WELCOME TO YOUR NEW LOOK PENSION SCHEME.

Transcription

1 WELCOME TO YOUR NEW LOOK PENSION SCHEME. YOUR FUTURE. YOUR JOURNEY. May 2016 Working in association with:

2 2 WORKING HARD? ONE DAY YOU MAY NEED TO SLOW DOWN. What will the State Pension provide? If you retire after 6 April 2016, the FULL* new State Pension will be no less than: a week Will this amount be enough for you to live on? What would you need to cut down on? And what if you want a little fun? Is it enough for a decent retirement? Relying on the State Pension as your sole source of income could be tough - you might be surprised at how your lifestyle may have to change if you had to do so. Having the opportunity to join a pension plan through New Look Retailers Limited ( New Look ) is a great way to start saving for your future. *Please visit the Government s State Pension Factsheets for more information.

3 3 Why a workplace pension? It is the most efficient way for you to save for your retirement. What s in it for me? Employer contributions. New Look pays in and you add to their contributions to build up your pension pot even faster. Why should I save now? Simple: The sooner you start the better. Starting early means more contributions and your pension pot has longer to grow. A pension is a long-term savings plan and although you may not see the benefits immediately in your day-to-day life, you ll be grateful that you ve money to rely on later in life. Your contributions. Contributions that you pay in are invested tax efficiently. People are living longer. This means your pot needs to be big enough to last. Tax relief. Even better, the taxman makes a contribution. Access to your money. You can start taking your money out from age 55. Some of it will be tax free. Rising costs. There s no way of knowing how much things will cost in the future. The value of your money today can change over the years due to inflation. Don't delay. You could be missing out! The longer you wait to save into a pension plan, the more you will have to contribute later to meet your retirement goals.

4 START 4 How does it work? GO! You can join the Scheme if you meet the criteria set out on page 7. You can pay in more when you want for as long as you want. You can transfer in other pots too. You can manage your pension pot online through Manage Your Account. You contribute to your pension pot each month. Your pot is invested in tax efficient funds. You can change where your pot is invested at any time. You can start to access your pension pot from age 55. New Look also contributes. The tax man throws his bit into your pot too. CONGRATULATIONS! You ll have a number of options available (including a 25% taxfree cash lump sum). See page 26 for details. FINISH

5 5 What else do I need to know? We ve put together a list of Frequently Asked Questions that cover your journey in more detail. These are split over six sections: JOINING PAGE 7 Find out how to join the Scheme. CONTRIBUTING PAGE 9 You and New Look both contribute to the Scheme. See how it affects your take home pay. INVESTING PAGE 20 Find out what your investment options are. YOUR BENEFITS PAGE 24 This section covers how you can use your pension pot. FURTHER INFORMATION PAGE 32 This section covers all the other details including leaving the Scheme. USEFUL CONTACTS PAGE 35 Here you can find contact details for Legal & General, your employer and organisations that can help you.

6 ABOUT THIS GUIDE. 6 New Look has chosen the Legal & General WorkSave Mastertrust (RAS) to help you save for your future. The Mastertrust is a Defined Contribution (or Money Purchase) pension scheme which different employers can join. What do the blue terms mean? We ve tried to make this guide easier to understand by using plain English where we can. Where we ve had to use a term that you might not be familiar with, we ve highlighted it in blue the first time the term is mentioned on a page. You ll find a definition of each of these terms at the back of this guide. New Look s section of the Mastertrust is called the New Look Pension Scheme. Throughout this booklet, when we refer to the Scheme we are referring to New Look Pension Scheme. Important: This guide is based on the legislation that was in force in May It contains a number of tax year specific references and details of investment charges which were correct at that time. For the most recent tax year information, please see the Tax Year Rates and Allowances sheet on your Scheme website. For details of investment charges please see the Investment Guide on your Scheme website.

7 JOINING 7 CAN I JOIN THE SCHEME? As an employee of New Look, you can join the Scheme if you re aged over 16. How do I join? There are two ways to join: 1. by automatic enrolment. You will join the Scheme without having to complete any form of application. The law requires every employer to enrol certain employees into a pension scheme. You ll be enrolled into the Scheme if: you are at least 22 years old; and you are below State Pension age; and you work in the United Kingdom under your contract of employment; and your earnings exceed the earnings threshold. The earnings threshold is set by the Government and is reviewed each year. 2. by completing an application form. You can join the Scheme even if you don t fit the automatic enrolment conditions. For example, if you are over 16 but under 22 or if you earn less than the earnings threshold. You can apply to join the Scheme by completing a Scheme Joining Form, which is available from your Scheme website. Alternatively you can contact New Look and ask them to send you a copy of the form. For details of who to contact, please go to Useful Contacts on page 35. For more information on the earnings threshold, automatic enrolment and how you might be affected, please go to your Scheme website.

