Group Pension Policy 75POINT3

Transcription

1 Group Pension Policy 75POINT3

2 Contents 03 RSK s commitment 04 Aegon Scottish Equitable 06 75point3 07 Should you be in? 08 Additional advice services 09 Aegon, by us 09 Customer care 10 Information 02/10 75POINT3 RSK Group Pension Scheme

3 RSK s commitment to staff retirement planning Around the same time as it was set up RSK developed and published a set of nine principles to guide its business planning, strategy and action. Number 1 on the list was: Hiring, retaining and rewarding talented and dedicated people. One of the key benefits provided to reward you, in addition to your salary, is the Group Pension Scheme. The scheme is available with the following benefits: Salary sacrifice option by default to boost your net pay Low scheme charges while you are an active member Online access to scheme information From 1st February 2014 (RSK s staging date), Automatic Enrolment will mean that certain employees, not currently members of the RSK Pension Scheme, will be opted in. This document provides further information about this along with general details about the scheme. If you are already in the scheme it is unlikely that your contributions will change but if they are affected you will receive an individual letter from your HR Director. RSK s Group Scheme is administered by Aegon Scottish Equitable. RSK appointed 75point3 as scheme advisers in December We ve put a quality proposition together for you and we are committed to helping you build a retirement fund that will last you a lifetime. 03/10 75POINT3 RSK Group Pension Scheme

4 Aegon, by Aegon. About Us Investment Solutions We ve been helping customers in the UK with their financial futures since As part of the AEGON Group, we combine an in-depth understanding of the UK pensions industry with the financial stability of one of the world s largest financial services organisations. We re an integral part of the AEGON Group, offering a wide range of longterm financial solutions in the UK. The AEGON Group has assets under management of 404 billion* ( 346 billion), including all revenuegenerating investments, around 26,000 employees and approximately 40 million customers worldwide. We re an award-winning provider in both service and technology. Aegon s three core values are quality, choice and governance. This gives us the flexibility and control to promote the most appropriate fund set for your scheme while still providing access to a wider choice of funds for those who want it. Aegon employs two highly respected independent investment research houses, Old Broad Street Research Ltd (OBSR) and Mercer, to provide independent validation and investment expertise. Carefully selected funds span all risk categories and asset classes, offering a range of investment styles and options to suit every investor. Aegon constantly reviews the fund ranges with the help of OBSR and Mercer. This is underpinned by strict governance and monitoring process. Our customers are the very core of our business and the way we run our business reflects that. If you are viewing this online Go to Aegon s website here >>> *approximate, Dec /10 75POINT3 RSK Group Pension Scheme

5 Aegon, by 75point3 Why Aegon? What it means for you We ve advised RSK s board to retain the services of Aegon as administrators because we think they are one of maybe five or six providers equipped to deal with your scheme. With new workplace pension regulations affecting RSK from February 2014 it is vital for it to have an effective administration procedure in place and Aegon s Smart Enrol system provides this. Your HR Director has made it clear to us that we are to keep Aegon s performance under review and to make sure that it remains a suitable long term partner. You will have your own online sign in to Aegon s pension website so that you can monitor your pension fund. You ll get details of this when you join. Aegon s normal charges have been reduced substantially to just 0.5% of the fund per annum. This is because of RSK s buying power. The reduction applies for the whole time that you re an active member. Aegon s default investment fund is the Universal Lifestyle Collection. The fund will actively reduce your exposure to the stock markets the closer you get to retirement and start to move your funds into less volatile funds such as cash. The fund is classed as average risk by Aegon. The fund invests in a wide range of assets and we think that the fund is a suitable default for most people with more than five years until they retire. 75point3 will be happy to provide information if you want to look at alternative funds and you ll also find lots of information on Aegon s website. If you are viewing this document online you can click on the link below to get an up to date factsheet on the default fund. More >>> 05/10 75POINT3 RSK Group Pension Scheme

6 About 75point3 We ve won lots of awards We ve got a great team of financial services professionals who want to build long term customer relationships and who believe in our fully independent approach. Some of our advisers are the most highly qualified advisers in the UK having attained both Chartered and Certified status. The general level of qualifications in the firm and our adherence to a higher code of ethics mean that we have been awarded Corporate Chartered Status by the Chartered Insurance Institute and we have won many national awards in different areas of advice. Equity Release Pensions Investments Auto Enrolment Wraps Inheritance Tax Paraplanner Mortgages Mortgages Don t worry the accolades haven t gone to our heads. We know that this is about you not us. 06/10 75POINT3 RSK Group Pension Scheme

