WELCOME TO A SUMMARY OF THE LATEST TRUSTEE REPORT AND ACCOUNTS

Transcription

1 BAYER GROUP PENSION PLAN WELCOME TO A SUMMARY OF THE LATEST TRUSTEE REPORT AND ACCOUNTS The following sections provide you with a summary of the key information about the Plan as at 31 March Your feedback You provided some really valuable feedback on the first online edition of the Report and Accounts summary. Your comments, as we continue to develop our paperless approach, are very welcome so once you ve had a look around please visit the feedback section towards the bottom of the online report. News from the Trustee Board We welcomed two new Trustee Directors to the Board during the last Plan year. On 26 March 2015, the term of office ended for one of our Member Nominated Directors and an election was held to elect a replacement who was appointed on the same date. We also filled the Company Nominated Director vacancy that was left at the end of the last Plan year, also with effect from 26 March As always, I would like to thank all of the Trustee Directors for their contribution during the year. (You will notice that we are unable to publish the names of individual Trustee Directors online. We do this with their safety and privacy in mind, as this is a widely accessible website.) Actuarial Valuation If you also have benefits in the Plan, you may be interested to know that the Plan s valuation as at 31 March 2014 has now been completed. We sent you a Summary Funding Statement in September 2015 which included an overview of the results, as well as a further funding update as at 31 March You can find a summary in the Q&A section of this report. Pension Matters In December 2015, we also sent you our latest newsletter, Pension Matters, which gave an update on latest developments and Trustee activities. You can also find a copy in the Pension Matters section of the website at As always, if you require any further information about your benefits from the Plan, please contact us Chairman of the Trustee This is the second year that we have provided the summary in an online format, as part of our new paperless initiative. Even though you are viewing the downloadable version, I hope you liked the online format. Please take a moment when you ve finished reading to tell us what you think at 1 TRUSTEE REPORT AND ACCOUNTS

2 ANNUAL REPORT... Each year, the Trustee is required to produce a formal Report and Accounts. The total Net Assets of the Plan as at 31 March 2015 were 1,452,605. Of this, 86,363 was in respect of the, 569,998 in respect of the, 684,559 in respect of the and 111,685 in respect of the. These include the Plan investments, cash held in bank accounts and contributions due, minus benefit payments due out. You can also review the full Report and Accounts which is available at Breakdown of Net Assets of the Plan for the year ended 31 March 2015 Group Group Total Net Assets as at 1 April 2014 Company and Member contributions and transfers in Benefits payment and administration expenditure 69, , ,702 93,984 1,223,869 9,812 3,414 21, ,639 (1,688) (17,732) (28,104) (2,729) (50,253) Net Return on assets 8, , ,742 20, ,350 Net Assets as at 31 March , , , ,685 1,452,605 Membership The Group, and are closed to new Members and the is open to new Members. On 31 March 2015, the total number of Plan Members was 8,668 split as follows: Active Pensioners Deferred Group Only 32 1,429 1, Only 12 1,992 1, Only Only Total 924 3,680 4,064 Group If you are not sure what type of Member you are, visit to view our What kind of Member am I? flowchart. 2 TRUSTEE REPORT AND ACCOUNTS

3 How Members were investing on 31 March 2015 On 31 March 2015, the investments of the were valued at 86.5m, compared to 70m on 31 March Fund name Long-Dated Gilt Fund 1,976 Global Equity Fund 39,233 Inflation Protection Fund 3,463 UK Equity Fund 6,135 Fidelity BlackRock Cash Fund 1,391 Target Return Fund 28,853 Corporate Bond Fund 1,606 Property Fund 674 Emerging Markets Equity Fund 3,171 Total 86,502 How the investment funds have performed The graph shows how the funds have performed over 1 year, 3 year and 5 year periods: % Return Long- Dated Gilt Fund Global Equity Fund Inflation Protection Fund UK Equity Fund Fidelity BlackRock Cash Fund Target Return Fund* Corporate Bond Fund* Property Fund* Emerging Market Equity Fund* 1 year 3 years (annualised) 5 years (annualised) *Please note that no five year data is available as this is a recent addition to the fund range. 3 TRUSTEE REPORT AND ACCOUNTS

4 Q&A... How do I get online access to my Account? PlanViewer is a dedicated online service that lets you monitor the progress of your Retirement Account. You can log in at On joining the Plan, Fidelity would have provided you with log in details. If you no longer have those or need any assistance, please contact Fidelity on What are equities, bonds, property and cash? Equities involve buying stocks and shares in listed companies. Historically, investment in equities has delivered higher returns than other investment asset classes, however, they are also seen as the riskiest. Bonds are loans issued by companies or governments when they need to raise money. Bonds issued by the UK government are known as gilts. The returns from bonds tend to be lower but more consistent than equities. Property investments are traditionally bricks and mortar. There are five main types of property that can be invested in office, retail, industrial, leisure and residential. Returns represent any growth in the capital value of the properties, plus a share of the rent paid by tenants after costs. Cash investments include bank or building society accounts, bank deposit certificates and cash funds provided by investment management companies. They are the most secure of asset classes but offer the lowest level of returns. Where can I find more information about the Plan s finances? You can find a copy of the full Report on our website If you are a Member and are interested to know more about the funding of the section, you can request a copy of the latest Actuarial Valuation by contacting us: Group Pension Plan Capita, Hartshead House, 2 Cutlers Gate, Sheffield, S4 7TL bayergroup@capita.co.uk Tel: If you also have benefits in the of the Plan you may also be interested to know A full Actuarial Valuation of the Group Pension Plan was conducted as at 31 March The table below provides a small summary of the latest Plan valuation results and provides an update to 31 March Assets to meet benefits due 1,364m 1,152m 1,124m Amount needed to provide benefits (technical provisions) 1,482m 1,246m 1,299m Deficit 118m 94m 175m Funding position 92% 92% 87% You can also read a summary of the valuation by viewing Funding Statement September 2015, under the Pension Matters section of our website The next full Actuarial Valuation is due to be carried out as at 31 March TRUSTEE REPORT AND ACCOUNTS

5 WHAT DO YOU THINK? We re keen to hear what you think of this year s online Report and Accounts. If you have any feedback, good or bad, please take the time to tell us what you think at CONTACT... If you have any questions about the Plan in general, your benefits, or you need to let us know about any changes in your circumstances, please contact: Fidelity Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP pensions.service@fil.com Tel: UK Overseas +44 (0) TRUSTEE REPORT AND ACCOUNTS