balanced Lifestyle Profile which automatically changes the funds you are invested in, depending on the length of time until your selected retirement date. When you join the Flexible Retirement Plan, your contributions will be invested automatically in the Balanced Lifestyle Profile. Once you become a member of the Plan, you ll be able to access the secure area of the website and manage your investment choices. You can change your investment choices at any time, not just annually. Remember that investments can go down as well as up and may be worth less than was paid in. If you are unsure what to do, we recommend you seek advice before making investment decisions. There may be a cost for this. 8

9 Change your preferred retirement age Unless you tell us otherwise, we ll assume that your preferred retirement age is 65 this is for administrative purposes and you are not committed to retire at this age. You can change your preferred retirement age at any time online. Opt out of SMART Pensions Unless you tell us otherwise, contributions to your pension pot will be made through SMART Pensions, the Company s salary exchange arrangement. With SMART Pensions, instead of making pension contributions from your net pay, you exchange a percentage of your salary for pension contributions which the Company makes on your behalf. It means you pay tax and National Insurance Contributions on a reduced gross salary and your take-home pay is therefore higher. It s important to remember that SMART pension aren t right for everyone. It s a change to your terms of employment and could affect your state benefits or your ability to borrow. If this is the case for you, the Company may automatically opt you out of the SMART Pensions arrangement. For more details, read the SMART Pensions booklet at You can choose to opt out of SMART Pensions if you decide that it s not for you. To do this you need to complete the amendment form available at If you do not participate in SMART Pensions, you can still join the Flexible Retirement Plan by making contributions from your net pay. A minimum contribution level of 3% of pensionable salary will apply and you will get tax relief on your contributions. Please see the Key Features document for how tax relief works. Laws and tax rules may change in the future. The information here is based on our understanding in April Your personal circumstances also have an impact on tax treatment. Opt out of the Plan If, after reading all the information provided, you decide that the Flexible Retirement Plan is not for you, you can opt out any time during your first 50 days of employment with the Company. If you want to opt out, please call the Standard Life helpline on After the end of the 50 day period, you can opt out of the Plan annually, or sooner if you experience a significant lifestyle event such as having a baby or getting married. Under new legislation, the Company has employer responsibilities to join employees to the Plan. This means you may be re-enrolled at a later date. However, if this happens and you still don t want to take advantage of this benefit, you will have one month from the date Standard Life confirms your membership to opt out again. Please note that by opting out, your eligibility for other Company benefits will be affected. Specifically, you will not be eligible for Ill Health Income Protection and you will be eligible for Death In Service cover of just one times your pensionable salary. More importantly, you may not be saving enough to achieve the type of retirement you would like. This could mean that you have to pay more into your pension pot later, work past your preferred retirement age or even have to accept a smaller pension when you retire. 9

10 How much of my salary should I exchange? How do you see your standard of living in retirement? Thinking about this can help you decide how much to save into your pension pot. Here are some key points to bear in mind when you re looking ahead to your retirement: 1. Think about the standard of living you want in retirement How much pension will you need to achieve it? 2. Use the online Retirement planner Go to to estimate how much you might need to save for the type of retirement you want. You can access the online Retirement planner at any time. 10

11 3. Start early More will be added to your pension pot and the funds will be invested for longer. 4. Take advantage of the Company s contributions The more of your pensionable salary you exchange towards your pension, the more the Company will contribute towards your pension pot, up to a maximum of 10%. 11

12 Valuable Company contributions Make the most of valuable contributions from HEINEKEN As a member of the Flexible Retirement Plan, you need to exchange at least 3% of your pensionable salary towards your pension. The Company then makes a contribution to your pension pot which is double the amount of salary you have exchanged (up to a maximum of 10%). If you join by the automatic route you will start by exchanging 3% of your pensionable salary and the Company will contribute double this amount a further 6% of your pensionable salary to your pension. The Company calls this contribution structure Step up to Max. Step up to Max Step 1 Step 2 Step 3 onwards My salary exchange Company contributions 3% 6% 4% 8% 5% 10% Contributions will increase automatically. However you must have been a member of the Plan for at least 12 months at the renewal date before Step 2 applies. Set your own level Alternatively, you can set the contribution level you want to apply when you join. Exchange 3%, 4%, 5% or more of your pensionable salary towards your pension, and get double that amount as additional Company contributions. The contribution level you set will remain fixed until you change it. You can change it annually or sooner if you experience a significant lifestyle event like having a baby or getting married. My salary exchange Company contributions My salary exchange Company contributions My salary exchange Company contributions 3% 6% 4% 8% 5%+ 10% 12

