Phillips 66 UK Pension Plan Member Guide to the Benefits of the Defined Contribution Section

Transcription

1 Phillips 66 UK Pension Plan Member Guide to the Benefits of the Defined Contribution Section Benefits for Today. Benefits for Tomorrow. Benefits for the Unexpected.

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3 Member Guide to the Benefits of the Defined Contribution Section What s inside Contributing to your future... 2 Here s the big picture... 3 Eligibility and enrolment... 4 Am I eligible?... 4 How do I enrol or change my elections?... 4 Automatic enrolment for new employees... 4 Opting-out of the plan... 4 Enrolling or making contribution changes at other times... 5 How the plan works... 5 Your contributions and company matching contributions... 6 How does salary sacrifice work?... 7 Will I pay less in NICs or Income Tax?... 7 Are there any contribution or benefit limits?... 7 When am I vested in my account?... 8 Do I get to decide how my money is invested?... 8 What are my investment options?... 9 Where do I go for information?... 9 How do I change my investment elections?... 9 A few things to consider... 9 Group Income Protection and Life Assurance benefits Group income protection Life Assurance What happens when I leave the company? What will my DC Plan benefits be when I retire? When can I take my pension? Does my pension have to begin at my normal retirement age? How do I apply for my retirement benefit? What are my benefit options? How do I purchase an annuity? What happens if I take a temporary absence from work? I take a family leave? I get divorced? I die? Nomination of Beneficiaries form and Trustee discretion for death benefits What other important information do I need to know? Benefit statements Charges Other Pension Schemes Administration Complaints Amendment or discontinuance Data protection Time limits Other sources of help and information The Pensions Advisory Service (TPAS) Pensions Ombudsman Pensions Regulator Pension Tracing Service Independent financial advice This booklet should be read in conjunction with the Phillips 66 UK Pension Plan DC Section Investment Guide.

4 Member Guide to the Benefits of the Defined Contribution Section Contributing to your future It s easy to focus on the present and worry about the future later. But that s not a good plan for retirement. Especially when the DC section of the Phillips 66 UK Pension Plan (the DC Plan or just the plan ) can make saving for retirement easier. When you join Phillips 66 as a UK employee, you gain access to many benefits provided by the company. The DC Plan is one of the most valuable of those benefits. It combines your own contributions with company matching contributions and investment income into a pension account ( account ) that provides benefits upon retirement, death or disability. Of course, nothing in life is free, and there are decisions to be made and rules to be followed. Read on to see how you can put the plan to work for you. Consider it a contribution to your future! This booklet will give you an overview of the DC Plan s benefits. Although written in everyday language, some technical terms have been used. If you have any questions, please contact the pension administrators, Capita, at phillips66ukpensions@capita.co.uk. This booklet is only a summary of the DC Plan. It does not go into as much detail as the legal document governing the DC Plan its Trust Deed & Rules. The Trust Deed & Rules, as from time to time in force, will always override this booklet in the event of any dispute between the Trust Deed & Rules and the booklet. A copy of the Trust Deed & Rules is available on request from Capita. This booklet does not give any rights to particular levels of contribution or benefits. The effective date of the DC Plan is 1 April

