The Family asset PeNSioN TRuST

Transcription

1 The Family asset PeNSioN TRuST information FoR MeMBeRS The Family Asset Pension Trust PSTR RD Family Asset Protection Company (Scotland) Limited 4th Floor, 166 Buchanan Street, Glasgow, G1 2LW Tel: Family Asset Protection Company (Scotland) Ltd Registered in Scotland No. SC VAT No /216/MB 7.14

2 The Family asset PeNSioN TRuST WhaT is The Family asset Pension TrusT it is a master trust occupational defined contribution scheme designed to meet the pension needs of businesses large and small across the whole of the uk. We will refer to it as the scheme in the rest of this booklet. The scheme is written under a Trust with independent trustees appointed who will oversee the running of the scheme on behalf of all of the members. once funds are transferred into the scheme, employers will have no access or control over these funds. The administration of the scheme will be carried out by Carey Pensions uk who are part of The Carey Group. Carey Pensions uk are independent pension administrators and will deal with all of the administration required for this plan. The funds will be managed by discretionary fund managers, Quilter Cheviot who are a highly respected national firm of investment managers that specialise in pension scheme and private client investment. Quilter Cheviot have a history that dates back to 1771 and their credentials include being a founder member of the London Stock exchange. Quilter Cheviot will manage a range of portfolios bespoke to the Family Asset Workplace Pension. The investment strategy for the scheme includes a default strategy based upon members ages. What this means is that when you are automatically enrolled into the scheme your contributions will be invested in one of the portfolios. Which portfolio your contributions go into will be determined by your age. However once you are a member of the scheme you can amend your choice of investment portfolio. Should you wish to do so we recommend that you take financial advice.

3 BeCominG an active member of THe SCHeMe? You will have your own plan to enable you to save for your retirement, and you will be able to monitor your individual fund online. Details of how to access this information will be provided to you once you have joined the scheme. if you join your employer will pay into your plan provided you pay the appropriate minimum amount. Your payments will be deducted from salary at source. PaymenTs into THe SCHeMe As an active member of the scheme, you must pay a minimum of 1% of your pensionable salary into the scheme. if you join the scheme your employer will also have to pay a minimum of 1% of your pensionable salary into the scheme for you. These minimum contributions will increase between now and october Please see the Key information leaflet for an explanation of contribution levels. For the purposes of calculating your own and your employer s contributions into the scheme, your employer will determine what constitutes pensionable salary. Your employer can decide to base contributions on basic salary or they may decide to include other elements of pay like wages, commission, bonus, overtime, statutory sick pay, statutory maternity pay, ordinary or additional statutory paternity pay and statutory adoption pay, outlined as qualifying earnings. You may pay in more than 1% of your pensionable salary if you wish, up to a maximum of your total earnings in any one year with an overall maximum of 40,000. if you choose to pay more than 1% into the scheme your employer s payment will remain fixed at 1%. Whatever payment you choose can be a percentage of pensionable Salary or a fixed monetary amount, but it must be equal to at least 1% of your pensionable salary. The tables below shows the regular payments you and your employer will make, and how they will increase between now and october 2018: Date your your employer s Total regular payment regular payment regular payment Between joining the scheme and September % 1% 2% october 2017 to September % 2% 5% october 2018 onwards 5% 3% 8% * This is a percentage of your pensionable salary. The contribution levels shown in this table are the statutory minimums under current legislation. You may change your regular payment amount at the plan anniversary date by notifying Family Asset Protection Company, 4th Floor, 166 Buchanan Street, Glasgow, G1 2LW. They can be contacted on retirement AGe The normal retirement age for the scheme will be 65, however you may if you wish take your benefits from age 55. Please note that by taking your benefits early the amount you receive may be substantially less than expected at age 65. Payment for weekly paid employees are deducted from pensionable salary weekly in advance.

4 BeneFiTs AT ReTiReMeNT There is no guaranteed level of pension for this scheme from outset. At retirement, you may take up to 25% of your pension fund as a tax free cash sum, known as Pension Commencement Lump Sum. The remaining fund must be used to provide you with a Pension income, known as an annuity : this will depend upon the size of your fund and the prevailing annuity rates. You will be able to choose then how your pension is paid and options such as spouse s pension or increments added. The scheme also allows drawdown. This means that you could take part of your pension and leave the remainder invested in the scheme to continue to grow until you want to draw the full amount out. The April 2014 Budget has proposed changes that allow drawdown without the requirement to purchase an annuity. TaxaTion Your payments will be collected from your salary before deduction of income tax and national insurance. This means that the amount of income tax you pay will be reduced. JoininG THe SCHeMe All eligible jobholders will be automatically enrolled into the scheme on your employer s staging date, and a 30-day opt-out window will begin at the later of becoming a member of the scheme or being notified that you are a member of the scheme. For those members that join after the staging date, your employer Has a six week joining window in which to automatically enroll the member and the 30-day opt-out window begins thereafter. investing YouR PAYMeNTS When you become a member of the scheme you will be automatically enrolled into the default strategy. Thereafter you may switch your investment strategy if applicable. You can select your chosen strategy yourself, but we would recommend that you seek financial advice to ensure your chosen strategy matches your attitude to investment risk. An example of how this works is as follows: You choose to pay 1% of your pensionable salary. Your net income will also reduce: depending on personal circumstances and assuming basic rate income Tax and National insurance, the net cost would be 0.8% of your pensionable salary. Whilst invested, any growth in your pension plan is not subject to any personal taxation. When you retire, your Pension income will be subject to income Tax at your then marginal rate. Please note that there are limits regarding both the annual contribution and also the final value of your fund. For year the maximum total annual contribution is 40,000 and the maximum value known as the Lifetime Allowance or LTA is 1,250,000.

