UPDATE.

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1 UPDATE This is the first of our quarterly updates since the successful launch of the Kodak Pension Plan (no.2) the plan at the end of March. Thanks to your support, we now have a fully functioning Kodak Pension Plan (no. 2). We also have Kodak Alaris, a UK-based company that has been trading on its own since 3 September We ve brought together the company s UK board of directors, which has now had its first meeting. It has meetings scheduled every two months for the rest of the year. As always, we re keen to keep you informed about what s happening. So we hope you find this update helpful. If you have any feedback or other comments, please do get in touch. Contact details are on page 11. What s in this update: The relationship with Kodak Alaris News about Kodak Alaris accounts A message from Ralf Gerbershagen Kodak Alaris board structure News on transfer values Plan news How the pension changes in the Budget might affect you How to keep your records up to date How to contact us

2 The relationship between the plan and Kodak Alaris Shortly after acquiring the businesses that make up Kodak Alaris, an agreement was entered into between the Trustees and Kodak Alaris which sets out the relationship between both parties. The agreement ensures that the directors of Kodak Alaris must provide the Trustees with key information and must refer significant decisions to the Trustees for approval, if they wish to carry them out. Kodak Alaris publishes its first set of accounts At the August 2014 board meeting of the Kodak Alaris directors, the first set of statutory accounts was approved. The Kodak Alaris Report and Accounts for the year ending 31 December 2013 will be filed with Companies House and this document will be available on the plan website on Wednesday 17 September Contact details in regard to Kodak Alaris enquiries We appreciate that you may have some questions in regard to Kodak Alaris, the board structure and the Report and Accounts when they are published. Please address any questions in regard to the plan s ownership of Kodak Alaris to Ben Harris, Secretary to the Trustee of the Kodak Pension Plan (no. 2) at KPPSecretary@aonhewitt.com. This will ensure that Kodak Alaris-specific enquiries will be dealt with efficiently. For all other plan-related enquiries, including in regard to your benefits, please get in touch with the plan s administrators using the contact details on page 11. A message from Ralf Gerbershagen In March, we sent you some initial information about Kodak Alaris. We also let you know of Ralf Gerbershagen s appointment as Chief Executive Officer. Here s a message from him, giving you the highlights of his first four months in the job: Ladies and Gentlemen It is now four months since I joined Kodak Alaris and am very excited to have the opportunity to develop the future of the company, together with our employees and partners around the world. The first four months has seen us make significant progress in building a new Leadership team, along with a first attempt to restructure the business. I was delighted that James Soames decided to join us as our new Chief Marketing Officer in June of this year. James joins us from Motorola and provides a fresh perspective on the brand development and customer marketing interaction for Kodak Alaris. Each of our three business segments - DI, RSS and P&OS - have a separate focus to ensure we drive a dedicated strategy. They each have their own identity, challenges and opportunities and are addressed individually with our key partners around the world. I took the opportunity last month to meet with as many customers and employees around the world as possible. I was pleasantly surprised by the customer loyalty and support we receive out in the market. With China joining the Kodak Alaris portfolio on 1 July, the leadership team and I made a visit to welcome our employees and customers. It was a full and exciting week meeting with government officials and distributors, along with an official Chinese office opening ceremony in three locations; Xiamen, Shanghai and Beijing. This was followed up with a press conference hosting more than 80 journalists. The development of the five-year plan is well under way and I m thrilled about the future direction and opportunities we have developed for Kodak Alaris. 2 3