5 HERE S THE BIG PICTURE Do I need to enrol? Do I have to participate? Who contributes? See page 4 How much can I contribute? See page 6 How is my money invested? See page 8 When am I vested? See page 8 What happens when I leave the company? See page 11 Are there any other plan benefits? When you first become eligible for the DC Plan, you re automatically enrolled at a contribution rate of 5% of your pensionable salary each pay period. You can increase your contribution rate, or stop contributing altogether: During your first 30 days of plan participation; During the annual Flex enrolment period; or If you have a qualifying Life Event (see page 5). If you opt-out of the DC Plan you are only eligible to rejoin either as a result of a qualifying Life Event or at the annual Flex enrolment. You decide whether you want to participate in the plan. However, participating in the plan allows you to enjoy tax advantaged savings and company contributions. So if you don t participate, you re turning down money from the company for your retirement. You do the company will match your contributions two-for-one (up to 8% of your pensionable salary!). That means if you contribute 5%, the company will contribute 10%. If you contribute 8%, the company will contribute 16%! You can contribute 5% 8% of your pensionable salary via salary sacrifice. As described above, these contributions are matched two-for-one by the company. You can also choose to make additional voluntary contributions (AVCs). These contributions are not matched by the company and are not paid via salary sacrifice. Your contributions may be subject to HMRC limits (see page 7). You have a choice of investment options. Please see the Phillips 66 UK DC Section Investment Guide for further information. Immediately. That means everything in your account is always yours to keep, including the company contributions. You can leave your money in the plan or transfer it to another tax-approved arrangement (e.g., your new employer s pension plan) or to a personal pension plan. Or, if you re at least age 55, you have the option to retire from the DC Plan when you will be able to withdraw up to 25% of your account in a lump sum and use the rest to buy an annuity. Yes. The DC Plan includes life assurance benefits if you die while you re employed by the company and contributing to the plan. Also, if you become disabled or unable to work while contributing to the DC Plan, you may be eligible to receive an insured income protection benefit under a policy the company has arranged. See page 10 for details. That s the big picture. There s a lot more to the plan though, so don t stop reading now! 3

6 Member Guide to the Benefits of the Defined Contribution Section Eligibility and enrolment Once you join the DC Plan, it s important to keep your personal details (i.e. address, marital status and dependant details) held within HR Express up-to-date. This will avoid any delays in the payment of benefits at a later date. AM I ELIGIBLE? You re eligible to join the plan if you re employed by Phillips 66 as a UK employee and your contract of employment says that you re eligible to join the DC Plan (or you re otherwise notified by Phillips 66 in writing that you re eligible to join the DC Plan). HOW DO I ENROL OR CHANGE MY ELECTIONS? Automatic enrolment for new employees When you re first eligible to participate, you re automatically enrolled in the DC Plan as soon as administratively practicable. Your initial contribution rate will be 5% of your pensionable salary which is paid by way of salary sacrifice. This is called your core contribution. The company matches this contribution two-for-one (10%). Your account will be invested in the default investment option described on page 9. You can choose different investment options if you want. Within 30 days of your automatic enrolment, you can choose to: Add to your savings by making optional matching and/or additional voluntary contributions (see page 6). Opt-out of the plan completely. If you opt-out within the first 30 days, you will be put in the position as though you had never joined. If you don t make changes to your contribution level within 30 days, you won t be able to change it unless you experience a qualifying Life Event or until the next Flex enrolment period as described on page 5. Opting-out of the plan Before opting-out, please consider that you ll miss out on company matching contributions as well as other valuable benefits. If you re thinking about opting-out, or you re uncertain about any area of your financial planning, please talk to an independent financial advisor. To opt-out of the DC Plan, obtain an opt-out form from the Capita website ( phillips66dc) or from the Corporate Intranet. Follow the instructions to complete and return the form. 4

7 If you opt-out WITHIN 30 DAYS of your automatic enrolment If you opt-out AFTER that 30-day period Your contributions made via salary sacrifice will be returned to you as part of your pay in the next following pay period. Generally, your opt-out election takes effect the month following the month in which your form is received by the plan s administrator. Your contributions won t be refunded to you. Instead, you have several options for your account. For example, you can leave your money in the plan, or (if you re age 55 or older), begin taking your retirement benefit. See What happens when I leave the company? on page 11 for details. If you have any questions, please contact Capita. Enrolling or making contribution changes at other times You can enrol in the plan, change or cease your optional matching contributions each year during the annual Flex enrolment period. Your new elections take effect from 1 July. The annual enrolment material will explain the procedure to you in more detail. You can also change or end your optional matching contribution rate during the year if you experience a Life Event. The change will take effect the month following the month in which you have made your changes as a result of your Life Event. For purposes of the DC Plan, Life Events include: Getting married, entering into a civil partnership, or gaining a partner or dependant. Getting divorced, ending a civil partnership, becoming legally separated, or ending a long-term relationship. Having or adopting a child, or gaining a stepchild. Death of an immediate family member. Changing work hours to full-time from part-time, or vice versa. Commencing or returning from an unpaid leave lasting one calendar month or more. Significant change in personal circumstances (e.g. redundancy of a spouse or partner). How the plan works Your one-stop source for information Capita has set up a customised website for Phillips 66 UK employees. Just go to to learn about: The plan in general Your investment options How to manage your account And more! The DC Plan helps you save for retirement in three ways: Your contributions. Company matching contributions. Investment earnings. Your benefit at retirement is determined by several factors, including your account value, your age when you take your benefits and how you choose to receive your benefit. We ll explain these factors in this section. 5

