DB Personal Pension Plan

Deutsche Bank Human Resources DB Personal Pension Plan Handbook for employees of DB Group Services (UK) Limited

DB Personal Pension Plan Contents Introduction 4 What is the Group Personal Pension Flex? 5 How does a Personal Pension work? 5 Contributions 5 Tax relief 6 What are the allowances? 6 The DB Personal Pension Plan 9 Background 9 Eligibility and joining the Plan 9 Plan documentation 10 Contributions 10 How are contributions invested? 11 What happens at retirement? 11 What happens if you die before retirement? 12 What happens if you leave? 12 Transferring benefits from other pension arrangements 12 Group Income Protection 13 Stakeholder membership for your dependants 13 DB Personal Pension Plan Fund Range 13 Jargon Buster 19 Standard Life documents 24 Key Features 24 Terms & Conditions for joining 40 Key Features Illustration 42 3

Introduction Welcome to the DB Personal Pension Plan (the Plan ). In this Handbook we provide a step by step guide to the DB Personal Pension Plan, a Group Personal Pension Flex provided by Standard Life. The Handbook also contains important information from the Plan provider and administrator, Standard Life, concerning the terms and conditions of joining the Plan. Throughout this Handbook you may find some terms and expressions that are unfamiliar to you. So we have a handy Jargon Buster to help you get through the minefield! If you need additional information on the Plan, please contact Standard Life by phoning 0345 272 8813 (call charges will vary and calls may be recorded and monitored to help improve customer service) or visit www.dbpensions.com. Alternatively, you can e mail db_servicing@standardlife.com (please note that an e mail is not guaranteed to be delivered). Please note that where statements are made in this document relating to legislative or tax issues, those statements are based on Standard Life s understanding of these issues at the date of this document. These statements are subject to changes in legislation or its interpretation. The value to investors of tax relief depends on their financial circumstances. If, after reading this Handbook and the other information provided to you, you are uncertain about whether the DB Personal Pension Plan is appropriate for you, or if you have any queries on the level of contributions you should be making or on which investment option(s) to invest in, you should seek professional financial advice. If you do not already have an adviser the following organisation can help: Important note Please read the Important Warning Notice and Risk Warning Note on the www.dbpensions.com website, which applies as if set out in full in this document and any accompanying documents and as if this document and any accompanying documents were documents linked to that website. IFA Promotions for a list of advisers local to your area visit www.unbiased.co.uk. They should be able to advise on any implications of joining the Plan. 4

What is the Group Personal Pension Flex? The Group Personal Pension Flex is a personal pension arrangement from Standard Life which provides, as at the date of this document, a tax efficient means of saving for your retirement. Here we outline some of the basic Personal Pension concepts. Later in this Handbook we provide more specific details of the DB Personal Pension Plan. How does a Personal Pension work? A Personal Pension is a defined contribution arrangement. Contributions are paid into an account which is personally allocated to you. The benefits you receive on retirement will depend upon: the amount of contributions paid in; the investment performance of your personal account; the effect of charges; and the terms for buying an income at retirement. The more you pay in, the longer you contribute for and the better your investment performs, the bigger your final pot could be when you come to retire. These are important considerations when you are thinking about how much to save and where to invest. Later in this guide we will take you through the current contribution structure of the Plan, which may be changed in the future, and explain the charges and investment options available. Contributions There is no limit to the amount of contributions an employer can pay to a UK employee s pension plan but the payment of employer contributions (or other pension savings) may result in a tax charge if the individual s overall pension savings, including from his employer, for a specified period exceed the Annual Allowance (see page 6). UK employees can pay contributions of up to 3,600 a year (including basic rate tax relief) regardless of their earnings, or up to 100% of their Relevant UK Earnings (see opposite) for that year (including basic rate tax relief) and receive tax relief, but if the individual s overall pension savings, including from his or her employer, for a tax year exceed the Annual Allowance (see page 6), the resulting tax charge may limit or eliminate the tax efficiency of those contributions. Both employer and employee contributions to all registered pension plans made for each tax year are subject to the Annual Allowance limit (see page 6). Any accrual in defined benefit or final salary registered pension plans is also subject to the Annual Allowance limit. The current Annual Allowance is 40,000 for the tax year 2015/2016. A 10,000 Money Purchase Annual Allowance may also apply instead, see page 7. The tax treatment of pension benefits bought with or paid from your Plan account may be affected by the Lifetime Allowance (see page 6), which might therefore affect the amount of additional contributions you wish to make or request to be made in respect of you. The current Lifetime Allowance is 1.25 million for the tax year 2015/2016 (this will reduce to 1 million from 6 April 2016). Relevant UK Earnings means: If you are employed, the income you receive from your employer in a tax year (including any bonuses, commission or benefits in kind that you receive); or If you are self employed the income you receive in a tax year from carrying out your trade, profession or vocation, or from patent rights. This income must be taxable in the UK. Note: This definition is NOT the same as relevant income that used to apply for Special Annual Allowance purposes. Services provided by Standard Life The services to be provided by Standard Life under the DB Personal Pension Plan are those outlined in this Handbook (or in documents referred to in this Handbook) as provided by Standard Life. After you join the scheme Standard Life will send you your policy documents. 5

Tax relief Contributions paid by members outside of the Company s Flexible Benefits Plan, My Flex, attract tax relief. The rate of relief is currently 20% for basic rate and non tax payers. This means that, if a member pays a contribution of 80, the pension provider will add an extra 20, subject to being able to claim this back from HM Revenue & Customs, and apply that amount to the member s account. For higher rate and additional rate taxpayers further tax relief is given at 40% for higher rate taxpayers or 45% for additional rate taxpayers, although only 20% will be reclaimed by the pension provider the member would need to reclaim the additional relief through their annual tax return. Currently, additional contributions made via My Flex will effectively receive full tax relief at source, so the individual does not need to claim any tax relief through their annual tax return. However, the effective tax relief individuals receive may be limited by the Annual Allowance and/or the Lifetime Allowance (see further What are the allowances? below). The investments held in a Personal Pension arrangement are free of UK income tax and UK capital gains tax, however, no tax credit can be reclaimed on UK equity dividends. What are the allowances? There are two allowances that apply to everyone: one for the pension benefits you build up over your whole working life (the Lifetime Allowance) and one for the amount that can be paid in each year (the Annual Allowance). Lifetime Allowance This is the overall allowance for all your tax efficient pension benefits built up over your working life. For the tax year 2015/2016 the Lifetime Allowance is 1.25 million (this will reduce to 1 million from 6 April 2016). Under current law, at retirement broadly up to 25% of the total fund value (capped at the Lifetime Allowance) can be taken as a tax free lump sum. The remainder must be used to provide an income. This income will be subject to UK income tax. However, you can build up benefits above the Lifetime Allowance.You can take this excess above the Lifetime Allowance as a lump sum or a pension, but you will have to pay a heavy tax penalty on it (currently an effective rate of 55%, if taken as a lump sum, or 25% in respect of any amount retained to pay pension benefits which would also be taxable as pension income). The Lifetime Allowance applies to any pension benefits you have built up in tax approved schemes at other employers or in other tax approved personal or Stakeholder pension schemes or plans, as well as your Deutsche Bank pension benefits. The only pension benefits that do not count towards the allowance are those paid to you by the State, or by any overseas pension. To see if you are close to the Lifetime Allowance, add together: The total value of your account in the DB Personal Pension Plan; The value of any retained benefits (this is the term for any pension benefits you have built up in any other tax approved pension arrangements). The Lifetime Allowance was originally set at 1.5 million but if you were close to or were over the Lifetime Allowance, you may have been able to claim either Enhanced Protection or Primary Protection prior to 6 April 2009, Fixed Protection 2012 prior to 6 April 2012 or Fixed Protection 2014 prior to 6 April 2014. A new form of protection called Individual Protection for pension benefit above 1.25 million will be available up to 5 April 2017. For more information you should speak to a financial adviser. The Government is proposing more transitional protections to cover the further reduction to 1 million. Annual Allowance This allowance applies to the amount that can be paid in each year. The Annual Allowance for the tax year 2015/2016 is 40,000. You may have to pay a tax charge to the extent that the amount of tax efficient pension benefits you build up for a tax year exceed this limit: see following sections. If your pension savings for one tax year are less than the limit, you may be able to carry forward the unused allowance. Pension Input Period and Exceeding Annual Allowance Tax Charge When comparing the amount paid in over the year to the Annual Allowance in the relevant tax year, the period over which the pension benefits have built up being used for the comparison is known as the Pension Input Period. Special rules dictate how the amount paid in during the Pension Input Period is measured and that amount is the Pension Input Amount. It is the calculated Pension Input Amount that is compared to the Annual Allowance that applied for the tax year in which the Pension Input Period ends. 6

If your Pension Input Amount exceeds the Annual Allowance for that tax year, then you may have to pay a tax charge known as the Annual Allowance Charge. The rate depends on your marginal rate of income tax but the excess over the Annual Allowance may be taxable at more than one rate if it causes you to exceed a particular tax band. Note that this differs from the fixed 40% Annual Allowance tax charge that applied in previous tax years. The Plan administrator, having consulted with the Company, has elected and elects for the Pension Input Period in respect of you to end on 5 April in the year in which you join the Plan and on 5 April each year thereafter, for every arrangement you may have under the Plan. This falls in line with the end of the UK tax year. For tax year 2015/2016 only, as a result of the Summer Budget on 8 July 2015, all Pension Input Periods were closed on 8 July and a new one opened on 9 July. This means that there are 2 Pension Input Periods in the one tax year - the first runs from 6/4/2015-8/07/2015 and the second runs from 9/7/2015 to 5/4/2016. For tax relief purposes, note that contributions made by an employee cannot exceed 100% of Relevant UK Earnings (or 3,600 if higher), even if this is lower than the Annual Allowance of 40,000. Note that contributions via MyFlex are employer contributions as a result of a salary sacrifice arrangement and so not limited in this way. However, both employee and employer contributions count as Pension Input Amounts for the purpose of the Annual Allowance. The 10,000 Money Purchase Annual Allowance If you flexibly access any Money Purchase Benefits you have built up in any UK tax advantaged pension scheme, then the 10,000 Money Purchase Annual Allowance will apply to you. Flexible access includes taking income from flexible drawdown or withdrawing lump sums (where 25% is usually tax free) (see page 12) and is usually only available once you reach age 55. Money Purchase Benefits for these purposes include both defined contribution arrangements such as those under the Plan, and also a special type of benefit known as Cash Balance. If you were to trigger the 10,000 Money Purchase Annual Allowance, it would apply from then on in all tax years, in tandem with the overall 40,000 Annual Allowance. So, if contributions to fund Money Purchase Benefits for you amounted to more than 10,000 for Pension Input Periods ending in a tax year, the Annual Allowance Charge would apply (see above), but you would still have a 30,000 Annual Allowance for any defined benefit or final salary accrual. However, if contributions to fund Money Purchase Benefits for you were less than 10,000 for Pension Input Periods ending in a tax year, these would be added to any defined benefit pension accrual and the total would be tested against the 40,000 Annual Allowance. An Annual Allowance charge would only apply if the 40,000 Annual Allowance was exceeded. Other points to be aware of are: Any unused Annual Allowance from the previous 3 tax years can be carried forward to let you pay more in the current tax year. See What are the carry forward rules opposite for more information. There are exemptions from the Annual Allowance test on death or severe ill health, with the severe ill health test being a difficult test to meet. There is no longer any exception for the year in which you retire and start all your benefits. Valuing defined benefit or final salary accrual for the annual allowance is a complex area. If you have any final salary benefits, you should seek advice from the administrator for the relevant registered pension plans for information as to the new rules for calculating your Pension Input Amount. What are the carry forward rules? In some circumstances, any unused Annual Allowance or deemed unused Annual Allowance from the previous 3 years can be carried forward to the current year. If, in any of the Pension Input Periods ending in the previous 3 tax years, you have a Pension Input Amount or deemed Pension Input Amount of less than 40,000, (or 40,000 where relevant) then you may have unused allowances that you can use in the current or future tax years. You must have been a member of a UK registered pension plan in the earlier year in order to be able to get carry forward from that tax year (even if you made no pension contributions or had no pension contributions made on your behalf and had no pension accrual for that tax year). For the purposes of calculating if any carry forward is available for the 3 tax years preceding the 2015/16 tax year, the Annual Allowance was set at 40,000 (2014/2015) and 50,000 (2012/2013 and 2013/2014) and the Pension Input Amounts are recalculated as if the rules that apply from 6 April 2011 had applied at the time. If you made, or had made on your behalf, only money purchase contributions, then the question is whether those contributions for a particular tax year exceeded the relevant tax amount. Here s how it works if you want to pay in or have more than 40,000 paid in, on your behalf, to the Plan in the 2014/2015 tax year: Step 1 You must pay in (or have paid in on your behalf, including tax relief reclaimed from HMRC) at least 40,000 in 2015/16. Step 2 Go back to the 2012/2013 tax year and check to see what your Pension Input Amount for the Pension Input Period ending in that tax year would have been. If it would have been lower than 50,000 you have an unused allowance you can carry forward and use in the 2015/2016 tax year. Step 3 Do the same for the 2013/2014 tax year. Step 4 Do the same for the 2014/2015 tax year. 7