8 JOINING 8 What happens if I don t want to be in the Scheme? If you have been automatically enrolled you will have one month to opt-out. Your contributions less tax and, if appropriate, National Insurance, will be returned to you. This will put you in the same position you would have been in had you never been enrolled into the Scheme. Details of how to opt-out and the deadline for you to do this will be contained in your enrolment letter. You can, of course, decide at any time that you no longer wish to be in the Plan/Scheme. If this is the case you will have a number of options including: 1. Leave your pension pot in the Scheme; 2. Transfer the value of your pension pot to another pension arrangement; or 3. If you re old enough, take your benefits. Can I start or restart contributions to the Scheme at a later date? If you are employed by New Look you can join the Scheme or restart contributions in April and October. Please see Can I join the Scheme? section on page 7 for details of how to do this. Can I join the Scheme if I m already contributing to another pension Scheme? You can pay into as many pension schemes as you like but New Look will only contribute into this Scheme on your behalf. Full details of your options are set out on pages 29 and 30. You should give serious consideration to the consequences of not saving enough for your retirement. You should also be aware that if you stop contributing to the Scheme, New Look will stop contributing to your pension pot.

9 CONTRIBUTING 9 HOW DOES THE SCHEME WORK? The Scheme is a long-term savings account designed to help you build up a pension pot, which you can use to provide you with an income and lump sums on or after age 55. This section provides an overview of: what you and New Look have to pay the tax advantages of paying into a pension your investment options how much you ll have to pay in charges. What is pensionable pay? This is used for calculating your and New Look s contributions. This is your basic pay excluding any bonuses, overtime, one off payments, benefits in kind (such as cars, car allowances and health care), and any other amount as determined by New Look. How much will I pay into the Scheme? If you join the Scheme, the contributions New Look will make and the minimum contributions you must make are shown in the applicable table on pages 10, 13 and 14. To see how these contributions are calculated, please refer to the relevant example on pages 39 and 40. If you re not sure what your contribution level is, please contact New Look who ll be able to confirm this for you. For details of who to contact, please go to Useful Contacts on page 35.

10 CONTRIBUTING MINI SECTION 10 CONTRIBUTIONS MINI SECTION. Contributions as a percentage of pensionable pay Period Member New Look Total Contributions deducted from your pay Up to September 2017 October 2017 to September 2018 October 2018 onwards 1% 1% 2% 3% 2% 5% 5% 3% 8% Important: If you are a Support Centre Manager, Head of Department, Director or any other category of staff with at least 1 years service, you will be able to trade up to the Maxi section of the Scheme. It s important to remember that the more you pay into the Scheme, the better the likely outcome for you. One way to maximise the benefits you will receive in retirement is to regularly review your contributions.

11 CONTRIBUTING MINI SECTION 11 How do I pay into my pension pot? How do contributions work? If you pay your contributions into the Scheme as part of the Mini section your pension contributions will be taken from your pay and paid to Legal & General through New Look s payroll. This means that the money you pay towards your pension is taken from your pay after tax has been deducted. Basic rate tax relief is then added to your contribution (even if you don t pay tax), so that for every 80 you pay in, 20 is added. If you pay more than the basic rate of tax, you can claim back additional tax relief from Her Majesty s Revenue & Customs (HMRC). Your contribution For every 80 you pay into your retirement pot, you ll get an extra 20 from the Government as tax relief. New Look s contribution Your pension pot

12 CONTRIBUTING MINI SECTION 12 EXAMPLE In this example, you contribute 1% of your pensionable pay. New Look also contributes 1%. Based on earnings of 16,000 a year, the monthly contribution to your pension would be: = Your contribution Income tax 2.67 New Look s contribution Total paid into your pension pot For a full break down of how this example has been calculated, please refer to page 39.

13 CONTRIBUTING MAXI SECTION 13 CONTRIBUTIONS MAXI SECTION. Contributions as a percentage of pensionable pay Member New Look Total Staff & Junior Managerde through Staff & Junior Manager 1% 1% 2% 2% 2% 4% 3% and over 3% 6% and over Member New Look Total Managermade through Staff & Junior Manager 1% 2% 3% 2% 3% 5% 3% and over 5% 8% and over Important: Under current legislation the minimum contribution you will have to make is 3% of your pensionable pay from October 2017 and 5% of your pensionable pay from October 2018 onwards. It s important to remember that the more you pay into the Scheme, the better the likely outcome for you. One way to maximise the benefits you will receive in retirement is to regularly review your contributions.

14 CONTRIBUTING MAXI SECTION 14 CONTRIBUTIONS MAXI SECTION (CONT). Contributions as a percentage of pensionable pay Member New Look Total Head of Department / Controllerde through Staff & Junior Manager 1% 3% 4% 2% 4% 6% 3% and over 8% 11% and over Member New Look Total 1% 6% 7% Directormade through Staff & Junior Manager 2% 7% 9% 3% 8% 11% 4% 9% 13% 5% and over 10% 15% and over Important: Under current legislation the minimum contribution you will have to make is 3% of your pensionable pay from October 2017 and 5% of your pensionable pay from October 2018 onwards. It s important to remember that the more you pay into the Scheme, the better the likely outcome for you. One way to maximise the benefits you will receive in retirement is to regularly review your contributions.