13 SMART Pensions The Company s salary exchange arrangement. Participating in SMART Pensions Under SMART Pensions, the salary you exchange towards your pension will be converted into an additional employer contribution into your pension pot. Under current tax legislation SMART Pensions may be beneficial for most colleagues. It means they save on their tax and National Insurance Contributions and get higher take home pay as a result. SMART Pensions isn t right for everyone. It could affect your state benefits, other company benefits or your ability to borrow. If you re not sure whether SMART Pensions is right for you, you should speak to Heineken HR or ask an adviser for guidance. Laws and tax rules may change in the future. The information here is based on our understanding in April Your personal circumstances also have an impact on tax treatment. If you choose not to participate in SMART Pensions or, due to your salary level, you are not eligible to participate, you can still join the Flexible Retirement Plan. You can simply make employee contributions from your net pay and you will get tax relief on your contributions. Please see Key Features document for how tax relief works. For more information, please see the SMART Pensions booklet available at Keep track of your pension pot After you become a member of the Plan, you will receive login details giving you access to the secure area of the website to manage your Plan online. 13

14 Where should I invest my pension pot? Choosing a fund that is right for you. Your involvement Low OPTION 1: Lifestyle Profiles What s available? Choose from 3 options designed around lower, moderate and relatively high risk profiles. As you approach retirement, the investment aims of a Lifestyle Profile option are to move away from capital growth and towards preparing your pension fund for your retirement. This happens automatically. OPTION 2: Core Fund Range What s available? Choose from 12 blended funds, covering different combinations of equities, property, bonds and money market instruments. Why choose this option? You re not interested in making your own individual fund choices and you ve still got plenty of time until retirement. Why choose this option? You want to actively manage your investments, but would prefer to choose from a narrower selection of funds rather than the full fund range. The Lifestyle Profiles and Core Fund Range have been designed by the Company, in conjunction with their advisers and Standard Life. The performance will be monitored by the Governance Committee. Narrow Your choice 14

15 The Company, in conjunction with its advisers and Standard Life, has designed a range of options for you to choose from, including Lifestyle Profiles and a range of Core Funds. Standard Life s Full Fund Range and Self Investment options are also available, if you want to have a greater involvement in your investments. Remember, investment returns can go down as well as up, and could be worth less than was paid in. You can choose your investment option, but if you don t, your contributions will be invested in the Balanced Lifestyle Profile from the outset. Please see the booklet Choosing the right investment options for your pension for more information on all the fund options. OPTION 3: Full Fund Range What s available? Choose from over 300 investment funds, covering a wide range of equities, property, bonds and money market instruments. Your involvement High OPTION 4: Self Investment What s available? Actively manage your investments through a Group Self Invested Personal Pension (GSIPP). Why choose this option? You want to be actively involved in your investment choices and you speak to your financial adviser on a regular basis about all of your pensions and investments. You re prepared to put in the effort to research funds in detail to find what s right for you. Why choose this option? You re knowledgeable and experienced in financial investments and want an even greater choice over your investment funds and when you take your benefits. You are comfortable actively managing your investments and you speak to your financial adviser on a regular basis about all of your pensions and investments. Wide Your choice 15

16 Find out more about your investment options The separate booklet Choosing the right investment options for your pension is designed to help you make your investment decisions. It gives background information on investments and explains each of your investment options in more detail. For further information on the funds available and to use the risk questionnaire go to For more information on the risk questionnaire, please see the booklet Choosing the right investment options for your pension. If you re still not sure about your investment options, you can get help from the dedicated HEINEKEN helpline at Standard Life on Calls may be monitored and/ or recorded to protect both you and us and help with our training. Call charges will vary. The helpline can t give you financial advice. If you feel you need financial advice, you can get details of independent financial advisers in your area by visiting You are responsible for meeting their fees or other costs. Your preferred retirement age You can choose to retire at any age from 55 years (57 from 2028). You are not obliged to retire at your preferred retirement date it is used for administrative purposes. For example, if you invest in a Lifestyle Profile, your preferred retirement age will be used by Standard Life to move your investments into funds designed to prepare your pension pot for how you plan to take your retirement benefits/ income. You can change your preferred retirement age, but if you don t, for these purposes we will assume it to be 65 years. You can change your preferred retirement age at any time until 50 days after you start employment with the Company, using the amendment form. Alternatively, you can change it at any time online. 16

17 Frequently asked questions Answers to common queries. How flexible is it? You can change the amount of salary you exchange towards your pension at the annual Plan renewal date. You can also arrange for additional contributions to be made into your pension pot on a one-off basis. However, one-off contributions would normally be made from net pay rather than through the SMART Pensions arrangement, and any higher rate tax relief would need to be claimed through tax self assessment. Also, one-off contributions would not attract any further Company contributions. Please see your Key Features document for more information. How do I keep track of my plan? You can see how your pension pot and investments are doing through our secure website. After you become a member of the Plan you will receive your login details to: See what your pension pot is currently worth and what it may be worth in the future. Check on the contributions going into your pension pot. Check and change your investments, including free of charge switching for most funds. Update your preferred retirement age. You may even be able to transfer benefits from other companies or pension providers into the Flexible Retirement Plan, subject to a minimum transfer value of 1,000. You should always take financial advice before deciding to transfer between different pension plans as valuable benefits may be lost. 17

