The Gist Limited Pension Scheme Summary Report and Accounts 2018.

Transcription

1 The Gist Limited Pension Scheme Summary Report and Accounts 2018.

2 2 3 Chair s welcome Welcome to the 2018 Summary Report and Accounts for members of the Gist Limited Pension Scheme (the Gist Scheme). In this year s edition, you can find the latest figures from the Gist Scheme s annual Report and Accounts, including investments and membership. We have also included some pensions news, with information about pension scams as well as a Brexit update ahead of the UK s planned exit from the European Union in March Finally, you should have received a communication including our privacy policy earlier this year about changes to the way we use your data. Since the privacy policy was issued, there have been a few updates. To read the updated policy, head to We re always looking to add useful content to our newsletters, so if you have any comments or suggestions let us know by using the contact details on the back page. Martine Trouard-Riolle (on behalf of Capital Cranfield) Chairman of the Trustee Board Pensions news Be savvy about scams You may have seen in the news that pension scams are becoming more common. In 2017, the average victim of a pension scam lost 91,000. Don t let yourself become a victim. The Financial Conduct Authority (FCA) has recommended four steps to avoiding scams: REJECT UNEXPECTED PENSION OFFERS CHECK THAT THE PERSON CONTACTING YOU IS REGISTERED WITH THE FCA TAKE YOUR TIME DON T GIVE IN TO PRESSURE Contents Pages 3-5 Pensions news Page 6 Financials introduction Page 7 Gist Scheme accounts i CONSIDER GETTING IMPARTIAL INFORMATION OR ADVICE For more guidance from the FCA, visit To find an Independent Financial Adviser, go to Always make sure your financial adviser is registered with the FCA. Pages 8-9 Investments Page 10 Who looks after the Gist Scheme? Page 11 Allowances update

3 4 5 Pensions news (cont) Check your State Pension age When planning for retirement, it s important to account for other sources of income you may have. To check the age that you can expect to start receiving your State Pension, use the Government s online calculator at Brexit update On 29 March 2019, the UK will complete the Article 50 process which will see us leave the European Union. Here are a few answers to some questions you may have. Is my pension at risk? The Trustee reviews investments on a quarterly basis, and the potential impact of Brexit on the Gist Scheme is being monitored closely. Preparations as far as investments are concerned have mostly been completed. As a member or beneficiary of a defined benefit pension scheme, your retirement benefits are based on your Final Pensionable Earnings, your Pensionable Service, and an accrual rate. As your pension is paid from the Gist Scheme s money instead of a personal pot of money, the Trustee reviews funding risks, especially to investments, and acts accordingly. If there were any shocks in the market, or other short-term risks, the Trustee is well equipped to deal with them. What other risks in relation to the Gist Scheme are there when we leave? The Trustee monitors risks on a regular basis. All sorts of issues, whether political or economic, have the potential to affect investments. This is why the Trustee invests in a wide range of funds, both inside the UK and overseas, to manage potential risks. The Trustee will continue to keep a close eye on political developments, as it always does. What will the impact be on the Company? No business can be 100% certain of the exact impact that Brexit will have on it. However, the Company is confident in its preparations, and there will be no impact on the Gist Scheme s ability to pay pensions. The Trustee is fully committed to paying members pensions in full, regardless of political developments in the UK and elsewhere. i Brexit is a fast-moving news item. To be sure that the information on this page is up to date, please continue to refer to our latest communications, as well as visiting

4 6 7 Financials introduction The Trustee publishes an Annual Report and Accounts every year. This shows how the Gist Scheme s finances have developed over the year. The Gist Scheme s income and expenditure for the years ended 31 March 2018 and 31 March 2017 are shown in the charts below. You can download the full report from the website at or you can request a copy from BOC Pension Services using the contact details on the back page. Fund value at 1 April 2017 Fund value at 1 April 2016 Gist Scheme accounts Income and expenditure A breakdown of the Gist Scheme s income (money paid in) and expenditure (money paid out) is shown below. Income 2018 Income 2017 Member contributions Company contributions 1 Other income 0.165m m 0.120m Member contributions Company contributions 1 Other income 0.156m m 0.289m Total income m Total income m m m 1 Company contributions include member contributions paid via Salary Exchange and additional contributions made by the Company to strengthen the Gist Scheme s funding position. It also includes reimbursement of the Pension Protection Fund (PPF) levy by the Company. Fund value at 31 March 2018 Fund value at 31 March m + + Income m _ Expenditure 1.917m + Return on investment* Income m _ Expenditure 1.803m + Return on investment* m = = m Expenditure 2017 Benefits Leaver payments Other payments Administration expenses 2 2 Administration expenses include the PPF levy. Membership m 0.123m 0.242m 0.594m Expenditure 2016 Benefits Leaver payments Other payments Administration expenses 2 Deferred members Pensioner members m 0.141m 0.195m 0.531m Total expenditure 1.917m Total expenditure 1.803m Active members *After management charges