15 CONTRIBUTING MAXI SECTION 15 How do I pay into my pension pot? If you pay your contributions into the Scheme as part of the Maxi section you can pay money into your pension pot by having your contributions: paid through salary sacrifice (also known as salary exchange) taken from your pay after tax and National Insurance deductions. Paying contributions by salary sacrifice New Look will automatically include you in salary sacrifice unless: you earn less than the pay protection limit, or you would prefer to have your contributions taken from your pay. If you earn less than the pay protection limit Salary sacrifice may not be appropriate for everyone. You won t be included in salary sacrifice if you earn less than the pay protection limit because it wouldn t be to your financial advantage. Instead, your contributions to the Scheme will be deducted from your pay. Making contributions from your pay If you wish, you can have your contributions taken from your pay and have them paid to Legal & General through New Look s payroll. Basic rate tax relief is then added to your contribution so that every 80 you pay is treated as a contribution of 100. This applies even if your income is below the level where you pay tax - you still receive tax relief on any contributions you pay up to the amount of your earned income in the tax year. If you pay more than the basic rate of tax, you can claim back additional tax relief from HMRC. Tax relief limits You ll receive tax relief on any contributions you make provided your contributions to the Scheme and any other pension schemes, do not exceed the annual allowance. Any contributions made by you or on your behalf are taken into account. When you come to access your pension pot, there are some circumstances where your annual allowance will be reduced. We ll tell you if this applies to you. You ll get tax relief on your contributions up to 100% of your earned income, subject to the annual allowance. You won t receive tax relief on any contributions you make to the Scheme after your 75 th birthday.

16 CONTRIBUTING MAXI SECTION 16 How does salary sacrifice work? Under salary sacrifice you agree to reduce your pay in return for a benefit of the same value. This means your pay is reduced by the amount you would otherwise have paid into the Scheme. New Look then pays this amount into the Scheme for you, together with their contribution. Because salary sacrifice reduces your pay, any National Insurance contributions you pay are also reduced, which will save you money. Your salary You choose to give up part of your salary which means If you re a higher rate tax payer, salary sacrifice also provides full tax relief immediately which means you won t have to spend time claiming tax relief from HMRC. New Look reserves the right to withdraw salary sacrifice at any time. Your salary is lower so: You pay less income tax You pay less National Insurance New Look pays the amount you ve given up into your pension pot as well as their own contribution Your take home pay is slightly higher than if you paid contributions directly to the Scheme yourself New Look has produced a short guide which includes examples of how salary sacrifice can affect your take home pay. Please see the Scheme website for more information.

17 CONTRIBUTING MAXI SECTION 17 EXAMPLE In this example, you sacrifice 3% of your pensionable pay and New Look contributes the same. Based on a basic rate taxpayer (for the 2016/17 tax year) earning 20,000 a year, the monthly contribution to your pension would be: = The cost to you 34 Income tax and NI 16 New Look s contribution 50 Total paid into your pension pot 100 For a full break down of how this example has been calculated, please refer to page 40.

18 CONTRIBUTING 18 Can I change how much I pay into my pension pot? You can change the amount you pay into your pension in April and October. Providing you ve notified New Look in time for your request to be processed, any such change will be made the next time you are paid. What happens during periods of temporary absence? You may continue to receive contributions into your pension pot during certain periods of absence from work (for example maternity leave) in accordance with New Look s Human Resources policy. New Look can provide you with more information on this. Can I make additional payments into the Scheme? You can make additional contributions into the Scheme, although New Look will only pay up to the contribution levels set out in the tables on pages 10, 13 and 14. You can also make one-off contributions into the Scheme by making a payment direct to Legal & General. To top up your pension pot in this way, contact Legal & General. For details of who to contact, please go to Useful Contacts on page 35. Important: The more you pay into your pension pot, the better the outcome for you. Regularly reviewing your pension pot and how much you can afford to contribute will help to maximise the benefits you will receive.

19 CONTRIBUTING 19 Can I transfer other pension benefits into the Scheme? You can normally transfer other pension benefits into the Scheme. To transfer benefits into the Scheme please contact Legal & General. For details of who to contact, please refer to Useful Contacts on page 35. Neither New Look nor Legal & General can advise you on this option or accept any responsibility for your decision. Before deciding to transfer any benefits from another pension scheme you should consider taking financial advice. How do I transfer? Before you decide to transfer any benefits from another pension scheme you should consider taking financial advice. If you decide to transfer, you can provide your previous pension scheme details to Legal & General. If you transfer in benefits from another pension scheme you will not be entitled to a refund of contributions. Legal & General will contact your old pension provider. Your existing pension pot will be transferred into your new Scheme.

