Capgemini UK Pension Plan Defined Contribution Section

Transcription

1 Capgemini UK Pension Plan Defined Contribution Section April 2008

2 Introduction The amount of benefits eventually payable will not be known until you actually retire. Section Page 1. Terms used in this Booklet Joining the Plan Contributions Investments 8 5. Retirement Benefits Leaving the Plan Benefits on Death-in-Service Temporary Absence and Changes in Working Hours General Information Investment Fund Choices State Pension Scheme and Contracting-Out 29 The Capgemini UK Pension Plan - Defined Contribution Section ( the Plan ) has been set up to provide you with one or more of the following benefits: a pension when you retire, with the option to take part of your fund as a tax-free cash sum with a smaller pension protection for your dependants if you die in service (known as Dependants pension) the opportunity when you retire to set up benefits for your dependants on death after retirement The Plan provides benefits on a Defined Contribution basis. This means that your contributions and those of the Company will be paid into a retirement account that is opened in your name, and when you retire you use the accumulated pension fund to provide retirement benefits chosen to suit your circumstances at that time. The amount of benefits eventually payable will not be known until you actually retire, and will depend upon the following factors: the amount of money put into the Plan on your behalf the investment performance of those funds the terms on which your retirement account is converted into a pension Your Basic Contributions will be fixed at 3% of Pensionable Salary plus the Age-Related Company Contribution applicable to your age band. On top of the Basic Contributions you can elect to pay Fixed Additional Contributions and/or Variable Additional Contributions if you wish. As a member of the Plan you will also build-up benefits under the State Second Pension (S2P), although you can elect to contract-out of S2P on an individual basis with an external provider if you wish. All retirement benefits are funded, which means that your retirement account forms part of a fund that is held and invested by the Trustees, and is completely separate from the Company s assets. This booklet gives a broad outline of the benefits offered to you as a member of the Plan. It does not in any way override the Plan s Trust Deed and Rules, which govern the operation of the Plan and will always take precedence. The different aspects of the administration of the Plan are undertaken, on behalf of the Trustees, by Xafinity Consulting. 1 DEFINED CONTRIBUTION SECTION

3 1. Terms used in this Booklet Certain terms are used throughout the booklet. Their meanings are explained below: Active Member A current employee of the Company who is a member of the Plan and in respect of whom contributions are being paid. Annual Allowance This was introduced by the Finance Act 2004 with effect from 6 April It represents the maximum pension contributions that can be paid in each fiscal year without an additional tax charge being payable. The Annual Allowance is 235,000 in the tax year 2008/09, increasing annually until it reaches 255,000 in the tax year 2010/11. The Annual Allowance is likely to continue to increase in subsequent years. Company Capgemini UK plc and all the participating employers of the Plan. Dependant Your spouse, partner (including civil partner) or financial dependant (including children) nominated on the Dependant Nomination Form (see Pensions Intranet site or contact The Pensions Team). Incapacity Physical or mental deterioration which, in the opinion of the Principal Employer on the advice of a registered medical practitioner, gives rise to you being unlikely at any point before your Normal Retirement Age to be able to engage in any suitable employment. In addition, if you are under age 50, the Trustees must be satisfied that you are, and will continue to be, incapable of carrying out your occupation. Inflation Inflation in this booklet means the increase in the cost of living as measured by the Retail Prices Index (RPI). In-Service Deferred Member A member of the Defined Benefit (DB) Section of the Plan whose Pensionable Service ceased on 31 March 2008, but who was notified by the Company that his/her benefits will continue to be linked to the higher of Pensionable Salary and Underpin Pensionable Salary until the earlier of taking his/her pension benefits or electing to break such link. Lump sum life assurance benefits and dependants pension benefits after 31 March 2008 remain unchanged for In-Service Deferred Members. For In-Service Deferred Members who join the Defined Contribution Section, Section 7. Benefits on Death-in-Service of this pension booklet is not applicable, and the In-Service Deferred Member Section booklet should be referred to instead. If an In-Service Deferred Member is not affected by the Plan Cap under the In-Service Deferred Member Section, then the Plan Cap will not apply under the DC Section. Lifetime Allowance This was introduced by the Finance Act 2004 with effect from 6 April It represents the maximum value of an individual s pension benefits from all sources. If exceeded, an additional tax liability is incurred. The Lifetime Allowance is 1.65m in the tax year 2008/09, increasing annually until it reaches 1.8m in the tax year 2010/11. The Lifetime Allowance is likely to continue to increase in subsequent years. Normal Retirement Age (NRA) Your 65th birthday Following the introduction of age discrimination legislation in December 2006, if you remain in service beyond NRA you can continue as a contributing member of the Plan if you wish. Pension Commencement Lump Sum (PCLS) The new term introduced by the Finance Act 2004 for the tax-free cash sum that can be paid to a member on taking benefits. All references to benefits being tax- DEFINED CONTRIBUTION SECTION 2

4 free reflect current legislation but are subject to any future changes in legislation. Pensionable Salary Reference Salary, as determined at your date of joining the Plan and each subsequent 1 April. This figure is subject to the Plan Cap. Pensionable Service Period of active membership (see definition of Active Member above). Plan Capgemini UK Pension Plan - Defined Contribution Section. Plan Cap This was formerly the earnings limit (known as the Earnings Cap) by reference to which contributions were paid (or benefits calculated) for members who joined a pension arrangement after 31 May It was originally imposed by HM Revenue & Customs (HMRC), but with effect from 1 April 2006 has been adopted as the Plan Cap for the same group of members. The Plan Cap now represents the maximum level of pensionable earnings on which Total Basic Contributions and Fixed Additional Contributions are calculated, and the maximum level of total contributions (Basic Contributions, Fixed Additional Contributions and Variable Additional Contributions) which can be paid in any Plan Year. The Plan Cap continues to be reviewed annually on 1 April and for the tax year 2008/09 is 117,600 per annum. Plan Limits The limits previously imposed by HMRC as a condition of approval. These have now been adopted as Plan limits, unless otherwise stated. Plan Year 1 April to 31 March. Principal Employer Capgemini UK plc. Qualifying Service Pensionable Service plus any previous service with an employer covered by a transfer of pension to the Plan or in respect of a TUPE transfer. Qualifying Service will also include Salaried Service in the case of an In-Service Deferred Member. Reference Salary Basic salary from time to time excluding any bonuses or other payments. This figure is subject to the Plan Cap. Renewal Date 1 April each year. S2P State Second Pension. Salaried Service This term relates only to In-Service Deferred Members. It means any period of service under the In- Service Deferred Section after 31 March 2008 in respect of which the higher of Pensionable Salary and Underpin Pensionable Salary is used to calculate the In-Service Deferred Member Section benefits. State Pension Age 65 for males and for females born on or after 6 April for females born before 6 April 1950 phased from 60 to 65 for females born between 6 April 1950 and 5 April 1955 Trust Deed and Rules The governing documentation of the Plan. Trustees The individuals appointed to carry out the purposes of the trust in accordance with the provisions of the Trust Deed and Rules and the general principles of trust law. Underpin Pensionable Salary (applies only to members of the In- Service Deferred Member Section who joined the DC Section on or after 1 April 2008) The Pensionable Salary on 1 April 2007 increased on each 1 April thereafter by the increase in the RPI (capped at 2.5%) for the year to the previous September. 3 DEFINED CONTRIBUTION SECTION