3 Kodak Alaris board structure Here s an overview of the board s structure, along with some information on each member: Chief Financial Officer Phil Gibbons Chairman Mark Elliott Steven Ross Brian Larcombe Steve Webster Patrick de Smedt Chief Executive Officer Ralf Gerbershagen Senior Vice President PI Dennis Olbrich Senior Vice President DI Delores Kruchten Senior Vice President RSS Nicki Zongrone Mark Elliott started his career at IBM in He held a series of general and executive management positions until he retired in He is now non-executive director of G4S, and serves in a similar post for QinetiQ. Steven Ross is Chair of Trustees of the Kodak Pension Plan (no. 2) so you ve already been introduced. Steve Webster is a non-executive director of Aventas Group, and a non-executive director of Aqualisa Group. He was Chief Financial Officer at Wolseley plc for more than 15 years, and a partner at Price Waterhouse for eight years. Brian Larcombe is senior independent director of Smith & Nephew, Gategroup and Incisive Media. Before that, Brian was CEO of leading private equity investors 3i. He retired from 3i in Patrick de Smedt is a non-executive director of Victrex plc, senior independent director of Morgan Sindall Group plc and Anite plc, and a non-executive director of NextInto Germany. Patrick s career includes 24 years with Microsoft and time on the boards of numerous European public and private companies. Ralf Gerbershagen started his career in Siemens, later joining Motorola Mobility where he held several leadership positions. Ralf sits on the board of directors of BITKOM, and The American Chamber of Commerce in Germany. Phillip Gibbons has worked for Eastman Kodak since 1990, working in various financial roles in different locations around the world. During the period of 2010 to 2013 he was the Commercial Director for Kodak s business in UK & Nordic and a Trustee on the Board of KPP. Dennis Olbrich has worked for Eastman Kodak since graduating from Michigan State University in Before joining Kodak Alaris, he was President of the Personalised Imaging business for Kodak. Dolores Kruchten has worked for Eastman Kodak since 1981, holding positions in site engineering, manufacturing, research and development, acquisitions, and information technology systems. Before joining Kodak Alaris, she was President of Document Imaging for Kodak. Nicki Zongrone has worked for Eastman Kodak since 1981, holding positions in research and development, manufacturing, product engineering and graphic communications. She has been working in private equity since

4 Pension scams are on the increase in the UK and you need to stay alert. Some pension scams will sound convincing and will appear to be legal. However, most will be bogus and will probably result in you losing most, if not all, of your savings. If you re a deferred member, you will have received a summary leaflet from the Pensions Regulator with this update. The leaflet contains helpful information about how to spot potential pension scams, what to do if you suspect a scam and who to contact. We ve also made more detailed information available on the plan website and would encourage you to read it. A lifetime s savings lost in a moment. We d put transfer values on hold until 1 July Rather than taking your benefits from the plan, you can transfer all your benefits to a new employer s pension scheme, or to a personal pension plan. Before you transfer, we need to give you a Cash Equivalent Transfer Value (CETV). But before we can, we need to determine a number of financial assumptions. We use these to place a value on the benefits you want to transfer. However, because our plan is new, these assumptions weren t available to us straight away. That means, until recently, we haven t been able to give out CETVs as quickly as we d like to. We ve now agreed our financial assumptions so, as long as you re eligible, you can now ask for a CETV quote. If your quote had been put on hold, we d like to thank you for your patience. Finally, we want to let you know that CETVs continue to be reduced. We review the level of reduction periodically to ensure that it remains appropriate for the plan and all of its members. We will tell you the level of reduction that has been applied in your CETV quote. Plan news your plan s success in the Pension Scheme of the Year awards The plan won Best Member Initiative in this year s Pension Scheme of the Year awards. This was in recognition of the work we did to keep members like you up to date with changes to the plan. We spent a lot of time and effort connecting with as many members as possible, and we are delighted that about 12,500 members voted, with 97% voting for the plan. An update on Member Nominated Directors on the Trustee board The Trustee board is made up of six Trustee directors commonly called Trustees. They are the same as the Trustees of the old Kodak Pension Plan. The Trustees are currently reviewing the composition An update on the Kodak Pension Plan (the old plan ) Members who voted against joining the Kodak Pension Plan (no.2) stayed in the old plan. This started its Pension Protection Fund assessment period on 31 March Aon Hewitt are no longer the old plan s administrators. The new administrators are Barnett Waddingham, and all remaining members of the old plan have been given Barnett Waddingham s information and contact details. of the Trustee board, with a view to holding member-nominated director elections in We will write to you with further details at the appropriate time. Pension scams. Don t get stung. 6 7

