Workplace Retirement Account Rolls-Royce Money Purchase Pension Plan 2008 Section. Member guide

Transcription

1 Workplace Retirement Account Rolls-Royce Money Purchase Pension Plan 2008 Section Member guide

2 p2 Workplace Retirement Account Member guide Workplace Retirement Account Member guide Contents 4 Why should I save into a pension? 5 How does the pension scheme work? 7 Joining 9 Paying in 15 Reviewing your savings 16 Death benefits 17 Taking benefits on grounds of ill health or serious ill health 18 Choices at retirement 21 Leaving the scheme 23 Pensions on divorce or dissolution of a civil partnership 24 Your limits 26 Help and further information 28 Information provided by the Trustees 29 Useful organisations

3 Workplace Retirement Account Member guide p3 About this guide This guide is produced by Aviva on behalf of the Scheme Trustee and tells you how the Rolls-Royce Money Purchase Pension Plan 2008 Section works. Rolls-Royce and you (if applicable) pay into the pension scheme. These contributions are invested for you and will remain invested until you decide to retire or access your retirement savings from age 55. You should read the Investment guide and Investment fund aims and risk guide which can be found online at aviva.com/aengs99b.pdf and The Investment guide explains how you can invest your retirement savings. We, us or our in this guide means the Trustees.

4 p4 Workplace Retirement Account Member guide Why should I save into a pension? These days you can typically expect to live longer than ever before, giving you the time to do the things you never had time to do when you were working. You may even choose not to retire completely, but to continue working part time. Whatever you decide to do, providing financially for your future is vitally important. Even if retirement seems a long way off, the sooner you start saving, the better. The State Pension by itself is unlikely to be enough to pay for the lifestyle you want in retirement. Saving into a pension provides you with a tax efficient way to financially prepare for retirement. By starting to save for retirement as early as you can, your investments will have more time to grow and you can look forward to the prospect of a higher income than if you had started later. Also, if you have a particular level of pension income in mind, starting early means that you may not have to contribute as much as your retirement savings have more time to grow. A pension is a long-term savings product but the value can go up or down and is not guaranteed, you could get back less than what has been paid in. By starting to save for retirement as early as you can, you can look forward to the prospects of a higher pension income than if you had started later.

5 Workplace Retirement Account Member guide p5 How does the pension scheme work? Rolls-Royce and you (if applicable) pay into your pension Account, called the Workplace Retirement Account, (this is referred to as your Account in this guide). These contributions are invested in funds designed to increase in value over the long term. The size of your Account will depend to a large extent on how much you save but also: when you start saving and the age at which you decide to retire the charges taken from your Account how you invest and the investment performance of your retirement savings. Normally, any time from age 55, you can access the money you have built up in your Account. You don t have to stop working to access the money in your Account. We explain the options available for taking your retirement savings on page 18. If you die before taking your retirement savings your Account normally pays a cash lump sum to your dependants or beneficiaries. You can nominate who you would like to receive the cash lump sum by completing the nomination form, you can obtain a copy by contacting Aviva. The Scheme Trustee will take your wishes into account but are not bound by them. You may have to consider the Lifetime allowance limits, this is explained in more detail on pages 24 and 25. How your Account works Contributions Contributions paid in Your employer and you* + or _ Return Any investment return Charges = Admin, investment & management Savings Your retirement savings *If applicable The diagram above shows an example of how your pension plan works with contributions being made, potential investment growth being added and charges being taken out. Please note that the diagram is for illustrative purposes only.

6 p6 Workplace Retirement Account Member guide Charges and expenses To cover the costs of running your Account and managing your investments, some charges apply. The Scheme Annual Management Charge (scheme AMC) covers the cost of running your Account. It is a percentage of your Account value that is calculated and applied daily, but deducted monthly from your Account by selling fund units. Your Account is a unit linked account. Investments are split up into notional units. Payments into your Account buy notional units in the investments you have chosen. The price of the unit depends on the value of the investment fund. The Investment guide includes details of the scheme AMC, Total Annual Management Charge (total AMC) and additional expenses. Additional charges may be applied when you access your retirement savings. If charges apply full details will be provided at that time. Who looks after the pension scheme? Although it is your responsibility to regularly review your retirement savings, the scheme is managed by us on your behalf as the Scheme Trustees. Aviva administer the scheme on behalf of the trustees and has developed its experience and expertise over 300 years.