5 2. Joining the Plan If you are eligible for Flex ChoiceS you join via Flex ChoiceS online. In-Service Deferred Members Members of the In-Service Deferred Member Section remain eligible to join the Defined Contribution (DC) Section of the Plan on the 1st of any month after 31 March For further information, please refer to the In-Service Deferred Member Section booklet (available on the Pensions Intranet site). *available on the Pensions Intranet site or from The Pensions Team (see page 20 for contact details). Eligibility Permanent Employees and Fixed Term Contract Employees - aged at least 16 will be able to join on the first of any month after joining the Company. If you are eligible for Flex ChoiceS you join via Flex ChoiceS online. Employees not eligible for Flex ChoiceS will need to complete an Application Form.* All employees aged between 16 and 65 are automatically covered for the death-in-service lump sum benefit (known as life assurance ) as soon as they join the Company. The level of life assurance provided can be varied through Flex ChoiceS. If you are not an In-Service Deferred Member and wish to optout of the Plan whilst remaining employed by the Company you are required to give one month s written notice of your intention to withdraw. You would only be able to rejoin the Plan at a later date with the Trustees consent and the agreement of the Principal Employer. Also, to be eligible for the lump sum benefit used to secure the Dependants death-inservice pension (known as Dependants pension) you may be required to provide medical evidence as determined by the insurers. The insurers reserve the right to decline or restrict cover for this benefit. Employees eligible for Flex ChoiceS will only be covered for this benefit if it is selected. DEFINED CONTRIBUTION SECTION 4

6 If you are an In-Service Deferred Member and wish to opt-out of the Plan whilst remaining employed by the Company, you will not be able to rejoin. If you choose to opt-out of the Plan it means that you must opt-out of both the In-Service Deferred Member Section and the Defined Contribution Section. You cannot opt-out of only one Section. Application Membership of the Plan is voluntary. If you are eligible for Flex ChoiceS you join via Flex ChoiceS online. This will show you the contribution levels and investment choices from which you may select. If you are not eligible for Flex ChoiceS, you join by completing an Application Form.* You should note that when registering for membership via Flex ChoiceS (or completing an Application Form if you are not eligible for Flex ChoiceS) you should specify the fund(s) in which all the contributions paid are to be invested (see Section 10. Investment Fund Choices). You should ensure you complete both the Beneficiary Nomination Form* and the Dependant Nomination Form (available on the Pensions Intranet site) *Available on the Pensions Intranet site or from The Pensions Team (see page 20 for contact details). Benefits from a Previous Pension Arrangement It may be possible for the cash value of the retirement benefits to which you are entitled under other pension arrangements to be transferred into the Plan. Any decision to transfer should be taken with great care and you should consider taking independent financial advice. Any benefits transferred will form part of your overall Capgemini benefits and become subject to Plan Limits. A transfer-in can only be made with the Trustees consent. The Trustees would normally be willing to accept a transfer of benefits, except where any legislative requirements relating to such a transfer would place an unacceptable administrative or financial burden on the Plan. 5 DEFINED CONTRIBUTION SECTION

7 3. Contributions Plan Contributions There are three types of contributions: Basic Contributions Fixed Additional Contributions Variable Additional Contributions If you are eligible for Flex ChoiceS you will be a non-contributory member from the date you join the Plan. An amount for member contributions will not be shown on your payslip. Instead, the Basic Contributions (3% of Pensionable Salary), together with the Age-Related Company Contributions and any Fixed Additional Contributions you have elected to pay, will be treated as a single pension figure deducted from your Flex Fund. Basic Contributions Total Basic Contributions are made up of: (i) Basic Contributions (3% of Pensionable Salary) (ii) Age-Related Company Contributions The Age-Related Company Contribution rate is 4%, 6%, 8% or 10% of your Pensionable Salary, depending on your age at the date of joining the Plan and each subsequent 1 April. The Age-Related Company Contributions reflect the fact that the cost of pension provision increases with age. The Total Basic Contributions (Basic Contributions plus Age-Related Company Contributions i.e. the minimum contributions for your age) are shown in the table below: Fixed Additional Contributions In addition to the Total Basic Contributions, you can elect to pay Fixed Additional Contributions (up to 50% of your Reference Salary including your Total Basic Contributions). Fixed Additional Contributions must be fixed at the start of the Plan year (1 April) or alternative 1st of the month you join the Plan, and paid until the end of the Plan year (31 March) or earlier date of leaving. In addition to qualifying for tax relief, National Insurance contributions are not payable on Fixed Additional Contributions if paid through Flex ChoiceS. Variable Additional Contributions You can also elect to pay Variable Additional Contributions, as long as your total contributions (i.e. your Total Basic Contributions and any Fixed Additional Contributions you pay) do not exceed 75% of your Reference Salary. If you are not eligible for Flex ChoiceS you will remain as a contributory member. You have the same contribution choices, and the same limits apply to you, as for a Flex ChoiceS member. Age-Related Company Contributions Basic Under and over Contributions 4% 6% 8% 10% 3% 7% 9% 11% 13% Total Basic Contributions DEFINED CONTRIBUTION SECTION 6

8 Variable Additional Contributions are payable on a regular monthly basis or as one-off payments or both. Regular monthly payments can be stopped or started with effect from the 1st of any month. Although these contributions qualify for tax relief, National Insurance contributions are payable on them. The maximum level of total contributions (Basic Contributions, Age-Related Company Contributions, Fixed Additional Contributions and Variable Additional Contributions) which can be paid in any Plan Year is 75% of Pensionable Salary, subject to overall contributions in the Plan Year not exceeding the lower of the Plan Cap or the Annual Allowance, as applicable. Your Basic Contributions and Fixed Additional Contributions remain fixed during the Plan Year (known as Fixed Contributions), unless you experience a Lifestyle Event. Further information on Lifestyle Event changes is available on the Flex ChoiceS section of the HR Intranet or contact the HR/Payroll Helpdesk on (internal) or (external). For details of the impact of temporary absence from work and changes in working hours on your pension contributions see Section 8. Temporary Absence and Changes in Working Hours. You have a choice as to where all the contributions paid on your behalf are invested (see Section 10. Investment Fund Choices). The Plan is not contracted-out of the State Scheme. This means that as a member of the Plan you will also be earning a State Second Pension (S2P) entitlement, in addition to the Basic State Pension (see page 29). Contributions will be payable by the Company on your behalf while you remain in Pensionable Service, but see Section 8. Temporary Absence and Changes in Working Hours regarding temporary absence from work and changes in working hours. If you are not eligible for Flex ChoiceS, Application Forms for Fixed Additional Contributions and Variable Additional Contributions are available on the Pensions Intranet site or from The Pensions Team. Tax Relief Your pension contributions are not normally subject to tax. They are deducted from your pay before income tax is calculated, which means that you receive tax relief at the highest rate you pay. Annual Allowance The total contributions paid on your behalf are tested against the Annual Allowance. If they exceed the Annual Allowance, a tax liability on the amount over the limit would be incurred. Your Retirement Account All pension contributions paid by you, or the Company on your behalf, accumulate in your retirement account, to provide benefits for you and for your Dependants on your retirement or death. Each year you will receive a benefit statement from the Trustees, showing the current value of your retirement account. 7 DEFINED CONTRIBUTION SECTION

