Agilent Technologies LOA UK Limited Pension Scheme

Transcription

1 Agilent Technologies LOA UK Limited Pension Scheme Rules effective from 19 March 2014 LINKLATERS LLP One Silk Street London EC2Y 8HQ Telephone: (+44) Facsimile: (+44)

2 CONTENTS Rule Page 1 Meaning of words used Joining the Scheme Joining for retirement benefits Evidence of health Employees entitled to death in service benefits only Contributions by Employers and Members Contributions by Employers Contributions by Members and Employer matching contributions Voluntary contributions Member's Retirement Account Allocation of assets to Retirement Account Protected Rights Account Investment of Retirement Account Member's retirement benefits Retirement Date Using the Member's Retirement Account Maximum lump sum Benefits on Member's death Benefits on death in Employment Benefits on death before retirement and after leaving Employment Payment of survivors' pensions Payment of lump sum death benefits Insured benefits Early leavers Preserved pension Discretionary refund of contributions Right to transfer or buy-out Members away from work General rule Family leave Ceasing to be eligible Opting out Special provisions for certain Members Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan : Members who are receiving benefits under an Employer's long-term disability benefits scheme Members with a protected pension age Members who participate in SMART Pensions Members who participate in other salary sacrifice arrangements General rules about pensions Purchase of pensions A /1.0/10 Mar i -

3 14 General rules about benefits Recovery of tax and other charges Loss of right to benefits Beneficiary who is incapable Tax status of the Scheme Contracting-out Pension sharing on divorce Compliance with pension sharing orders Benefits under the Scheme Death of former Spouse before a transfer payment is made Discretions of Trustees Discretionary benefits Serious ill-health lump sums Lump sums instead of small pensions Transfers and buy-outs Transfers from other pension schemes and arrangements Transfers to other pension schemes and arrangements Trustees Appointment and removal Decision making Administering the Scheme Expenses and charges Limit of liability Indemnity Trustee insurance Assets of the Scheme Assets held on trust Use of assets Scheme expenses Financial information Surplus assets Participating Employers Inclusion in the Scheme Ceasing to participate New Principal Employer Termination of the Scheme Time of termination Effect of termination Reopening the Scheme Winding up the Scheme Time of winding up Use of assets Buying annuities Winding up lump sums Transfers to other schemes and arrangements Surplus assets Changing the Rules... ~... ~ Governing law A Mar 2014 ii-

4 AGILENT TECHNOLOGIES LOA UK LIMITED PENSION SCHEME These Rules of the Agilent Technologies LOA UK Limited Pension Scheme are made as a deed on /9 M d...rc.l between Agilent Technologies LOA UK Limited and James Stewart, Vikki Harrower, lain Rooney and Wayne Harris. These Rules are made to set up the Scheme with effect from 19 March The Scheme has been established to accept a transfer of certain members from the Agilent Technologies UK Limited Pension Scheme expected to occur on 1 August Agilent Technologies LDA UK Limited is the Principal Employer of the Scheme for the time being (the "Principal Employer"). James Stewart, Vikki Harrower, lain Rooney and Wayne Harris are the first trustees of the Scheme. 1 Meaning of words used "Agilent" means Agilent Technologies LDA UK Limited. "Agilent Technologies Scheme" means the Agflent Technologies UK Limited Pension Scheme (to be re-named the Keysight Technologies UK Limited Pension Scheme). "Annual Salary" means the yearly rate of the Member's annual salary. Annual Salary does not include shift allowances, overtime and fluctuating emoluments. If the Member is a sales grade employee, Annual Salary means the Member's annual earnings objective as determined by Agilent and notified to the Trustees. "Dependant" means anyone who is financially dependent on the Member or other person concerned, or was so dependent at the date of that person's death. This may include anyone who shares living expenses with, or receives financial support from, the Member or other person, and whose standard of living would be affected by the loss of that person's contribution or support. The Trustees' decision as to whether someone is another person's Dependant will be final. "Employee" means any employee of an Employer. "Employer" means an employer participating in the Scheme. "Employment" means employment with the Employers. "Incapacity" means physical or mental incapacity which prevents a Member from following his or her normal occupation or seriously impairs the Member's earning capacity. Before deciding whether a Member is suffering from Incapacity, the Trustees must obtain evidence from a registered medical practitioner that the Member is (and will continue to be) incapable of carrying on his or her occupation. The Trustees' decision as to whether a Member is suffering from Incapacity will then be final. "Insurance Company" means any person who is permitted by the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance. "Member" means a person who has joined or been included in the Scheme. "Pension Debit" means the debit referred to in section 29(1 )(a) of the Welfare Reform and Pensions Act A /1.0/10 Mar

5 "Preservation Laws" means the laws as to preservation of benefit set out in Chapter I of Part IV of the Pension Schemes Act "Protected Rights Account" means a Member's Protected Rights Account as described in Rule 4.2 (Protected Rights Account). "Retirement Account" means a Member's Retirement Account as described in Rule 4 (Member's Retirement Account). "Retirement Date" means a Member's Retirement Date as described in Rule 5.1 (Retirement Date). "Scheme" means the Agilent Technologies LOA UK Limited Pension Scheme. "Scheme Year" means a calendar year ending on 30 November. "Spouse" means a person who is or, at the date of the Member's death, was legally married to the Member or who was the Member's civil partner registered in accordance with the Civil Partnership Act "Transfer Value Laws" means the laws as to transfer values set out in Chapter IV of Part IV of the Pension Schemes Act "Trustees" means the trustees for the time being of the Scheme. A /1.0/10 Mar