7 Workplace Retirement Account Member guide p7 Joining How do I join? You can join the Scheme if you are an employee or a director and you are aged 16 or over, but under 65. Membership of the Scheme is voluntary. If you decide to join the Scheme please complete the application form provided with this guide and return it to the HR Shared Service Centre at: Rolls-Royce plc PO Box 31 Derby DE24 8BJ Activating your Account is simple, just complete the three steps below: Access My Money. Enter your Username, which Aviva will send to you, and personal information to verify your identity. Follow the online instructions to activate your Account. Then simply log in and start using My Money. Investments All contributions made to the Scheme, except any made by Rolls-Royce to provide life assurance or permanent health insurance benefits, are invested under the Group Policy. The Investment guide and The investment fund aims and risk guide, which should be read in conjunction with this guide, will provide further details of the investment funds available. Your retirement account will be used to provide you with pension benefits at retirement and may provide death benefits (if they have been nominated as beneficiaries) to your dependants. Please bear in mind that if you opt out of your Account: Rolls-Royce will stop paying contributions into your Account. The State Pension alone is unlikely to be enough to meet your needs in retirement. You may be able to re-join if your employer agrees. Your pension savings will be lower than if you had stayed in the pension Scheme. Your life assurance cover will cease. Charges will continue to be taken from the Account.

8 p8 Workplace Retirement Account Member guide What if I take maternity, paternity or adoption leave? Rolls-Royce must continue to pay their contributions in full while you are being paid but your contributions may reduce. You should ask Rolls-Royce for more information. What if I work overseas? If you live and work in the EEA* (excluding the UK) you will not be able to join the scheme. If you work outside the EEA, the tax advantages of saving in the scheme and the benefits you may get at retirement may be different to those detailed in this guide. We recommend you check the implications of joining with the relevant regulatory authorities of the country you re living in. We recommend you speak to an independent financial adviser. *EEA is European Economic Area What if I m temporarily absent from work? Your contributions (if applicable) and your employer s contributions will continue to be paid, as long as you continue to be paid. If you take unpaid leave, all contributions will stop until your return to work, when they will restart. Your membership will remain continuous and any retirement savings you ve already built up will continue to be invested.

9 Workplace Retirement Account Member guide p9 Paying in How will contributions be paid into my Account? Your employer runs a salary exchange scheme (known as Paysave ), which reduces the cost of your contributions, this is how it works: You agree to give up part of your salary in return for a non-cash benefit from your employer, which in this case is an additional pension contribution. In exchange for you accepting a reduced salary, your employer makes a contribution to your Account equivalent to the amount you have exchanged. This is in addition to your employer s normal contribution. Because you don t actually get paid the amount you have exchanged, you don t pay income tax or National Insurance Contributions on the exchanged amount. This agreement is between you and your employer and will result in a change to your contract of employment. The Scheme announcement enclosed with this guide gives details of how your contributions will be deducted and the contribution rates. Salary exchange isn t suitable for everyone because, for some people, it could reduce their entitlement to certain State benefits, income protection payments and the amount that they can borrow. As your employer runs Paysave, they will be able to give you more information about how it will work for you under the scheme. If you are in any doubt about its suitability for your own personal circumstances, you should contact a financial adviser. If you don t have an independent financial adviser you can find one at The following diagrams demonstrate the two ways contributions can be made. The first is through Paysave where the employer pays the amount you have exchanged from your salary along with any employer contributions into your Account. The second diagram shows the non paysave option. Two payments will be made into your Account: your contributions, deducted from your take-home pay, and your employer contributions. These will be shown as two separate payments into your Account. Paysave contributions Contributions paid in employee s exchanged salary and employer contributions OR Non Paysave contribution Your contributions Employer s contribution Your Account Your Account