8 Member Guide to the Benefits of the Defined Contribution Section YOUR CONTRIBUTIONS AND COMPANY MATCHING CONTRIBUTIONS There are three ways for you to contribute to the plan: Your core contribution To participate in the DC Plan, you must make a core contribution of 5% of your pensionable salary each pay period. Pensionable salary is your basic salary plus any pensionable allowances such as shift allowances. The company matches your core contribution two-for-one with a 10% employer core contribution each pay period. If you want your retirement account to grow more rapidly, you can make additional contributions to the plan: Your optional matching contributions Your additional voluntary contributions (AVCs) You can choose to contribute an additional 1%, 2% or 3% of pensionable salary each pay period. The company matches your optional matching contribution two-for-one with a 2%, 4% or 6% employer contribution each pay period. You can also choose to make AVC contributions, at any time, in addition to any core or optional matching contributions you are paying. The company does not match your AVCs. Your core and optional matching contributions are made via salary sacrifice. If you want to pay AVCs please contact Capita. Please note that your contributions and benefits may be subject to HMRC limits, as described on page 7. The following chart summarises employee and company contributions to the DC Plan as a percentage of pensionable salary. As you can see, the company s matching contributions really add to the value of your account! Required core contribution Optional matching contributions Totals * Plus any unmatched AVCs. Your contributions Company matching contributions 5% 10% (two-for-one match) 1% to 3% 2% to 6% (two-for-one match) 5% minimum 8% maximum* 10% minimum 16% maximum Total (You + the company) 15% 3% to 9% 15% minimum 24% maximum* 6

9 How does salary sacrifice work? Your core and matched contributions to the DC Plan will be made on a salary sacrifice basis. This means: You agree to sacrifice an amount of your salary to be sent directly to the DC Plan as your contributions. The salary amount shown on your payslip will show your resulting salary after it has been reduced for these contributions. This is your post-sacrifice pay. The amount of your pre-sacrifice salary is used to work out all of your other benefits. There is a disadvantage to making your contributions on a salary sacrifice basis: The DC Plan is not contracted-out of the State Second Pension (S2P). This additional part of the state pension is calculated with reference to your earnings. Any reduction in your earnings between the Low Earnings Threshold ( 15,000 in 2013/14) and the Upper Accrual Point ( 40,040 in 2013/14) may affect this entitlement. Will I pay less in NICs or Income Tax? Because you pay National Insurance Contributions (NICs) only on your post-sacrifice pay, you will pay less NICs than if you were paying your core and matching contributions other than through salary sacrifice. In some cases, you may also pay less Income Tax because your post-sacrifice salary is lower for tax purposes. Are there any contribution or benefit limits? As shown in the table below, there are HMRC rules in place that limit: The amount you can contribute to your pension; and The value of the pension benefits you can build up. Annual Allowance Lifetime Allowance For the DC Plan, the total amount of contributions, including company contributions and AVCs, you pay to your pension account is measured against the Annual Allowance. If this is greater than the Annual Allowance, you may be subject to a tax charge on the excess. Further information about the Annual Allowance can be found at: pensionschemes/ understanding-aa.htm The total value of all of your pension benefits, including your pension account in the DC Plan, will be tested against your Lifetime Allowance. Any excess over the Lifetime Allowance may be subject to a tax charge. Further information about the Lifetime Allowance can be found at: pensionschemes/ understanding-la.htm 7