6 2 Joining the Scheme 2.1 Joining for retirement benefits Each Employee whose contract of service says that he is eligible to join the Scheme may join the Scheme at any time from starting Employment after becoming eligible. An Employee who does not join the Scheme at the first opportunity after becoming eligible, may apply to join later only with the specific permission of the Employer, subject to the following. An Employee will be included in the Scheme automatically from each automatic enrolment or re-enrolment date if Chapter 1 of the Pensions Act 2008 (employers' duties) requires the Employer to make arrangements for the Employee to become an active member of an automatic enrolment scheme. The only exception is if the Employee has given a valid opt out notice under Section 8 of that Act Uobholders' right to opt out). If an Employee joins the Scheme within 12 months of starting Employment, he may elect to backdate his contributions for the month he joined the Scheme and the three months immediately preceding the month he joined or the period to the date on which he actually started Employment, whichever is the shorter period. Where a Member elects to backdate his contributions the Employer will also backdate its contributions to the same date. 2.2 Evidence of health The Trustees may require any Employee to provide evidence of good health and any other information that they consider appropriate. In spite of Rule 2.1, an Employee will not qualify for death-in-service benefits under Rule 6.1 (benefits on death in Employment) unless the Trustees are satisfied that the Employee is in good health (or have confirmed that they do not require the Employee to provide evidence of good health) and have received any information that they require. 2.3 Employees entitled to death in service benefits only An Employee who chooses not to join the Scheme, or who opts out and who is not entitled to death-in-service benefits from any other occupational pension scheme operated by the Employers, will still be included in the Scheme for a lump sum death-in-service benefit under paragraph (a) of Rule These Rules will apply to the Employee for the purpose of calculating and paying this benefit, as if the Employee were a Member. A /1.0/1 0 Mar

7 3 Contributions by Employers and Members 3.1 Contributions by Employers Each Employer will contribute to the Scheme, in respect of each Member in its Employment. These contributions will be equal to 5 per cent of the Member's Annual Salary from time to time, or such other amount as the Employer decides from time to time and notifies to the Member and the Trustees in writing. Each Employer will also contribute to the Scheme at a rate that is sufficient to enable the Trustees to provide death-in-service benefits under Rule 6.1 (benefits on death in Employment) for Employees in its employment. 3.2 Contributions by Members and Employer matching contributions Each Member in Employment must contribute 1 per cent of his or her Annual Salary to the Scheme. Each Member in Employment may elect to pay additional contributions of 1, 2 or 3 per cent of Annual Salary. The Employer will match any additional contributions which the Member elects to pay under this Rule 3.2. The Member may elect to vary his contributions with effect from 1 February each year and must give the Trustees at least 1 month's notice of his intention to do so. However, the Trustees may agree to allow a Member to vary his contributions on a date other than 1 February, provided the Member gives the Trustees at least 1 month's notice of this. The Employer will deduct these contributions from the Member's earnings and pay them to the Trustees. Note: This Rule 3.2 is modified for Salary Sacrifice Members: see Rule 12.4 (Members who participate in SMART pensions). 3.3 Voluntary contributions A Member in Employment may pay additional voluntary contributions to the Scheme on a basis agreed with the Trustees. If the Trustees so require, Members must give reasonable notice of their intention to start, increase, reduce or stop paying additional voluntary contributions. Each Member's voluntary contributions will be allocated to the Member's Retirement Account. The proceeds will be used to provide additional benefits for, or in respect of, the Member. Note: This Rule 3.3 is modified for Salary Sacrifice Members if the Principal Employer and the Trustees agree: see Rule 12.4 (Members who participate in SMART pensions). A /1.0/1 0 Mar

8 4 Member's Retirement Account 4.1 Allocation of assets to Retirement Account The value of the benefits provided for, and in respect of, each Member under the Scheme will be determined by reference to the realised value of the Member's Retirement Account at the date on which the benefits are provided. The Trustees will allocate to each Member's Retirement Account: (a) the contributions paid by the Employer in respect of the Member under Rule 3.1 (contributions by Employers) and Rule 3.2 (contributions by Members and Employer matching contributions); (b) the Member's own contributions to the Scheme made under Rule 3.2 (contributions by Members and Employer matching contributions) and Rule 3.3 (voluntary contributions); (c) any assets or surrender values accepted by the Trustees in respect of the Member under Rule 12.1 (Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan), from the Agilent Technologies Scheme or under Rule 17.1 (transfers from other pension schemes and arrangements); and (d) a share of any expenses of the Scheme that are not paid by the Employers, calculated on a basis that the Trustees consider reasonable. 4.2 Protected Rights Account The Trustees will maintain a Protected Rights Account for each Member who was in contracted-out money purchase employment by reference to any scheme which the Trustees accept a transfer from in respect of a Member under Rule 17.1 (transfers from other pension schemes and arrangements). The Protected Rights Account forms part of (and is included in) the Member's Retirement Account. The Member's "protected rights" (as defined in the contracting-out laws in force prior to 6 April 2012) are the Member's right to the money purchase benefits which derive from the Member's Protected Rights Account. 4.3 Investment of Retirement Account A Member's Retirement Account shall be invested by the Trustees or such other person authorised by the Trustees in one or more investment options chosen by the Member from those offered by the Trustees. Where the Member does not make such a choice, the Trustees shall invest the individual Member's Retirement Account in a default fund selected by the Trustees. The Trustees will not be liable for any loss arising from any Member's, or where applicable, the Trustees' choice of investment option. A Member who has not reached his Retirement Date may direct the Trustees (or such other person authorised by the Trustees) to vary one or more of his investment options up to a maximum of four times in any twelve month period unless the Trustees decide otherwise. In the case of a Member who joins the Scheme part way through a year, the Trustees will determine the number of directions which the Member will be permitted to make for that year on a basis which they consider to be fair and reasonable. The Trustees may require the Member to pay the costs of varying investment options. A /1.0/10 Mar