10 p10 Workplace Retirement Account Member guide It won t cost as much as you think Whether you participate in paysave or you make personal contributions, saving won t cost as much as you might think. Under both methods you don t pay tax on the amount paid in. The amount exchanged or the personal contribution is deducted from your pay before income tax so each 10 you save will only cost you 8 if you pay basic rate tax, or 6 if you re a higher-rate taxpayer. HM Revenue and Customs (HMRC) puts a limit on how much you can pay into pension schemes each year before a tax charge applies. Please see Your limits on pages 24 and 25. What if I don t pay tax? When paying into a pension scheme, members may receive tax relief on contributions they make. This means that money that would have gone to the government as tax goes into an individuals pension instead. Your pension contribution is deducted from your pay before tax is calculated. As your earnings are below the starting rate for income tax you do not benefit from the tax relief a taxpayer would receive. However, this doesn t affect the amount that is paid into your pension and you ll continue to benefit from the money that your employer pays in. Here s an example of paysave Rebecca earns 24,000 a year and wants to save 200 a month to her Account. Normally her contributions are deducted from her pay before income tax, so her take-home pay will only reduce by 160. Because Rebecca participates in Paysave her contributions cost even less. Each year, she exchanges 2,400 of her salary in return for an extra 200 contribution every month from her employer. As she doesn t pay income tax or NIC on the 200 she exchanged, this saves Rebecca another 24 a month (she pays National Insurance at 12%*). Paysave Example: Rebecca s Contribution 200 Less income tax - 40 Less NIC - 24 Real cost to Rebecca 136 So every 200 Rebecca contributes only costs her 136. And this is on top of her employer s contributions. Which is one reason why workplace pensions are a great way to save for your future retirement. * The savings you make through Paysave will depend on the rate of tax and NIC you pay. You don t have to contribute via Paysave. If your earnings fall below a certain level, you will automatically be opted out. Please contact the HR Shared Service Centre (Pensions Team) if you have any questions.

11 Workplace Retirement Account Member guide p11 How much should I pay in? Please see page 12 for details of the contribution rates. You can save more if you want. To work out how much you should save there are two main considerations: 1. How much you will need in retirement? How much you will need to save to provide that level of income? Some of your outgoings in retirement will be lower, for example you may have paid off your mortgage and your daily travel costs should be less, but other costs, like your energy bill, may increase as you will be at home more. 2. How much should you save? We all have conflicting financial priorities but the earlier you save the better. The more you save now will benefit your future. You may be able to pay lump sums into your Account through payroll. Aviva will accept lump sum contributions at any time. How can I save more? There are a few things you can do: Think about what you could give up so you can save a bit more. Plan to increase your contributions regularly when you have more disposable income. Think about other sources of income you may have in retirement. Review your entitlement to State Pension or pensions from other employers. Some people may even receive financial support from their family. Plan to retire later. You will have longer to save and give your savings more chance to grow but the value of your Account can go up or down and is not guaranteed. Rethink your target pension income, or perhaps consider working part-time to supplement your pension income. Pension forecaster Once your Account has been set up Aviva have a useful tool that lets you add together the different pensions you may have and work out how close you will be to your target pension income. You can also see the impact of saving more and moving your selected retirement age. Go to:

12 p12 Workplace Retirement Account Member guide What contributions can be paid into my Account? As a member of the Plan, you are required to contribute 4% of your pensionable pay. Rolls-Royce will deduct the regular member contribution of 4% of pensionable pay through Paysave and send them together with their own contributions directly to Aviva so that they can invest them for you. The current Rolls-Royce contribution rates are shown in the table below. If, when you join Rolls-Royce and elect to join the Scheme it is not of benefit for you to participate in the Paysave arrangement based on your earnings level, you will be automatically opted out. Additionally, if at anytime during your employment your gross contractual pay falls below the Lower Earnings Limit (this is a standard amount set by the Government of 113 per week for 2017/18) for the same pay period, you will be automatically opted-out of Paysave. In these circumstances, you will contribute to the Scheme at the rate of 4% of your Pensionable Pay. As explained on page 10, if you are a non-taxpayer you will not benefit from tax relief. In addition you will not receive any saving on your National Insurance contributions. Please note that if your gross contractual pay subsequently increases to a level in excess of the Lower Earnings Limit for the same pay period, you will be automatically opted back in to the Paysave arrangement. If you want to increase your benefits, you can normally do so by paying additional voluntary contributions (AVCs). AVCs are not part of the Paysave arrangement. You can pay AVCs on either a regular or lump sum basis, by deduction from your pay. You get tax relief immediately on AVCs. Payments of AVCs do not affect the contributions Rolls-Royce pay on your behalf. Your AVCs will build up in your retirement account, and will be invested in the same way as other contributions. The charges that apply to AVCs are the same as for the regular contributions and employer contributions in this guide. If you wish to make AVCs you will need to complete an AVC application form which is available on the Reward section of HR Online, on the Pensions page of the Rolls-Royce intranet site, and from the HR Shared Service Centre (Pensions Team). Your age as at 31 March each year Rolls-Royce Contribution Rate Under 30 5% % % %

13 Workplace Retirement Account Member guide p13 You will normally get tax relief on any AVCs and any other contributions you make to a Registered Pension Scheme, up to 100% of your earnings in each tax year. Contributions in excess of this limit, or the Annual Allowance if less, will be subject to a tax charge. Can I change my AVC s? You can change the amount of your AVCs and how often you pay them at any time, to take account of your financial circumstances. If you wish to amend the level of your AVCs you will need to complete a AVC Contribution Amendment form which is available on the Reward section of HR Online, on the Pensions page of the Rolls-Royce intranet site and from the HR Shared Service Centre (Pensions Team). Your annual benefit statement will show details of the contributions made. We would encourage you to review your contributions regularly so that you build up enough retirement savings to provide the pension income you need. Think carefully before reducing or stopping your contributions, even for a while. Not only will you risk not having enough money to live on in retirement, you may also miss out on your employer s contributions to your pension and charges will continue to be taken.

14 p14 Workplace Retirement Account Member guide Can I transfer a previous pension into my Account? Yes, your Account can accept transfers that comply with government rules and regulations. Further information will be supplied in your transfer in pack which can be requested by contacting Aviva. By transferring a previous pension into your Account you may find it easier to keep track of your retirement savings, and charges could be lower. There s no guarantee you ll be any better off by transferring to a new arrangement. You should be aware of charges, loss of guarantees, loss of protections or loss of potential growth to your existing pension if you do transfer. The pack we will send you will cover these points and more. Before transferring a previous pension we recommend that you speak to an independent financial adviser. Financial advisers can help you with all aspects of pension planning, although you may be charged for this advice. In some cases you must take advice before you can transfer your benefits. You may be charged for any advice. You can find a financial adviser from: Information can also be found from: The Pensions Advisory Service The Money Advice Service Please note these sites are not provided by Aviva. Therefore, they may not be regulated by the Financial Conduct Authority. Tax relief Any transfer values will not receive tax relief as this will have already been applied by the previous scheme. Find out more about transferring into your Account online at:

15 Workplace Retirement Account Member guide p15 Reviewing your savings How do I keep track of my Account? Once you have joined, you can view full details of your Account online at Also on the website you can: Change the funds in which you are currently invested and/or change where future contributions are to be invested. Update your personal details. Change your selected retirement date. Aviva will provide a statement each year, showing: How much has been paid in. How much you have paid in charges. The value of your savings. How much your savings could be worth in the future. If you can t find what you re looking for on the website, contact Aviva their contact details are on the back page.