Remember you must have been a member of a UK registered pension plan in the earlier year in order to be able to get carry-forward from that tax year (even if you made no pension contributions or had no pension contributions made on your behalf and had no pension accrual for that tax year). Please bear this in mind when reading the example on page 8.The table in the example below assumes that you only had money purchase contributions or had money purchase contributions made on your behalf. Example: Carry forward of unused Annual Allowance (tax year 2015/2016), where the Annual Allowance has not been exceeded in the preceeding three years. Tax year Total money purchase contributions 2012/13 35,000 15,000 2013/14 20,000 30,000 2014/15 15,000 25,000 Carry forward total 70,000 How much you can carry forward Purpose of this information This information is based on our understanding of UK tax law and HMRC practice at December 2015 and outlines the position in very general terms. It should not be relied on as the basis for making any decision as to contributions or completing your tax return. In addition, in relation to the Annual Allowance and Lifetime Allowance, it is based on our understanding of current legislation and on the HMRC guidance, which may change in the future. If you are unsure of your tax position, you should consult an independent financial adviser or tax specialist. If you are subject to tax in other non UK jurisdictions (for example if you are a US citizen or US green card holder), different rules may apply to you and you should seek independent advice. Carry forward total 70,000 2015/16 Annual allowance 40,000 2015/16 Total allowance 110,000 Remember that MyFlex contributions and certain other contributions are employer contributions but to the extent that you make employee contributions as well, remember that these cannot exceed 100% of earnings (or 3,600 if higher) or they would not receive tax relief. If you think that carry forward is something you want to consider using, you should speak to your financial adviser as this is a complex area and neither the Company nor Standard Life can advise you. 8

The DB Personal Pension Plan Background The Company has appointed Standard Life Assurance Limited (Standard Life) as the provider and administrator for the DB Personal Pension Plan ( the Plan ) with effect from 15 February 2007. It is a contract based pension arrangement, which means that members contract directly with Standard Life. Please note that the Company reserves the right to amend or to discontinue the Plan, including stopping or reducing Company contributions, at any time. However, in such circumstances existing members would be able to retain their pension account with Standard Life if they wish. Eligibility and joining the Plan You will normally be automatically enrolled into the Plan, and entitled to benefit from Company contributions to it, if you are a UK employee aged under 25, and not accruing benefits in another Company pension arrangement. You should also be resident in the UK for UK tax purposes at the time you join the Plan. However: your eligibility to join the Plan, or to opt in, your entitlement to benefit from Company contributions to it, the date on which you will be automatically enrolled, and the date on which Company contributions commence are as separately notified to you by the Company. The Company reserves the right to amend or discontinue the Plan, including stopping or reducing contributions. You ll have one month from the date Standard Life confirm your membership to decide whether you want to stay in the Plan or opt out. If you correctly exercise this right within that one month (this cannot be extended) any regular contributions made will be returned in full. You can opt out online, or by calling Standard Life. You should think carefully about this, as opting out would mean missing out on extra payments from Deutsche Bank, and tax benefits from the Government. As a member of the Plan, Standard Life will be provided with certain personal information about you such as your name, salary and National Insurance number. HM Revenue & Customs require a permanent National Insurance number for every member of the Plan or else you must supply a reason acceptable to Standard Life why you cannot provide one. You must provide Standard Life with a valid National Insurance number or a valid reason why you are not entitled to one within 60 days of joining the Plan. From pages 24 to 48 of this guide you will find the following information from Standard Life which you are recommended to read carefully: Key Features; Terms and conditions for joining; Standard Life s Terms of Business; and Key Features Illustration (please see the Important Note below). Important note The figures in the 6 th column in the Key Features Illustrations are adjusted for the effect of inflation. The amounts shown in the illustration tables are shown as the nominal pound amount on your 65 th birthday. They cannot be compared with the same nominal pound amounts in 2012. To put this in context, if the inflation rate was exactly the same as the assumed investment growth rate in the table, your final fund value at age 65 would be equal to the contributions made, ignoring investment growth, in terms of its purchasing power i.e. inflation will reduce the purchasing power of your final fund value at retirement and the pension resulting from it. Please bear this in mind when reading the Key Features Illustrations. 9

Plan documentation After you have joined, Standard Life will send you the following: A Plan Document A Confirmation Schedule; A declaration signed on behalf of Standard Life; Terms and Conditions; and Opt-out letter after joining the plan, you will have the right to opt out within one month. Contributions Contributions to the DB Personal Pension Plan can come from both you and the Company. It is your responsibility to ensure that you are making sufficient contributions to fund your retirement. This is important both when you join the Plan and on an ongoing basis. If you are in any doubt as to what would be a suitable level of contributions you should speak to an adviser. Company contributions Contributions by the Company are currently based on a percentage of your qualifying earnings, which is defined as your total cash earnings above 5,824 and up to 42,385 per year (for the 2015/16 tax year). If you are eligible to join the Plan and to benefit from Company contributions, the amount that the Company will contribute is 2%, calculated as a percentage of your qualifying earnings. Note that this is the current contribution rate, which has been set by the Company and is subject to the right reserved by the Company to amend or discontinue the Plan, including stopping or reducing contributions. Additional Contributions You may select for Additional Contributions to be made via My Flex. You may only select this option when joining the Company, on the annual renewal of My Flex, or if you experience certain Life Events under My Flex. Please note the deadline for making elections set out in the communication from the My Flex administrators. Additional Contributions are treated as employer contributions, not personal contributions. This means that, subject to the Annual Allowance limit (see page 6) you effectively receive immediate full income tax relief and they are not currently subject to the deduction of National Insurance contributions. Please refer to the My Flex website (www.myflex.co.uk) for further important information. If you are unsure of your tax position, you should consult an independent financial adviser or tax specialist. Payment of contributions Company contributions (including Additional Contributions) are paid into the Plan monthly. Company contributions normally become payable from the first of the month following the date when you first satisfy the eligibility requirements (or have requested to join the Plan if you had previously opted out). If you wish to pay a single personal contribution, a cheque (made payable to Standard Life Assurance Limited) for the NET amount (i.e. the amount you wish to pay less basic rate tax, 20% from April 2008) should be sent to: Standard Life Employer & Intermediary Services Edinburgh EH15 1ET All Company contributions will stop at the earliest of: the date you leave the Company; the date your membership of the Plan ceases; the date you die; the date you retire*; and the date the Company decides to stop contributions. * The date you retire means the date at which you take some or all of your retirement benefits. Even if you are still in employment with the Company when you do this, you will be treated as having retired. However, where the Company is required to do so by legislation, it will comply with its duty to make arrangements for you to become an active member of an automatic enrolment scheme (or a qualifying scheme) with effect from the time required by legislation. 10

Working abroad If you select for Additional Contributions to be made via My Flex and subsequently work overseas, the Company will cease to collect these Additional Contributions whilst you are on expatriate assignment. Should you wish to continue making personal contributions whilst on expatriate assignment, you should contact Standard Life directly for further details. Currently, on your return to the UK you will have the option to recommence paying Additional Contributions via My Flex. Temporary leave The Company will, subject to its reserved right to stop or reduce contributions, continue paying contributions, in respect of employees eligible to receive Company contributions, during a period of temporary leave at the same level that would have been paid prior to going on leave, while your membership of the Plan continues. How are contributions invested? Please see pages 14 to 18. If you wish, you can split your contributions across a selection of the available funds by nominating a specific percentage to be allocated to each required fund on your Investment Option form or on line at www.dbpensions.com (so that the total adds up to 100%). However, the percentage for each fund you wish to invest in must be at least 5%. Note that if you are investing in the Standard Life Balanced Managed II Lifestyle profile, you cannot invest in any other lifestyle profiles or funds at the same time. You can change the mix of your investments as it suits you. But you can t invest in more than 12 funds at one time. In some situations there may be a delay in carrying out your fund switch requests. What happens at retirement? Following retirement the full value of your accumulated Plan account is used to provide benefits. The Normal Retirement Age is 65 (rising to 67 depending on your date of birth), but you can choose to take your benefits at any time from the age of 55. Generally, the earlier you take your retirement benefits the smaller your annual pension income will be. If you elect to take some or all of your retirement benefits whilst still in employment with the Company, you will be treated as having retired and Company contributions will stop. However, where the Company is required to do so by legislation, it will comply with its duty to make arrangements for you to become an active member of an automatic enrolment scheme (or qualifying scheme) with effect from the time required by legislation. If you continue employment with the Company beyond the Normal Retirement Age and have not started any of your pension benefits from the Company, then Company contributions will continue until your employment with the Company ends (subject to the Company s reserved right to stop or reduce them). There are a range of ways for you to access your pension savings when you reach 55 (expected to be age 57 from 2028). From fixed income (annuity) and flexible income (drawdown) options, to combinations of the two. You can take a lump sum whenever you like, 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. Default investment option The Company has nominated a default fund this is where your contributions will be allocated if you do not specify the allocation of contributions to any particular fund or funds. See page 17 for more details. Switching funds If after you have joined the Plan you decide you want to change your investment allocation, you can do so on line at www.dbpensions.com. See page 18 for more details. 11