9 4. Investments Investment Funds Passive Management or indextracking is a style of investment management designed to track the performance of a stock market index. The fund manager makes no judgement on how a company s shares are likely to perform, but instead holds the same stocks as those contained within a particular index, or holds a similar range designed to follow the performance of that index. Active Management is the process whereby investment managers actively pick individual stocks within different/individual investment markets. The aim is to produce greater returns than the passively managed approach, but there is a higher risk level and greater volatility in individual years. This approach gives the investment manager greater freedom in deciding how to invest. The fund performance depends on the investment manager s judgement in stock selection. As explained in Section 10. Investment Fund Choices, a range of funds is available to you for the investment of the contributions paid on your behalf. When you first become a member you must select the investment funds of your choice. if you are a member of Flex ChoiceS you will be asked to make your investment choices as part of the annual registration process if you are not a member of Flex ChoiceS the necessary forms are available on the Pensions Intranet site or from The Pensions Team (see page 20 for contact details) You may redirect the investment of future payments into the fund(s) of your choice, without a switching charge, at 1 April and/or 1 October each year. You may also switch your existing investments between the available funds at these dates without incurring a switching charge. You have several options for the way contributions are invested. You can either let the investment strategy be determined for you or you can choose your own personal investment strategy. Your choice of funds will be influenced by your personal circumstances and view of different types of investment risk. This booklet does not seek to give investment advice. For more detailed information see Section 10. Investment Fund Choices or the Pensions Intranet site. If you are in any doubt about which investments to choose, you should consider taking independent financial advice. DEFINED CONTRIBUTION SECTION 8

10 5. Retirement Benefits a cash sum (tax-free under present law and practice) plus a reduced pension a combination of the above options Shortly before you retire, an illustration of your retirement benefit options will be provided to you. Pension You can use all or part of the fund in your retirement account to purchase a pension, which at your option can be on either a level or increasing basis. Retirement at Normal Retirement Age Your pension is based upon the value of units held in your retirement account, which is made up as follows: Contributions +/ Investment Returns = Fund at Retirement You will have a number of options concerning how you wish to take your benefits, as follows: a pension for you alone a pension for you, and a pension for your Dependant(s) on your death annual pension increases on the pension whilst it is being paid a balance of five year guarantee on your pension (see page 10) Dependants Pensions on Death After Retirement Before your pension is set up, you can decide if you wish to give up part of your own pension to secure a Dependants pension. Any Dependants pension will start on the day following the date of your death and will be payable for life, unless the Dependant is a child (in which case the pension will normally cease when he or she reaches age 18, or 23 if still in full-time education). 9 DEFINED CONTRIBUTION SECTION

11 Balance of 5 Year Guarantee If you have elected this option, then in the event of your death within 5 years of commencement of your pension, a lump sum will be payable to your Dependants. This lump sum represents the balance of unpaid pension payments expected over the remainder of the 5 year period. Pension Commencement Lump Sum (PCLS) Part of the value of your retirement account may be taken as PCLS. The maximum PCLS you can receive when you retire is 25% of the value of your retirement account. If you would have received a higher tax-free cash sum using the calculation basis in force before 1 April 2008, then the benefits up to that date will be tested against both calculation bases and the higher amount may be taken. * based on current legislation If you are an In-Service Deferred Member and wish to maximise your PCLS, you must first take the maximum PCLS that you would have been able to take under the Defined Benefit Section, if you had retired prior to 1 April 2008, before you decide whether you wish to take the remaining PCLS from the Defined Contribution Section. For further details, please refer to Section 8. Plan Limits of the In-Service Deferred Member Section booklet, available on the Pensions Intranet site. Early Retirement You may retire early with immediate benefits if you are age 50 or over (until 5 April 2010), or age 55 or over (from 6 April 2010). However, you may retire at any time on the grounds of Incapacity. Retirement after Normal Retirement Age If, with the Company s agreement, your retirement is postponed until after Normal Retirement Age (but no later than age 75), contributions may continue (see Section 3. Contributions) up to the date you leave service or earlier date of leaving the Plan. Once contributions cease, your retirement account will remain invested in the fund(s) of your choice until you actually retire and the benefits become payable. It will not be possible to take a lump sum and defer the payment of your pension. Payment of Pension Your pension will be payable for life. It is normally paid by monthly instalments and is regarded as earned income for taxation purposes. If you are an In-Service Deferred Member, your benefits under the In-Service Deferred Member Section and the Defined Contribution Section must be taken at the same time. Contributions Deducted in the Month of Leaving The last contribution deducted from your pay will depend on when you actually leave. If you retire from service before the 16th of a month, no contributions will be deducted for that month. However, if you retire on or after the 16th of a month, full contributions for that month will be deducted. DEFINED CONTRIBUTION SECTION 10

12 6. Leaving the Plan 5 April 2010) or age 55 (from 6 April 2010), or earlier in the case of Incapacity, you can request immediate early retirement and the value of your retirement account will be used to provide your retirement benefits (see Section 5. Retirement Benefits). Transfer Value Your options on leaving the Plan are as follows: 1) to retain your retirement account in the Plan as a deferred benefit - this will include all contributions paid both by you and by the Company on your behalf; although no further contributions can be paid the monies will continue to be invested in accordance with your investment choices (see Deferred Benefits below) or 2) to transfer the value of your retirement account to another suitable pension arrangement (see Transfer Value below) If you joined the Plan before 1 July 2006 and leave with less than 2 years Qualifying Service, you will also have the following option: 3) to receive a refund of the value of your own contributions paid before 1 July 2006, less 20% tax* * The Plan is still required to offer you a net refund of the value of your contributions paid prior to 1 July 2006, although if you elect this option you will lose the right to a deferred pension or transfer value. The value of your contributions to the Plan takes into account any investment gain (or loss) experienced during your membership of the Plan. You should note that a refund will not include any contributions paid by the Company or take into account any investment gain (or loss) on these contributions. Early Retirement from Deferred Status Although your benefits are payable from your Normal Retirement Age, once you have attained age 50 (until As an alternative to the deferred benefit described above, you can choose to have the cash value of your retirement account transferred to another suitable pension arrangement. Such a transfer will normally be to: a new employer s scheme (provided it will accept the transfer payment) or a registered pension scheme or other suitable individual policy, in your own name with the provider of your choice This decision does not have to be made immediately after leaving. You can transfer your pension entitlement at any point between leaving and one year before Normal Retirement Age. In the meantime, your retirement account will continue to be held in the Plan and invested in accordance with your investment choices. 11 DEFINED CONTRIBUTION SECTION