18 What charges are applied? Standard Life applies a charge to money invested in its funds, known as the fund management charge. It s shown as an annual charge, but Standard Life deducts it from each fund on a daily basis. Additional expenses may also be deducted from some funds. Standard Life aims to keep charges as low as possible and, in addition, the Company has negotiated special rebates to these charges on your behalf, effectively reducing them. For full details of the fund charges and rebates please see the booklet Choosing the right investment options for your pension at What if I leave the Company? Your pension pot in the Flexible Retirement Plan belongs to you. So if you decide to leave the Company, you have several options open to you: Keep your money in the Flexible Retirement Plan. Change your investments from the existing choices to other funds in the Standard Life range, but not into the specially designed HEINEKEN funds. Transfer your pension pot to a pension plan run by a new employer or to another personal plan of your choosing. If you leave the Company, the Company s contributions to your pension pot will end, including any remaining extra contributions that the Company would have paid over the first 3 years, but you ll still benefit from the rebates to your fund management charges. If you leave the Company, you should speak to Standard Life or a financial adviser for more information about your pension. There may be a cost for this advice. Make further contributions on a personal basis. 18

19 What happens when I retire? There are a range of ways for you to access your pension savings when you reach 55 (age 57 from 2028) - from fixed income (annuity) and flexible income (drawdown) options, to combinations of the two. You can also take a lump sum, with normally no tax to pay on the first 25% of your pension pot. When the time comes for you to consider retirement, Standard Life will write to you and explain your options in more detail, to help you find the right option for you. Your options at retirement will always depend on your personal circumstances. If you want to access some of the more flexible options, you may need to transfer to a different pension product first. Transferring will not be right for everyone. There are a number of points to consider, as you could be losing money by giving up any valuable benefits or guarantees that your current plan offers. You might also want to seek appropriate guidance or advice before you make any decisions. An adviser may charge a fee for this. In the meantime, here s a quick summary of what can be available. Flexible Income Flexible income, or drawdown, gives you the freedom to choose your own level of income and the flexibility to suit your personal needs. To access this you may need to move to a different pension product which offers this functionality. Different charges may apply. As with all investments, your capital is subject to risk, and the value can go down as well as up. Fixed Income Fixed income, or an annuity, is a guaranteed income for life. It s easy to set up and won t need any further attention from then on. You have to pay income tax on it, just as you would your salary. You should be aware that the decision to purchase a fixed income product should be carefully considered, as it normally can t be changed in the future. Take cash from your pension You still have the option to take cash lump sums. The first 25% is normally tax-free. If you take it all out as cash, you need to think about the tax you ll pay. What happens if I die before I retire? If you have another source of income or want to support others after you re gone then leaving your pension invested could be the right choice for you. You can ask us to pass on your remaining pot to anyone you choose, inheritance tax-free. If you die before age 75, this will normally be tax-free. If you die after age 75, this will normally be taxed as income. Please let us know who you would like to receive the value of your pension pot by completing the Nomination of Beneficiaries form available at: Standard Life - and all your other pension providers - will send you a quote when you re ten weeks away from retiring. 19

20 Next steps What do you need to do now? Read the joining pack Go to and click on the Important Information tab. This gives full details about how the Flexible Retirement Plan works, together with a Key Features document. Decide whether you want to join the Plan If you re happy to stay in the Flexible Retirement Plan you have the following options: Join automatically Become a member of the Plan automatically, with the contribution and investment arrangements as described on page 7. Don t forget to complete the Nomination of Beneficiaries forms for both the Plan and Death In Service Cover available at OR Make changes to suit your own requirements You can tell us about changes such as your contribution levels, retirement age, or if you want to join earlier at any time during your first 50 days of employment with the Company by going online at Don t forget to complete the Nomination of Beneficiaries forms for both the Plan and Death In Service Cover available at 20

21 If you do not want to join If after reading all the information provided, you decide that the Flexible Retirement Plan is not for you, you can opt out by contacting the Standard Life helpline on during your first 50 days of employment with the Company. After the end of the 50 day period, you can opt out of the Plan annually, or sooner if you experience a significant lifestyle event such as having a baby or getting married. Under new legislation, the Company has employer responsibilities to join employees to the Plan. This means you may be re-enrolled at a later date. However, if this happens and you still don t want to take advantage of this benefit, you will have one month from the date Standard Life confirms your membership to opt out again. Please note that by opting out you will not receive Company contributions towards your pension, you will not be eligible for Ill Health Income Protection and you will be eligible for reduced Death In Service cover. Don t forget to complete the Nomination of Beneficiaries form for Death In Service Cover available at 21

22 Need more information? On the web For more information about the Flexible Retirement Plan, visit the website at Once you receive your login details you will be able to log-on the secure part of the website to manage your Plan online. Dedicated helpline If you have specific questions about the Flexible Retirement Plan or how to join, call the dedicated HEINEKEN customer service team at Standard Life on Calls may be monitored and/or recorded. Call charges will vary. Financial advice If you re not sure what to do, you should seek financial advice. You can get details of independent financial advisers in your area by visiting You would be responsible for meeting their fees or other costs. Online tools A retirement planner and a risk questionnaire are available at to help you make decisions about your pension. Standard Life Assurance Limited is registered in Scotland (SC286833) at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority WSMEE1HEINJ Standard Life. Images reproduced under licence.