16 p16 Workplace Retirement Account Member guide Death benefits If you die while you are actively making regular contributions including AVC s, through Rolls-Royce, you will receive a life assurance benefit of six times your pensionable pay (not provided by Aviva through this Account). In addition, the value of your fund at the date of your death will be payable. All lump sum death benefits are payable under the scheme s discretionary trust rules and, to help the Trustees decide who should receive any benefit payable in the event of their death, members are strongly advised to complete a nomination of beneficiaries form. These forms are available on the Reward section of HR Online, on the Rolls-Royce intranet and from the HR Shared Service Centre (Pensions Team). Death before a paid-up Account becomes payable If you left the Scheme with a paid-up Account, but then die before your benefits become payable, the value of your Account will be paid as a lump sum. The total of the lump sum death benefit counts towards your Lifetime Allowance, and any Lifetime Allowance Charge must be paid, if applicable. What happens to your pension on death? Any benefit payable on your death after you have taken a retirement pension will depend on the options you chose at retirement. Please do make sure you complete a nomination form and, equally important, keep it up to date, completing a new one whenever your circumstances change. You can maintain confidentiality by posting your nomination form to the HR Shared Service Centre (Pensions Team) in a sealed envelope to be opened only in the event of your death.

17 Workplace Retirement Account Member guide p17 Taking benefits on grounds of ill health or serious ill health You may be able to take your 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 be incapable of carrying out your occupation because of a physical or mental impairment. They must also be satisfied that all legislative requirements are met. In cases of limited life expectancy (less than one year), it may be possible to have your whole Account paid as a lump sum. You can only take benefits in this circumstance where the Trustees receive written evidence from a registered medical practitioner confirming that you are expected to live for less than one year. They must also be satisfied that all legislative requirements are met. The payment of a lump sum on these grounds means that no other benefits will normally be payable to you or your dependants. The lump sum will be tested against your available Lifetime Allowance when it is paid.

18 p18 Workplace Retirement Account Member guide Choices at retirement Six months before your selected retirement date, Aviva will write to you and explain the options available for taking your retirement savings. Your retirement choices are some of the most important decisions you ll make. There are currently several options available to you, some are explained below. Start by asking yourself what you want from your retirement savings. Are you looking for the security of a guaranteed income? Or do you want to take your pension as a cash sum? Perhaps you d rather leave your retirement savings invested, but withdraw an income from it as you need. Whichever option you choose, you can usually take 25% of your retirement savings as a tax-free cash sum. And you don t have to select just one option you may be able to combine any of the choices shown on the next page. But please note it s up to the Trustees whether they offer all the options. We recommend you speak to Pension Wise or an independent financial adviser for help in determining which option(s) suits your needs best. When you are ready to consider the options available, its important to shop around different providers to find the best deal. Whatever option(s) you choose its important to think about provision for your lifetime.

19 Workplace Retirement Account Member guide p19 Your choices at retirement Tax-free cash sum With all of the following options you can take up to 25% of your pension savings as a tax-free cash sum. Annuity You can use your pension savings to purchase an annuity which provides a guaranteed regular income, typically paid for the rest of your life. Drawdown Drawdown allows regular flexi-access withdrawals while the balance of your pension savings stays invested. Cash You can choose to take all or some of your pension savings as cash while any remaining balance of your pension savings stays invested. Transfer Not all pension schemes offer the above options so you may need to transfer to another registered pension scheme to get these extra flexibilities. There are a number of things to consider regarding the options available, in particular the tax implications of taking cash lump sums and/or receiving income which will be based on your personal circumstances. It s also important to remember that tax benefits and the options available today may change in the future. For those options where your pension savings are still invested, it s important to note that the value of your pension savings can fall as well as rise and is not guaranteed. You could get back less than you invest.

20 p20 Workplace Retirement Account Member guide How will my pension income be taxed? You can normally take a tax-free cash sum of up to 25% of your Account value. Your pension income, after any cash sum has been taken, will be taxed as pension income through PAYE. The amount of tax you have to pay will depend on your income tax rate at the time the pension income is paid. There is a limit on the value of retirement savings that you can draw from a registered pension scheme before a tax charge applies. This limit is called the lifetime allowance. Please see Your limits on pages 24 and 25 for further details. Information available to you Pension Wise is a government service offering free and impartial guidance. This tailored guidance is available online, over the phone or face to face. Go to or call We recommend you get guidance or advice to help you decide what to do with your retirement savings. The Money Advice Service publish a consumer fact sheet, Your pension it s time to choose, which is available on their website, For more information on the options available to you please visit