13 The transfer value paid will be the value of your retirement account at the date it is encashed, following receipt of your instructions. You will be provided with an estimated transfer value to assist you in making your decision, but the amount will not be guaranteed because fund values can change on a daily basis. You should consider taking independent financial advice before making a decision to transfer your benefits. If you are an In-Service Deferred Member, your benefits under the In- Service Deferred Member Section and the Defined Contribution Section must be treated in exactly the same way e.g. if you elect a transfer then the benefits from both Sections must be transferred at the same time. Death in Deferment If you die after leaving the Plan, but before your benefits become payable, the value of your retirement account will generally be payable by the Trustees as a lump sum to your Dependant(s). You are recommended to update your Beneficiary Nomination Form if your personal circumstances change. This form is available from the Pensions Intranet site or The Pensions Team (see page 20 for contact details). Rejoining the Plan If you are not an In-Service Deferred Member and opt-out of the Plan whilst remaining employed by the Company, you will only be able to rejoin the Plan at a later date with the Trustees consent and the agreement of the Principal Employer. In order to be entitled to the lump sum benefit used to secure the Dependants death-inservice pension (known as Dependants pension), you may be required to provide any such medical evidence determined by the insurers. The insurers reserve the right to decline or restrict cover for this benefit. If you are an In-Service Deferred Member and opt-out of the Plan whilst remaining employed by the Company, you will not be able to rejoin. If you choose to opt-out of the Plan it means that you must opt-out of both the In-Service Deferred Member Section and the Defined Contribution Section. You cannot optout of only one Section. Contributions Deducted in the Month of Leaving The last contribution deducted from your pay will depend on when you actually leave. If you leave before the 16th of a month, no contributions will be deducted for that month. However, if you leave on or after the 16th of a month, full contributions for that month will be deducted. DEFINED CONTRIBUTION SECTION 12

14 7. Benefits on Death-in-Service This Section does not apply to In-Service Deferred Members if you are an In-Service Deferred Member you should refer to Section 4. Death Benefits of the In-Service Deferred Member Section booklet. However, as an In-Service Deferred Member, if you die in service the value of the units held in your DC Section retirement account will also be payable as a lump sum. Life Assurance A life assurance benefit equal to 4 times your Reference Salary, calculated at the date of your death (or other such multiple elected under Flex ChoiceS - see Note (i) on page 14). This life assurance benefit will continue while you are in service, until age 65, even if your benefits are paid earlier. Dependants Pension A further lump sum, equal to 4 times (or other such multiple as you elect - see Note (ii) on page 14) your Reference Salary calculated at the date of your death, will be available to secure a pension for your Dependant(s). The following applies to you if you are NOT an In-Service Deferred Member. Death-in-Service before Normal Retirement Age If you die in service on or before your Normal Retirement Age, the following benefits will be payable: Retirement Account The value of the units held in your retirement account will be used to secure a pension for your Dependant(s), or paid as an additional lump sum. Death-in-Service after Normal Retirement Age If you die in service after your Normal Retirement Age, the value of the units held in your retirement account will be payable as a lump sum, subject to the Lifetime Allowance. 13 DEFINED CONTRIBUTION SECTION

15 Payment of Lump Sum Life Assurance Benefits on Death Lump sum death benefits may be paid by the Trustees, at their discretion, to any one or more of a wide class of beneficiary that includes your relatives, dependants, and persons who are beneficiaries under your will or estate. Paying the benefit in this way allows it to be paid promptly, and normally free of inheritance tax. You can notify the Trustees of your chosen nominees by completing a Beneficiary Nomination Form (available on the Pensions Intranet site or from The Pensions Team). However, you should note that as the benefit is discretionary, the Trustees cannot be bound by your wishes. If your personal circumstances change and you wish to alter your nomination, a new form can be obtained from the Pensions Intranet site or The Pensions Team (see page 20 for contact details). Notes (i) Life Assurance - as part of Flex ChoiceS you can elect a lump sum life assurance benefit of 2, 3 or 4 times your Reference Salary (up to the Plan Cap). If not eligible for Flex ChoiceS you will automatically be covered for a benefit of 4 times your Reference Salary (up to the Plan Cap). (ii) Dependants Pension - as part of Flex ChoiceS you have the choice to elect a further lump sum to secure a pension for your Dependant(s) if you should die in service. You can elect 1, 2, 3 or 4 times your Reference Salary (up to the Plan Cap) or choose not to elect this benefit at all (in which case no Dependants pension would be payable if you die in service). If you are not eligible for Flex ChoiceS you will automatically be covered for a benefit of 4 times your Reference Salary (up to the Plan Cap) if you join the Plan. (iii) Cover for the life assurance and Dependants pension benefits will be subject to the requirements of the insurer selected by the Trustees to provide these benefits. Where medical evidence is required, cover for these benefits may be restricted or unavailable until satisfactory details have been received and assessed by the underwriters. (iv) If you are temporarily absent from work the relevant provisions of Section 8 will apply. (v) In certain circumstances, the amount of the benefit payable as a lump sum on death-in-service may be restricted by Plan Limits. However, any part of the benefit which cannot be paid as a lump sum may be used to provide a pension for your Dependants. (vi) It may also be necessary in certain circumstances to limit the amount of your Dependants pension to comply with Plan Limits. (vii) All lump sum death benefits are subject to the Lifetime Allowance. Any lump sum death benefits paid in excess of the Lifetime Allowance will be taxed. The current rate of tax is 55%. For further information about Flex ChoiceS please refer to the HR Intranet or contact HR Service Delivery on (internal) or (external). DEFINED CONTRIBUTION SECTION 14

16 8. Temporary Absence and Changes in Working Hours Entering or returning from any period of significantly reduced pay constitutes a Flex ChoiceS Lifestyle Event. You should contact the HR Service Delivery on (internal) or (external) to review your benefit elections, including pension contributions (as described below) as you may be receiving insufficient pay to fund them all. Temporary Absence General If you are temporarily absent from work, for a reason other than sabbatical, you will continue to be covered for: life assurance benefits (see Section 7. Benefits on Death-in-Service) and Dependants pension benefits (see Section 7. Benefits on Death-in-Service) which are subject to the requirements of the insurer selected by the Trustees and the level of cover you have selected. Maternity Leave (including adoptive leave in the case of a child less than 12 months old) If you are on maternity leave you will continue to be covered for: life assurance benefits (see Section 7. Benefits on Death-in-Service) and Dependants pension benefits (see Section 7. Benefits on Death-in-Service) for the full period of absence and subject to your Flex ChoiceS elections. This period will be treated as Pensionable Service and the benefits calculated as if you had been working normally. Although the contributions you are normally required to pay to the Plan are based on Pensionable Salary, whilst on maternity leave you are only required to pay contributions based on the actual pay you receive. If your pay is insufficient to fund your normal contributions (based on your Pensionable Salary prior to your maternity leave), the Company will fund any difference during such periods, but only in respect of Total Basic Contributions (see page 7 for details). If you have elected to pay Fixed Additional Contributions or Variable Additional Contributions and you feel that you cannot afford to maintain these contributions during your maternity leave, you can call the HR/Payroll Helpdesk on (internal) or (external) to reduce your contributions to Total Basic Contributions only. 15 DEFINED CONTRIBUTION SECTION