10 Member Guide to the Benefits of the Defined Contribution Section The Annual and Lifetime Allowances are shown below: Tax Year Annual Allowance (see Note 1) Lifetime Allowance ,000 1,500, ,000 1,500, ,000 1,250,000 Note 1: Annual Allowance calculations are done by reference to what are called pension input periods which end in the scheme year in question. Under the DC Plan all of your arrangements, for tax purposes, end on 31 March. If you don t use all of your Annual Allowance in one tax year, you may be able to carry it forward to use in a later tax year. WHEN AM I VESTED IN MY ACCOUNT? Great news: Immediately! As long as you didn t opt-out of the plan within 30 days of having been enrolled in the plan, all employee and company contributions and the earnings on those contributions are 100% vested as soon as they re made. This means they are credited to your retirement account in the plan and may be available to provide retirement benefits in the future. Please note that the value of your retirement account may fluctuate up or down due to investment gains or losses (and may be reduced by the charges levied on your retirement account). Do I get to decide how my money is invested? Yes. In fact, it s your responsibility, and you should consult with an independent financial advisor. All the contributions are paid into your DC Plan account when deducted from your pay. You choose the investment options for your account and can change your elections at any time. As with any money you invest, you can gain or lose value based on how your investments do, therefore, having a sound investment strategy is important. 8

11 WHAT ARE MY INVESTMENT OPTIONS? Contributions paid to your account are invested by the Trustee according to whichever of the following investment strategies you choose. Self-select strategy Lifecycle strategy You choose your own investments from a range of funds selected by the Trustee. You are responsible for making any changes in how your account is invested. Your account is invested according to a strategy set by the Trustee based on your Target Pension Date, which is the first day of the month after your 65th birthday. If you wish, you can choose a different Target Pension Date between ages 55 and 75. The lifecycle strategy aims to invest in growth funds when you re a long way from retirement, and then gradually switch to protection funds to protect the value of your account as you approach retirement. When you join the DC plan, your account will automatically be invested in lifecycle strategy. If you wish, you can change to the self-select strategy at any time. See the Investment guide for further information. WHERE DO I GO FOR INFORMATION? The separate Phillips 66 UK Pension Plan DC Section Investment Guide contains detailed information about the DC Plan s investment options and strategies as well as information about investing in general. HOW DO I CHANGE MY INVESTMENT ELECTIONS? You may change your investment elections as often as you wish. You can change how your accumulated account balance is allocated, as well as how future contributions will be invested. You can make investment changes online via the Capita website ( phillips66dc). Please see the separate Phillips 66 UK Pension Plan DC Section Investment Guide for further details. A FEW THINGS TO CONSIDER The future value of your account depends partly on investment returns over time. Remember that you control the way your account is invested. You choose how conservative or aggressive you wish to be in selecting your investments from the options offered by the DC Plan, so make sure you understand your options. Over the long term, your account balance will typically fluctuate in accordance with market rates. Remember, investment returns are never guaranteed and could even be negative at times. Your account will be reduced by any charges applied to it (see Charges on page 14 for more information). The future value of your account also depends on how much you contribute which also affects how much the company contributes in matching contributions. Please visit the Capita website to model how your investments may grow based on certain assumptions. Additional information about the funds is available on the Capita website at phillips66dc. You are strongly encouraged to review this information when you make your investment elections. 9