Your options at retirement will always depend on your personal circumstances. If you want to access some of the more flexible options, you will need to move to a different pension product first. You might also want to seek appropriate guidance or advice before you make any decisions. Free impartial advice is available from the government at Pension Wise www.pensionwise.gov.uk An adviser may charge a fee for advice. In the meantime, here s a quick summary of how it works. 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 will 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 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 Withdraw lump sums from your pension whenever you like. 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. To access this you will need to move to a different pension product. What happens if you die before retirement? If you die before taking the benefits from your Plan account, the value of your Plan account may be used to provide either: a lump sum death benefit; or provide an income to your beneficiaries. If you die before age 75, this will normally be tax-free If you die at or after age 75, this will normally be taxed as income (if paid as a pension) or at 45% if paid as a lump sum. The rate of tax for lump sums will move to income tax rates from 2016/2017. In addition, if you are a member of the DB (UK) Pension Scheme you will, subject to the terms and conditions of those arrangements, be covered for death benefits under those arrangements. If not, you will, subject to the terms and conditions of that arrangement, be covered for death benefits under a separate arrangement under My Flex. What happens if you leave? If you leave the service of the Company, contributions will stop. You will then have two options: You can leave your account invested in the Standard Life Group Personal Pension Flex (if it is discontinued for any reason, an alternative plan will be made available to you). Its value will continue to reflect the value of the units of the fund(s) in which it is invested. You can also continue to make your own personal contributions to the Plan account (you should bear in mind the allowances described on pages 6 & 7); or You can choose to transfer the full value of your Plan account (without charge but net of realisation costs) to your new employer s Pension Scheme (subject to the approval of the Pension Scheme s trustees) or to a Stakeholder or to another Personal Pension Plan. This may include a transfer to an overseas pension Scheme which has qualifying status (i.e. Qualifying Recognised Overseas Pension Scheme) with HM Revenue and Customs where certain conditions are met. Please note that there is immediate vesting of contributions made to this Plan, i.e. there is no requirement to complete a minimum service period. Please also read What if I leave my current employer? on page 36, which contains information about charges when you leave the service of the Company. Transferring benefits from other pension arrangements If you have any other pension benefits you may choose to transfer them into your Plan account. This could be from an Occupational Pension Scheme or from a Stakeholder or Personal Pension Plan. There is currently no additional charge for transferring benefits into the Plan. However, your previous pension scheme may make a charge for transferring. If you are interested in transferring you should seek financial advice to assess whether or not it is in your best interests to do so. If you wish, you can indicate who you would like to receive the value of your Plan account by completing the Instruction for payment of death benefits form at www.dbpensions.com (this is a request rather than a nomination and the plan provider is not bound to follow your instructions). 12

Important note Before transferring the benefits preserved in an existing final salary UK Occupational Pension Scheme into the DB Personal Pension Plan you should take advice. You will need to take advice if you are thinking about transferring a pension worth more than 30,000 if it offers any form of preserved benefits such as an income guarantee from a final salary pension. This is to ensure that you understand how much money you could lose. Please check if this will apply to any pension you are thinking of transferring. If you submit an application to transfer preserved benefits into the DB Personal Pension Plan, your application should also be supported by a copy of the reason why letter provided to you by your adviser. Group Income Protection The Company provides a separate Group Income Protection ( GIP ) arrangement which covers you in the event that illness or disability means that you cannot carry on working. Details of the GIP cover are given in the Employee Handbook. The Company has reserved the right to amend or discontinue the GIP arrangement at any time and the terms and conditions are governed by the documentation relating to the arrangement. The GIP arrangement is not provided by Standard Life. Stakeholder membership for your dependants Your spouse, children or other financial dependants (including civil partners) may join the Standard Life Stakeholder Pension Plan for dependants of employees of Deutsche Bank, if you are a permanent employee of the Company. Your dependants will be subject to the limits on personal contributions (100% of their Relevant UK Earnings or 3,600, if higher) and the overall allowances outlined in this Handbook (the Annual Allowance and the Lifetime Allowance see pages 6 & 7) and would not be eligible for Company contributions. If you are interested in this option please phone Standard Life on 0345 272 8813 for more information. Call charges will vary and calls may be recorded and monitored to help improve customer service. DB Personal Pension Plan fund range How your contributions are invested can make a big difference to the amount of money you will have when you retire. The DB Personal Pension Plan currently offers a wide range of investment funds to help you to achieve a balance between the amount of risk you are willing to take and the potential rewards you want to achieve. www.dbpensions.com. This investment choice includes all of the funds which were available under the DB Stakeholder Pension Plan as at April 2007, the date the DB Personal Pension Plan became available. Details of the charges can also be found in this document. Please note however that enhanced terms have been negotiated in respect of you by the Company which means that your fund will receive a rebate on the charges shown of currently 0.70%. This is achieved by adding extra units to your fund each month. If you leave the Company the rebate of 0.70% on all funds will remain in place. Over the long term, your effective charge will tend towards the annual charge, less the rebate you receive. However, the effective charge will fluctuate because it is dependent on the period over which it has been measured and any activity in your fund like transfers, contribution variations or daily movements in the fund value. (For more information on how charges are applied, please see page 35). The charges are not guaranteed and may be changed in the future. The Company has nominated a default option (the Standard Life Balanced Managed II Lifestyle profile) this is where your contributions will be allocated if you do not specify the allocation of contributions to any particular fund or funds. Lifestyle profiles are an option that automatically change the funds you are invested in depending on the length of time until your selected retirement date. As you get closer to retirement, they move the emphasis away from growth to preparing your pension fund for your pension benefits at your selected retirement date. The selection of a default investment option for the DB Personal Pension Plan by the Company should not be taken as an indication of the investment potential of the default investment option or that it is a suitable investment option for you. It has been selected simply as an option to be used should you fail to pick your own investment option or options. The value of benefits under the default investment option or under any other investment option may go down as well as up. The Company takes no responsibility for the investment return on the default option or any other investment option and you are advised to seek independent financial advice as to the most suitable investment option or options for you. Please remember that statements about future investment performance or future events, or the aims or objectives of or protections offered by particular investment choices, are not guarantees that any such performance, aim, objective or protection will be achieved. The funds available to you under the DB Personal Pension Plan are listed in the Your pension investment choices leaflet which is available on your pension website 13

Standard Life Balanced Managed II Lifestyle profile As you can see from the graph below, the lifestyle profile is an investment option which gradually moves your investment from the Standard Life Managed Pension Fund through the Standard Life Multi Asset Managed (20 60% Shares) Pension Fund, and into a combination of the Standard Life Annuity Purchase Fund and Standard Life Deposit and Treasury Pension Fund as you near retirement. The benefit is that these switches will be made automatically but the mix of funds at retirement may not be appropriate for your circumstances. The timing of switches within this strategy depends on your retirement date. This will be age 65 unless you contact Standard Life to advise otherwise. You should be aware if you have a retirement date of 65, automatic switches start after you reach age 56. % of investments 100 100 100 20 40 60 10 30 40 10 20 25 80 50 80 80 70 70 60 60 60 75 40 40 40 20 0 10 10 >10 9 8 7 6 5 4 3 2 1 3 Years Years from Retirement Months Standard Life Managed Pension Fund (Code FA) Standard Life Multi Asset Managed (20 60% Shares) Pension Fund (Code F8) Standard Life Annuity Purchase Fund (Code F9) Standard Life Deposit and Treasury Pension Fund (Code G4) The diagram above gives an indication of the switching process. The exact switching process is determined by Standard Life, and contributions are invested in accordance with their switching specification for the Standard Life Balanced Managed II Lifestyle profile. Before making this choice you need to consider the following. Lifestyle profiles may not be suitable for everyone (e.g. they may not be suitable for customers who aren t considering annuity purchase, or those who intend to buy a pension that varies each year at a rate linked to inflation, or those who do not intend to retire at their selected retirement age). You should seek financial advice before making any investment decision. If you choose to invest in a lifestyle profile, you cannot combine this with any other fund or with any other lifestyle profile. 14

The funds in the lifestyle profile are as follows. The special terms (as outlined on page 13) also apply to the funds within the lifestyle profile. Fund Standard Life Managed Pension Fund (Code FA) Standard Life Multi Asset Managed (20 60% Shares) Pension Fund (Code F8) Standard Life Annuity Purchase Fund (Code F9) Standard Life Deposit and Treasury Pension Fund (Code G4) Annual Management Charge 1.00% plus 0.02% Additional Expenses (0.70% /12 monthly rebate) 1.00% plus 0.02% Additional Expenses (0.70% /12 monthly rebate) 1.00% plus 0.01% Additional Expenses (0.70% /12 monthly rebate) 1.00% plus 0.01% Additional Expenses (0.70% /12 monthly rebate) Brief Outline The fund aims to provide long term growth whilst investing in a diversified portfolio of assets (including equities, bonds, property, cash deposits and money market instruments) in order to reduce the risk associated with being solely invested in any one asset class. These assets can be from both the UK and overseas. The fund is predominantly equity based and is actively managed by Standard Life s investment team, who will vary the proportions held in each asset class to try to take advantage of opportunities they have identified. The fund aims to provide long term growth whilst investing in a diversified portfolio of assets (including equities, bonds, property, cash deposits and money market instruments) in order to reduce the risk associated with being solely invested in any one asset class. These assets can be from both the UK and overseas. It aims to be less volatile than the Standard Life Managed Pension Fund, investing a higher proportion in assets that are traditionally less volatile (such as bonds). The fund is actively managed by Standard Life s investment team, who will vary the proportions held in each asset class to try to take advantage of opportunities they have identified. This fund has a very different aim from most other investment linked funds. It is designed for investors approaching retirement and considering purchasing a fixed annuity. It aims to reduce the effect of changes in long term interest rates on the value of annuity that can be purchased. Long term interest rates are one of the main factors affecting the cost of an annuity. The fund invests predominantly in bonds whose prices are normally expected to rise and fall broadly in line with long term interest rates, which in turn are one of the major factors affecting the cost of purchasing an annuity. The fund does not provide any guarantee in relation to the level of annuity you will be able to purchase at retirement. It also does not protect against changes in the cost of purchasing an annuity that arise due to changes in life expectancy. Please note that this fund may not be suitable for everyone and there may be more suitable alternative funds for those who intend to buy an annuity that increases each year at a rate linked with inflation. The primary aim of the fund is to maintain capital and provide returns before charges in line with short term money market rates by investing in deposits and short term money market instruments. The fund price is not guaranteed by Standard Life and there could be circumstances where the fund price may fall. A fall might happen if, for example, there is a default by one of the banks where some of the money is held or where there is an adverse market movement in the value of some of the money market instruments held. A fall may also happen if fund income falls so low as to be less than the charges applied to the fund. Important note 1: Please refer to the Your pension investment choices leaflet (GPEN4DB) for more information on the risk classifications and asset classes for these funds. You can download a copy from your pension website www.dbpensions.com Important note 2: If you leave the Company the 0.70%/12 refunded will remain in place. The charges and rebates are not guaranteed. They are regularly reviewed and may be changed in the future. Please note Annual Management Charge is also referred to as Fund Management Charge in some places in the Handbook. 15