5 8 9 Investments When managing investments, the Gist Scheme tries to make sure that the money it has (known as assets) keeps up with the cost of paying benefits to members (liabilities). Strategy The Trustee is responsible for the allocation of assets and monitoring the investment managers. Acting on the recommendation of the investment adviser, the Trustee decides on an investment strategy. Once the strategy has been agreed, the funds are managed on a day-to-day basis by the investment managers. To make sure there s a balance between risk and return, the Gist Scheme s investments are split between growth and protection assets. You can see how the Scheme s assets were invested (as an allocation %) at 31 March 2018 in the chart below. Investment review Investment management Before August 2017, the Trustee used an Investment Manager (BlackRock Investment Management Limited) and an Investment Consultant (Mercer Ltd) to manage the Scheme s assets. However, this was reviewed and on 4 August 2017, BlackRock Investment Management (UK) Limited took over these roles as a Fiduciary Manager. What is fiduciary management? It s an approach to managing assets where a trustee board appoints a third-party company to manage the total assets of the scheme. This is done with a combination of advice and delegated investment services, all with the aim of achieving the trustee s investment objectives. Investment performance * for the period ending 31 March 2018: Allocation of assets Protection assets Growth assets 40% Liability driven investments (LDI) 41% 2.98% 0.44% 2.21% *Net of fees Month to date Year to date Since appointment of Fiduciary Manager Fixed income 19% Gist Scheme asset allocation at 31 March 2018 Returns on investments 2018: 2017: Investment income 3,528 1,895 Change in market value of investments 4,489,850 13,380,480 Investment management expenses (379,536) (223,009) Net returns on investments 4,113,842 13,159,366

6 10 11 Who looks after the Gist Scheme? There are currently six Directors on your Trustee Board. Four of these are appointed by the Company, and two are nominated and elected by members of the Gist Scheme. We also use several advisers and administrators to help us in the running of the Scheme. Allowances update Pensions are a very tax-efficient way to save, but there are some limits on how much you can save without incurring tax charges. The two main ones to look out for are the Annual Allowance (AA) and the Lifetime Allowance (LTA). Annual Allowance This is the maximum amount of benefits you can build up (excluding the State Pension) each year without incurring tax penalties. Company-Appointed Directors Capital Cranfield Professional Trustee represented by Martine Trouard-Riolle (Chair) Mike Dowe Gist, Basingstoke Ray Francis Gist, Basingstoke Rob Jurkowski Group, Guildford Member-Nominated Directors Neville Shiggins Gist, Barnsley Phil Struthers Gist, Basingstoke Advisers and administrators Scheme Actuary Richard Shackleton, FIA, Hymans Robertson LLP Auditor Ernst & Young LLP Legal Adviser Mayer Brown International LLP Investment Adviser Mercer Ltd Investment Manager Scottish Equitable plc (Part of Aegon UK) Medical Adviser Medigold Health Bank HSBC Bank plc Benefits Administrators BOC Pension Services & ADP (Pension Payroll) 2018/19 tax year 40,000 This may be lower if you re affected by the Tapered Annual Allowance, which may affect you if your income is more than 110,000 a year, subject to certain rules. Lifetime Allowance This is the limit on the total value of all pension savings you can build up throughout your lifetime (excluding your State Pension) without incurring tax penalties. 2018/19 tax year 1.03m 2019/20 tax year 1.055m You can find out more about these limits by visiting:

7 Legal note Please note that this newsletter is intended to provide information and nothing in it grants any legal right to benefits. Your entitlement to benefits is defined in the Trust Deed and Rules (as amended from time to time) at the date you leave service. You can download a copy of the current Trust Deed and Rules from the website at or request one from BOC Pension Services. If you are a pensioner or a deferred member you should ask for a copy of the edition which applied when you retired or left service. Nothing in this newsletter constitutes financial advice. It is your responsibility to obtain financial advice if you decide that you need it. To find details of financial advisers in your area visit Designed and produced by AHC_2018_ Contact details BOC Pension Services The Priestley Centre 10 Priestley Road The Surrey Research Park Guildford Surrey GU2 7XY Helpline: Fax: pensions.uk@boc.com Website: Scan the QR code to visit our website