Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit)

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1 Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) Please read this document along with your personal illustration (if you have one) before you decide to buy this plan. It's important you understand how the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) works, the benefits and associated risks.

2 Welcome Contents About the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 3 Its aims 3 Your commitment 3 Risks 3 Other documents you should consider reading 4 Questions & Answers Your Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 5 Is the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) right for me? 5 How flexible is it? 5 Can I transfer money in? 5 How much can I pay into my plan? 5 Where are my payments invested? 5 Can I change my investments? 6 Can I transfer money out? 6 What are the charges? 6 What other benefits can I choose? 6 What might I get back? 6 When can I take my benefits? 6 What choices will I have when I want to take my benefits? 7 What about tax? 7 How will I know how my plan is doing? 8 What happens to the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) plan if I die? 8 What happens if I move abroad? 8 What if the plan is not right for me? 9 Where can I get guidance about what to do with my pension? 9 Other information 10 How to contact us 12 We would like everyone to find it easy to deal with us. Please let us know if you need information about our plans and services in a different format. All our literature is available in audio, large print or braille versions. If you would like one of these please contact us using the details on the last page. The Financial Conduct Authority is a financial services regulator. It requires us, Prudential, to give you this important information to help you decide whether our Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) is right for you. You should read this document carefully so that you understand what you are buying, then keep it safe for future reference. 2 Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit)

3 About the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) Our Group Stakeholder Pension gives you the chance to save for your retirement in a tax-efficient way. Its aims What this plan is designed to do To help you save for retirement in a tax-efficient way. To provide protection to cover your payments during illness or injury, subject to conditions. Please note this is not available if you are joining the Prudential Stakeholder Scheme for the first time on or after 17th January Your commitment What we ask you to do To make at least one payment into your plan. To allow the money in your plan to potentially grow until you take your benefits. Risks What you need to be aware of Investing money can be rewarding but it s not without risk. We ve highlighted the key risks you should consider before investing in this product. The value of your plan can go down as well as up and may even fall below the amount you invested what you get back is not guaranteed. Inflation will reduce what you can buy in the future. Levels of risk and potential investment performance differ depending on the funds you choose. Please read your Fund Guide for more information. Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 3

4 Other documents you should consider reading This document gives you key information about the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit). If you want more detail on specific points, please read the following documents. We have highlighted when they are relevant throughout this document. They are all available from your adviser, or direct from us. Our contact details are on the last page. Technical Guide Gives detail on the terms and conditions of the contract Fund Guide This explains your investment choices. 4 Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit)

5 Questions & Answers Your Group Stakeholder Pension and Contribution Protection (Waiver Benefit) Is the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) right for me? The Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) might be right for you if you are looking to save tax-efficiently for your retirement. How flexible is it? You and your employer, if any, can make regular payments or one off lump sum payments into the plan. You can arrange for your payments to be automatically increased each year. If you do increase your payments, you may also need to increase your Contribution Protection (Waiver Benefit). For information on this benefit please see the section 'What other benefits can I choose' You can change your regular payments or stop them at any time, subject to certain minimum restrictions. Any payment protection cover will cease when regular payments stop. If you stop making payments then this will affect the value of your fund when you come to retire. Can I transfer money in? You are able to transfer money into your plan from other registered pension schemes you may have. Transfer values are invested in the same way as single payments, but there is no new income tax relief for a transfer value. How much can I pay into my plan? There is no limit to the amount that you can pay into your Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit). However there are limits on the tax relief you receive. For more information about tax relief. Please see the section 'What about tax?' You can arrange for your payments to be collected from your bank or you can ask your employer to deduct the payments from your salary and pay them directly to Prudential. Where are my payments invested? You choose which funds (up to a maximum of 6) you would like to invest your money in, from a fund range that we offer. We use your money to buy units in those funds. The price of each unit depends on the value of the investment in the fund and also whether more money is going into or out of the fund. For more information please refer to your "Fund Guide" which was supplied with your personal illustration and this Key Features Document. The range of funds you can invest in may be limited by the requirement to remain within the current 1% per annum charge cap applicable to our Stakeholder Pensions. If your employer has chosen a Scheme Investment Strategy for your scheme. Your money will be directed into this arrangement unless you make an alternative investment choice. In April 2015 the Government introduced new quality standards for defined contribution schemes. This is part of the Government s Better Workplace Pensions initiative to give people confidence to save into good pension schemes. If your scheme qualifies under these new standards a charge cap equivalent to 0.75% per year of funds under management, excluding transaction costs will apply to your Scheme Investment Strategy. For more information please speak to your scheme adviser. A Scheme Investment Strategy does not represent a recommendation on behalf of Prudential. For most funds the value of your investment is determined by the fund performance. If the underlying investment fund value grows we increase the price of your units. Equally, if the underlying investment fund value falls, we decrease the price of your units. Different funds invest in different types of assets. For example, some only invest in property, others invest directly in the stock market, and others invest in a wide range of assets. Each fund has its own level of risk and potential for growth. Usually, funds with more potential for growth carry more risk. For more information on our charges please refer to your Fund Guide. Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 5