12 Member Guide to the Benefits of the Defined Contribution Section Group Income Protection and Life Assurance benefits When you contribute to the DC Plan, you also get to participate in additional insured life and income protection benefits. GROUP INCOME PROTECTION While you re employed by Phillips 66 and are a contributing member of the DC Plan, Phillips 66 has arranged an additional insured Group Income Protection benefit. This benefit is effective when you first join the DC Plan and is subject to the terms of the insurance policy. If you become unable to work while contributing to the DC Plan and are certified by the insurer as unable to work in your current occupation, you will receive income benefits equal to 66% of your pensionable salary (before salary sacrifice). If you wish, while actively employed, you can choose to flex this coverage up to 75% of pensionable salary for an additional salary sacrifice amount. Your income protection benefits will: Begin on the later of: An initial deferral period of 26 weeks, or The date you have exhausted your companyprovided Sick Pay. Continue until State Pension Age if you remain unable to work. If you and the company agree that you won t be able to recover from your incapacity, you may be eligible to receive a single lump-sum settlement in place of additional regular payments. Be paid monthly. Include payment of your required pension fund contributions. Include periodic cost-of-living increases (capped at 2.5%). Please note: The Group Income Protection is provided outside of the DC Plan and is not a benefit under the DC Plan. However, to qualify for it, you must become a member of the DC Plan and must be contributing, via salary sacrifice, to the DC Plan at the time you become unable to work. Phillips 66 reserves the right to change the insurer, the terms of cover arranged (so it may be higher or lower) or to discontinue the terms of the cover. Phillips 66 will arrange for details to be sent to you of any material reduction in the terms of the cover or of any discontinuance of the cover. LIFE ASSURANCE On becoming a member of the DC Plan you will also be eligible for insured Life Cover benefit if you die while employed by Phillips 66 and contributing to the DC Plan. This means that if you die while employed by Phillips 66 and contributing to the DC Plan, a cash lump-sum benefit of four times pensionable salary plus the value of your retirement account is payable. Please complete and keep up-to-date a Nomination of Beneficiaries form in order for your wishes to be recorded if you were to die while employed by Phillips 66 and an active member of the DC Plan. If your situation changes in the future, or you wish to change your nomination at any time, a blank form can be found in the scheme information section of the pension website phillips66dc. If you re disabled and reach State Pension Age, your income benefits will stop since you are now eligible for a State pension. At that time you ll be paid your retirement benefit accrued under the DC Plan. 10

13 While actively employed by the company, you can choose to flex the cash lump-sum multiple: For more cover You can choose up to a maximum of 10 times pensionable salary by making additional contributions through salary sacrifice. For less cover You can reduce cover down to a minimum of two times pensionable salary and use the difference in cost between the standard level of cover and the lower level for other benefits. The total cash lump-sum payable, including the value of your DC Plan account is subject to the Lifetime Allowance described on page 7. Please remember that the benefit has been insured by the Trustee of the plan with an insurance company, and so the insured element of this benefit is dependent upon the terms of the insurance policy and on the insurance company paying the amount in question to the Trustee. So, for example, if the insurance company was unable to pay because it had become insolvent, no benefit or a reduced benefit would be paid if this coincided with your death. Please note that Phillips 66 reserves the right to reduce or terminate the level of insured Life Cover. If Phillips 66 exercises this option, you ll be notified by the plan s administrator at your most recent contact details held by the administrator. It is important that your contact details are kept up-to-date. What happens when I leave the company? If you leave the company, contributions to your account will stop and you will have a few options. Leave your account in the plan Transfer the value of your account Begin receiving your plan benefits You can leave your account in the DC Plan until a later date or until you take your pension. Your account will continue to be invested in accordance with your investment choice. You will be sent an annual statement showing the value of your account, and you should continue to review your investment options. You can also continue to manage your account online at: You can transfer the value of your account to another tax-approved arrangement (e.g. an occupational pension scheme of your new employer or a personal pension plan). If you re considering transferring your account, you should seek advice from a suitably qualified independent financial adviser. Phillips 66 reserves the right to direct the Trustee to transfer-out your account to an insurance company after you have left the plan. If such transfer is to take place, you will be sent details of this by the plan s administrator at your most recent contact details held by the administrator. It is important that your contact details are kept up-to-date. You can begin your pension at any time after age 55. Your retirement options are described in the next section. 11