9 Any direction made by the Member as described above must be given to the Trustees (or such other person authorised by the Trustees) in such manner and form as is required by the Trustees from time to time. Note: The allocation of assets to a particular Member's Retirement Account is for benefit calculation purposes only. it does not affect the fact that the assets of the Scheme are held as a common trust fund out of which all the benefits are provided. No Member or other person entitled to benefits is entitled to any specific assets of the Scheme. A /1.0/10 Mar

10 5 Member's retirement benefits 5.1 Retirement Date A Member's Retirement Date is the Member's 60th birthday, except that: (a) if the Member stays in Employment after reaching age 60, the Member's Retirement Date will be the date on which the Member leaves Employment; and (b) if the Member leaves Employment before age 60 and has reached age 55 or is suffering from Incapacity, the Member's Retirement Date will be any date chosen by the Member between the date on which the Member leaves Employment and age 60 but only if the Employer consents. 5.2 Using the Member's Retirement Account The Trustees will use a Member's Retirement Account to provide benefits in one or more of the following forms, as requested by the Member: (a) an annuity purchased from an insurance company and payable to the Member for life, starting on the Member's Retirement Date; and/or (b) a lump sum payable to the Member on the Member's Retirement Date. The Member's pension may, if the Member so chooses, be guaranteed for any period. If the pension is guaranteed and the Member dies before the end of the guarantee period, either the pension may be continued for the guarantee period or a lump sum may be paid on the Member's death equal to the pension payments which would have been made during the remainder of the guarantee period. The lump sum payable to the Member cannot exceed the maximum described in Rule 5.3 (maximum lump sum). 5.3 Maximum lump sum A Member may choose a lump sum of any amount up to the maximum permitted as a "pension commencement lump sum" under Part 4 of the Finance Act A /1.0/10 Mar

11 6 Benefits on Member's death 6.1 Benefits on death in Employment Benefits payable If a Member dies in Employment, the Trustees will provide the following death-inservice benefits: (a) a lump sum equal to 4 times the Member's Annual Salary as at the date of death payable in accordance with Rule 6.4; (b) a Spouse's pension equal to 25 per cent of the Member's Annual Salary as at the date of death payable in accordance with below; (c) a children's pension equal to one-third of the Spouse's pension for each Pensionable Child, up to a maximum of three payable in accordance with Rule below; and (d) a lump sum equal to the value of the Member's Retirement Account attributable to his or her own contributions to the Scheme and any benefits transferred into the Scheme in accordance with Rule The lump sum wilt be payable in accordance with Rule 6.4. If the Member has transferred all or part of their benefits to another pension scheme or arrangement in accordance with Rule 17.2, the lump sum in (d) above wilt be equal to the value of any Member contributions and benefits transferred into the Scheme in accordance with Rule 17.1 that remain in the Retirement Account at the date of death. The benefits under this Rule 6.1 wilt be subject to any restrictions imposed by the Insurance Company with which they are insured Children's pension The children's pension payable wilt be divided equally between the Pensionable Children. Each child's share may be paid to the Pensionable Child or paid to some person or persons on trust for his or her benefit. Each child's pension wilt be payable as described in Rule 6.3. Where a Member initially leaves more than three Pensionable Children and, in accordance with Rule 6.3, a pension ceases to be payable to one of those children, then that child's share of the total pension will be divided amongst the remaining Pensionable Children. Once the number of Pensionable Children reduces to three, there will be no further redistribution of pension and each child's pension will finish when it ceases to be payable in accordance with Rule 6.3. A /1.0/1 0 Mar

12 "Pensionable Children" are children born or legitimated by a marriage of the Member; the Member's stepchildren (but only if they are financially dependent on the Member at the date of the Member's death); children legally adopted by the Member; and any other children whom the Trustees are satisfied were dependent on the Member at the time of his death and whom the Trustees agree to treat as Pensionable Children Spouse's pension The Spouse's pension will be payable in accordance with Rule 6.3. However, the Trustees may use all or part of the amount of a Spouse's pension which would have been payable under paragraph (b) of Rule to pay a pension or pensions to one or more of the Member's Dependants, as described in Rule 6.3, in which case, the amount of any pension payable to a surviving spouse or civil partner will be reduced accordingly. If the Member dies and does not leave a surviving spouse or civil partner, the Trustees may pay a pension or pensions to one or more of the Member's Dependants, as described in Rule 6.3 (payment of survivors' pensions) provided that the total amount of such pensions shall not be greater than the amount of pension calculated as described in paragraph (b) of Rule If anyone who receives a benefit under paragraph (b) of Rule or pursuant to the preceding two paragraphs was more than 15 years younger than the Member, the pension paid under paragraph (b) of Rule will be reduced by up to 2% % for each year of age difference over 15 unless the Trustees, with the consent of Agilent, decide otherwise. 6.2 Benefits on death before retirement and after leaving Employment If a Member dies before his or her Retirement Date but after leaving Employment, the Trustees will use the Member's Retirement Account to provide benefits in one or both of the following forms, as requested by the Member, or, if the Member has made no request, as the Trustees consider appropriate: (a) a lump sum payable as described in Rule 6.4; (b) a pension or pensions payable to one or more of the Member's Spouse, children and Dependants as described in Rule Payment of survivors' pensions A pension payable to a surviving spouse or civil partner will be payable for life. A pension payable to a child, including a Pensionable Child, will be payable until the child reaches age 18. The Trustees may, however, pay or continue paying a pension to a child who has reached age 18: (a) for so long as the child is under age 23 and in full-time education or training approved by the Trustees (and the pension payable in these circumstances should be secured by an annuity contract); or (b) for the lifetime of the child, but only if the child was dependent on the Member because of disability when the Member died, or was wholly incapacitated at birth. A pension payable to any other adult Dependant will be payable for life. A /1.0/10 Mar