Notes: 1. Before buying a product, you need to be aware of the risks and commitment involved. Details are available in the Key Features Document in the Standard Life documents section. 2. The return on each fund depends on the performance of the assets in which they invest and the charges on the fund. The asset mix that each fund invests in is continuously reviewed. It may be changed in line with developments in the relevant markets. Part of each fund may be held in cash and other money market instruments. The achievement of performance targets and investment objectives is not guaranteed. Some fund managers may look to get a better return by lending some of the assets from their funds to certain financial institutions. This involves some risk, and in certain circumstances, the fund could suffer a loss for example, if the institution encountered financial difficulties and was unable to return the asset. The fund manager will use some controls to manage this risk, such as obtaining security from the borrower and monitoring the borrower s credit rating. External fund managers may also lend assets and are responsible for their own controls. Funds can sometimes use derivatives to improve portfolio management and to help meet investment objectives. A derivative is a financial instrument its value is derived from the underlying value or movement in other assets, financial commodities or instruments, such as equities, bonds, interest rates etc. There is a risk that a counterparty will fail, or partially fail, to meet their contractual obligations under the arrangement. Where a counterparty fails the fund could suffer a loss. As part of the management of a fund, a number of controls can be used to reduce the impact of this risk, such as holding collateral and monitoring credit ratings. Depending on how it is used, a derivative can involve little financial outlay but result in large gains or losses. Standard Life has control over the use of derivatives in its funds and external fund managers are responsible for their own controls. Some funds invest in overseas assets. This means that exchange rates and the political and economic situation in other countries can significantly affect the value of these funds. The value can go down as well as up, and your investment in the fund may be worth less than what was paid in. Some funds invest in property. The valuation of property is generally a matter of a valuer s opinion rather than fact. The price of units depends on the value of the fund s assets after charges. This can go down as well as up, and your investment in the fund may be worth less than what was paid in. The sterling value of overseas assets in these funds may rise and fall as a result of exchange rate fluctuations. The Standard Life Annuity Purchase Fund does not offer any guarantees as to the amount of pension that will be paid. The Standard Life Annuity Purchase Fund may be more suitable for any portion of the fund that is to be used to purchase a fixed escalation annuity rather than an index linked annuity. For more information, please speak to your adviser. 3. Members should note that past performance is not a guide to future returns. The risk classifications are based on historical studies of fund prices and the variability (or volatility) of these returns. However, there is no guarantee that this will be repeated in the future. Further information provided by Standard Life regarding fund performance can be found on the website at the following address: www.dbpensions.com The range of funds may change in the future. More details will be provided if this is the case. 16

Default investment option If you wish, you can split your contributions across a selection of the available funds, by nominating a specific percentage to be allocated to each required fund on your Investment Option form or online at www.dbpensions.com. However, the percentage for each fund in which you wish to invest must be at least 5%. Note that if you are investing in the Balanced Managed II Lifestyle profile, you cannot invest in any other lifestyle profiles or funds at the same time. Additional expenses may be deducted from some funds. They include items such as custodian, third party, trustee, registrar, auditor and regulator fees. Where a fund invests in other underlying funds, they may also include the underlying management charges. As the additional expenses relate to expenses incurred during the fund management process, they will regularly increase and decrease as a percentage of the fund, sometimes significantly.the additional expenses figure shown is the annual rate of the charge. But where additional expenses apply, they are taken into account when the fund s unit price is calculated each day. If a performance fee applies to a fund, it is included in the additional expenses figure retrospectively. The Company has nominated a default option this is where your contributions will be allocated if you do not specify the allocation of contributions to any particular fund or funds. With effect from 1 March 2013 the default investment option for the DB Personal Pension Plan is the Standard Life Balanced Managed II Lifestyle profile. Lifestyle profiles are designed for customers investing for retirement. The funds used within them depend on the profile chosen and will also depend on how long you have until your selected retirement date. If this date is some time away (typically more than 10 years), lifestyle profiles will invest in funds that offer growth potential over the long term (although please remember that all funds can go up and down in value and investment growth is not guaranteed). As you get closer to retirement, the investment aims of the profile move away from growth and towards preparing your pension pot for retirement. The profiles will do this by automatically switching your funds you don t need to do anything. All additional expenses figures shown are rounded to two decimal places. This means that although additional expenses may apply to some funds, they may show as 0.00% as Standard Life have rounded to two decimal places. The charges and additional expenses are not guaranteed. They are regularly reviewed and may be changed in the future. 17

Important note The suitability for you of the default investment option or any other fund may change over time as your personal circumstances change and you are recommended to consult an adviser on a regular basis. If you are unsure on your selection of funds you should take financial advice. The selection of a default investment option for the DB Personal Pension Plan by the Company should not be taken as an indication of the investment potential of the default investment option or that it is a suitable investment option for you. It has been selected simply as an option to be used should you fail to pick your own investment option or options. The value of benefits under the default investment option or under any other investment option may go down as well as up. The Company takes no responsibility for the investment return on the default option or any other investment option and you are advised to seek independent financial advice as to the most suitable investment option or options for you. The default initial investment option can be reviewed by the Company at any time. Please remember that statements about future investment performance or future events, or the aims or objectives of or protections offered by particular investment choices, are not guarantees that any such performance, aim, objective or protection will be achieved. Switching funds If after you have joined the Plan, you decide you want to change your investment allocation, you can do so on line at www.dbpensions.com. You can switch your contributions in and out of various funds to change the mix of investments but you can only invest in 12 funds at any one time. Note that if you have invested in the Standard Life Balanced Managed II Lifestyle profile, partial switches into other funds are not permissible. It must be a 100% switch into another fund(s). There are currently no additional charges for making these changes. Standard Life will not normally charge for a switch but it reserves the right to charge if the switch involves a fund linked to the fund of an external manager and that manager charges Standard Life for the switch. You ll probably be one of many investors in each fund you choose. Sometimes, in exceptional circumstances, Standard Life may have to wait before they can transfer or switch your investments. This is to maintain fairness between those remaining in and those leaving the fund. This delay could be for up to a month, but for some funds, the delay could be longer: it may be for up to six months if it s a property based fund because property and land can take longer to sell. if the fund invests in an external fund, the delay could be longer if the rules of the fund allow this. if Standard Life have to delay a transfer or switch, they will use the fund prices on the day the transaction takes place these prices could be very different from the prices on the day you made the request. 18

Jargon Buster Annual Allowance Automatic Enrolment Basic State Pension (BSP) The Annual Allowance is set for each tax year (and applies to all your Registered Pension Plans). For each Pension Input Period ending in the relevant tax year, your Pension Input Amount (for all Registered Pension Plans) is compared to the Annual Allowance. If the Pensions Input Amount (for all your pension plans) exceeds the Annual Allowance, a UK tax charge will arise on the excess. The level of the Annual Allowance for the tax year 2015/2016 is 40,000. You may have additional Annual Allowance if carry forward is available to you. Automatic Enrolment includes exercising a statutory right under the Pensions Act 2008 to elect to be opted in to the DB Personal Pension Plan. Automatically Enrolled and similar expressions are to be read accordingly. This is part of the State pension system (see also State Second Pension (S2P) and State Earnings Related Pension Scheme). It is a non earnings related pension and is paid at the rate of 115.95 per week for a single person and 185.45 per week for a married couple for the tax year 2015/2016 (subject to certain National Insurance contribution requirements). It is currently paid from the age of 65 for men born before December 1953 and by mid 2016 all women s State Pension Age will have risen to 63. The Government has confirmed that by 2018, women will have a State Pension Age of 65 and by 2020, both men and women will move to a State Pension Age of 66 (increasing to 67 from 2028). After this the government will review the State Pension Age every 5 years based on life expectancy. Although these are currently the maximum Basic State Pension contributions, Pension Credit may also be payable. This guarantees an income of 151.20 a week for a single person or 230.85 a week for a couple for the tax year 2015/2016. Further details can be found at www.thepensionservice.gov.uk Bonds The Company Bonds are loans to a government or a company for a set period of time. UK Government bonds are known as gilts. Bonds from companies are known as corporate bonds. The return received from bonds is a combination of any interest received and any changes in the capital value. The value of a bond may fall if, for example, the company or government issuing the bond is unable to pay, or delays the payment of, interest when it is due, or is unable to pay back the loan amount when it is supposed to. The Company means the following employer: DB Group Services (UK) Limited; or Abbey Life Assurance Company Limited. Defined Benefit A defined benefit pension scheme is another name for a final salary scheme. 19

Defined Contribution Under a defined contribution pension scheme (sometimes also called a money purchase scheme), contributions are invested in an account which is personally allocated to the individual member. The benefits payable on retirement will depend upon: the amount of contributions paid in; the investment performance of the member s personal account; the effect of charges; and the terms for buying a Lifetime Annuity following retirement. Occupational Pension Schemes can be either defined contribution or final salary. Stakeholder pensions and Personal Pension Plans are always defined contribution arrangements. Deutsche Bank Discretionary Investment Manager Equities Final Salary Group Personal Pension Flex This refers to DB Group Services (UK) Limited or any other company in the Deutsche Bank Group. Discretionary Investment Managers offer a professional investment service where they take responsibility for the investments in a client s portfolio in order to meet their specified objectives without the need for the client s approval of changes in investments. This includes identifying client needs and constructing a portfolio to match their risk and return expectations, taking responsibility for all the day to day investment decisions and looking after the investment administration of the portfolio. Equities (otherwise known as stocks or shares) represent part ownership in a company. The return received from equities is a combination of any dividend income and any changes in the capital value. Equities are one of the more volatile asset classes and can therefore suffer sudden sharp falls or rises. Equities can offer good growth potential over the longer term but may have a higher volatility than other asset classes. A final salary pension scheme is one form of Occupational Pension Scheme and is often also called a defined benefit scheme. The amount of pension is usually based on an individual s earnings just before retirement and the number of years he or she has worked for the company. The DB Personal Pension Plan is a Group Personal Pension Flex provided by Standard Life for employees of Deutsche Bank. A Group Personal Pension Flex is a product designed to provide a flexible and tax efficient way to save for your retirement. The product is provided under the Standard Life Appropriate Personal Pension Scheme, which is the HMRC registered pension plan. This means that every employee who has a Group Personal Pension Flex is a member of the Standard Life Appropriate Personal Pension Scheme. 20

Lifetime Allowance Lifetime Annuity The Lifetime Allowance is the value of pension savings anyone can build up in their lifetime without additional tax being payable on the pension (income or lump sum). The level for the tax year 2015/2016 is 1.25 million. Lifetime Allowance is subject to change by the government and will reduce to 1 million on 6 April 2016. A Lifetime Annuity provides you with income in retirement. It is bought with the proceeds from your Plan account. Annuity prices vary. The amount of Lifetime Annuity that your pensions savings will buy will depend on: your age the older you are the bigger the Lifetime Annuity because the annuity income is expected to be paid for less time; the options chosen for example, whether you choose a Lifetime Annuity that includes provision for continued income for your dependants after your death, and whether you choose a level or increasing annuity; gilt prices insurance companies use the price of long dated (or, for annuities which increase with inflation, index linked) Government bonds (gilts) to determine their Lifetime Annuity prices at any given time; and your state of health some insurance providers offer better annuity terms for people in a poor state of health, or for people who smoke, since the life expectancy for such people is shorter. Lower Earnings Limit (LEL) Low Earnings Threshhold (LET) Money Market Instruments (including cash) Occupational Pension Scheme For the 2015/2016 tax year, the LEL is 5,824. It is used in the calculation of benefits from the State Second Pension (S2P). See also Low Earnings Threshold (LET) and Upper Accrual Point (UAP). For the 2015/2016 tax year, the LET is 15,300. It is used in the calculation of benefits from the State Second Pension (S2P). See also Low Earnings Limit (LEL) and Upper Accrual Point (UAP). Money market instruments include not only bank and building society deposits but also a variety of other instruments, such as Certificates of Deposit and Floating Rate Notes. The return received from money market instruments is a combination of interest and any changes in the capital value. It is important to note that some of these assets are not the same as cash deposit accounts and there are circumstances where their values will fall. An Occupational or Company Pension Scheme is one that is organised and sponsored by an employer on behalf of its employees to provide pensions and other benefits. Occupational Pension Schemes come in two main forms final salary and defined contribution. 21