17 If you decide not to return to work, your membership of the Plan will cease either at the end of the month in which you leave the Company or at the end of the previous month, depending on the day of the month in which you leave. Unpaid Leave (including dependants and parental leave and adoptive leave in the case of a child over 12 months old) If you are on one of the above types of leave, similar provisions to those on maternity leave will apply to both males and females. Sabbatical A sabbatical is a period of agreed unpaid absence in excess of three months. Shorter unpaid absences are defined as unpaid leave. If you are on a sabbatical you will not be covered for the life assurance and Dependants pension benefits covered in Section 7. Benefits on Death-in-Service. Also, all the contributions paid on your behalf will cease during your absence. Unpaid Sick Leave If you are no longer in receipt of Company sick pay, but have not yet reached the point where any claim for Salary Security / Long Term Disability pay may be paid, your contributions will be based upon Pensionable Salary and funded by the Company, but in respect of Total Basic Contributions only. If you have elected to pay Fixed Additional Contributions or Variable Additional Contributions and cannot afford to maintain this level during unpaid sick leave, you should call the HR/Payroll Helpdesk on (internal) or (external) to reduce your contributions to Total Basic Contributions only. Part-Time If you switch from full-time to parttime employment or vice versa during a Plan year, your contributions will be based on your revised Pensionable Salary from the first day of the month following the point of change, then on your Pensionable Salary at each subsequent 1 April. DEFINED CONTRIBUTION SECTION 16

18 9. General Information Title to Benefits All benefits under the Plan are personal and cannot be assigned or offered as security for a loan. Amendment or Termination Constitution The Plan is constituted by a Trust Deed and is administered in accordance with the Rules, by and on behalf of the Trustees. The Trust Deed and Rules is available for inspection on request. Alternatively, a copy can be made available for your personal use, although a charge is made to cover the actual cost of providing this. This booklet contains an outline of the Plan, but the full provisions are set out in the Trust Deed and Rules. In the event of any doubt, the latter will prevail. Trustees Report & Accounts Details of the Trustees and their advisers, as well as the Plan s audited accounts, are published annually in the Trustees Report, a copy of which is available on request. HM Revenue & Customs (HMRC) HM Revenue & Customs (HMRC) originally approved the Plan under Chapter I Part XIV of the Income and Corporation Taxes Act One of the conditions of approval was that the benefits should not exceed HMRC limits. These limits have now been adopted as Plan Limits. The Plan is now registered under Chapter II of Part IV of the Finance Act While the Principal Employer intends to continue the Plan indefinitely, it reserves the right to amend or terminate the Plan at any time, in accordance with the provisions of the Trust Deed and Rules. The Trustees also have the power to amend the Plan. You will be notified in writing of any changes which affect you. If the Plan is terminated, your retirement account will remain invested until such time as it is used to provide benefits for you and any dependant(s). Change of Address It is your responsibility to ensure that the Trustees are informed if your home address changes. Otherwise, they will not be able to contact you about the Plan or make the appropriate payments when you reach your Normal Retirement Age. 17 DEFINED CONTRIBUTION SECTION

19 Data Protection Act 1998 The Data Protection Act 1998 has strict guidelines on how data should be collected, processed, disclosed and stored. The Act covers the Plan because personal data (such as names, addresses, salaries) is held in respect of each member. The Trustees are registered with the Data Protection Commissioner and have declared that the personal data held in respect of members is used only for the purposes of calculating and providing members benefits and for the efficient running of the Plan. The processing of this data is carried out on behalf of the Trustees by the Plan s third party administrator and the Plan s advisers. Members are entitled to see any data that is held in respect of them, unless in providing this data other parties data would be disclosed. A charge may be made in some circumstances for the cost of supplying this information. Internal Dispute Resolution Procedure In accordance with the requirements of Section 50 of the Pensions Act 1995, the Trustees have implemented an Internal Disputes Resolution (IDR) procedure. The IDR procedure must normally be followed before the Pensions Ombudsman will accept a case. The procedure covers only disputes between the Trustees and any active, deferred or pensioner member, the spouse or dependant of a deceased member, prospective member or anyone who claims to be or to represent such a person. Disputes between the employer and members of the Plan are outside the IDR procedure. The IDR Procedure The procedure is in two stages. The first stage involves arbitration by a person appointed by the Trustees. The second stage involves direct reference to the Trustees. The Trustees have appointed the Group Pensions & Benefits Manager as arbitrator, from whom full details of the procedure and the appropriate forms for completion in the event of a complaint can be obtained. If you have a complaint about any aspect of the Plan, you (or your representative) can write to the Group Pensions & Benefits Manager at: The Pensions Team Capgemini No. 1 Forge End WOKING Surrey GU21 6DB Whenever you write, you must give your name, address, date of birth, National Insurance Number and full details of your complaint, together with as much background information as possible. The Trustees must ensure that you receive a written reply within 2 months of having received your complaint. The reply will state the decision that has been made in response to your complaint. If it is not possible to give you a full written reply within the 2 month period, you will be provided with an interim response, stating the reason for the delay and giving a date by which the full response will be available. If you do not agree with the decision given, you should write to the Chairman of the Trustees, c/o The Pensions Team (see above), requesting a review of the decision by all the Trustees. You must do this within 6 months of the decision and DEFINED CONTRIBUTION SECTION 18