14 Member Guide to the Benefits of the Defined Contribution Section What will my DC Plan benefits be when I retire? The benefits the plan will provide on retirement will depend on several factors including: The value of your account. This is based on contributions paid and investment returns achieved (positive or negative) and is reduced by any charges levied on your account (see page 14). Annuity rates. These are the rates for converting your account into a pension. Rates are based on market rates at the date of retirement and type of pension bought. Your age when benefits begin. The younger you are, the more expensive the pension will be. This is because it will be paid over a longer period. WHEN CAN I TAKE MY PENSION? Your normal retirement age is age 65, but you can retire and purchase an annuity with your account as early as age 55. In certain circumstances of permanent ill health, you may also be able to purchase an annuity with your account before age 55. DOES MY PENSION HAVE TO BEGIN AT MY NORMAL RETIREMENT AGE? You don t have to begin your pension at age 65. You can retire as early as age 55 and you may continue working past age 65 and continue to make contributions under the DC Plan. HOW DO I APPLY FOR MY RETIREMENT BENEFIT? Contact your supervisor in order to obtain company consent and the appropriate forms and requirements for documentation. WHAT ARE MY BENEFIT OPTIONS? When you retire, you can elect to take part of your account as a lump sum. You can normally take up to 25% of the value of your account as a lump sum. This amount is currently tax-free, provided it doesn t exceed more than 25% of your available Lifetime Allowance at the time in question (see Are there any contribution or benefit limits? on page 7). With the rest of your account, you can purchase an annuity (pension for life) from an insurance company. Annuities are normally payable in monthly instalments. Some of the annuity options you may have are: Pension increases. You can choose an increasing annuity (e.g., increasing in line with the cost of living) or a fixed (non-increasing or flat-rate) annuity. Single life annuity. This is a pension that ceases upon your death. Joint life annuity. With a joint life annuity, you receive a reduced monthly pension throughout your lifetime, and your spouse receives a percentage of your pension after your death. Guaranteed payment period. This type of annuity guarantees to pay benefits over a specified period. If you die within the guarantee period, usually 5 or 10 years, the balance of the guarantee would be paid to your estate as a lump sum. It s important that you check with the plan administrator about additional options that may be available when you retire. You may want to speak to the plan s administrator and/or consult a suitably qualified independent financial adviser before deciding on the specific options to choose. Please note that Phillips 66 may direct the Trustee of the plan to transfer your retirement account to an insurance company at retirement if you don t express a choice. Details of any such transfer will be sent to you at the contact details held by the plan administrator. Please remember to keep these up-to-date. 12

15 HOW DO I PURCHASE AN ANNUITY? As you approach your normal retirement age, you will be sent further details regarding your retirement options and the different types of available annuities. (Please remember to keep your contact details up-to-date!) It s very important that you get the best value from your pension savings when you retire and that you shop around the annuity providers in order to find the provider who will give you the highest income (known as the open market option ). You will also be able to seek quotes on Capita s website. What happens if I TAKE A TEMPORARY ABSENCE FROM WORK? If you re absent from work, you ll normally remain a member of the plan as long as: You re receiving contractual pay from Phillips 66 or statutory sick pay; and There is a definite expectation of your return to work with Phillips 66. Please seek further clarification from your HR department in the event that you move abroad for the period of your leave of absence. If you start to work outside of the UK and in another EEA member state in circumstances where you would otherwise cause the plan to engage in crossborder activity, your contributions to the plan and your employer s contributions to the plan will cease immediately before you would otherwise cause the plan to engage in cross-border activity. I TAKE A FAMILY LEAVE? Your membership in the plan will continue during any period of ordinary maternity leave, ordinary adoption leave or paternity leave. Your contributions payable to the plan during this period will be based on your actual pay received. For more information on family leave (including details of contributions payable by the company during that period) please refer to the working parents policy on the Corporate Intranet or alternatively see your supervisor or HR business partner. I GET DIVORCED? On divorce from a marriage or a registered civil partnership, pension scheme benefits are included in the couple s assets. What then happens depends on how the total assets are split as part of the divorce settlement. A Court could order the pension benefits to be shared in one of three ways: The member s pension benefits are offset against other assets, or Part of the member s pension benefits can be earmarked and paid to the ex-spouse or civil partner when the member retires, or The value of the member s pension rights can be divided at the time of divorce (pension splitting). This usually involves transferring the ex-spouse or civil partner s share to another pension arrangement. 13