6 Can I change my investments? You can switch your money between funds at any time. We currently don't charge you for this. If this changes in the future we will let you know. Can I transfer money out? You can transfer your fund to another registered pension scheme at any time. We do not charge you for transferring to a new arrangement. What are the charges? We make charges for managing your plan, investments and paying any commission (please see your Personal Illustration for further details). We deduct an Annual Management Charge from the funds. This charge is already deducted when we work out the full value of your plan. The amount of charge we deduct depends on the funds you choose to invest in and the amount of your original investment and the cost of advice. For more information, please read your Fund Guide. These charges will continue to be applied even if payments cease being made to the plan. Our charges may vary in the future and may be higher than they are now. Further details can be found in the Technical Guide. The charges per year shown are calculated as a percentage of the value of your investment in the fund. These are the charges we take for administering your plan and investments. If your employer is using your plan for qualification purposes under the Better Workplace Pensions initiative, there is currently a charge cap equivalent to 0.75% per year, excluding transaction costs, on the value of money held in the Scheme Investment Strategy. Please read the section Where are my payments invested? for more information. What other benefits can I choose? Contribution Protection will pay the regular payments to your plan if you are off work due to illness or injury. The plan will pay out after a deferred period chosen by you at the start of the plan, if you satisfy the definition of incapacity (for further information please refer to the Technical Guide). You must make all payments for your Contribution Protection cover even if only your employer is contributing to your Pension Plan. Contribution Protection cover will cease when regular payments stop. Should you decide to stop your Contribution Protection cover, your pension plan payments will no longer be protected if you suffer from long-term illness. Please note Contribution Protection (Waiver Benefit) is not available if you are joining the Prudential (SAL) Stakeholder Scheme for the first time on or after 17th January What might I get back? There is a projection of how much you could get back in the illustration you get during the application process for this plan. The size of your fund when you take your benefits will depend on many factors most of which are explained in your illustration. When can I take my benefits? The Government currently allows people to start taking their benefits from the age of 55, even if you are still working. You may be able to start taking your benefits earlier if you are in ill health. 6 Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit)

7 What choices will I have when I want to take my benefits? There will be four main options which may be used in combination: Uncrystallised Funds Pension Lump Sum take a single or series of lump sums from your pension savings. Flexi-access drawdown a new form of drawdown which will allow you to take an unlimited amount of income or lump sums from a pension fund. This will replace flexible and capped drawdown, although existing capped drawdown plans will continue. A pension annuity an investment that guarantees to pay a secure income for the rest of your life, regardless of how long you live. Pension directly from a pension scheme occupational pensions schemes are not changing. You will still be able to draw a pension from any occupational pension scheme you are a member of. Please contact us as you approach retirement and we will let you know which of these options we may be able to offer you. You may have to transfer to another pension arrangement to take advantage of all of these options. Whatever you decide to do with your pension pot you don t have to stay with us. You should shop around and depending on the choices you make, you may find something more appropriate elsewhere, with alternative features, investment options or charges. What about tax? Tax Relief You ll normally receive tax relief on your payments. For every 100 you pay into your plan, HM Revenue & Customs (HMRC) will pay in another 25. You ll get this relief on up to the higher of 3,600 gross (including tax relief) and 100% of your earnings If you pay tax above the basic rate you ll be able to claim back the extra tax relief due through your tax return. Please note tax relief will not apply to the Contribution Protection (Waiver Benefit) aspect of your payments. The scheme financial adviser can tell you about the taxation effect of any payments you make. Annual Allowance The Government limits the amount that can be paid each year, to all your pensions, before incurring a tax charge. This is called the Annual Allowance. If this is exceeded, you may be liable to a tax charge and must inform HMRC through the completion of a tax return. You may be able to carry forward unused allowance from the last three years to increase your limit for the current year. Your Annual Allowance includes all payments from you, your employer, any third party and increases in the value of any salary related pension benefits you may have. Most people won't have pension savings worth more than the lifetime allowance. If your pension savings are worth more than this when you take your benefits, you'll have to pay the lifetime allowance tax charge on the excess unless you have some form of lifetime allowance protection. Tax is a complicated subject and you may wish to seek advice if you feel this will affect you. For more information please visit or visit the HMRC website at Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 7