20 INVESTING 20 HOW IS MY PENSION POT INVESTED? When you first join the Scheme, the Trustees will invest your pension pot in the default option. The default option for the Scheme is the Legal & General (PMC) Multi-Asset Fund 3. What is the aim of the default option? This fund has been chosen by the Trustees because it invests in a diverse range of assets with the aim of providing investment growth over the long term. Through its diversified approach, the default option aims to achieve a balance between risk and reward. Is the default option the right choice for me? There is now more flexibility than ever before about how you access your pension pot. So it s now more important than ever that you regularly review your investment choice so it helps achieve your retirement goals. Depending on your preferred retirement choices, you should check that the default option or your own investment choices match your retirement goals. If in any doubt you should seek assistance of a financial adviser to ensure your investment choices fit your personal circumstances and retirement goals. As you approach your selected retirement age we will write to you about moving your pension savings into assets more closely aligned to how you intend to take your money. For a more detailed description of your default option, and your other investment options, please see the Investment Guide on the Scheme website.

21 INVESTING 21 Where can I invest my pension pot? If you wish to make your own investment decisions, you ll find more information about the investment choices available to you in the Investment Guide on the Scheme website. Could my investment options change? The Scheme investment options are reviewed regularly by the Trustees and may be subject to change. If any amendments are made you will be notified. Can I change how my pension pot is invested? Leave your pension pot in the default option You join the Scheme All contributions go into the default option You can choose to Switch out of the default option and into one or more of the funds in the remaining fund range You can change how your pension pot is invested. You can do this: Online: go to the Scheme website, and log in to Manage Your Account. You can see the different funds and change the way your pension pot is invested By phone: you can call Legal & General direct on Call charges will vary and calls may be recorded and monitored Remember to review your investment options as retirement approaches Continue to monitor your pension pot to make sure you re on track to meet your retirement goals Access Manage Your Account to start switching Continue to monitor your pension pot to make sure you re on track to meet your retirement goals

22 INVESTING 22 How can I keep track of my pension pot? Each year in April we ll provide you with a statement showing details of: the current value of your pension pot the fund(s) it is invested in a projection of the benefits at your expected retirement age the transfer value if you were to move your pension pot to another pension scheme total contributions paid into the Scheme for you during the previous 12 months. If you pay contributions by salary sacrifice then your contributions will be included with New Look s contribution. Your payslip will show you how much you personally have paid into your pension. You can check the value of your pension pot and review your fund(s) at any time by going to the Scheme website and logging in to Manage Your Account.

23 INVESTING 23 What are the charges? There are two types of charge: 1. An annual management charge (AMC) of 0.37% of the value of your pension pot, which covers Legal & General s administration costs. Legal & General can amend this charge but will always tell you in advance. This is deducted once a month by selling units in your pension pot. 2. A fund management charge (FMC) which covers the cost of investing your pension pot. The level of FMC depends on which fund(s) you choose to invest in and can vary from time to time. This charge is included in the unit price. Unit prices are calculated daily and the charge is reflected in the value of your pension pot. For further information, please see the Investment Guide on your Scheme website. How are the charges calculated? If your pension pot is valued at 10,000 throughout the year and you are invested in the Legal & General (PMC) Multi-Asset Fund 3 (which has an FMC of 0.13%) the charges payable by you over the year will be: AMC 0.37% 37 FMC 0.13% 13 Total charges for the year 0.50% 50 In the example shown, you will be charged 0.50% of the value of your pension pot each year. You ll only see the AMC deductions on your annual statements. The FMC is included in the price of units in your chosen fund(s).

24 YOUR BENEFITS 24 WHAT PENSION BENEFITS WILL I RECEIVE? The amount you get from your pension pot will depend on a number of factors, including: the amount of contributions paid in the investment growth earned the charges deducted from your pension pot how much of your pension pot you choose to take as a tax free cash lump sum how you choose to take your pension how old you are when you take your pension Your annual statement will show estimates of your projected benefits at retirement, so you can see if you re on track with your retirement planning. You can also check the value of your pension pot online. To find out what it is, please go to the Scheme website and log in to Manage Your Account. Depending on your individual circumstances, your benefits will be subject to income tax and may also impact your Universal Credit. When can I take my pension benefits? You can take your pension from the Scheme at any age from 55 onwards and you don t need to have stopped working to do so. Unless you tell us otherwise, we ll assume you re going to take your pension at 70 (if you are over 70 when you join the Scheme we ll assume you re going to take your pension at 75). You can select a different retirement age, as long as it s 55 or over. In fact, it s very important that you do choose a retirement age that realistically reflects when you expect to take your benefits, for two reasons. First is that your retirement age will be used by Legal & General as the basis for estimating the value of your pension pot, so our forecasts will be more accurate. Second is that if you decide to invest through a lifestyle strategy this automatically adjusts your investment depending on how near you are to retirement. If your retirement age is not the age when you do take your benefits, the investment strategy will be less effective. You may, of course, change your retirement age as your plans become clearer. You can do this by logging into Manage Your Account or sending a secure to Legal & General. For more information on your investment options, please see the Investment Guide on your Scheme website.