16 Member Guide to the Benefits of the Defined Contribution Section I DIE? If you die while employed by Phillips 66 and while contributing to the DC Plan, the Life Assurance benefit described on page 10 will be paid at the discretion of the Trustee, subject to the Lifetime Allowance described on page 7. If you die after leaving the company but before your retirement benefits begin, the value of your DC Plan account is payable at the discretion of the Trustee as a cash lump sum, subject to the Lifetime Allowance described on page 7. If you die after leaving the company and beginning your pension, the benefits payable will depend on the type of pension or annuity you chose to purchase. For example, this could include: Pensions that continue to be paid to your spouse or other dependant; or The remaining instalments payable in respect of any guarantee period you chose. Nomination of Beneficiaries form and Trustee discretion for death benefits All death benefits payable upon death while an active member or death after leaving employment before retirement are payable at the discretion of the plan s Trustee for tax reasons (so that the amount does not form part of your estate for inheritance tax purposes). To assist the Trustee in its decision-taking, please make sure that you complete a Nomination of Beneficiaries form (and make sure you keep it up-to-date). The Trustee cannot be required to follow what you say in your Nomination of Beneficiaries form, but it will be taken into account in the Trustee s decision-taking. Please make sure that you complete a Nomination of Beneficiaries form when you first join and keep it up-to-date. Copies are available on Capita s website and from the Corporate Intranet. What other important information do I need to know? BENEFIT STATEMENTS You will be sent, at the contact details held by the plan s administrator, a personal benefit statement each year to help you see how your potential pension is shaping up. Please remember to keep your contact details up-to-date. You can also go online and see how your account is building up, as well as use the Pension Planner on the Capita website at CHARGES Currently, no administrative charges are made to your retirement account in the DC Plan. Charges are made in relation to the investment of your retirement account in the DC Plan within the investment funds in which your retirement account is invested. For further details see the Phillips 66 UK Pension Plan DC Section Investment Guide. However, Phillips 66, which is currently bearing those administrative charges, reserves the right to pass on all or part of those charges to your retirement account in the DC Plan. If all or part of these administrative charges are to be charged to your retirement account in the DC Plan, the plan Trustee will make arrangements for notice of the charges to be sent to you at the last contact address held by the plan s administrator for you. It is, therefore, important to keep your contact details up-to-date. The fact that Phillips 66 has, for the time being, decided to pay for the administrative charges, does not in any way restrict Phillips 66 s right at any time to elect to stop paying all or part of those charges. 14