20 The Pensions Ombudsman oversees disputes between individuals and Trustees or managers of an occupational or personal pension scheme, which cannot otherwise be resolved. send a copy of the decision (together with your name, address, date of birth and National Insurance Number), giving your reason(s) for disagreeing with it. After considering your appeal, the Trustees must either confirm the earlier decision or replace it with a new decision. They must do this within 2 months of receiving your letter or provide you with a written interim response, stating the reason for the delay and giving a date by which the full reply will be available. The written reply from the Trustees will also provide details of your right to take up your complaint with The Pensions Advisory Service (TPAS) and the Pensions Ombudsman (and their contact details) if you disagree with the Trustees decision. Pension Provision on Divorce or Dissolution of Civil Partnership Legislation now provides for a number of options which may be exercised by members and their ex-spouses / ex-civil partners in the event of divorce/ dissolution of civil partnership, respectively. The cost of administration will be borne by members and/or their ex-spouses or ex-civil partners (as appropriate), either by a direct charge or by reducing the value of the member s retirement account. Details are available from the Capgemini PENSIONS HELPLINE (see page 20 for contact details). Other Sources of Advice or Assistance TPAS (The Pensions Advisory Service) TPAS is an independent voluntary service, which provides free help and advice to members and other beneficiaries of occupational and personal pension schemes. TPAS offers a voluntary conciliation service, enabling individuals and trustees, or managers of occupational or personal pension schemes, to (a) resolve grievances relating to pension matters which cannot be directly resolved by the parties concerned and (b) assist in connection with any pension queries. If you have any problems concerning your Plan benefits that cannot be resolved through the IDR procedure, you can contact TPAS at: TPAS 11 Belgrave Road London SW1V 1RB Telephone: or through your local Citizens Advice Bureau. TPAS can also assist you in taking a problem through the IDR Procedure. Pensions Ombudsman The Pensions Ombudsman oversees disputes between individuals and Trustees or managers of occupational or personal pension schemes, which cannot otherwise be resolved, and is able to investigate and decide in cases where maladministration is alleged. The Pensions Ombudsman also deals with disputes of fact or law including the interpretation of the Rules of the Plan. Any decision made will be legally binding on all parties concerned, except that an appeal on a point of law may be made to the High Court. The Pensions Ombudsman should only be contacted if TPAS has been unable to settle the dispute. The contact address is: Pensions Ombudsman 11 Belgrave Road London SW1V 1RB Telephone: Pension Tracing Service If you think you may have an old pension, but are not sure of the details, the Pension Tracing Service can usually help by tracing it for you. 19 DEFINED CONTRIBUTION SECTION

21 Flex ChoiceS: If you have any questions regarding the Capgemini Flexible Benefits Programme, please contact the HR Service Delivery on (internal) or (external). It can be easy to lose contact with a previous employer s pension scheme, especially if you change jobs a number of times throughout your working life. The Pension Tracing Service has access to a database of over 200,000 occupational and personal pension schemes. It can be used, free of charge, to search for a scheme, and may be able to provide you with an up-to-date contact address. Pension Tracing Service The Pension Service Tyneview Park Whitley Road Newcastle upon Tyne NE98 1BA Telephone: The Pensions Regulator The Trustees have given information about the Plan, including a contact address, to the Registrar of Pension Schemes. The Pensions Regulator is able to intervene in the running of schemes where employers or professional advisers have failed in their duties and in certain circumstances. The contact address is: The Pensions Regulator Napier House Trafalgar Place Brighton East Sussex BN1 4DW Telephone: Further Information For any further information, in the first instance please contact: Capgemini PENSIONS Xafinity Consulting on address: Capgemini UK Pension Plan Xafinity Consulting Xafinity House Greyfriars Road Reading RG1 1NN Any further information can be obtained from: The Pensions Team Capgemini No. 1 Forge End Woking Surrey GU21 6DB The following documentation is available on the Pensions Intranet site: Beneficiary Nomination Form (to inform the Trustees of the person(s) you would like to receive the lump sum death benefit) Dependant Nomination Form (to inform the Trustees of your chosen dependant(s) on your death if applicable (see Note (ii) on page 14) Copy of this Plan booklet Form of Authority (for transferringin pension benefits from previous pension arrangements) Fixed Contributions Form (if you are not eligible for Flex ChoiceS) Variable Additional Contributions Forms for monthly and/or one-off payments if you are not eligible for Flex ChoiceS Investment manager website links to the available investment funds All the above forms and this explanatory Plan booklet can be downloaded. DEFINED CONTRIBUTION SECTION 20

22 10. Investment Fund Choices A wide range of investment funds is available, on a passively or actively managed basis, and you may choose either one fund or a combination of funds. Global Equity Fixed Weights (60:40) Index Fund North America Equity Index Fund - GBP Currency Hedged Fund Over 15 Year Gilts Index Fund UK Equity Index Fund You are able to invest in any or all of the following types of fund: Lifestyle Unit-Linked Funds Passive Management The Lifestyle Fund approach invests on a passive (index-tracking) basis in funds managed by Legal & General. For most of your working life, your pension fund will be invested in equities, gradually switching into bonds and cash as you approach your Normal Retirement Age. Cash Fund This is the option that will be chosen for you if you do not make a specific choice yourself. Unit-Linked Funds Passive Management Passive investment management (or index-tracking ) is expected to reproduce the performance of a specific stock market index. It will therefore represent the combined performance of all the companies listed within the index. The funds available include both those under the Lifestyle Fund strategy and the funds listed below. All the passive funds are managed by Legal and General. Global Emerging Markets Equity Index Fund Ethical Global Equity Index Fund Europe (ex UK) Equity Index Fund - GBP Currency Hedged Fund Unit-Linked Funds Active Management The aim is to produce greater gains than the passively managed (indextracking) approach, but there is a higher risk level and greater volatility in individual years. However, this approach gives the investment manager greater freedom in deciding how to invest. The range of unit-linked funds available for investment are: Balanced Fund - Aberdeen Asset Management and Fidelity Investments Global Equity Fund - Aberdeen Asset Management and Fidelity Investments UK Equity Fund - Aberdeen Asset Management and Fidelity Investments Overseas Equity Fund - Aberdeen Asset Management and Fidelity Investments The funds chosen for the Lifestyle Fund strategy are as follows: Japan Equity Index Fund - GBP Currency Hedged Fund Property Fund - Legal and General 21 DEFINED CONTRIBUTION SECTION

23 With-Profits Fund A with-profits fund is a relatively low risk investment effected through an insurance contract, in this case with Prudential. Investment returns are smoothed over the longer term, providing a degree of protection against significant short-term market fluctuations. Your Investment Fund Options Lifestyle Unit-Linked Funds Passive Management This is the option that will be chosen for you if you do not make a specific choice yourself. However, you will have the option to change your investment selection twice a year, with effect from each 1 April and/or 1 October. With hindsight it would be possible to pinpoint when most advantageous to invest in equities, fixed interest, property or cash. To predict the turning points, however, is extremely difficult and there is just as much risk in being too conservative as in being too aggressive. The objective of a Lifestyle Fund approach is to maximise expected investment returns in the earlier years of your working lifetime, by investing mainly in equities, and then to lock in these gains by gradually and automatically moving from a growth phase to a retirement income phase as you near retirement. Years Prior to Global UK Cash Normal Equities Bonds Retirement Age 10 or more 100% 9 90% 10% 8 80% 20% 7 70% 30% 6 60% 40% 5 50% 50% 4 40% 55% 5% 3 30% 60% 10% 2 20% 65% 15% 1 10% 70% 20% 0 75% 25% The Trustees have decided that for the Lifestyle Fund approach investments are on a passive (index-tracking) basis, in funds managed by Legal & General. For most of your working life your pension fund will be invested in equities, gradually switching into bonds and cash as you near your Normal Retirement Age (see table opposite). The funds chosen for the Lifestyle Fund strategy are as follows: Legal & General Global Equity Fixed Weights (60:40) Index Fund for long term growth, building up the value of your pension fund This fund invests in worldwide equity markets, 60% in the UK and 40% overseas. The fund is made up of Legal & Generals passive funds for each region, and each is designed to track the performance of the regional index. Because it follows the rise and fall of each stock market, by investing in this fund there may be times when the value of your fund falls; but historically over the longer-term, equities have consistently outperformed other investments such as bonds and cash. DEFINED CONTRIBUTION SECTION 22