Pension Input Amount The amount paid in during the Pension Input Period in all your Registered Pension Plans is measured according to special rules and is called the Pension Input Amount. It is compared to the Annual Allowance that applied for the tax year in which the Pension Input Period ends to see if any tax charges are payable. The part of the Pension Input Amount calculated for defined contribution arrangements is the total of the contributions made by your employer and by you to all defined contribution arrangements over the Pension Input Period. For defined benefit arrangements, it is the increase in value of your benefits in all defined benefit arrangements, over the Pension Input Period, multiplied by 16 (but the opening value is increased in line with CPI before it is compared to the closing value). Pension Input Period When comparing the amount paid in over the year to the Annual Allowance in the relevant tax year, the period over which the pension benefits have built up being used for the comparison is known as the Pension Input Period. The Plan administrator, having consulted with the Company, has elected and elects for the Pension Input Period in respect of you to end on 5 April in the year in which you join the Plan and on 5 April each year thereafter, for every arrangement you may have under the Plan. This falls in line with the end of the UK tax year. Personal Pension Plan Phased Retirement Personal Pension Plans were introduced in 1988 as a means for individuals to save for their retirement. They were aimed at those who were not members of Occupational Pension Schemes. Sold by insurance companies, banks and other financial institutions, Personal Pension Plans are a form of defined contribution arrangement. Phased Retirement allows you to start taking an income or buy a pension from different parts of your plan at different times. You can use Phased Retirement to ease back gradually on work by starting to replace earned income with pension income or to provide more flexible benefits, because arrangements that you haven t used to buy pensions can be used to provide an income, a pension or a lump sum for dependants. But if you elect to take some or all of your retirement benefits whilst still in employment with the Company, you will be treated as having retired and Company contributions will stop. However, where the Company is required to do so by legislation, it will comply with its duty to make arrangements for you to become an active member of an automatic enrolment scheme (or qualifying scheme) with effect from the time required by legislation. Qualifying Earnings Registered Pension Plan Qualifying earnings means your total cash earnings above 5,824 and up to 42,385 per year (for the 2015/2016 tax year), as defined in Section 13 of the Pensions Act 2008, as amended from time to time. The upper and lower thresholds will be reviewed by the Government, and therefore can be expected to change, each subsequent tax year. Registered Pension Plan means a tax approved pension scheme registered under the Finance Act 2004. 22

Salary Sacrifice Salary sacrifice involves restructuring the way you make certain voluntary pension contributions (or receive certain other benefits from your employer). You give up some of your salary, which alters your employment contract. Under the new employment contract, your employer agrees instead to make pension contributions of a certain level in respect of you to the DB PPP (or provide you with certain other benefits). At Deutsche Bank, this salary sacrifice arrangement is offered via My Flex. This currently allows you and Deutsche Bank to save on National Insurance contributions. There may also be UK income tax benefits in relation to certain benefits, although this would not apply to pension contributions to the DB PPP as these can already be made in a tax efficient manner, subject to the various allowances that apply. However, salary sacrifice isn t right for some people, and could affect your state benefits, other company benefits, or your ability to borrow. If you re not sure whether salary sacrifice is right for you, you should ask an independent financial adviser for guidance. State Earnings Related Pension Scheme (SERPS) State Second Pension (S2P) This was the second part of the State pension system prior to 6 April 2002 (see also Basic State Pension). It has now been replaced by the State Second Pension (S2P). S2P replaced the State Earnings Related Pension Scheme (SERPS) as the second part of the State pension from 6 April 2002. It is an earnings related pension under which the amount of pension payable is based on earnings between the Lower Earnings Limit (LEL) and the Upper Accrual Point (UAP). As with the Contracting out Rebate there are three percentage accrual rates according to three different tranches of earnings between the LEL and UAP. S2P is skewed towards the lowest paid earners, in that the accrual percentage is highest (40%) for the lowest tranche of earnings (below 5,772 in 2014/15). In addition this skewing of benefits in favour of the low paid is reinforced by a structure whereby anyone earning below the Lower Earnings Threshold (LET) will be deemed to earn at least 15,300 in tax year 2015/2016 for the purpose of calculating their S2P benefit. For example, if an individual s actual earnings are 8,000 a year, his or her S2P entitlement will be calculated using an assumed earnings level of 15,300 (2015/2016 figure). That means that S2P will accrue on earnings between the LEL and 15,300 rather than between the LEL and 8,000. Further information about S2P can be obtained from the Department for Work and Pensions website at www.gov.uk Upper Accrual Point (UAP) For the 2015/2016 tax year the UAP is 40,040. It is used in the calculation of benefits from the State Second Pension (S2P). See also Lower Earnings Limit (LEL) and Low Earnings Threshold (LET). 23

Group Personal Pension Flex Key features This is an important document. Please read it and keep it for future reference.

The Financial Conduct Authority is a financial services regulator. It requires us, Standard Life, to give you this important information to help you to decide whether our Group Personal Pension Flex is right for you. You should read this document carefully so that you understand what you are buying, and then keep it safe for future reference. Helping you decide This key features document will give you information on the main features, benefits and risks of Standard Life s Group Personal Pension Flex. Your key features document and the enclosed illustration should be read together. The illustration will show you the benefits you may get in future. This document explains some of the features of the investment linked funds, lifestyle profiles. We will always be happy to answer any of your questions or give you more information but we can t give you financial advice. Our contact details can be found on page 39. 25

Contents Page Section 1 Its aims 28 Section 2 Your commitment 28 Section 3 Risks 28 Section 4 Questions and answers 31 4.1 How much can be paid into my plan each year? 32 4.2 Where are my contributions invested? 33 4.3 What might I get when I want to retire? 34 4.4 What about tax? 35 4.5 What are the charges and discounts? 35 4.6 Other important questions 36 Section 5 Other information 38 Section 6 How to contact us 39 Section 7 About Standard Life 39 Section 8 Terms and conditions for joining 40 Key features illustration 42 26

Further information on investment linked funds can be found in the Your pension investment choices booklet (GPEN4DB). This will give you details of all the funds you can invest in. 27

1. Its aims To offer you a way of saving for your retirement. To build up a sum of money in a tax efficient way which will buy you a pension when you retire. The new retirement income options available from age 55 (57 from 2028) introduced from 6 April 2015 are not available under this product. You can access these new options by transferring to another product that allows this. 2. Your commitment To remain invested in the plan until you choose to take your benefits, and then use it to buy your pension. You cannot cash in this plan at any time, although you can transfer it to another pension provider or registered pension scheme at any time before you start taking a pension. To make at least one payment into your plan. To tell us if you stop being eligible to receive tax relief on your payments. Where applicable you can transfer the cash value of the retirement benefits you have built up in another pension scheme or policy into this plan. To regularly review your plan, and the level of payments being made, to make sure you re on track to meet your retirement goals. 3. Risks This section is designed to tell you about the key product risks that you need to be aware of at different stages of the plan. 28

At the start of the plan You will normally be automatically enrolled into this Plan by the Company if you are an employee aged 22 or over. However, your eligibility and entitlement to Company contributions is as separately notified to you. This plan may not be suitable for all employees, particularly where small amounts of pension savings might affect entitlement to means tested State benefits. If you want to cancel the plan please see Can I cancel? on page 37 for more information. If you re transferring benefits from another pension scheme or policy, there is no guarantee that what you ll get back from the Standard Life Group Personal Pension Flex will be higher than what you would have received had you remained in your previous scheme or policy. You may get back less. You may also be giving up certain rights in your other pension scheme that you ll not have with the Standard Life Group Personal Pension Flex. It is important that you take advice from a pension transfer specialist before you consider transferring out of a defined benefits scheme. If you are part of a corporate scheme, you could lose out on lower charges and other benefits if you transfer out. There is a high risk of you losing valuable benefits if you transfer from a scheme with existing benefits. Where some benefits were built up in an occupational scheme prior to 6 April 2006 there may be a right to take more than 25% of the benefits as a lump sum at retirement. This right would be lost on transfer and the lump sum would be limited to 25%. Where some benefits were built up in an occupational scheme prior to 6 April 2006 there may be a right to start to receive benefits before reaching age 55. This right would be lost on transfer and the earliest when benefits could be taken would be age 55, currently. Investment Your plan may invest in different types of investments, including investments based on stocks and shares, which carry different levels of risk. The value of your plan can go up or down, and may be worth less than you paid in. There are also risks involved in relying on the performance of investments within a single asset class, rather than spreading your investments over a variety of asset classes. If you are automatically enrolled into the plan and do not make an investment decision yourself, payments will be invested in the fund(s) or a lifestyle profile chosen by your employer. See pages 13 and 14. Please review and consider if this is suitable for your needs. There are other investment risks you need to be aware of. These include: Some funds invest in overseas assets. This means that exchange rates and the political and economic situation in other countries can significantly affect the value of these funds. Your investment may be worth less than you paid in. You ll probably be one of many investors in each fund you re invested in. Sometimes, in exceptional circumstances, we may wait before we carry out your request to transfer or switch out of a fund. This is to maintain fairness between those remaining in and those leaving the fund. 29

This delay could be for up to a month. But for some funds, the delay could be longer: It may be for up to 6 months if it s a fund that invests in property, because property and land can take longer to sell If our fund invests in an external fund, the delay could be longer if the rules of the external fund allow this For all mutual funds, the delay could be longer If we have to delay a transfer or switch, we ll use the fund prices on the day the transaction takes place these prices could be very different from the prices on the day you made the request. Some of our funds invest in other funds that are managed by external fund managers. The availability of an external fund may be restricted at any time, and this is outside our control. Also, an external fund manager could suspend dealings in their fund or delay withdrawals from it, and again we have no control over this. For further information about the investments available on the DB Personal Pension Plan and the risks involved, please refer to Your pension investment choices (GPEN4DB). You can download a copy from your pension website www.dbpensions.com Taking retirement benefits Any illustrations of what you might get back when you retire aren t guaranteed. Your pension may be lower than shown in your illustration. This could happen for a number of reasons, for example if: you stop paying into this pension plan, or take a payment break payments into the plan are lower than illustrated (this includes any transfer payments) the performance of the fund(s) you have chosen is lower than illustrated the cost of buying an annuity when you retire is higher than illustrated, for example due to interest rates being lower and/or people living longer tax rules and legislation change plan charges increase above those illustrated you buy your pension at a different age from the age used in your illustration 30