13 6.4 Payment of lump sum death benefits The Trustees will pay any lump sum death benefit to one or more of the Beneficiaries, within 2 years of being notified of the Member's death (or, if the Trustees could have been reasonably aware of the Member's death at an earlier date, 2 years from that earlier date). If the Trustees decide to pay the benefit to more than one of the Beneficiaries, they will pay it in such shares as they decide. The "Beneficiaries" are the Member's widow or widower or surviving civil partner; the Member's grandparents and their descendants and the spouses, civil partners, widows and widowers of those descendants; the Member's Dependants; any person with an interest in the Member's estate (but not including the Crown, the Duchy of Lancaster or the Duke of Cornwall); and any person nominated by the Member in writing to the Trustees or the trustees of the Agilent Technologies Scheme. The Trustees may use all or part of the amount payable for the benefit of one or more of the Beneficiaries, instead of paying it direct to the Beneficiaries concerned. So long as only Beneficiaries can become entitled to the benefit, the Trustees may: (a) direct that all or part of the lump sum be held by themselves or other trustees on such trusts (including discretionary trusts) and with such powers and provisions (including powers of selection and variation) as the Trustees see fit; or (b) pay all or part of the lump sum to the trustees of any other existing trust. In spite of any other Rule, no lump sum death benefit will be paid if there are no living Beneficiaries at the date of the Member's death. 6.5 Insured benefits The benefits described in this Rule 6 will only be payable if the Trustees have received: (a) such information as they may require for them to insure the benefit; (b) satisfactory evidence of health if requested by the Trustees prior to the Member's death; and (c) confirmation of cover from an Insurance Company for the level of the Member's Annual Salary. Benefits payable on a Member's death will be subject to payment having been made to the Trustees by any Insurance Company with which the benefit may be insured and subject to any conditions imposed by that Insurance Company. A /1.0/10 Mar

14 7 Early leavers 7.1 Preserved pension A Member who leaves Employment before his or her Retirement Date will remain entitled to benefits under the Scheme. The Trustees will provide retirement benefits for the Member as described in Rule 5 (Member's retirement benefits) except that the Member's Retirement Date will be the Member's 60th birthday, unless the Member chooses: (a) a later date; or (b) an earlier date, but not earlier than the Member's 55th birthday (unless Rule 12.3 (Members with a protected pension age) applies) (unless the Member is suffering from Incapacity). If the Member dies after leaving Employment and before his or her Retirement Date, death benefits will be provided as described in Rule 6.2 (benefits on death before retirement and after leaving Employment). 7.2 Discretionary refund of contributions A Member who leaves Employment with less than 2 years' Qualifying Service may, with the consent of the Trustees and the Employer, request that, instead of benefits provided under Rule 7.1, he or she be permitted to take a refund of the proportion of his or her Retirement Account attributable to his or her own contributions to the Scheme, less tax. However, the Member will not in any circumstances be permitted to take a refund if a transfer payment in respect of the Member's rights under a personal pension scheme has been made to the Scheme. "Qualifying Service" means the Member's service after joining the Scheme and employment which qualified the Member for retirement benefit under any occupational scheme from which a transfer payment in respect of the Member has been made to the Scheme, or to a "buy-out" policy and subsequently to the Scheme. Qualifying Service is used only for the purpose of deciding whether the Member is able to choose a refund of contributions from the Scheme. A /1.0/10 Mar

15 8 Right to transfer or buy-out A Member who leaves Employment before reaching age 59 can require the Trustees to use his or her Retirement Account to buy one or more annuities, or to acquire rights under another occupational pension scheme or a personal pension scheme, in accordance with the Transfer Value Laws. The Member can exercise this right by writing to the Trustees at any time before reaching age 59 (or, if later, up to 6 months after leaving Employment), but not after his or her Retirement Date. A /1.0/10 Mar

16 9 Members away from work 9.1 General rule If a Member in continuing Employment is away from work for any reason, the Employer will continue to contribute to the Scheme in respect of the Member for so long as the Member receives pay from the Employer. Agilent may agree special terms to apply to the Member's and Employer's contributions and death in service benefits payable under Rule 6.1 (benefits on death in Employment) while the Member is away from work. Any agreed special terms will be notified to the Member. 9.2 Family leave In this Rule 9.2, the terms in bold mean the same as in the Employment Rights Act Ordinary family leave The Employer will always continue to contribute to the Scheme during any period of "ordinary maternity leave", "ordinary adoption leave" or "ordinary paternity leave" as if the Member had worked normally and received the normal pay for doing so. Members who receive pay from their Employer for these periods must pay contributions on the pay received. Members who receive no pay do not have to pay contributions. Additional paid family leave The Employer will also continue to contribute to the Scheme during any other period for which the Member receives pay from their Employer and which, for the purposes of Schedule 5 to the Social Security Act 1989 (equal treatment for men and women), is a period of maternity leave, adoption leave, paternity leave or absence from work for other family reasons. In the case of paid maternity, paternity and adoption leave, the Employer's contributions throughout these periods will be calculated as if the Member had worked normally and received the normal pay for doing so. In the case of any other period of paid family leave, the Employer's contributions will be based on the pay received, unless the Employer and the Trustees agree other terms that are no less favourable to the Member. In each case Members must pay contributions on the pay received. Members who receive no pay do not have to pay contributions. If the Employer stops contributing to the Scheme under this Rule 9.2, the Member will be treated as having left Employment unless Agilent decides otherwise. A /1.0/1 0 Mar