17 OTHER PENSION SCHEMES While a member of the DC Plan, you also build up State pension entitlement through your National Insurance contributions. State pensions are payable from State Pension Age. For more information about State pensions go to and follow the Working, jobs and pensions link. As a Phillips 66 employee, you can contribute to a stakeholder or personal pension plan in addition to, or instead of, the DC Plan. However, Phillips 66 will not contribute to a personal or stakeholder pension plan. HMRC limits will apply to your combined contributions to, and benefits received from, your collective pension plans. ADMINISTRATION The DC Plan is set up and run as a trust administered by Phillips 66 Pension Plan Trustee Limited. The plan s assets are held within this trust separate from the assets of the company. The Trustee produces a full report and accounts each year, which is available to plan members on request to Capita, the DC Plan administrator. A simplified version is issued automatically to all active and retired members. COMPLAINTS If you have a complaint about your benefits under the plan, the Trustee has a formal procedure to deal with your concerns. This procedure is known as the Internal Dispute Resolution Process (IDRP). A copy of the IDRP is available from Capita. AMENDMENT OR DISCONTINUANCE The company reserves the right to amend the plan at any time. Further, the company may elect to reduce its level of contributions to the plan, to increase the level of contributions payable by you to the plan or to cease to pay contributions to the plan. Details of any such changes which affect your contributions or benefits will be sent to you by the plan s administrator using the contact details they hold. Please remember to keep those details up-to-date. If the plan is discontinued, a statement detailing the value of your account will be sent to you and your options will be explained to you. Capita administers the DC Plan on behalf of the Trustee. Capita will help you enrol as a new participant, and keep track of your contributions, account balances, investment elections and changes. It also provides tools and resources you can use to manage your own investment account. Capita will provide periodic paper statements and/or online access to keep you informed about your account. Phillips 66 Pension Team Capita Hartshead House 2 Cutlers Gate Sheffield S4 7TL Tel: Phillips66UKpensions@capita.co.uk 15

18 Member Guide to the Benefits of the Defined Contribution Section DATA PROTECTION The personal data that you provide or which is provided about you in connection with the plan will be held on and processed by computer or other means in order for the Trustee, Capita or its affiliated or associated companies or agents to administer the plan. This may involve the transfer of data by electronic means including the internet and may also include the transfer of such data to companies or agents based outside the European Economic Area. Your information will be held in confidence and not passed to any other company without appropriate permission or unless the Trustee or Capita is required to do so by law except in the following circumstances: Where it is necessary to administer the plan. The Trustee or Capita may provide some information to your employer to help administer the plan. At your request, the Trustee or Capita may also pass certain information to an IFA to help them give you advice. TIME LIMITS Please note that the Trust Deed and Rules of the plan specifies the time limits by which certain things have to be done by Phillips 66 or by the Trustee or by the plan s administrator. Although, as the case may be, Phillips 66, the Trustee or the plan s administrator will aim to do better than the long-stop dates for doing the particular action in question as specified in the Trust Deed, no liability is accepted if any earlier target date is not met. Furthermore, no liability is accepted for any failure to give effect to anything which is required to be done by Phillips 66, the Trustee or the plan s administrator as a result of circumstances beyond their respective controls. You have the right to obtain a copy of the personal data held about you. You may be charged a fee for this. Contact Capita on:

19 Other sources of help and information THE PENSIONS ADVISORY SERVICE (TPAS) TPAS can help members or their beneficiaries with any questions they may have about the plan or with any difficulty they failed to resolve with the Trustee or administrator. TPAS can be contacted through your local Citizens Advice Bureau, or: Online: Phone: Post: The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB PENSIONS OMBUDSMAN The Pensions Ombudsman may be able to investigate or determine any complaint or dispute of fact or law that TPAS is unable to resolve for you. Contact the Ombudsman: Online: Phone: Post: The Pensions Ombudsman 11 Belgrave Road London SW1V 1RB PENSIONS REGULATOR There is a regulatory body that oversees the running of pension plans. The Pensions Regulator can intervene where trustees, employers or professional advisers fail in their duties. Contact The Pensions Regulator: Online: customersupport@thepensionsregulator.gov.uk Phone: Post: The Pension Regulator Napier House Trafalgar Place Brighton East Sussex BN1 4DW PENSION TRACING SERVICE Details of the plan have been given to the DWP. If you have difficulty tracing your benefits in future, you can contact the Pension Tracing Service: Online: Phone: Post: The Pension Tracing Service The Pension Service Tyneview Park Whitley Road Newcastle upon Tyne NE98 1BA INDEPENDENT FINANCIAL ADVICE By law neither the plan nor anyone connected with it can give you financial advice. If you re not sure about what pension decisions to make, you should speak to an independent financial adviser (IFA). You can find the name of one in your area through the IFA Promotion website: You may have to pay for the services of an IFA, so ask for a quote first. 17

20 Edition 1 April 2013