8 Money Purchase Annual Allowance The Money Purchase Annual Allowance (MPAA) will apply to you if you have flexibly accessed pension benefits on, or after, 6 April Your pension scheme administrator or provider paying these benefits will have informed you if you are subject to the MPAA at the time they paid the flexible benefits. In any year where you exceed the MPAA you may incur a tax charge and you should seek financial advice if you feel this may affect you. Examples of drawing benefits flexibly include taking income from flexi-access drawdown or taking a cash lump sum direct from your pension plan as an Uncrystallised Funds Pension Lump Sum. For more information visit or the HMRC website at Lifetime Allowance The Lifetime Allowance is a limit on the amount of pension benefit that can be drawn from pension schemes, whether lump sums or retirement income, and can be paid without triggering an extra tax charge. If you think you would like to know more about this, you can find more information by visiting or the HMRC website at Tax rules require careful consideration and you should speak to a financial adviser if you feel this may affect you. Capital Gains Tax You don t pay capital gains tax on your pension funds. Income Tax Any pension income will be taxed as earned income. This information is based on our understanding of current taxation, legislation and HM Revenue & Customs practice. These tax rules could change in the future without notice. The impact of taxation and any tax relief depends on your individual circumstances. For more information about tax, please go to HMRC s website: How will I know how my plan is doing? We'll send you a yearly statement to show how your plan is doing. You can get an up to date valuation from our Customer Services Department, by phoning or writing to us. What happens to the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) plan if I die? We will normally pay the value of your fund as a lump sum. Prudential will decide who should receive the benefits. We take into account your circumstances when you die and anyone previously nominated to receive benefits. Benefits payable on death from this registered pension scheme are not subject to income tax and there is normally no inheritance tax payable. Where we do not have discretion over to whom benefits are paid there may be an inheritance tax liability if they form part of your estate. If the value of all death benefits paid as a lump sum from this and any other scheme are more than the Lifetime Allowance, there will normally be a tax charge. What happens if I move abroad? Please note Prudential is not able to accept new monies from customers living overseas. If you move abroad and are no longer a resident of the UK this will have an impact on your ability to contribute to this product. 8 Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit)

9 What if the plan is not right for me? Group Stakeholder Pension You have 30 days from the date you receive your plan documents to cancel your plan. This is normally called a cooling-off period. To cancel it, please complete and return the Cancellation Notice that we send you with your plan documents, or write to us at: Prudential Customer Services Prudential Lancing BN15 8GB Please include your reference number. Once we receive your cancellation instruction, we'll give you all your money back. However, if you start your plan with a one-off payment, we ll value your units on the date we receive your cancellation instruction. If the value of your units has fallen, you will get back less than you paid in. Where can I get guidance about what to do with my pension? In addition to the support from your adviser, two free and impartial services, set up by the Government, are available to give you more information about pensions. General guidance on all aspects of pensions is available from The Money Advice Service, Telephone For people over 50, Pension Wise is also available. This Government service offers guidance to people with personal pensions on all the options available for their pension savings. You can have a free consultation online, over the phone and face to face. Find out more at Telephone Contribution Protection (Waiver Benefit) Your Contribution Protection will be cancelled when you cancel your pension plan. You have a statutory right to cancel within 30 days. You are also able to cancel your Contribution Protection separately from your pension plan. To do this you must use the notice of right and return this to us within 30 days of receipt. If you do not exercise your right to cancel within the 30 day statutory period, the contract will become binding. We ll not return any money to you except in the form of a benefit payable in accordance with the rules. Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 9