4. Questions and answers What is a Group Personal Pension Flex? It is a pension plan that allows you to save for your retirement in a tax efficient way. How flexible is it? The Company may make contributions to the Plan on your behalf. In addition, you can make your own single or regular contributions, subject to terms outlined on pages 9 and 10. You can change the amount of your regular payments, subject to the minimum payment amount. Please see How much can be paid into my plan each year? on page 32. Employee regular payments can be paid by your employer via salary deduction. Changes to payments made by your employer, including employee regular payments paid via salary deduction, are subject to your employer s agreement. Your employer may restrict the timing and frequency of changes to payments they make on your behalf. Regular payments are usually monthly. You may be able to choose an alternative frequency but this may affect your eligibility for payments made by your employer. We will also accept additional payments by direct credit, telegraphic transfer or cheque. Please see How much can be paid into my plan each year? on page 32. You can transfer the cash value of the retirement benefits you have built up in any registered pension scheme (for example, a previous occupational pension scheme, Stakeholder pension plan, personal pension plan or other pension policy) into this plan. The minimum transfer amount we can accept is 1,000 unless you are paying a transfer payment into a personal pension that you are currently making regular payments into. If that is the case the minimum payment we can accept is 500. These minimum amounts could be changed in the future. We strongly recommend you speak to a financial adviser before transferring. There may be a cost for this. You can stop paying or take a payment break, and restart later if your circumstances change. This will reduce your future pension. If you leave the Company, your investment will remain with Standard Life, in a deferred plan into which you will be able to continue making payments. The terms applied to your plan will differ. The terms that apply were decided when the scheme was set up by your employer. The enhanced terms that have been negotiated by the Company, resulting in your fund receiving a rebate on the charges shown of currently 0.70%, will remain in place if you leave. Alternatively you may be able to transfer it to another pension plan (either with Standard Life or another provider) or registered pension scheme at any time before you start taking a pension. Am I eligible? See page 9. 31

4.1 How much can be paid into my plan each year? Details of the minimum payment for your plan are available from your employer. In each tax year, if you are a relevant UK individual you can pay: up to 3,600 (including basic rate tax relief) regardless of your earnings, or up to 100% of your relevant UK earnings for that year (including basic rate tax relief). If your payments exceed the annual allowance then a tax charge may apply (see What about tax? on page 34). These limits are set by HM Revenue & Customs and apply to the total payments made by you and any third party (other than your employer) to all your pension arrangements. These limits do not apply to payments made by your employer. A tax year runs from 6 April in one year to 5 April in the next year. You are a relevant UK individual if: you are resident in the UK for tax purposes, or you have relevant UK earnings, or you were a UK resident sometime in the previous five tax years and when you joined, or you have, or your husband, wife or civil partner has, earnings from overseas Crown employment subject to UK tax. Please see the Eligibility section on page 9. Relevant UK earnings means: if you are employed, the income you receive from your employer in a tax year (including any bonuses, commission or benefits in kind that you receive), or if you are self employed, the income you receive in a tax year from carrying out your trade, profession or vocation, or from patent rights. This income must be taxable in the UK. If you re employed, both you and your employer can pay into your plan. If you already have a pension plan you can transfer its value into this plan. There is no guarantee that doing so will increase your total pension. Please ask your financial adviser if you wish to do this. If you are an employee, your employer will tell you how often you make payments and whether your employer will collect payments and pay them to Standard Life on your behalf. If you are self employed, regular monthly payments can be made either on a level amount basis, or a percentage of earnings basis. Payments can be taken from either your own personal bank account or from the business/partnership account. All self employed members of Standard Life s Group Personal Pension must make their payments on the same basis and by the same payment method. 32

4.2 Where are my contributions invested? We offer a range of investment linked funds. We invest 100% of each payment. Each fund is made up of units and we use your payments to buy units in the fund(s) you choose. The price of units depends on the value of the underlying assets after charges. As with any investment, the value of your fund can go up or down, and may be worth less than you paid in. Some of the investment linked funds are linked to funds managed by external fund managers. We may withdraw access to these external funds in the future. We ll normally give three months notice and then switch your investment into another fund. We ll choose the fund whose investment objectives most closely match the original fund, unless you choose a different fund. Further payments that would have gone into the original fund will be invested in the fund to which your investment is switched. Lifestyle profiles automatically change the funds you are invested in based on how long you ve got until your selected retirement date. As you get closer to retirement, the investment aims of the profile move away from growth and towards preparing your pension plan for your selected retirement date. The lifestyle profile may not be suitable for everyone (eg it may not be suitable for customers who aren t considering annuity purchase, or those who intend to buy a pension that increases each year at a rate linked to inflation, or those who do not intend to retire at their selected retirement age). You can only invest in one lifestyle profile at a time. If you invest in a lifestyle profile, you can t combine a lifestyle profile with any other investment. Read our Lifestyle profiles (GPEN41) leaflet for more information. You can switch funds to change the mix of your investments if you d like. You can invest in up to a maximum of 12 funds at one time. In some situations we may delay carrying out a fund switch request. If you are automatically enrolled into the plan and do not make an investment decision yourself, payments will be invested in fund(s) or a lifestyle profile chosen by the Company. Remember you don t have to stay invested in the lifestyle profile the Company has chosen. You can ask to switch funds at any time. The Company has nominated a default fund (the Standard Life Balanced Managed II Lifestyle Profile) this is where your contributions will be allocated if you do not specify the allocation of contributions to any particular fund or funds. 33

The selection of a default investment option for the DB Personal Pension Plan by the Company should not be taken as an indication of the investment potential of the default investment option or that it is a suitable investment option for you. It has been selected simply as an option to be used should you prefer not to pick your own investment option or options. The value of benefits under the default investment option or under any other investment option may go down as well as up. The Company takes no responsibility for the investment return on the default option or any other investment option, and you are advised to seek your own financial advice as to the most suitable investment option or options for you. Please note that if you invest in the Standard Life Balanced Managed II Lifestyle Profile you cannot combine it with any other investment. For more information about the fund range, please see pages 13 to 17. 4.3 What might I get when I want to retire? Your final plan value will depend on: how much is paid in how long the payments are invested for the performance of the fund(s) you have chosen our charges please see What are the charges and discounts? on page 35. Your plan will normally be used to buy a pension, which is an income for the rest of your life, from us, another pension provider or registered pension scheme. The amount of pension will depend on a number of factors at the time, for example: interest rates your age and state of health life expectancy rates the options you choose when buying your pension (for example, choosing a pension that increases in payment each year, or including a pension for a dependant when you die). What choices might I have when I want to retire? A fixed regular income (annuity) that is guaranteed for life. This locks you into the choices you make at that time and the monthly or annual annuity payments will be taxed as income. A flexible income. This is done by income drawdown and allows you to either withdraw regular income payable monthly or yearly or take unlimited withdrawals. All withdrawals are treated as taxable UK income. You can change your choices at any time as your needs become clearer. Cash. You can now take your full retirement savings as cash. 25% is tax free but anything over this is taxed as regular UK income. You can also have a combination of the above. With each of these options, you can normally have 25% of the benefits tax free. These retirement income options are available from age 55 (57 from 2028). The flexible income and cash options which were introduced from 6 April 2015 are not available under this product. You can easily access these new options by transferring to another product that allows this. 34

4.4 What about tax? We give a short explanation about tax below. For more information, please read Information about tax relief, limits and your pension (GEN658). You can find this at www.standardlife.co.uk/ taxandpensions, or phone us for a paper copy. We ll claim the tax relief for you at the basic rate from HM Revenue & Customs (HMRC) and invest it in your plan. If you are a higher or additional rate taxpayer, you ll need to claim the extra relief by contacting HMRC. If you give up salary in return for a payment from your employer to your plan you don t get tax relief on that payment. But you do save tax on the salary you have given up. HM Revenue & Customs has an Annual Allowance for the total payments that you, your employer and any third party can make to all your pension plans (excluding transfer payments). You may have to pay a tax charge on any payments that exceed this limit. If the total payments to all your plans are less than the limit in one tax year, you may be able to carry forward the unused allowance for up to three tax years. The funds you invest in are not liable for UK Capital Gains Tax. Tax treatment when taking your benefits You can normally take some of your fund as a tax-free lump sum before you convert the plan into a pension. HM Revenue & Customs has a Lifetime Allowance on the total funds in pension plans that can be used to provide benefits for you. There are circumstances where you may have a personal Lifetime Allowance that s higher. Your beneficiaries won t normally have to pay tax on any lump sum they receive if you die. Your pension will be taxed in the same way as earned income. Laws and tax rules may change in the future. The information here is based on our understanding in December 2015. Your personal circumstances also have an impact on tax treatment. 4.5 What are the charges and discounts? We make the following charges for managing your plan: For investment linked funds, a Fund Management Charge which is for the management of your funds and for our costs, including any commission payable. The charge varies depending on the funds you choose to invest in and is taken from your fund each day before we calculate the unit price. The current yearly rate of this charge is shown on your illustration. Additional expenses such as custodian, third party, trustee, registrar, auditor and regulator fees may be deducted for certain Standard Life investment linked funds which are linked to the funds of external managers. Where this charge applies, it is taken directly from the external fund and is included in the unit price. Please refer to the leaflet How to choose the right investment options for your pension. The additional expenses relate to expenses incurred during the fund management process and as such they will regularly increase and decrease as a percentage of the fund, sometimes significantly. Where expenses arise within a fund they have been taken into account in the calculation of the price. If you stop making payments early on and do not restart them, our charges could reduce your plan value by the time you retire. 35

Your illustration shows what you might get back in the future. It details our charges for investment linked funds. Your plan will also benefit from a discount. Any such discount will depend on the size of the fund and the terms that apply to your plan, and will be created by giving you extra units in your funds. Your illustration will give details of any discounts that may apply. You ll find full details of the terms in your plan document which we ll send after you join. We will not normally make a charge for switching funds; however, we reserve the right to charge for switches. We reserve the right to charge if a switch involves an externally managed fund and the manager charges us for the switch. We also reserve the right to make a charge when more than 20 switches are made in any 12 month period. We regularly review our charges and may alter them to reflect changes in our overall costs, or assumptions. Any increases will be fair and reasonable. 4.6 Other important questions What happens to the plan if I die before I retire? We will pay out your pension pot to your beneficiaries 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 You can tell us about the people and causes you care about by filling in our Instruction for payment of death benefits form (PPP36). Can I transfer my plan? You can transfer your plan to another pension provider or registered pension scheme at any time before you start taking your pension. We make no transfer charge for this. Your illustration gives examples of how much you could transfer to another plan depending on when you transfer. You cannot cash in your plan. What if I leave my current employer? If you leave the Company, your investment will remain with Standard Life, in a deferred plan into which you will be able to continue making payments. The terms applied to your plan will differ. The terms that apply were decided when the scheme was set up by your employer. The enhanced terms that have been negotiated by the Company, resulting in your fund receiving a rebate on the charges shown of currently 0.70%, will remain in place if you leave. Alternatively you may be able to transfer your investment to another pension plan (either with Standard Life or another provider) or registered pension scheme at any time before you start taking a pension. 36

Can I cancel? Yes but there is a time limit to do this. Your Group Personal Pension Flex counts as a Qualifying Workplace Pension Scheme, so you have opt out rights for the regular payments. We will tell you what rights you have when we issue your plan documents. How do opt out rights work? You have one month to decide if you want to remain a member. The one month opt out period either starts on the date we send your plan documents or the date the membership starts, whichever is later. We will write to advise you when the opt out period ends, or when it starts and ends if membership starts in the future. During this period, if you decide you do not want to be a member, you can opt out. If you opt out, your plan will be cancelled if the regular payments were the only payments made to it. Your employer will refund any regular payments already deducted from your salary and there will be no further regular payments from you or your employer. After you join the scheme we will send you information about how and when you can opt out. You can normally opt out online or by phone. At the end of the one month period you will be bound by the terms and conditions of the plan and any regular payments received by Standard Life will not be refundable. If you make a single payment or transfer payment, opt out rights will not apply to these payments but cancellation rights might apply instead. Single Payments If you start the plan with a single payment and cancel during the 30 day period, the amount we return may be less than you paid in. This is because we may make a deduction to reflect any loss we have experienced between the date we received your payment and the date we received your instruction to cancel. The amount we will return may be subject to the following: If the value of your investment falls before we receive your instruction to cancel, we may deduct an equivalent amount from the refund. Any charges or expenses we are unable to recover for the administration costs of setting up your plan. Any charges or expenses we are unable to recover for the administration costs of cancelling your plan. There is no penalty charge for cancelling your plan. If you decide to cancel, and we have already received payment, we will refund the payment to the person who made it. Transfer Payments If you opt out during the 30 day period the transfer payment is normally returned to the transferring scheme. The amount we return may be less than paid in. This is because we may make a deduction to reflect any loss we have experienced between the date we received your payment and the date we received your instruction to cancel. If you decide to opt out and we have already received the payment, you must ask the transferring scheme to confirm that they will accept the payment back and we will then return it to them. If they will not accept it back, you must arrange for another pension provider to accept the payment. How will I know how my plan is doing? We will register you for our online service and send you a user id and password so that you can check your plan details on our website www.standardlife.co.uk We will send you a yearly statement to show how your plan is doing. You can also get an up to date valuation at any time by calling our customer helpline. 37