17 10 Ceasing to be eligible If a Member's Employer stops paying contributions to the Scheme in respect of the Member, he or she will be treated as having left Employment unless the Employer otherwise determines. A /1.0/10 Mar

18 11 Opting out A Member may opt out of the Scheme at any time by giving one month's notice to the Employer and the Trustees. The Member will be treated as having left Employment on the last day of the month in which the notice expires, except that: (i) if the Member gives a valid opt out notice under Section 8 of the Pensions Act 2008 Uobholder's right to opt out), the Trustees and the Employer will take appropriate action so that the Member is treated as if he or she had never been included in the Scheme; and (ii) the Member will still be included in the Scheme for death-in-service benefits under Rule A Member who opts out of the Scheme may rejoin only with the specific permission of his or her Employer. However, a Member who opts out will be included in the Scheme automatically from the next re-enrolment date if Chapter 1 of the Pensions Act 2008 (employers' duties) requires the Employer to make arrangements for the Member to again become an active member of an automatic enrolment scheme. This will happen unless the Member gives a valid opt out notice under Section 8 of that Act Uobholders' right to opt out). A /1.0/1 0 Mar

19 12 Special provisions for certain Members 12.1 Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan This Rule 12.1 sets out the special benefits which apply to Members who were formerly members of the Hewlett-Packard Limited Retirement Benefits Plan (the "Plan"), who elected to become Members of the Hewlett-Packard Limited Pension Scheme on 7 April 1997, who subsequently transferred their benefits to the Agilent Technologies Scheme and whose benefits were then transferred to the Scheme: Death benefits For the purposes of calculating the death benefits payable in respect of the Member under Rule 6 (benefits on Member's death): (i) the Member's Annual Salary will be equal to 1 1 /24 times the Member's Annual Salary, excluding shift allowances, overtime and fluctuating emoluments or, in the case of a sales grade Member, his annual earnings objective as determined by Agilent and notified to the Trustees or, in the case of a Member who receives benefits under a long-term disability scheme operated by his or her Employer, the Member's notional salary as determined by Agilent under (ii) below; (ii) the Spouse's pension payable under Rule will be equal to 36% of the Member's Annual Salary as described in (i) above; and (iii) the children's pension payable under Rule will be equal to 9% of the Member's Annual Salary as described in (i) above Contributions As well as the contributions set out in Rule 3.1 (contributions by Employers), Employers will contribute an additional contribution payable on a monthly basis until the Member leaves Employment, reaches age 60 or dies, whichever occurs first, at a rate previously notified by Agilent to the Members Members who are receiving benefits under an Employer's long-term disability benefits scheme This Rule 12.2 sets out the special provisions which apply to a Member who is in receipt of benefits under a long-term disability benefits scheme operated by his or her Employer (an "LTD Member"): (a) for the purposes of Rule 3.1 (contributions by Employers) and Rule 6.1 (benefits on death in Employment), an L TO Member's Annual Salary is the Member's notional salary as determined by Agilent and notified to the Trustees; and (b) for the purposes of Rule 3.2 (contributions by Members and Employer matching contributions), an LTD Member's Annual Salary is the amount of long-term disability benefit received by the Member in each year. A /1 0/10 Mar

20 12.3 Members with a protected pension age If a Member is a member of the Scheme as a result of a block transfer to the Scheme falling within paragraph 22 of Schedule 36 to the Finance Act 2004, the Member will retain a protected pension age of the age at which the Member had a prospective right to the benefit under the relevant transferring pension scheme (but not being less than age 50), and benefits may be paid under Rule 7.1 (preserved pension) from that age accordingly. However, a Member will only have a protected pension age if: (a) the Member becomes entitled to all the benefits payable to him under the Scheme; and (b) on becoming entitled to any benefit under the Scheme, the Member is not in Employment. Note: Members of the Scheme who were formerly members of the Agilent Technologies Scheme on 5 April 2006 had a prospective right under Rule 7.1 (preserved pension) of that scheme to choose a Retirement Date from his or her 50 1 h birthday. In accordance with paragraphs 21 to 23A of Schedule 36 to the Finance Act 2004, such a Member retains a protected pension age of 50 and therefore benefits may be paid under Rule 7.1 (preserved pension) of these Rules from that age Members who participate in SMART Pensions Members who participate in SMART Pensions (a "Salary Sacrifice Member") accept a reduction in their pay in return for non-contributory membership of the Plan. The reduction in each Salary Sacrifice Member's pay is equal to the contributions that the Member would otherwise be required to pay under Rule 3.2 (contributions by Members and Employer matching contributions). For any period during which a Member is a Salary Sacrifice Member, the following modifications to these Rules apply: A Salary Sacrifice Member will not be required to pay contributions to the Plan under Rule 3.2 (contributions by Members and Employer matching contributions) or for the purposes of Rule 9.2 (family leave). In addition, the Trustees, with the consent of the Principal Employer, may allow contributions which would otherwise be paid by the Member under Rule 3.3 (voluntary contributions) to be also subject to SMART Pensions. The Trustees will notify the Member of any restrictions which apply To ensure that a Salary Sacrifice Member's benefits are not affected: (i) "Annual Salary" at any date and for any period while a Member participates in SMART Pensions will be the amount that the Member would have received from his or her Employer if he or she had not been participating in SMART Pensions; -~' (ii) for the purpose of Rule 6.1 (benefits on death in Employment), Rule (death benefits) and Rule 12.2 (Members who are receiving benefits under an Employer's long-term disability benefits scheme), the Member's Annual Salary at any time and for any period while a Member is a Salary Sacrifice Member will be the amount that the Member would have received from his A /1.0/1 0 Mar