21 Workplace Retirement Account Member guide p21 Leaving the scheme Below we explain the options that are available to you. If you are a member with less than two years Qualifying Service: Refund from your Account If you do not participate in Paysave and at the time you leave the Scheme you have been making contributions for less than two years, or 30 days if you joined the Scheme on or after 1 October 2015, you can elect to take a refund of your contributions from your Account. Please be aware that if you have transferred benefits into your Account from a registered pension arrangement, you will not be able to take a refund. You will be entitled to a preserved retirement Account instead. Preserved Retirement Account If you participate in Paysave and you have been making contributions for less than two years, you automatically qualify for a preserved pension based on your full retirement Account. If you do not participate in Paysave, instead of taking a refund you can choose to defer the fund value, including both your contributions and those made by Rolls- Royce, until retirement age. The Account would then be used to provide pension benefits at your chosen retirement date. Transfer of Preserved Retirement Account If you have been making contributions for between three months and two years when you leave the Scheme, you will additionally have the right to transfer the value of your Account to another Registered Pension Scheme or certain overseas arrangements. Early payment of the Preserved Retirement Account If you are aged over 55, you can use your accrued fund value to provide immediate benefits.

22 p22 Workplace Retirement Account Member guide Leaving the scheme continued If you are a member with more than two years Qualifying Service: Preserved Retirement Account If you have been making contributions for more than two years, when you leave the Scheme you can defer the fund value, including both your contributions and those made by Rolls-Royce, until retirement. The fund value at the retirement date would then be used to provide pension benefits. Early Payment of the Preserved Retirement Account If you are aged over 55, you can use your accrued fund value to provide immediate benefits. Transfer of Preserved Retirement Account You will additionally have the right to transfer the value of your Account to another Registered Pension Scheme or certain overseas arrangements. If you leave your employer All contributions to your Account will automatically stop. You won t be able to pay any more money in but you will be able to continue to manage your Account in the same way. You will have the same options for your Account as explained on page 19.

23 Workplace Retirement Account Member guide p23 Pensions on divorce or dissolution of a civil partnership There are three ways in which pension rights can be dealt with in the event of a divorce or dissolution of a civil partnership: Offsetting Offsetting means the value of a member s pension rights is counted as part of the couple s joint assets. The pension itself is not divided, but is offset against other assets (such as a house or a car). Earmarking In this instance a proportion of the member s pension benefits (when they retire) or lump sum benefit (at death) is earmarked for the ex-spouse or ex-civil partner. When the pension benefit is eventually due to be paid, a proportion will be paid directly to the ex-spouse or ex-civil partner by the Trustees. Pension Sharing Under this option, a member s pension rights are valued and then split between the couple. This means that the ex-spouse or ex-civil partner can acquire immediate and separate rights over pension benefits. These pension credit rights belong to the ex-spouse or ex-civil partner, so that he or she will be entitled to transfer their share of the pension to another registered pension arrangement or, if the Trustees allow it, become a member of the Scheme in their own right. At present, the Trustees do not offer membership to an ex-spouse or ex-civil partners in respect of a pension credit. You are also able to transfer in any pension credits from other arrangements. As a result of pension sharing, the member s pension entitlement will be reduced. Most members will, however, be able to rebuild at least part of their reduced pension by paying AVCs. Legislation allows the Trustees to charge certain administrative costs associated with pension sharing to either or both of the parties to the divorce or dissolution. At present the Trustees do not intend to make a charge for day to day administration costs, but reserve the right to pass on other charges incurred. On divorce or dissolution, you should inform the Trustees immediately about changes in your personal situation. You may also wish to consider whether any nomination of beneficiaries form held by the Trustees still reflects your wishes. Your solicitor will be able to tell you more about further procedures. Ultimately, the court will decide which method will be used to deal with pension rights. If you request a benefit quotation for divorce or dissolution purposes, you should make this clear to the Trustees.