5 investment options The investment options are designed to let you tailor your pension investment to suit your attitude to risk. There are five options and you can choose to invest in one single option or a combination of different options. The investment options are as follows: investment options Adventurous Growth Balanced Conservative Defensive explanation An adventurous investor is willing to accept a very high level of risk in return for higher returns over the longer term. This investor is willing to accept a significant amount of fluctuation in the value of their investments. The portfolio is suitable for an investor with an investment time horizon of a minimum of 10 years. An investor in this category is willing to accept a higher level of risk in return for higher returns over the longer term. This investor is willing to accept fluctuation in the value of their investments. The portfolio is suitable for an investor with an investment time horizon of a minimum of 7 years. A balanced investor is looking for a balance between risk and reward and has an attitude to risk which can withstand some fluctuation in capital value. The portfolio is suitable for an investor with an investment time horizon of a minimum of 5 years A conservative investor will have a low tolerance to fluctuations in capital value and is more concerned with capital preservation than growing the portfolio significantly. The portfolio is suitable for an investor with an investment time horizon of a minimum of 3 years. A defensive investor will have a very low tolerance to fluctuation in capital value and is very concerned about the preservation of and accessibility to their pension at retirement. if you do not make a selection your payments will be invested using our life style and age related default strategy. The portfolios have been age segmented in the belief that younger employees may have a higher risk threshold than a prospective retiree who has a lower risk/return appetite. The portfolios offered have been constructed to meet a range of risk/returns covering the scale of low to high risk adjusted returns. This default strategy operates by moving members pension investments from higher risk/return portfolios to lower risk/return portfolios as they move closer to retirement. The age segmentation for the movement of funds between portfolios is stated below: Age 17-45: Age 46-55: Age 56-70: Age Growth Portfolio Balanced Portfolio Balanced Portfolio with 5% per annum allocated from the Balanced to the Defensive portfolio until age 71 when it becomes a 100% Defensive portfolio. Defensive Portfolio The assets allocation of each portfolio is stated below: asset Category Defensive Conservative Balanced Growth adventurous % % % % % Cash Fixed interest uk equities overseas equities hedge/absolute return Funds Commercial Property Total As at July 2014

6 annual ReVieWS each year the Trustees of the scheme will carry out a review of how the fund manager has performed against pre-determined parameters. You will also receive a report each year giving you the actual and projected value of your plan. Quarterly factsheets will also be available for you to view on the administrator s website. DeaTh BeNeFiTS Should you die before taking your benefits from the plan, the full value of your fund will be paid out to your nominated beneficiaries at the discretion of the Trustees. DeaTh in ReTiReMeNT if a member dies after retiring and having taken drawdown, the remaining fund will be paid out to the nominated beneficiaries less 55% tax. leaving SeRViCe if you choose to leave the Scheme you will no longer be entitled to contribute to the scheme. You will have the following options: less than three months service You would receive a refund of your contributions, less tax. You would not receive a refund of any company contributions paid into your individual plan. Between three months and two years service You could leave your individual fund invested in the scheme You could transfer the value of your individual plan to another registered pension scheme; or You could receive a refund of your contributions, less tax, plus the value of any Additional Voluntary Contributions held in your individual plan, less tax. You would not receive a refund of the employer contributions paid into your individual plan. at least two years service You could leave your individual plan invested in the scheme; or You could transfer the value of your individual plan to another pension scheme. important note ABouT ReFuNDS AND TRANSFeRS Any refund made up of your own Core Contributions will be based on the value of your own contributions into the scheme, rather than the amount of contributions you have actually made. Depending upon investment performance, the refund payable may be more or less than the contributions you have actually paid in. The tax currently payable on refunds is 20% on any amount up to 20,000 and 50% on any amount over and above 20,000. if you leave your individual plan invested in the scheme, the Trustees may transfer your individual plan to a separate pension policy (after giving you notice). You cannot have a refund if you have transferred benefits into the Scheme. You can only transfer your individual plan to a pension scheme or policy that is registered with HM Revenue & Customs. Where Can i FinD out MoRe? once you are a member of the scheme you will be given a user id and password that will let you view your own plan and the value of your investment online. Don t worry if you are not able to or don t want to use the internet to manage your plan; Carey Pensions uk will provide you with help on the telephone. if you have any questions about the scheme please call Carey Pensions uk on They cannot give you advice but they can give you more information to help you make an informed decision. Carey Pensions uk may record or monitor calls to help them improve their service.