21 or her Employer if he or she had not been participating in SMART Pensions; and (iii) if a Member dies in Employment, the part of the lump sum death benefit that is based on the Member's contributions (see Rule (d)) will include an amount equal to the contributions that the Member would have paid if the Member had not participated in SMART Pensions. The Principal Employer may withdraw SMART Pensions at any time or may operate SMART Pensions on a different basis, having notified the Salary Sacrifice Members and the Trustees in writing Members who participate in other salary sacrifice arrangements Members may accept a reduction in their pay in return for certain benefits. To ensure that Member's benefits are not affected, "Annual Salary" at any date and for any period while a Member participates in a salary sacrifice arrangement will be the amount that the Member would have received from his or her.employer if he or she had not been participating in any salary sacrifice arrangement. A /1.0/10 Mar

22 13 General rules about pensions 13.1 Purchase of pensions General A pension payable under the Scheme will be secured by an annuity contract purchased by the Trustees chosen in accordance with Rules and below. Any costs incurred may be deducted from the Member's Retirement Account prior to the purchase of the annuity. Any annuity contract will be in the name of the Member (or other Dependant as appropriate) Member's right to choose an insurer A Member must choose an Insurance Company by writing to tell the Trustees which Insurance Company he has chosen at least one month, but not more than six months, before the date on which the Member's pension is due to start. If the Member's Retirement Date is after his or her 65 1 h birthday and there is less than one month between the date on which the Member chooses his Retirement Date and that date, the Member can choose an Insurance Company by telling the Trustees so in writing on the same day as he or she chooses his Retirement Date. The Trustees may allow the Member a longer period in which to make his or her choice. If the Member does not choose an Insurance Company, the Trustees will choose Survivor's right to choose an insurer Where a Member dies before retirement, his or her surviving spouse or civil partner or other Dependent receiving a pension (the "Survivor") must choose an Insurance Company to provide the pension payable. The Trustees will write and tell the Survivor that he or she has the right to choose the Insurance Company. The Survivor must write back to the Trustees to inform them of his or her choice within three months. If the Survivor fails to choose an Insurance Company within the time permitted, the Trustees will choose the Insurance Company. A176B2229/1.0/10 Mar

23 14 General rules about benefits 14.1 Recovery of tax and other charges The Trustees will deduct from any payment under the Scheme any tax for which they may be liable in respect of it. The Trustees may reduce any benefit in respect of which a lifetime allowance charge arises, so as fully to reflect the amount of tax payable in respect of it under Section 215 of the Finance Act 2004 (amount of charge). The Trustees will decide the amount of the reduction and their decision will be final Loss of right to benefits Benefits under the Scheme are subject to restrictions imposed by Sections 91 to 93 of the Pensions Act 1995 (assignment and forfeiture, etc.). These restrictions are intended generally to ensure that benefits are paid only to the person entitled under these Rules, rather than to any other person. The restrictions prevent benefits from being assigned, commuted, surrendered, charged or forfeited, except in specified circumstances. However, there are exceptions to the restrictions imposed by Sections 91 to 93. To the extent permitted by those exceptions: (a) an Employer may require the Trustees to reduce or forfeit a person's benefits if the person owes money to the Employer and the debt arises from a criminal, negligent or fraudulent act or omission (in which case the Trustees will pay the Employer an amount equal to the debt or, if less, the value of the person's benefits); (b) the Trustees may reduce or forfeit a person's benefits if the person owes money to the Scheme; (c) the Trustees may forfeit any benefits that are payable in respect of a Member to a person who is convicted of the Member's murder or manslaughter, or any other offence of which unlawful killing of the Member is an element (including aiding, abetting, counselling or procuring the Member's death); (d) the Trustees will forfeit any benefit if the person entitled to the benefit does not claim it within six years of the date on which it becomes due; and (e) the Trustees may also reduce or stop a person's benefits in any other circumstances allowed by law Beneficiary who is incapable If the Trustees consider that any person cannot look after his or her affairs (because of illness, mental disorder, age or otherwise), they may use any amounts due to that person under the Scheme for his or her benefit, or may pay them to some other person to do so. The Trustees may also make, for the person concerned, any choice which that person has under the Scheme Tax status of the Scheme : The Scheme is a "registered pension scheme" for the purposes of Part 4 of the Finance Act If (without this Rule 14.4) the Trustees would be required to make a payment under the Scheme that would be "unauthorised" by virtue of Section 160 of that Act (payments by registered pension schemes), the payment will be treated as discretionary and will not be made unless the Trustees and the Employer agree otherwise (which they need not do). A /1.0/1 0 Mar