24 p24 Workplace Retirement Account Member guide Your limits HMRC set limits on how much tax relief you can benefit from, how much you can pay into your pension schemes the Annual allowance, and how much you can take out as retirement benefits the Lifetime allowance. Tax relief Each year you can get income tax relief on your personal contributions to all registered pension schemes as long as your total gross contributions are not more than the greater of your UK taxable earnings or 3,600 (2017/18). If your pension contribution is deducted from your pay before tax is calculated and your earnings are below the starting rate for income tax, you will not benefit from the tax relief a taxpayer will receive. Annual allowance HMRC puts a limit on the total amount that can be paid into all your pension schemes each year before a tax charge is payable. For the 2017/18 tax year this annual allowance is 40,000. Anything paid in above this may incur a tax charge. If you earn more than 110,000 (2017/18 tax year) your annual allowance may be reduced. If you flexibly access your retirement savings your annual allowance in respect of money purchase pension arrangements* is reduced for the current and future tax years. For the 2017/18 tax year this reduced annual allowance, the money purchase annual allowance (MPAA), is 4,000. The provider of the arrangement you have accessed will notify you if this applies. If you haven t used all of your annual allowance in the previous three tax years you may be able to carry forward this unused amount. The total amount of your unused annual allowance can be added to the current tax year s annual allowance. You can find out more about the Annual allowance on the HMRC website at If you think you might be affected then we strongly recommend that you take individual tax advice. For more information about tax please refer to an independent financial adviser. If you don t have a financial adviser you can find one at *A money purchase pension arrangement builds up a pension pot based on contributions from you and/or your employer.

25 Workplace Retirement Account Member guide p25 Lifetime allowance HMRC puts a limit, called the lifetime allowance, on the total amount that can be taken from pension schemes before a tax charge is payable. The standard lifetime allowance is 1 million for the tax year 2017/18. Your lifetime allowance reduces each time you take benefits. If, when you take benefits, or at age 75 if earlier, the value of benefits being taken exceeds your remaining lifetime allowance then the excess will be subject to a tax charge, known as the lifetime allowance charge. Your personal lifetime allowance may be higher than the standard lifetime allowance, if you have been granted one or more types of protection by HMRC. You can find out more about the lifetime allowance on the HMRC website at If you think you might be affected then we strongly recommend that you receive individual tax advice. For more information about tax please refer to an independent financial adviser. Tax details in this document are based on our interpretation of current law and HMRC practice for the 2017/18 tax year. It s important to remember that they can change and how they affect you will depend on your personal circumstances.

26 p26 Workplace Retirement Account Member guide Help and further information If you have a question about the scheme The Aviva My Money website has lots of useful information, as well as a pension forecaster that helps you work out how to achieve your target pension income. Go to If you can t find what you re looking for on the website, please contact Aviva. Their contact details are on the back page. If you have a complaint We hope that any issues can be resolved informally with Aviva. If this isn t possible, there is a formal procedure to resolve any complaints or disputes, known as the Internal Disputes Resolution Procedure. Full details of the internal dispute resolution procedure can be found at: library.aviva.com/rrmpppidrp.pdf Trustees Internal Disputes Resolution Procedure Complaints or disputes involving members and beneficiaries and the Trustees are rare and are generally resolved informally. However, there is a formal procedure in place for the resolution of disagreements. Details of the procedure are available from the Secretary to the Trustees of the Rolls-Royce Money Purchase Pension Plan, PO Box 31, Derby DE24 8BJ.

27 Workplace Retirement Account Member guide p27 Some important legal information: We, the Scheme Trustee, have taken care to make sure that this guide reflects the Trust Deed and Rules as accurately as possible. It doesn t cover everything and the Trust Deed and Rules will always take priority. This version was published in July It covers your membership in the scheme (which is a defined contribution scheme) and applies to you on joining. Aviva will keep this guide under regular review and will update it from time to time. Each year we produce an Annual Report. You may request a copy from us. All information about you and your dependants will be treated confidentially. The information in this guide is based on the Scheme Trustees and Aviva s understanding of current legislation, taxation and HMRC practice. These can change without notice. This scheme is a registered pension scheme with HMRC for tax purposes under Chapter 2 Part 4 of the Finance Act 2004.