5. Other information How to complain We have a leaflet that summarises our complaint handling procedures. If you d like a copy, please ask us. If you ever need to complain, please phone us on 0345 272 8813 (call charges will vary). If you are not satisfied with our response, you may be able to complain to: The Financial Ombudsman Service Exchange Tower London E14 9SR Phone: 0800 023 4567 Switchboard: 020 7964 1000 Fax: 020 7964 1001 Email: complaint.info@financial ombudsman.org.uk Website: www.financial ombudsman.org.uk Complaining to the Ombudsman won t affect your legal rights. Plan terms and conditions This document gives a summary of Standard Life s Group Personal Pension Flex. It does not include all the definitions, exclusions, terms and conditions. These can be found in the Policy Provisions booklet. If you would like a copy of the Policy Provisions booklet, please ask your financial adviser or contact us direct. We have the right to change some of the terms and conditions. We will write to you and explain if this happens. Law The law of Scotland will decide any legal dispute. Language The English language will be used in all documents and future correspondence. Compensation The Financial Services Compensation Scheme (FSCS) has been set up to provide protection to consumers if authorised financial services firms are unable, or likely to be unable, to meet claims against them. Your contract is a long term contract of insurance. You will be eligible for compensation under the FSCS if Standard Life Assurance Limited (SLAL) becomes unable to meet its claims and the cover is normally 100% of the value of your claim. If you choose one of our funds that invests in a mutual fund run by another firm (including Standard Life Investments Limited), you are not eligible for any compensation under the FSCS if that firm is unable to meet its claims. SLAL is not eligible to make a claim on your behalf so the price of a unit in our fund will depend on the amount that we recover from the firm. If you choose one of our funds that invests in a fund run by another insurer you are not eligible for any compensation under the FSCS if that insurer is unable to meets its claims. SLAL is not eligible to make a claim on your behalf. For further information on the compensation available under the FSCS, please check their website www.fscs.org.uk. If you have any questions about whether your contract is covered or not, you can speak to your financial adviser or contact us directly. 38

6. How to contact us Remember your financial adviser will normally be your first point of contact. If you would like more information or to make changes to your plan, or if you have any questions, visit www.employeezone.co.uk or www.dbpensions.com or call us on: 0345 272 8813 Please have your plan number ready when calling. Calls will be monitored and/or recorded to protect both you and us, and may help with our training. Call charges will vary. Standard Life Employer & Intermediary Services Edinburgh EH15 1ET 7. About Standard Life Standard Life Assurance Limited s product range includes pensions and investments. Standard Life Assurance Limited is on the Financial Services Register. The registration number is 439567. 39

8. Terms and conditions for joining Please note If you are being automatically enrolled into the plan by your employer, section 8 does not apply. We will include a copy of the declaration made by your employer in the plan documents we send you. Important information Please read and keep for your reference When you join the pension plan, you will be bound by the rules and legislation that apply to the plan. You should read this carefully before you decide to join. The Company has reserved the right to amend or discontinue the Plan at any time, including stopping making or reducing contributions. Your eligibility To join this pension plan, you will be confirming (via your employer or their adviser): You are aged 16 or over and are resident in the UK for tax purposes. You are employed. Data Protection Notice important, please read We will collect personal information about you in order to consider your application and, if your application is successful, to provide our services to you and manage our relationship and Standard Life s business and services. If your application does not proceed, the information will be held on our records for seven years before it is deleted. The information collected may be disclosed to other Standard Life group companies, to professional advisers, to third party service providers and, where appropriate and lawful to do so, to other organisations. Your information may be held or disclosed in countries outside the European Economic Area which may not have the same standard of data protection laws. Where this occurs, we will take appropriate steps to adequately protect it. We may disclose information to the Company about your membership of the Plan, including for example, details of the contributions you and the Company may have made, and the value of your Plan from time to time. We and the other subsidiaries of Standard Life plc would like to contact you from time to time to keep you up to date with special offers, new products and services, newsletters and other promotions. We will never pass your details to companies that are not subsidiaries of Standard Life plc for marketing purposes. Please contact us if you do not wish to be contacted for marketing purposes. If you would like to request a copy of the personal data we hold about you, please write to the Data Protection Co ordinator at our Head Office. We may charge a fee for providing the information. 40

Money Laundering To comply with Money Laundering Regulations, we may verify your identity by carrying out an online check with a reference agency. Where an online check is carried out, the agency will verify your identity against public records and it will also check whether you have a credit history (but it will not disclose any information about your actual borrowings). The agency will add a note to show that an identity check was made to your credit file, but this information will not be available to any third parties. We regret that we cannot offer an alternative unless the online check does not confirm your identity, in which case we will carry out a manual check. Your declaration You will also be making this declaration (via your employer or their adviser): 1. I request that the benefits described in or arising from payments specified in the Application be provided for me under the Standard Life Appropriate Personal Pension Scheme and if my application is accepted I undertake to be bound in all respects by the rules of the Scheme in force from time to time. 2. I declare that to the best of my knowledge and belief, the statements made in my Application are correct and complete. 3. I request the administrator of the Scheme to treat this form as an application for one arrangement for the regular payments specified and any future payments selected by the administrator. 4. I declare that the total payments to any registered pension scheme, in respect of which I am entitled to relief under section 188 of the Finance Act 2004, will not exceed the higher of the basic amount or my relevant UK earnings, within the meaning of section 189 of that Act, for that tax year. (The basic amount for the 2015/2016 tax year is 3,600 gross. This may change in future tax years.) 5. I declare that I will tell Standard Life if an event occurs as a result of which I will no longer be entitled to relief for my payments under section 188 of the Finance Act 2004. I will do so before the end of the tax year in which the event occurs, or within 30 days of the event if this is later. 6. I have read and understood the Data Protection Notice. I agree that my personal information (including sensitive data) may be used for the purposes described (subject to me exercising my right not to be contacted with details of other products and services). 7. I authorise Standard Life to disclose to the person within my business who is the contact name for enquiries/my employer if requested any information regarding the payments and transfer values paid to my plan, how these payments are invested and the value of my plan. If you do not wish this person to have access to this information, then please write to us at: Standard Life Employer & Intermediary Services Edinburgh EH15 1ET 8. I understand that, where I am receiving advice from a financial adviser, the adviser is acting on my behalf. 9. I agree that my Pension Input Period, as defined in Section 238 of the Finance Act 2004, in relation to each arrangement under the Standard Life Appropriate Personal Pension Scheme shall, unless Standard Life otherwise agrees, in consultation with my employer, end on 5 April in each year. Standard Life Terms of Business Standard Life Assurance Limited ( Standard Life ) is authorised and regulated by the Financial Conduct Authority, registration number 439567, and is bound by the FCA rules. The Standard Life address is, Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH. You can check this on the FCA s register by visiting the FCA s website www.fca.org.uk/register or by contacting the FCA on 0800 111 6768. Standard Life is not providing you with advice. If you would like advice please contact an adviser. The Standard Life documents will form the Terms of Business covering your relationship with Standard Life. Our Terms of Business is effective from the date you receive a copy, either by post or at a meeting. Business will only be processed if you agree with the terms and we shall deem acceptance unless you advise Standard Life otherwise. If you have any complaints about the service you receive or a product you buy, you should contact your adviser in the first instance. For your information, our Customer Relations Department can be contacted at, Standard Life House, 30 Lothian Road, Edinburgh, EH1 2DH, 0345 60 60 042. If you are still not satisfied you may be able to complain directly to the Financial Ombudsman Service. 41

Important note about the Key Features Illustrations This is an illustration of what your pension plan might be worth and must be read with the Key Features Document Key Features of the Group Personal Pension Flex, which contains more information about charges and tax. The Key Features Document refers to a personal illustration which, for you, will be provided after entering into the plan. The rates used in these illustrations were correct at 6 April 2016. However they are subject to change at any time. The examples in this document assume that all contributions will be invested in the Standard Life Balanced Managed II Lifestyle Profile. For more information on how the profile works, please see pages 14 & 15. Please note that the illustrations take into account the effect of the automatic switching into the Standard Life Multi Asset Managed (20 60% Shares), Standard Life Annuity Purchase and Standard Life Deposit and Treasury Pension Funds that occurs as you approach retirement. The illustrations are only suitable for someone who invests in the Standard Life Balanced Managed II Lifestyle Profile, assuming the growth rates below. It is not suitable if you wish to invest in funds outwith the Standard Life Balanced Managed II Lifestyle Profile. If you wish to make a different investment choice you should request a personalised illustration. Important information about investment growth rates, charges, and inflation To help you understand the value of your investment in the future, we have allowed for inflation in our calculations. Some types of investment or savings plans, for example a savings account or a cash ISA, do not take account of inflation, so may look more attractive than they actually are if you re comparing them to this illustration. The growth rates we believe are appropriate for the funds in this illustration are shown in the table below. In line with Financial Conduct Authority rules, we have reduced all growth rates by 2.50% to allow for inflation. The assumed growth rate varies depending on the investment mix of each fund. Other funds may have different assumed growth rates. Remember - funds showing higher growth rates might be more likely to beat inflation, but they may also be more likely to lose money. Fund Lower Growth Rate Mid Growth Rate Higher Growth Rate Standard Life Managed Pension Fund -0.50% 2.50% 5.50% Standard Life Multi Asset Managed (20 60% Shares) Pension Fund -0.50% 2.50% 5.50% Standard Life Annuity Purchase Fund -3.00% 0.00% 3.00% Standard Life Deposit and Treasury Pension Fund -3.50% -0.50% 2.50% We will send you a statement each year so you can keep track of your benefits. What could my DB Personal Pension Plan account be worth? To give you an illustration of what your Plan account could be worth, the following examples show what your benefits might be on retirement in the scenarios described. The amounts are based on standard assumptions and aren t guaranteed. The examples also show the effect of the charges taken. If the amount or frequency of the contributions change from those used in these examples, then this will affect the final fund values. 42