7 So, should you be in the scheme? What is a pension? A pension is basically a long-term savings plan with tax relief - your regular contributions are invested so that they grow throughout your career and then provide you with an income in retirement. Generally you can access the money in your pension pot from the age of 55. How tax relief tops up your pension pot Once your income is over a certain level, the government takes tax from your earnings. You can see this on your payslip. If you put money into a personal pension scheme, it qualifies for tax relief. This means that as well as the money you re putting in, some of your money that would have gone to the government as tax now goes into your pension pot instead. The government will still put tax relief into your pension pot, even if your income is too low to pay tax. Staying out is like turning down the offer of a pay rise The government has introduced a law designed to help people save more for their retirement. It means that RSK must start to enrol its workers into a workplace pension scheme if they aren t already in one. It s called automatic enrolment and is gradually being made compulsory for all employers. As RSK gives you access to a pension and will pay into it, then unless you really can t afford to contribute or your priority is dealing with unmanageable debt, staying out is like turning down the offer of a pay rise. By the time October 2018 arrives you ll pay in 4% of your total earnings and RSK will pay in 3% on top of this. If you wish to pay in more than this then you should contact 75point3, details are provided at the end of this document. If you ve not joined the scheme already or if you have just joined RSK then we ll automatically enrol you into the scheme in February 2014 or as soon as you start working for RSK if later. You ll pay in 1% of your total earnings and we ll match that. You can opt out if you want and you ll receive details of how to do this after you ve joined. If you opt out within two months then any contributions collected from you will be refunded. How much will it cost you? If you earn 20,000 a year then you d think that 1% of this, or 200 a year, would come out of your pocket but because the government gives you tax relief, it only actually costs you 160. RSK pays 200 on top of this so for a net cost of 160, you get 400 going into your pension pot. If you are a higher rate tax payer you save another 40 in tax, so it only costs you 120 to get 400 into your pension. You can reduce the cost further by using Salary Exchange. Under this method you ask RSK to reduce your salary to 19,800 and then RSK pays 400 directly into your pension. This will increase your take home pay because you pay less National Insurance. In fact it makes the net cost of 400 into your pension only You can discuss salary exchange with 75point3 to make sure it is right for you because there are some potential downsides: it could affect benefits and entitlements and even impact on how much mortgage you can get but you need to weigh that up carefully against the extra cost to you for the rest of your working life if you don t use this method. By default you will be enrolled on a salary exchange basis. If you are viewing this document online you can click here to download a salary sacrifice excel spreadsheet to check your personal figures. 07/10 75POINT3 RSK Group Pension Scheme

8 Other services available from 75point3 75point3 Limited offers various propositions for individuals including access to our WRAP investment service which is fully advised and whole of market. We will make this available for RSK staff, regardless of the level of investment and will apply a 30% discount to the initial fee structure. We have advisers qualified to the highest level and can advise staff, directors or the company on tailored pension solutions, SIPPs, commercial mortgages, inheritance tax planning etc. We have a wide range of experience. We also have strong links with Quilter stockbrokers who will provide bespoke stockbroking services at preferential rates for our customers. Family security advice for RSK staff for protection needs not covered via work schemes 30% commission rebated to staff member. Guidance for retiring staff members. Whole of market advice on residential or buy to let mortgages. Online sourcing system provided free of charge via site we develop for you. Advice fee waived for RSK staff. Advice fee reduced for family members. 30% commission rebate on associated protection products. Service extended to spouses, parents and children so that the family knows what a great company you work with. 08/10 75POINT3 RSK Group Pension Scheme

9 Customer Care Access to information Aegon will give you instant online access to the scheme and fund information. The information is updated daily so it s never more than 24 hours old. You can view: personal details these can also be changed online (please remember to update the HR department if any of your personal details change); fund value; full transaction history; projections; benefit details; details of funds selected. You can also request fund switches online. Costs Charges under your scheme are discounted down to just 0.5% per annum for active members. There are no other costs. However, you may incur additional costs if you switch into more expensive funds. The charge covers payments to 75point3 as well as Aegon s costs. Help and Support Your main adviser will be Kirsty Stewart at 75point3. You can contact her via Please note that this document details pension contributions for new members, existing members entitlements and contribution rates are not detailed here. In some cases existing contribution rates will be affected by the new legislation and where this is the case the staff member will receive individual details from the HR Department. 75point3 - Treating Customers Fairly We at 75point3 are actively putting customers at the heart of what we do and are determined to treat you fairly and communicate clearly with you at all times. We are following the Financial Conduct Authority s Treating Customers Fairly principles. One of the things that these principles cover is how we get paid for providing our services. 09/10 75POINT3 RSK Group Pension Scheme

10 Need more information? Contact Kirsty Stewart on Important information please read This document is intended to provide RSK Group PLC staff with a guide to the services offered by 75point3. 75point3 75point3 Limited is a company incorporated in England and Wales, registered at Companies House No , registered office: 14 Penrhyn Road, Colwyn Bay, Conwy, LL29 8LG. 75point3 Limited is authorised and regulated by the Financial Conduct Authority, Firm No point3 Limited has four appointed representative companies : DRE & Co Financial Planning LLP, WDJ Financial Planning Ltd, 75point3 Financial Planning LLP, Oliver & Co Financial Planning Ltd.