5 How the pension changes in the Budget might affect you The Budget of 19 March included proposals to improve the flexibility of defined contribution (DC) pensions. These changes let people take their DC account in full as cash, or directly as income. There are none of the penalties that applied before, and there s no obligation to buy an annuity. The changes take effect from April Two changes that are already in place Even though most of the changes happen in April 2015, two changes took effect on 27 March 2014: 1. Changes to income drawdown Income drawdown is a way of taking a portion of your pension pot, and leaving the rest invested. There are two types of income drawdown flexible and capped. Because you re a member of a defined benefit (DB) plan, the changes to the way DC pensions work will not affect your main DB pension directly it will be paid in line with the plan rules. You will still have some choice about how you receive your benefits. For instance, you ll be able to take part of your pension as a tax-free cash sum when you retire. But after that, your pension will be a set income for life. You are able to transfer your DB benefits into a DC scheme by way of a CETV. As explained on page 6, CETVs continue to be reduced. If you do transfer, the changes would also apply to you, and you d be able to make use of the Guidance Guarantee. However, if your pension savings are over 30,000 then, under a new Government requirement, we will need to ensure that you have taken independent financial advice from a qualified adviser before you transfer. Flexible drawdown Before the changes, you had to show you had a minimum yearly income of 20,000 to take flexible drawdown. Now, you only have to show that you have a minimum yearly income of 12,000. Capped drawdown This is more common than flexible drawdown, but it imposes a cap on how much income you can take each year. Before the changes, you could take 120% of the annual equivalent income under an equivalent annuity each year. You can now withdraw 150% of the annual equivalent income under an equivalent annuity each year. This will normally only be relevant to a DC pension plan, but your plan pension counts towards the 12,000 minimum noted above. They may also be relevant if you transferred your plan benefits to a pension plan which offered these options. 8 How the changes affect Additional Voluntary Contributions If you ve paid Additional Voluntary Contributions (AVCs), the changes will apply to you. That s because AVCs work in the same way as DC benefits. If you ve paid AVCs in the plan, you ll be able to get free, impartial guidance that helps you understand the changes and explore your new options. This service is called the Guidance Guarantee, and it will be run by independent organisations, including The Pensions Advisory Service and the Money Advice Service. The service should be available from April 2015 the same time as the changes to pension flexibility take effect. You can transfer your AVCs to another pension plan, while leaving the rest of the benefits in the plan. 2. Increases to small pot limits Before the changes, members of a pension scheme could take all their benefits as a cash lump sum providing they were at least 60 years old, and the money in their pension pot (including both DB and DC benefits in the relevant plan) was below a certain limit. This is commonly called the small pot rule, but the technical term for it is trivial commutation. Before the changes, the small pot limits were quite low. Following the changes, they ve been increased: The limit for a single pension plan has gone up from 2,000 to 10,000. The limit for all your pension funds combined has gone up from 18,000 to 30,000. The small pot rule applies to DB benefits and DC benefits. If you re age 60 or coming up to age 60 and interested in taking your benefits as a lump sum, but not sure whether your benefits are above or below the new limits, please get in touch with the plan s administrators using the contact details on page 11. 9

6 Getting financial advice As Trustees, we can give you information but it s against the law for us to give you financial advice. So, if you re ever unsure about what to do with your pension, please seek independent financial advice. We suggest you use a service like to find an adviser in your area. How to keep your records up to date Keep your Expression of Wish form up to date In the event of your death, your Expression of Wish form tells the Trustees who you d like any lump sum death benefits to be paid to. The Trustees aren t legally bound by the form, but it s a key source of information. We will use it to make decisions about what happens with your money. With that in mind, it s important to keep your Expression of Wish form up to date, particularly if your personal circumstances change. You can find the form on the plan s website or you can request it from the plan s administrators using the contact details on page 11. Let us know if you move house If you move house, please tell the plan s administrators straight away. We need your current address to keep you up to date with what s happening with the plan. How to contact us If you ve got any questions about the plan or your benefits, please contact the plan s administrators, Aon Hewitt: Helpline: kodakpensionplan2@aonhewitt.com Post: Kodak Pension Plan (no. 2) Aon Hewitt Scanning Division PO Box 196 Huddersfield HD8 1EG Your plan website Don t forget, there is a website for the plan. It s at Please take a look to get the latest news, and for answers to any questions you have. It s also a quick and easy way to get various forms and plan documents you may need

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