24 14.5 Contracting-out The Scheme is contracted-in to the State Second Pension. Note: Certain Members who were formerly members of the Agilent Technologies Scheme were in contracted-out money purchase employment by reference to that scheme. A Protected Rights Account is maintained for these Members in accordance with Rule 4.2 (Protected Rights Account). A /1.0/10 Mar

25 15 Pension sharing on divorce 15.1 Compliance with pension sharing orders lt may be that an order or other provision under Section 28(1) of the Welfare Reform and Pensions Act 1999 (activation of pension sharing) or equivalent Northern Ireland laws requires all or part of a Member's benefits to be transferred to the Member's former Spouse. If this happens, the Trustees will discharge their liability to the former Spouse in accordance with the requirements of the Act. The Trustees may recover charges in respect of pension sharing costs, as allowed by the Act Benefits under the Scheme If the Trustees provide benefits for the former Spouse under the Scheme, the benefits will be provided separately from any other benefits to which the former Spouse may be entitled under the Scheme. The Trustees will provide the former Spouse with written details of the benefits that will be provided Death of former Spouse before a transfer payment is made lt may be that the Trustees intend to discharge their liability to the former Spouse by making a transfer payment to another pension arrangement, but the former Spouse dies before the payment is made. If this happens, the Trustees may (but need not) use the intended transfer payment to provide benefits in respect of the former Spouse in any of the ways allowed by the Welfare Reform and Pensions Act Any part of the intended transfer payment that is not used in this way will be retained by the Trustees as part of the Scheme's general assets. A /1.0/1 0 Mar

26 16 Discretion& of Trustees 16.1 Discretionary benefits If Agilent so requests and the Employers pay any additional contributions that the Trustees consider appropriate, the Trustees will provide: (a) increased or additional benefits in respect of any Member or Members; (b) benefits for any Member or Members different, or on different terms, from those that would otherwise be provided under the Scheme; or (c) benefits in respect of any Employee or former Employee or any spouse or Dependant of a former Employee. Any benefits provided under this Rule 16.1 must be consistent with the Preservation, Revaluation, and Transfer Value Laws and authorised for the purposes of Part 4 of the Finance Act Serious ill-health lump sums lt may be that the Trustees receive evidence from a registered medical practitioner that a Member is expected to live for less than one year. If this happens before the Member starts to receive benefits from the Scheme, and if the Contracting-out Laws allow, the Trustees may allow the Member to give up all of his or her Member's Retirement Account under the Scheme in return for a lump sum. However, this will be allowed only if payment of a "serious ill-health lump sum" is permitted under Part 4 of the Finance Act Lump sums instead of small pensions lt may be that the value of a person's benefits under the Scheme (including any death benefits) is so small that Part 4 of the Finance Act 2004 would allow payment of a lump sum instead of those benefits. If so, the Trustees may pay a lump sum instead of those benefits. A /1.0/1 0 Mar

27 17 Transfers and buy-outs 17.1 Transfers from other pension schemes and arrangements If Agilent agrees, the Trustees may accept a transfer of assets or surrender value in respect of any person from another pension scheme or arrangement. If required by Agilent, the Trustees shall accept a transfer of assets or surrender value in respect of any person from the Agilent Technologies Scheme. This provision shall only apply once in respect of a transfer of assets from the Agilent Technologies Scheme. Any other transfers from the Agilent Technologies Scheme must be agreed by the Trustees in accordance the first paragraph of this Rule The Trustees will add the assets or surrender value to the Member's Retirement Account to provide such benefits in respect of the person concerned as they decide are appropriate. The benefits will comply with the Contracting-out, Preservation, Revaluation and Transfer Value Laws, and must be consistent with the Scheme's tax status as a registered pension scheme under Part 4 of the Finance Act Where the Trustees accept a transfer payment and are informed by the transferring scheme of the details of a Pension Debit relating to the transfer payment, the Trustees must take account of the Pension Debit, if appropriate, in the calculation of any limit on benefits for that Member Transfers to other pension schemes and arrangements Instead of providing benefits under the Scheme in respect of any person, the Trustees may transfer assets to another pension scheme or arrangement (including any person who is permitted by the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance), so that benefits will be provided under the other scheme or arrangement in respect of the person concerned. The Trustees may transfer assets in respect of part only of a person's benefits under the Scheme. The transfer must comply with the Contracting-out and Preservation Laws. lt must also be a "recognised transfer" under Section 169 of the Finance Act 2004 (recognised transfers). In the case of a Member who has not reached his or her Retirement Date, the transfer payment will be equal to the realised value of the Member's Retirement Account. In any other case, the transfer payment will be equal to the value of the benefits that would otherwise have been provided under the Scheme for, and in respect of, the person concerned. Where a transfer is made in respect of a Member whose benefits have been permanently reduced by a Pension Debit, the Trustees will give full details of any Pension Debit and a lump sum certificate specifying the maximum permissible lump sum to the receiving scheme. A /1.0/1 0 Mar