10 Other information Client category We classify you as a "retail client" under Financial Conduct Authority (FCA) rules. This means you'll receive the highest level of protection for complaints and compensation and receive information in a straightforward way. Financial Strength Prudential meets EU standards for meeting its financial obligations. You can read our solvency and financial conditions reports at or if you contact us we can post some information to you. Compensation If we get into financial difficulties which may affect our ability to pay your claim, you may be eligible to receive compensation under the Financial Services Compensation Scheme (FSCS). The FSCS is an independent body set up by the Government to provide compensation for people where their authorised financial services provider gets into financial difficulties and becomes unable, or unlikely to be able, to pay claims against it. This circumstance is widely referred to as being "in default". It is important for you to be aware that you may not always be able to make a claim under the FSCS, and there are also limitations in the amount of compensation you may receive. Any compensation available will depend on your eligibility, the type of financial product or service involved, the investment funds selected (if applicable) and the circumstances of the claim. You can find out more information on the FSCS and examples of limits in the scope of FSCS cover for your plan at or you can call us. Information is also available from the Financial Services Compensation Scheme. Visit their website: Or write to: The Financial Services Compensation Scheme PO Box 300 Mitcheldean GL17 1DY Or call the FSCS: Telephone: Terms and conditions This Key Features Document gives a summary of your plan. Details are set out in our Technical Guide which is available on request using our contact information on the last page, and will also be sent to you when your plan starts. Conflict of Interest We want to make sure that we uphold our reputation for conducting business with integrity. If we become aware that our interests may conflict with yours we will take all reasonable steps to manage it in an appropriate manner. We have drawn up a policy to deal with any conflicts of interest. If you would like to know the full details of our Conflict of Interest Policy, please contact our Customer Service Team on the contact details on the last page. Law The law of Scotland will apply. Prudential's Liability Our liability under any fund that we make available under the Premier Group Stakeholder Pension cannot exceed the value of the assets underpinning that fund, whether these assets are actual assets, an interest in another fund (whether managed by a company within the Prudential group or by an external company) or an interest in a reinsurance policy effected by us to reinsure our liability under a fund. In particular, for Prudential unit-linked funds which are invested solely in funds operated by another company within the Prudential group or externally-linked funds, our liability is limited to the amount we can claim from the relevant company. So, for example, if the external company or the other company within the Prudential group, were to become insolvent, we could only pay the amount, if any, which we could collect under the insolvency in respect of the units allocated to the plan. In addition, we are not liable for any losses caused by the acts and omissions of an external company in respect of its own fund and/or the externally-linked fund. 10 Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit)

11 Our regulators We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Prudential Assurance Company Limited is entered on the Financial Conduct Authority (FCA) Register, FCA Reference Number The FCA Register is a public record of all the organisations that the FCA regulates. You can contact the FCA at: The Financial Conduct Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: or consumer.queries@fca.org.uk Prudential Regulation Authority details: The Prudential Regulation Authority Bank of England Threadneedle St London EC2R 8AH Telephone: enquiries@bankofengland.co.uk Communicating with you Our plan documents and terms and conditions are in English and all our other communications with you will be in English. How to make a complaint If you have a complaint, please get in touch with us and we will do everything we can to resolve it. You can also ask us for details of our complaints handling process. Our contact details are in the "How to contact us" section at the back of this document. If you re not satisfied with our response, you can take your complaint to the Financial Ombudsman Service who help settle individual disputes between consumers and businesses providing financial services: Financial Ombudsman Service Exchange Tower London E14 9SR Telephone: or Or visit the website: Help is also available from the following bodies: The Pensions Ombudsman 11 Belgrave Road London SW1V 1RB Telephone: The Pensions Ombudsman is an independent organisation, set up to investigate complaints about pension administration. The Pensions Advisory Service (TPAS) 11 Belgrave Road London SW1V 1RB Telephone: The Pensions Advisory Service is an independent, Government funded body that gives free advice to members of the public about pensions. These services free and using it them won t affect your legal rights. Key Features of the Premier Group Stakeholder Pension and Contribution Protection (Waiver Benefit) 11

12 How to contact us If you want to contact us before you buy this plan, you can write or phone: Write to: Prudential Lancing BN15 8GB UK Phone: Monday to Friday 8am 6pm. We may record or monitor calls to improve our service. If you are a deaf customer, who is also a British Sign Language (BSL) user, you can contact us using a Video Relay service. The service, provided by SignVideo, connects customers to fully qualified, registered NRCPD interpreters who will relay your conversation with a member of our customer service team. There is no cost for using this service to call Prudential and we re available to help you Monday to Friday, 8am to 6pm. Keep in touch It s important that we keep in touch so, if you change your address or any of your contact details, please let us know. Prudential is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group. Registered office at Laurence Pountney Hill, London EC4R 0HH. Registered number Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. P563A 11/2017