24 Legal & General Over 15 Year Gilts Index Fund to protect the value of your pension fund as you near retirement This fund invests in UK government bonds. These are securities offered by the government which pay a fixed rate of interest over the period for which they are held, although their capital value changes with market conditions. They are a relatively low risk investment compared with equities and should be used to protect the value of your accumulated fund as you near retirement. They also offer a degree of protection against changes in annuity prices (an annuity is the policy purchased at retirement with the amount accumulated in your retirement account and which provides your monthly income). Legal & General Cash Fund to provide security of capital close to retirement This fund invests in cash deposits and other short-term investments, with competitive rates of interest, and is designed to protect the value of your accumulated fund immediately prior to retirement. Upon retirement (under current legislation) you can take part of your pension benefit as a tax-free cash sum, so it is appropriate that there is an element of cash exposure built-up in the years nearing retirement, in addition to the annuity protection. Unit-Linked Funds Passive Management In addition, the following funds are available outside the Lifestyle Fund option: Legal & General Global Emerging Markets Equity Index Fund for long term growth, building up the value of your pension fund with expected higher levels of volatility This fund invests in worldwide emerging equity markets. The fund is designed to track the performance of the S&P/IFC Investable Composite Global Emerging Markets Index. The fund is part of the family of Legal & General s passive equity fund range. Because equities are sensitive to movements in the economy, they can demonstrate significant shortterm volatility. Emerging markets and their currencies can be extremely volatile. Emerging markets are particularly venerable to global economic downturns / crises and hence there is a higher level of risk associated with the fund. However, over the longer-term, equities have consistently outperformed other investments such as bonds and cash. Legal & General Ethical Global Equity Index Fund for long-term growth, building up the value of your pension fund for the ethically minded investor This fund invests in UK companies which take account of ethical, environmental or social principles as defined by the FTSE4Good UK Index. The FTSE4Good UK Index 23 DEFINED CONTRIBUTION SECTION

25 completely excludes companies which are significantly involved in tobacco, the manufacture of weapons systems or strategic parts, operators of nuclear power stations or those which mine uranium. The fund is part of the family of Legal & General s passive equity fund range. Because equities are sensitive to movements in the economy, they can demonstrate significant short-term volatility, by investing in this fund there may be times when the value of your fund falls. However, over the longer-term, equities have consistently outperformed other investments such as bonds and cash. Legal & General Europe (ex UK) Equity Index Fund - GBP Currency Hedged for long-term growth, building up the value of your pension fund This fund invests in European equity markets, excluding the UK. The fund is designed to track the performance of the FTSE World Europe (ex UK) regional Index on a currency hedged basis. The fund offers the opportunity to access one of the main four overseas regional equity markets. The fund is part of the family of Legal & General s passive equity fund range. Because it follows the rise and fall of each stock market, by investing in this fund there may be times when the value of your fund falls. As equities are sensitive to movements in the economy, they can demonstrate significant short-term volatility, by investing in this fund there may be times when the value of your fund falls. However, over the longer-term, equities have consistently outperformed other investments such as bonds and cash. Legal & General Japan Equity Index Fund - GBP Currency Hedged for long-term growth, building up the value of your pension fund, offering the opportunity to invest in Japan This fund invests in the Japanese equity markets. The fund is designed to track the performance of the FTSE World Japan Index on a currency hedged basis. The fund offers the opportunity to access one of the main four overseas regional equity markets. The fund is part of the family of Legal & General s passive equity fund range. Because equities are sensitive to movements in the economy, they can demonstrate significant short-term volatility, by investing in this fund there may be times when the value of your fund falls. However, over the longer-term, equities have consistently outperformed other investments such as bonds and cash. Legal & General North America Equity Index Fund - GBP Currency Hedged for long-term growth, building up the value of your pension fund, offering the opportunity to invest in North America This fund invests in the North American equity markets. The fund is designed to track the performance of the FTSE World North America Index on a currency hedged basis. The fund offers the opportunity to access one of the main four overseas regional equity markets. The fund is part of the family of Legal & General s passive equity fund range. Because equities are sensitive to movements in the economy, they can demonstrate significant short-term volatility, by investing in this fund there may be times when the value of your fund falls. However, over the longer-term, DEFINED CONTRIBUTION SECTION 24

26 - Aberdeen Life Multi-Asset (ex Property) Fund Objective: To perform +1.0% p.a. ahead of the average managed fund, as measured by CAPS Limited, over three year periods. - Fidelity Life Long Term Growth Fund Objective: To outperform the average managed fund, as measured by CAPS Limited. equities have consistently outperformed other investments such as bonds and cash. Legal & General UK Equity Index Fund for long-term growth, building up the value of your pension fund This fund invests in the UK equity market. The fund is designed to track the performance of the FTSE All Share Index. Because equities are sensitive to movements in the economy, they can demonstrate significant short-term volatility, by investing in this fund there may be times when the value of your fund falls. However, over the longer-term, equities have consistently outperformed other investments such as bonds and cash. Unit-Linked Funds Active Management Balanced Funds for long-term growth, building up the value of your pension fund Balanced funds invest in a broad range of equity and bond markets, both in the UK and overseas, and have a small cash exposure. They are designed to capture the benefits of investing in stock markets, whilst diversifying through holdings in bonds and cash. Just over half of the fund is invested in UK companies, about one-quarter in overseas companies and the rest in bonds and cash. Global Equity Funds for long-term growth, building up the value of your pension fund These funds invest in worldwide stock markets and have a small cash exposure. They are designed to capture the benefits of investing in the UK stock market, whilst diversifying through holdings in overseas companies. Half of the fund (60% for Fidelity) is invested in UK companies, the rest in overseas companies with a small amount in cash. - Aberdeen Life Global Growth Fund Objective: To perform +1.0% p.a. ahead of a composite benchmark of regional UK and overseas stock market indices. 25 DEFINED CONTRIBUTION SECTION