25 YOUR BENEFITS 25 What options do I have at retirement? As you approach retirement you should take time to understand the options that will be available to you. In any event, as you approach your selected retirement age we will write to you about moving your pension savings money into assets more closely aligned to how you intend to take your money. In particular, you should consider if your current investment strategy remains suitable regarding both how and when you wish to take your benefits. For example, if you are investing in a lifestyle profile, this will be targeted on your selected retirement age. If you wish to access your pension pot at a different time, you should consider reviewing your selected retirement age and your investment options. For more information on your investment options, please see the Investment Guide on your Scheme website. The main options are shown on page 26. You don t need to take all of your pension pot in one go - you can leave some of your pension pot invested or use a mixture of these options You will need to check with Legal & General to see if a specific option or combination of options is available and whether qualifying criteria or charges apply Alternatively, you can transfer your pension pot to other providers. Different providers will offer different options, features, rates of payment, qualifying criteria and charges. Your right to guidance when deciding how to use your pension pot The Government has introduced a guidance guarantee that all individuals with a defined contribution pension scheme will be offered free and impartial guidance at the point of retirement. This: covers a range of options to help you make sound decisions and take informed action, whether that s seeking further advice or purchasing a product; tells you about the different types of pension and what you can do with your pension pot - what s tax-free and what s not; and is offered face to face by the Citizens Advice Bureau or by phone from The Pensions Advisory Service. Visit to register your interest and arrange an appointment. If you re still unsure about your options we recommend you speak to a financial adviser. You can find one in your local area by visiting: Please note, financial advisers will usually charge a fee for their services. For more details on how to access your benefits, please visit your Scheme website. Alternatively, you can see the Money Advice Service pension options guide.

26 YOUR BENEFITS 26 Take a lump sum. 25% of this is tax free cash and the rest is taxable as earned income. Because of the taxable element, you should consider carefully how much you take, and when, or you might pay higher rate tax. It can also affect any means tested state benefits you may receive. The taxable portion will be taxed under emergency tax code procedures and you will have to reclaim any overpaid tax from the HMRC. This option may also affect your annual allowance. Take up to 25% of your pension pot as a tax free lump sum. Use the remainder to buy a guaranteed income called an annuity. A annuity will provide you with a guaranteed income either for life or a fixed term - this will be taxed as earned income. You can buy a pension annuity from any insurance company. You will receive details of a service to allow you to shop around for the insurance company who will give you the best annuity rates. You can also tailor your annuity to meet your particular needs. You can also use some or all of your pension pot to buy a fixed term annuity one which guarantees to pay a set amount for a defined period. YOUR CHOICES AT RETIREMENT Take up to 25% of your pension pot as a tax free lump sum. Draw down an income or cash lump sums from the remaining pot, subject to income tax. Draw down an income or cash lump sums from the remaining pension pot, subject to income tax. This option may also affect your annual allowance. You can choose to buy an annuity or transfer out at a later date the remainder of your pension pot that you have not drawn down. Take up to 25% of your pension pot as a tax free lump sum. Leave the rest invested to use later on. This leaves you free to choose later on how you wish to access the remaining pension pot. You can: draw down an income or cash lump sums, subject to income tax; buy an annuity; transfer to another provider. This is only a summary. As you approach your selected retirement age Legal & General will write to you about moving your pension savings into assets more closely aligned to how you intend to take your money.

27 YOUR BENEFITS 27 How will my pension income be taxed? Income from the Scheme is taxed in the same way as your earnings are taxed while you re working, except you won t have to pay National Insurance. If you wish to take a cash lump sum at retirement, you can take up to 25% of your pension pot and this will currently be paid to you free of tax. When you take your benefits, the value of your pension pot will be tested against the lifetime allowance. If the value of your pension pot is more than the lifetime allowance, a tax charge is payable. This will be deducted from your pension pot before your benefits are paid to you. For more details, please go to the Scheme website. What happens if I can t work due to illness? You may be able to take your pension benefits before age 55 if you become seriously ill or incapacitated. You can only take benefits in these circumstances where the Trustees receive written evidence from a registered medical practitioner confirming that you are, and will continue to be, incapable of carrying out your occupation because of physical or mental impairment. In cases of limited life expectancy (defined as less than one year), it may be possible to have your entire pension pot paid as a lump sum. This payment is currently tax free provided it doesn t exceed the lifetime allowance and you re under 75 at the time it s paid. The Trustees will require written evidence from a registered medical practitioner confirming that your life expectancy is less than one year. The payment of a cash lump sum on these grounds means that no other benefits will be payable to you or your dependant(s) from the Scheme.