28 p28 Workplace Retirement Account Member guide Information provided by the Trustees Documents available on request A number of documents are available on request. These include: the Trustees annual report. This is prepared following the end of each Scheme Year and contains general information about the Scheme, mainly of a financial nature; the Scheme s Trust Deed and Rules. The Scheme is constituted by a Trust Deed and the Trustees administer it in accordance with its Rules; the payment schedule showing the contributions Rolls-Royce has agreed to pay to the Trustees; the latest investment policy implementation document and statement of investment principles describing the Trustees investment strategy. You will not be charged for inspecting any of these documents. However, the Trustees reserve the right to make a charge to cover costs, where a copy of a document is provided for personal use. Assets of the Scheme As the Scheme is set up under trust, the assets of the Scheme are kept totally separate from the assets of your Employer. Title to benefits Your benefits under the Scheme are personal; you cannot promise them to anybody else or offer them as security for a loan. Changes to or termination of the Scheme Normally, the Trustees of the Scheme may amend the provisions of the Scheme at any time. The Scheme may be wound up in the circumstances described in the Scheme Rules.

29 Workplace Retirement Account Member guide p29 Useful organisations There are a number of organisations that can help you find out more about workplace pension schemes. GOV.UK The GOV.UK website is a great source of information from the Government. On the website you can find information about pensions and retirement, including the State Pension, Pension Credit, National Insurance in retirement and much more. Pension Tracing Service The Pension Tracing Service provides a tracking service for people who have left benefits in pension schemes and also for dependants of members, who have lost touch with previous employers. The address of the Pension Tracing Service is: The Pension Service 9 Mail Handling Site A Wolverhampton WV98 1LU Call: Website: The Pensions Advisory Service (TPAS) The Pensions Advisory Service (TPAS) is an independent non-profit organisation that can assist members and beneficiaries of the scheme with pension questions and issues they have been unable to resolve with the trustees of the scheme. The address of TPAS is: 11 Belgrave Road, London, SW1V 1RB Call: enquiries@pensionadvisoryservice.org.uk Website: It also helps any member of the public who has a problem, complaint or dispute with their occupational or private pension arrangement. Any questions about the scheme or your entitlement under it should be addressed to the trustees in the first instance.

30 p30 Workplace Retirement Account Member guide Pension Wise A free and impartial Government service that helps you understand the options for your pension pot. The address of Pension Wise is: Pension Wise, PO Box 10404, Ashby de la Zouch, Leicestershire, LE65 9EH Call: contact@pensionwise.gov.uk Website: The Pensions Ombudsman The Pensions Ombudsman can investigate and determine pension complaints in accordance with the Pension Schemes Act The address of the Pensions Ombudsman is: Pensions Ombudsman Service, 11 Belgrave Road, London, SW1V 1RB The Pensions Regulator The Pensions Regulator is an independent body, accountable to Parliament and the general public. Its main objectives are to protect the benefits of members of work based pension schemes and to promote good administration. The Pensions Regulator keeps a register of schemes and hold information about the scheme and the employer. It may intervene in the running of schemes where trustees, managers, employers or professional advisers have failed in their duties. The address of the Pensions Regulator is: Napier House, Trafalgar Place, Brighton, Sussex, BN1 4DW Call: customersupport@tpr.gov.uk Website: Call: Fax: enquiries@pensions-ombudsman.org.uk Website:

31 How to contact Aviva Call Aviva on on Monday to Friday between 8.00am and 5.30pm. They may record calls to improve their service. Calls may be charged and these charges will vary; please speak to your network provider. These documents are available in other formats. If you would like a Braille, large print or audio version of this document, please contact Aviva. Visit their website at them at rolls-royce.mymoney@aviva.com Write to them at Aviva, PO Box 2282, Salisbury, SP2 2HY Aviva Life & Pensions UK Limited. Registered in England No Registered office: Aviva, Wellington Row, York, YO90 1WR. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Firm Reference Number Telephone calls may be recorded. My Money is a registered trade mark of the Aviva group. AENGS99/A MM /2017 TEMP IMM WRA v (53502)