27 - Fidelity Life Global Equity (60/40) Fund Objective: To outperform a composite benchmark of regional UK and overseas stock market indices. UK Equity Funds for long-term growth, building up the value of your pension fund These funds invest in UK listed companies. These will include both large companies such as Vodafone and BP, as well as smaller companies. Performance of the fund will vary according to the expectations of the future prospects for the UK economy at any particular stage, and the manager s ability to pick those companies which will benefit accordingly. - Aberdeen Life UK Growth Fund Objective: To perform +1.0% p.a. ahead of the FTSE All Share Index over three year periods. - Fidelity Life UK Equity Fund Objective: To outperform the FTSE All Share Index. Overseas Equity Funds for long-term growth, building up the value of your pension fund These funds invest in North American, European (excluding UK) and Asia Pacific (including Japanese) listed companies. They are not invested in UK listed companies. - Aberdeen Life Global (ex UK) Equity Fund Objective: To perform +1.0% p.a. ahead of a composite benchmark of regional overseas stock market indices over three year periods. - Fidelity Life International Equity Fund Objective: To outperform the composite benchmark of regional overseas stock market indices. Property Fund for long-term growth, building up the value of your pension fund This fund invests in UK commercial property. The fund is designed to exceed the median return for similar commercial property funds in performance tables. The fund requires active management due to the nature of directly owning commercial property and hence differs in this respect to Legal & General s passively managed fund range. Commercial property can demonstrate some volatility due its sensitivity to movements in the economy. However, over the longer-term, commercial property has consistently outpaced inflation and lower risk investments such as bonds and cash. With-Profits Fund The fund invests in a broad range of assets, similar to those in which balanced managed unit-linked funds are invested. Unlike unitised funds however, instead of giving a return on the investment directly related to the performance of the fund, returns are distributed by way of bonuses which are generally declared annually. Bonus structures vary with providers. It is DEFINED CONTRIBUTION SECTION 26

28 If you do not wish to choose your own investment strategy, all the contributions paid on your behalf will automatically be invested in the Lifestyle Fund. Alternatively, you can actively select any combination of the investment funds available, for the investment of all the contributions paid on your behalf. not uncommon for the bonus to have two parts: the annual reversionary bonus which is guaranteed to the investor once declared, and the terminal or discretionary bonus which is added to the fund upon withdrawal. Prudential With-Profits Fund The Trustees have decided to offer the Prudential with-profits fund as an alternative investment option for members. Prudential offers returns for withprofits investors through a combination of reversionary bonus rates and terminal bonuses. Terminal bonuses are dependent on the number of years invested in the fund and are not guaranteed. The terminal bonus is the top-up that represents the excess earned after smoothing. The level of this bonus may be reviewed at any time to reflect changes in the value of the with-profits fund and to take into account the recent performance of investment markets. Any Combination of the Above Funds You have several options for the way in which the pension contributions paid into your DC Section retirement account can be invested. You can let the investment strategy be determined for you or you can choose your own personal investment strategy. Investment Charges Each of the companies offering the above investment options, makes a charge for the investment management responsibilities carried out. These charges are automatically deducted from the unit prices calculated for each fund (or the fund value for the withprofits fund) and you do not need to pay anything separately. The charges will vary from fund to fund depending on the extent of the investment management responsibilities necessary to manage the fund. For example, they will be lower for the passively managed bond fund compared with the actively managed international equity funds. Details of these charges are given with other fund-related details on the web links to each investment management organisation and you should refer to these for details. The web links are available via the Pensions Intranet site. 27 DEFINED CONTRIBUTION SECTION

29 About Legal & General Legal & General Investment Management is one of the three core business units of Legal & General Group Plc, a public company whose shares are quoted on the London Stock Exchange. Legal & General have assets under management of approximately 270 billion. In 1985, Legal & General were one of the first UK fund managers to start researching index fund techniques. There are a number of different approaches to indexation, and Legal & General have opted for a method known as stratified sampling. This involves fully replicating the index weightings of all the major stocks. For example, if in the UK Equity Index portfolio BP represents 7% by value of the FTSE All Share Index, then it will represent the same amount of the Legal & General portfolio. The smaller companies are sampled on a random basis. About Aberdeen Asset Management Aberdeen Asset Management (AAM) is a UK based company focused solely on asset management. Founded in 1983, the company has grown through acquisition over the past twenty plus years and now manages approximately 95 billion of assets for clients worldwide. AAM acquired certain parts of the Deutsche Asset Management UK business in 2005, meaning that the funds under the Plan previously managed by Deutsche transferred to AAM and are now branded as Aberdeen Life funds. AAM have a different approach to investment from Deutsche, however as an active manager they will seek to outperform the market, as Deutsche did previously. About Fidelity Investments Fidelity Investments is an American organisation, founded in Boston in 1946, with current global assets of approximately 150bn. Fidelity Pensions Management (FPM) was formed in 1986 as a dedicated UK pension fund manager. Fidelity launched their Defined Contribution service in 1994 and the funds available to members form part of their range of life funds. Fidelity's investment process is underpinned by extensive company research that is carried out by analysts, of which there are around 250 worldwide. Fidelity take a bottom-up approach to portfolio construction (an approach where portfolios are constructed and run on the basis of the attractiveness of individual stocks), which is a reflection of the emphasis they place on research. The three most important attributes of a company for Fidelity are financial strength, the quality of management, and its products. About Prudential Established in 1848, Prudential plc is an international financial services company. In the UK Prudential is a significant life and pensions provider with around seven million customers. M&G was acquired by Prudential in 1999 and is the Group's UK and European fund manager, responsible for managing over 164 billion (as at 31 December 2006). DEFINED CONTRIBUTION SECTION 28

30 11. State Pension Scheme and Contracting-Out State Scheme Pensions Contracting-Out of S2P Your total pension from the State may comprise a number of elements, the main ones of which are: Basic State Pension (BSP) which is subject to the payment of the requisite National Insurance Contributions. If you are unsure whether or not you have a full entitlement, The Pensions Team can help you check your National Insurance records with the National Insurance Contributions Office, or you can complete and submit a Pensions Forecast Form, BR19, which is available from the Department for Work and Pensions (DWP), formerly the DSS State Earnings Related Pension Scheme (SERPS) which was in force between 6 April 1978 and 5 April 2002 State Second Pension (S2P) which was introduced from 6 April It is paid from State Pension Age in addition to the Basic State Pension, subject to payment of the requisite National Insurance Contributions. It is related to your earnings between the Lower Earnings Limit (LEL) and the Upper Earnings Limit (UEL) throughout your working life Your membership of the Plan is not contracted-out, which means that the Plan benefits are payable in addition to State scheme benefits. You pay fullrate National Insurance contributions, part of which represents the contributions to the State schemes. However, Plan members can decide, on their own initiative, to contractout of S2P via an appropriate personal pension. If you do this, you effectively pay reduced National Insurance contributions (and S2P benefits cease to accrue) as the saving in National Insurance contributions is invested as Protected Rights in your chosen pension arrangement with an external provider after the end of the tax year. The benefits arising from these rights must be used to buy a pension for yourself at retirement (but no earlier than age 60) which must increase in line with Limited Price Indexation (LPI) i.e. at the rate of 5% or in line with Inflation if less. Upon your death the pension must continue at a rate of 50% to your spouse. The question of whether or not to contract-out, is entirely a personal one. If you are in any doubt, you should consider taking independent financial advice. 29 DEFINED CONTRIBUTION SECTION

31 The Capgemini Group is one of the largest management and IT consulting organisations in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology. The organisation employs around 65,000 people worldwide and reported 2005 global revenues of more than billion euros. More information about individual service lines, offices and research is available at DEFINED CONTRIBUTION SECTION 30

32 Capgemini UK Capgemini UK plc No. 1 Forge End Woking Surrey GU21 6DB Tel: Fax: DEFINED CONTRIBUTION SECTION 2