28 YOUR BENEFITS 28 What happens if I die before taking my benefits? The Trustees will usually pay the value of your pension pot to your financial dependants or other beneficiaries. Although they cannot be bound by it, you are encouraged to complete a Nominate Your Beneficiary Form, which you can download from the Scheme website. The Trustees will always use this to guide their decision. It is important, therefore, that you keep your Nominate Your Beneficiary Form up to date as your circumstances change. Please return your completed Nominate Your Beneficiary Form to the address on the bottom of the form. What about my State Pension? Your benefits from the Scheme will be payable in addition to any State Pension you will be entitled to. Can I get a pension forecast? Further information on State benefits, including how to obtain a forecast of what your State Pension might be, can be found at The Trustees could choose to use all or part of your pension pot to secure an annuity for your dependant(s). This would only happen if the Trustees felt that receiving a regular income would be more suitable for your dependant(s) than a one off cash lump sum payment. If any dependant(s) are under 18 at the time of your death, the Trustees may pay into a trust fund for their benefit until they reach the age of 18. In addition to the value of your pension pot, your beneficiaries may also be entitled to a lump sum benefit. You should have received details of any benefits applicable to you by separate notification. This benefit is managed by New Look and is separate from the Scheme. For full details please refer to New Look s employee handbook. You can nominate the same beneficiaries or choose different ones to those you have nominated for the Scheme benefit.

29 YOUR BENEFITS 29 If I joined before 1 October 2015 what happens if I stop contributing or no longer want to be in the Scheme? How long have you contributed? Less than two years: Options 1, 2, 3 and 4 apply. If you don t respond to the options letter that Legal & General will send you within 60 days of your leaving date, option 1 will be put into effect for you and a refund will automatically be paid to you>, less tax. Options OPTION 1 return of contributions A refund is not available to you if you have transferred in benefits from another pension plan. The value of your contributions will be returned to you, after deduction of tax. If your contributions were made through salary sacrifice, you will not be entitled to any benefits from the Scheme. Instead, New Look will make a payment to you, to put you in the position you would have been in if you had not been a member of the Scheme. This payment will be made through payroll and it will be subject to tax and National Insurance deductions. OPTION 2 - leave your pension pot in the Scheme. Your pension pot will remain invested until you choose to take your benefits (which can be at any time between 55 and 99). You can continue to choose which funds to invest your pension pot in, but you cannot pay any more contributions into the Scheme. If you choose this option, Options 3 and 4 below will continue to be available to you in future. Two years or more: Options 2, 3 and 4 apply. OPTION 3 - transfer the value of your pension pot to another pension arrangement. You can do this anytime before you take your benefits. OPTION 4 take your benefits If you are 55 or over, you may be able to take benefits from the Scheme. Please see the What pension benefits will I receive? section on page 24 for more details.

30 YOUR BENEFITS 30 If I joined on or after 1 October 2015 what happens if I stop contributing or no longer want to be in the Scheme? How long have you contributed? Less than 30 days: Option 1 applies. Options OPTION 1 return of contributions If you are automatically enrolled details of how to opt-out and the deadline for you to do this will be contained in your enrolment letter. If you did not opt out within the deadline and you were in the scheme for less than 30 days the value of your contributions will be returned to you, after deduction of tax. If your contributions were made through salary sacrifice, you will not be entitled to any benefits from the Scheme. Instead, New Look will make a payment to you, to put you in the position you would have been in if you had not been a member of the Scheme. This payment will be made through payroll and it will be subject to tax and National Insurance deductions. 30 days or more : Options 2, 3 and 4 apply. OPTION 2 - leave your pension pot in the Scheme. Your pension pot will remain invested until you choose to take your benefits (which can be at any time between 55 and 99). You can continue to choose which funds to invest your pension pot in, but you cannot pay any more contributions into the Scheme. If you choose this option, Options 3 and 4 below will continue to be available to you in future. OPTION 3 - transfer the value of your pension pot to another pension arrangement. You can do this anytime before you take your benefits. OPTION 4 take your benefits If you are 55 or over, you may be able to take benefits from the Scheme. Please see the What pension benefits will I receive? section on page for more details.

31 YOUR BENEFITS 31 What do I need to do next? If you wish to exercise any of the options set out on pages 29 and 30. please contact New Look. For details of who to contact, go to Useful Contacts on page 35. Important: You should give serious consideration to the consequences of not saving enough for your retirement. Your employer will stop contributing if you choose to opt out or leave the Scheme or your employer.