What will my contributions be? For these illustrations, the contributions are assumed to be made monthly, and by the employer only. You can make your own additional contributions, subject to the allowances set by HM Revenue & Customs. The contributions that are currently made by the Company are 2% (expressed as a percentage of your qualifying earnings). The Company has reserved the right to amend or discontinue the Plan at any time, including stopping making or reducing contributions. Information about charges and rebates The illustrations shown in tables 1 3 include four examples. When calculating this illustration we take fund management charges and additional expenses into account. These charges are a percentage of the value of the funds you accumulate. For the funds used in this illustration the fund management charges are 1.00% and the additional expenses vary by fund as follows: 0.019% for the Standard Life Managed Pension Fund, 0.016% for the Standard Life Multi Asset Managed (20 60% Shares) Pension Fund, 0.008% for the Standard Life Annuity Purchase Fund and 0.008% for the Standard Life Deposit and Treasury Fund. These charges are built into the unit price for the funds and are the yearly rates of the charges which are collected daily. Additional expenses are likely to vary. The Company has arranged special terms, which means that we add extra units to your funds each month. In this illustration we have assumed the value of the units is 0.70% of your funds each year. We have assumed that this level of rebate continues unchanged until retirement. Our charges, and the final value of your plan, will depend on the actual investment funds you choose. 43

What your pension plan might be worth when you retire, based on the Company s contributions The following tables show illustrations of how much your pension at retirement could be worth. Your pension will depend on a number of factors, such as how your investment grows and interest rates at that time. We ve assumed: Contributions into the Plan continue until age 25. Please note: for some employees the Company may continue to make contributions into this Plan after age 25 if this affects you, the Company will let you know and you should request a personal illustration. These figures assume that no additional contributions are made by you or in respect of you. Notes for tables They re estimates so your benefits could be very different - your plan value could be worth less than you paid in. We can t predict future inflation and tax rates or how investments will grow. Charges may also vary. Your taxable pension will also depend on interest rates when you retire. Any reference to legislation and taxation is based on Standard Life s current understanding of law and HM Revenue & Customs practice as at April 2016. Legislation and taxation are liable to change in the future. Tax relief may be altered and the value to you depends on your financial circumstances. Your earnings and contributions will also increase each year by 2.00% for Lower, 4.00% for Mid, and 6.00% for the Higher rates shown in the tables that follow. Your pension will increase in line with the Retail Price Index (RPI) each year. Your pension will be payable monthly starting on your retirement date. Your pension will not be paid to any dependant on your death. If you die within 5 years of getting your pension, we ll continue to pay it until the end of that 5 year period. The illustrations assume that you don t take part of your fund value as a tax free cash lump sum. Under current rules, you can normally take up to 25% of your fund as a tax free lump sum at retirement. 44

Table 1 Illustrations based on someone earning 20,000 per year The following examples show what your pension could be worth if it remains in the DB Personal Pension Plan until you retire, based on your current age and the contribution level shown on page 43. It also shows the transfer value you could get if you transfer your benefits to the DB Flexible Retirement Plan at age 25. Your exact age and contributions If your investment grows yearly at: Lower rates Mid rates Higher rates Example 1 Age 18 Your final fund value could be in 2063: 1,780 6,710 24,300 Which could give you a taxable pension each year from 2063 of: 39 177 762 Your transfer value at age 25 could be: 2,510 2,960 3,460 Example 2 Age 20 Your final fund value could be in 2061: 1,290 4,620 15,900 Which could give you a taxable pension each year from 2061 of: 29 123 504 Your transfer value at age 25 could be: 1,830 2,050 2,290 Example 3 Age 22 Your final fund value could be in 2059: 787 2,680 8,820 Which could give you a taxable pension each year from 2059 of: 18 72 280 Your transfer value at age 25 could be: 1,120 1,200 1,280 Example 4 Age 24 Your final fund value could be in 2057: 266 862 2,700 Which could give you a taxable pension each year from 2057 of: 6 23 87 Your transfer value at age 25 could be: 388 395 401 Table 2 Illustrations based on someone earning 30,000 per year The following examples show what your pension could be worth if it remains in the DB Personal Pension Plan until you retire, based on your current age and the contribution level shown on page 43. It also shows the transfer value you could get if you transfer your benefits to the DB Flexible Retirement Plan at age 25. Your exact age and contributions If your investment grows yearly at: Lower rates Mid rates Higher rates Example 1 Age 18 Your final fund value could be in 2063: 2,680 10,000 36,400 Which could give you a taxable pension each year from 2063 of: 59 266 1,140 Your transfer value at age 25 could be: 3,770 4,440 5,200 Example 2 Age 20 Your final fund value could be in 2061: 1,940 6,940 23,900 Which could give you a taxable pension each year from 2061 of: 43 185 756 Your transfer value at age 25 could be: 2,750 3,080 3,440 Example 3 Age 22 Your final fund value could be in 2059: 1,180 4,020 13,200 Which could give you a taxable pension each year from 2059 of: 26 108 421 Your transfer value at age 25 could be: 1,690 1,800 1,920 Example 4 Age 24 Your final fund value could be in 2057: 399 1,290 4,060 Which could give you a taxable pension each year from 2057 of: 9 35 130 Your transfer value at age 25 could be: 583 592 602 45

Table 3 Illustrations based on someone earning 40,000 per year. The following examples show what your pension could be worth if it remains in the DB Personal Pension Plan until you retire, based on your current age and the contribution level shown on page 43. It also shows the transfer value you could get if you transfer your benefits to the DB Flexible Retirement Plan at age 25. Your exact age and contributions If your investment grows yearly at: Lower rates Mid rates Higher rates Example 1 Age 18 Your final fund value could be in 2063: 3,570 13,400 48,600 Which could give you a taxable pension each year from 2063 of: 79 355 1,520 Your transfer value at age 25 could be: 5,030 5,910 6,930 Example 2 Age 20 Your final fund value could be in 2061: 2,580 9,250 31,900 Which could give you a taxable pension each year from 2061 of: 57 246 1,000 Your transfer value at age 25 could be: 3,660 4,100 4,590 Example 3 Age 22 Your final fund value could be in 2059: 1,570 5,360 17,600 Which could give you a taxable pension each year from 2059 of: 35 144 561 Your transfer value at age 25 could be: 2,250 2,400 2,560 Example 4 Age 24 Your final fund value could be in 2057: 531 1,720 5,410 Which could give you a taxable pension each year from 2057 of: 12 47 173 Your transfer value at age 25 could be: 777 790 802 What are the charges and discounts? We deduct charges to meet the cost of setting up and managing the Plan. For the funds used in this illustration there are fund management charges of 1.00% and additional expenses which vary by fund as follows: 0.019% for the Standard Life Managed Pension Fund, 0.016% for the Standard Life Multi Asset Managed (20 60% Shares) Pension Fund, 0.008% for the Standard Life Annuity Purchase Fund and 0.008% for the Standard Life Deposit and Treasury Fund. These charges are built into the unit price for the funds and are the yearly rates of the charges which are collected daily. Additional expenses are likely to vary. The Company has negotiated enhanced terms to refund some of the 1% charge. This is achieved by creating units in your fund each month. For the funds used in this illustration we will create units each month to the value of 0.70% of your fund each year. Although the fund management charge is deducted daily while the rebate is applied monthly, over the long term your effective charge will tend towards the fund management charge less the rebate. However, your effective charge will fluctuate because, for example, it s dependent on: The period over which it has been measured Single contributions and transfer payments made Regular contribution variations Daily movement in the fund value. We can reduce these refund rates. We may do so for a variety of reasons, for example: Tax rules change Our costs are higher than we have anticipated in setting the refund rates Our income from charges is less than we have anticipated. Please note that different charges apply to some funds. Please see page 13 for more information. Please also refer to Your pension investment choices booklet (GPEN4DB). Charges are regularly reviewed and may be increased to reflect increases in overall costs and/or changes in the assumptions made. Any increases in charges will not increase Standard Life s profit margins above reasonable levels. 46

How the charges reduce the values of your pension fund In the following tables, assuming your investment grows at the mid rate, the After all charges are taken columns show examples of the transfer value you could get if you withdraw from your plan. This is based on someone earning 20,000. The table shows that charges reduce the return on your investment. The reduction from the amount shown at retirement in the If there were no charges column to the amount shown in the After all charges are taken column means that charges take the average growth rate down. The percentage this reduces to is shown in the Reduction in growth after all charges are taken row at the bottom of each table. Example 1 Age 18 At the end of year Total paid in to date If there were no charges 1 390 401 400 3 1,159 1,250 1,240 5 1,915 2,160 2,140 10 2,468 3,380 3,310 15 2,181 3,820 3,680 20 1,928 4,300 4,080 25 1,704 4,860 4,530 30 1,506 5,480 5,030 35 1,331 6,180 5,590 40 1,177 6,970 6,200 45 1,040 7,660 6,710 47 (Age 65) 990 7,710 6,710 Age 18 reduction in growth after all charges are taken: 2.3% to 2.0% After all charges are taken Example 2 Age 20 At the end of year Total paid in to date If there were no charges 1 390 401 400 3 1,159 1,250 1,240 5 1,915 2,160 2,140 10 1,692 2,440 2,380 15 1,496 2,750 2,640 20 1,322 3,100 2,930 25 1,169 3,500 3,260 30 1,033 3,950 3,620 35 913 4,460 4,020 40 807 5,020 4,450 45 (Age 65) 713 5,290 4,620 After all charges are taken Age 20 reduction in growth after all charges are taken: 2.3% to 2.0% 47

Example 3 Age 22 At the end of year Total paid in to date If there were no charges 1 390 401 400 3 1,159 1,250 1,240 5 1,104 1,310 1,290 10 975 1,470 1,430 15 862 1,660 1,590 20 762 1,880 1,770 25 674 2,120 1,960 30 595 2,390 2,180 35 526 2,700 2,420 40 465 3,000 2,650 43 (Age 65) 432 3,050 2,680 Age 22 reduction in growth after all charges are taken: 2.3% to 2.0% After all charges are taken Example 4 Age 24 At the end of year Total paid in to date If there were no charges 1 390 401 400 3 371 421 417 5 354 441 435 10 312 498 483 15 276 562 536 20 244 633 595 25 216 715 661 30 191 806 733 35 169 909 814 40 149 981 865 41 (Age 65) 145 981 862 Age 24 reduction in growth after all charges are taken: 2.3% to 2.0% After all charges are taken How much are the arrangement and service costs? You didn t get any advice about this plan. For arranging this investment, we (Standard Life) expect to have costs. The charges we have already shown in this illustration allow for these costs so you won t have to pay for this separately this is just for your information. The costs we expect to have are: an initial cost of 2.04 ongoing costs of 1/12 of 0.22% of your fund value each month Here s a table showing an example of the ongoing costs we would incur: If your fund value during the year is 10000.00 22.00 20000.00 44.00 We would expect costs for the year of The initial cost is based on the first year s payments, assuming a current salary of 20,000, and a total monthly payment of 2.00% of salary, with a plan term of at least 10 years to retirement. If payments are more or less than shown above, then the initial cost will change by the same proportion. For a plan term of less than 10 years, the initial cost will be lower. 48

Notes Where you can take a tax free lump sum, your entitlement is normally 25%. The amount you ll be able to take may be different depending on your allowance on 5 April 2006. Please speak to your financial adviser. This illustration does not take account of the Lifetime Allowance. This is an HM Revenue & Customs limit on the total funds in pension plans that can be used to give you benefits without having to pay a tax charge on the funds. Any reference to legislation and taxation is based on Standard Life s current understanding of law and HM Revenue & Customs practice on April 2016. Legislation and taxation will change over time. Tax relief may be altered and the value to you depends on your financial circumstances. For more information on how much you should save for retirement, please speak to a financial adviser. There may be a cost associated with this. 49

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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. www.standardlife.co.uk DBANKPPP 0416 2016 Standard Life