32 FURTHER INFORMATION FURTHER INFORMATION 32 Who are the Trustees? The Mastertrust is a Registered Pension Scheme set up under trust. The current Trustees are Legal & General Trustees Limited, Pitmans Trustees Limited and BESTrustees plc. The website for the Mastertrust is available at The Trustees have appointed Legal & General Assurance Society Limited to administer the Scheme on their behalf. New Look has joined the Mastertrust by deed of participation. The Pension Scheme Tax Reference (PSTR) is RL. Can the terms of New Look s participation in the Mastertrust be changed? New Look may, with the consent of the Trustees, amend the terms of the Scheme within the trust at any time, in accordance with their Deed of Participation. Can the Scheme rules change? Yes the Scheme rules may change in future. You will be notified of any changes that may affect you. What documents from the Scheme are available to me? The following documents are available to you on request. Please see Useful Contacts on page 35 for more information. A Trustees Annual Report which contains general information about the Scheme The Trust Deed and Rules New Look s Deed of Participation The Statement of Investment Principles describing the Trustees investment strategy

33 FURTHER INFORMATION 33 Can the Scheme be closed? New Look intends to continue the Scheme and participate indefinitely. However, it s possible that circumstances could arise in the future that may lead New Look to discontinue the Scheme. In addition, the Trustees have the power to wind up the Mastertrust, in which case New Look would no longer be able to participate in it. In either event you would be given adequate notice, together with full details of all the options available to you. What happens if I get divorced? The pension pot you have built up may be taken into account by the courts when deciding on a divorce settlement or dissolution of a registered civil partnership. If you require more information about how your pension benefits may be affected by divorce, you should contact Legal & General. For details of who to contact, please go to Useful Contacts on page 35. What if my personal details change? If you change your name or address, you must notify Legal & General. You can update your details online at the Scheme website. Will I need to supply any documents? For your own security and protection, and before any payments are made, you may be required to supply certain information and documentation that Legal & General considers appropriate at the time. For details of who to contact, please go to Useful Contacts on page 35.

34 FURTHER INFORMATION 34 What about Data Protection? The Trustees and Legal & General will treat all information about you and your dependant(s) as confidential. Personal data may be used for employment and pension administration purposes. The persons to whom data may be disclosed could include any insurance company or other relevant organisation but only where this is essential in connection with your membership and the administration of the Mastertrust. What if I have any questions or a complaint? Any problems or queries can usually be settled by asking for more information. The Legal & General helpline will be able to help you with any questions you may have. For details of who to contact, please go to Useful Contacts on page 35. Legal note: This guide is intended as a summary of the terms and conditions of the Scheme. If there is any conflict between this guide and the Mastertrust rules, the Mastertrust rules (as amended from time to time) will be overriding. If you want to see a copy of the rules or you have any questions concerning the content of this guide, please contact Legal & General. For details of who to contact, please go to Useful Contacts on page 35. The information in this guide is based on the Trustees and Legal & General s understanding of current legislation, taxation and HMRC practice. These can change without notice, but the Trustees will let you know if a change is made that significantly impacts you. However, if this approach does not resolve matters to your satisfaction or if there is something you disagree with, there is a formal dispute procedure that can be used by anyone who has rights in the Scheme. For details of the complaints process you should contact Legal & General in the first instance. All formal complaints must be made in writing.

35 USEFUL CONTACTS USEFUL CONTACTS 35 Who should I contact at Legal & General? Helpline No: Opening times: Monday to Friday: 8.30am to 7.00pm Saturday: 9.00am to midday Call charges will vary. Calls may be monitored and recorded. First Contact Legal & General Assurance Society Ltd City Park The Droveway Hove BN3 7PY wptadmin@landg.com Who should I contact at New Look? Pensions Department: New Look Pensions Department Mercery Road Weymouth Dorset DT3 5HJ myhr@newlook.com

36 USEFUL CONTACTS 36 Which other organisations may be able to help me? GOV.UK is a Government source of information on pensions. On its website you can find information about pensions and retirement, including the State Pension, pension credit, National Insurance in retirement and much more. The Pensions Regulator regulates workplace pension schemes and it can step in where it feels that a scheme is not being run properly or where it has evidence that members benefits are endangered. The Scheme s administrators and professional advisers have a duty to report to The Pensions Regulator if they believe there have been any irregularities in the running of the Scheme. The Pensions Regulator can be contacted at: The Pensions Advisory Service (TPAS) is available to assist members and beneficiaries with any general pension queries they may have, or any difficulties they have failed to resolve with scheme trustees or administrators through the internal disputes resolution procedure. The Pensions Regulator Napier House Trafalgar Place Brighton BN1 4DW Tel: TPAS can be contacted at: The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB Tel:

37 USEFUL CONTACTS 37 The Pension Tracing Service provides a tracing service for those who have lost contact with administrators of former pension schemes. The Pension Tracing Service can be contacted at: The Pension Service 9 Mail Handling Site A Wolverhampton WV98 1LU Tel: The Pensions Ombudsman has the power to investigate and decide upon complaints and disputes involving pension schemes and will normally only expect to act after a matter that has been referred to TPAS has not been satisfactorily concluded. The Pensions Ombudsman can be contacted at: The Office of the Pensions Ombudsman 11 Belgrave Road London SW1V 1RB Tel: Pension Wise offers free and impartial guidance around your pension options. Pension Wise can be contacted at: Pension Wise PO Box Ashby de la Zouch Leicestershire LE65 9EH Finding a financial adviser You may wish to consider taking financial advice before deciding on your pension options. To find a financial adviser in your area go to: Neither New Look nor Legal & General are allowed to give you financial advice. Tel:

38 TERMS EXPLAINED WHAT DO THE BLUE TERMS MEAN? 38 annual allowance The maximum amount set by HMRC that can be paid into a pension without incurring a tax charge. For more details, please see the Tax Year Rates and Allowances sheet on your Scheme website. annuity An insurance policy that uses the value of your pension pot to provide you with an income, which can be payable for the rest of your life, depending on the type of annuity you buy. The amount you receive will depend on a number of things including the value of your pension pot, your age, your health and the annuity rates available when you purchase one. beneficiary The person(s) you wish to benefit from your pension, should you die. dependant Your spouse, registered civil partner or any other person who in the opinion of the Trustees is financially dependent upon you. earnings threshold The minimum amount you must earn to qualify for automatic enrolment. For more details, please see the Tax Year Rates and Allowances sheet on your Scheme website. lifetime allowance The maximum amount of pension benefit you can build up without incurring a tax charge. For most people it will be the standard lifetime allowance. If your pension benefits exceed the lifetime allowance, you will have to pay a lifetime allowance charge on the excess. For more details, please see the Tax Year Rates and Allowances sheet on your Scheme website. member An employee, or ex-employee, who is entitled to benefits in the Scheme. pay protection limit The minimum amount you must earn for it to be to your advantage to make contributions by salary sacrifice. If your earnings fall below this amount, you ll be taken out of salary sacrifice and will then have your contributions taken from your pay. For more details, please contact New Look. pension pot The value of all your contributions plus any investment growth, less charges. tax relief Some of your money that would have gone to the Government as tax goes into your pension instead. units All investment funds are divided into units. Contributions are used to buy units in the funds you have chosen at the price applicable on the day we invest your money.

39 39 EXAMPLE EXPLAINED - MINI CONTRIBUTIONS On page 12 we provided a summary example based on your pensionable pay. The below shows how your contribution is calculated. In this example, you contribute 1% of your pensionable pay. New Look also contributes the same. Based on earnings of 16,000 a year, here s how to work out: 1. What you pay: Your contribution rate (before tax relief*) 1% Your contribution rate (after tax relief) 0.8% Your contribution amount (0.8% x 16,000) 128 Your monthly contribution How your tax relief is calculated Your earnings 16,000 Tax relief 0.2% Amount of tax relief (0.2% x 16,000) 32 Amount of tax relief that is added to your monthly contribution What New Look pays: New Look s contribution rate 1% New Look s contribution amount (1% x 16,000) 160 New Look s monthly contribution The value of your monthly contribution: You pay Tax relief is added 2.67 New Look pays Your pension pot receives * Basic rate tax relief is 20% in the 2016/17 tax year.

40 40 EXAMPLE EXPLAINED MAXI CONTRIBUTIONS On page 17 we provided a summary example based on pensionable pay, if your contributions are paid through salary sacrifice. The below shows how your contribution is calculated. In this example, you contribute 3% of your pensionable pay and New Look contributes the same. Based on a basic rate* taxpayer earning 20,000 a year, here s how to work it out: 1. What you pay: Your contribution rate 3% You sacrifice from your salary 600 Your monthly salary sacrifice What New Look pays: New Look s contribution rate 3% New Look s contribution amount 600 New Look s monthly contribution 50 * Basic rate tax relief is 20% in the 2016/17 tax year. 3. The impact of salary sacrifice to your monthly pay: Your salary sacrifice 50 Income Tax saving at the basic rate (20%) 10 Your NI saving (12%) 6 The cost to you The value of your monthly contribution: Your salary sacrifice 50 New Look pays 50 Your pension pot receives 100

41 GROWTH RETIREMENT INVESTMENT PERFORMANCE Y SECURITY MONEY EMPLOYER CONTRIBUTIONS VALUE U LIFE PLAN BUILD TAX FREE CASH FUTURE ACHIEVE JOURNEY YOU START F CASH PAY U LONG TERM SAVING U BEGIN INCOME R TAX RELIEF BENEFITS PEACE OF MIND PLANNING PENSION POT FAMILY LIFETIME Legal & General Assurance Society Limited Registered in England and Wales No Registered Office: One Coleman Street, London EC2R 5AA We are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. New Look V0.3 05/16