28 18 Trustees 18.1 Appointment and removal The Scheme will be operated in accordance with the requirements of the Pensions Act 1995 and Sections 241 to 243 of the Pensions Act 2004 relating to member-nominated trustees and directors. Subject to this, Agilent may appoint new or additional trustees or a body corporate as sole trustee. Agilent may also remove Trustees. Agilent may remove any Trustee who ceases to be in Employment with an Employer or who reaches age 75. These powers will be exercised by deed. They may be exercised without giving any reason and without any limit on the number of Trustees Decision making General The Trustees may act by majority vote. The Trustees will appoint a chairman. Two Trustees will constitute a quorum and a chairman shall not have a casting vote. All decisions made by the Trustees at a meeting shall be minuted and signed. Also any decisions by an Employer made by the Board or a delegate appointed by the Board in respect of the Scheme shall be in writing and signed by an authorised representative Written and resolutions A written resolution signed by a majority of the Trustees shall be as effective as a decision made by those Trustees at a meeting. The resolution may be passed using several copies of a document (which may be fax copies), if each copy of the document is signed by one or more of those Trustees. A resolution passed by shall be as effective as a decision made by the Trustees at a meeting. A resolution will be passed by electronic mail (" ") if a majority of the Trustees have indicated their approval to the proposed resolution in a manner which sufficiently identifies the resolution which is being approved and the identity of the person giving approval Notice of meetings and written resolutions Prior notice of any meeting will be given to all Trustees to whom it is reasonably practical to give such notice at least 10 business days prior to the meeting. The notice shall specify the date, time and place of the meeting. A copy of a proposed written or resolution will be sent or ed to all Trustees to whom it is reasonably practical to do so at least 10 business days before the date on which a decision is to be made on the resolution. The copy shall be accompanied by notice of the time and date by which Trustees may indicate their approval of or sign the proposed resolution. However, notice need not be given or a copy of a proposed written or resolution sent or ed under this Rule if: (a) the Trustees agree otherwise; or A /1.0/10 Mar

29 (b) it is an occasion on which it is necessary, as a matter of urgency, to make a decision Receipt of notices Any notice under this Rule 18.2 given by shall be deemed to have been received one day after it is sent Administering the Scheme The Trustees will administer the Scheme in accordance with the requirements of the Pensions Act Subject to this, they may delegate powers, duties or discretions to any person and on any terms Expenses and charges The expenses incurred by each Trustee in attending to Scheme business will be treated as expenses of the Scheme and paid as described in Rule 19.3 (Scheme expenses). But this does not apply to expenses and liabilities which are incurred through wilful wrongdoing or to fines imposed by way of penalty for an offence or to any penalties imposed by the Pensions Regulator. A Trustee who carries on a profession or business may charge for services provided to the Scheme on a basis agreed with Agilent, as also may a company or firm in which a Trustee is interested. These charges will also be treated as expenses of the Scheme and paid as described in Rule 19.3 (Scheme expenses) Limit of liability None of the Trustees (except a professional trustee) will be liable for any breach of trust other than: (a) wilful wrongdoing; or (b) breach of a duty of care in relation to investment functions, liability for which cannot be excluded by reason of section 33 of the Pensions Act The Trustees will not be liable for any acts or defaults of a fund manager to whom they have delegated any discretion, except in the limited circumstances when the Pensions Act 1995 does not permit such liability to be excluded Indemnity Agilent will indemnify each of the Trustees (except a paid trustee) against any expenses and liabilities which are incurred through acting as a trustee of the Scheme but which cannot, for any reason, be met out of the Scheme's assets. But this does not apply to expenses and liabilities which are incurred through wilful wrongdoing or covered by insurance under Rule 18.7 (Trustee insurance) Trustee insurance The Trustees may insure the Scheme against any loss caused by them. The Trustees may also insure themselves against liability for breach of trust. The premiums may be paid from the assets of the Scheme except to the extent that: (a) the insurance relates to a paid trustee; or (b) the insurance covers wrongdoing, offences of which the Trustee concerned is convicted or penalties imposed by the Pensions Regulator. A /1.0/10 Mar

30 To the extent to which the Trustees obtain insurance, they will waive the protection of Rule 18.6 (Indemnity). A /1.0/10 Mar

31 19 Assets of the Scheme 19.1 Assets held on trust The Trustees will hold all the contributions and other assets which they receive and the property representing them and all the income on trust, as a common trust fund, to pay the benefits under the Scheme Use of assets Under the Pensions Act 1995, the Trustees have the same power to make an investment of any kind as if they were absolutely entitled to the assets of the Scheme (subject to restrictions on "employer-related investments"). Subject to Rule 4.3 (investment of Retirement Account), the Trustees may, in any part of the world, alone or together with others: (a) acquire and dispose of any property (tangible or intangible, movable or immovable), whether or not it produces income; (b) enter into any contract or incur any obligation; (c) lend or borrow money or other property for any purpose (including acquiring assets); (d) grant any mortgage or charge over or give any right of recourse against any or all of the assets of the Scheme; (e) form and finance any company; (f) carry on and finance any business; (g) insure assets of the Scheme for any amount against any risk; and (h) keep assets in nominee names. The Trustees may insure their liability to provide death-in-service benefits under Rule 6.1 (benefits on death in Employment) with an Insurance Company approved by Agilent. The Trustees will comply with the requirements of the Pensions Act 1995 in relation to investment Scheme expenses The Trustees will pay the expenses of the Scheme out of the assets of the Scheme unless Agilent otherwise determines, in which case, the Employers will pay the expenses of the Scheme or reimburse the Scheme for expenses already paid out of Scheme assets, in such shares as Agilent directs. If any expenses are not recovered from the Employers the Trustees will allocate to each Member's Retirement Account a fair share (determined by the Trustees) of those expenses. A /1.0/10 Mar

32 19.4 Financial information The Trustees will prepare annual accounts of the Scheme and have them audited. The Trustees will prepare an annual report for the Scheme no later than seven months after the end of each Scheme Year Surplus assets The Trustees may use any assets not allocated to a Member's Retirement Account to meet any expenses of the Scheme or any liability of the Employers to contribute to the Scheme. it may be that an actuarial valuation of the Scheme shows that the value of the Scheme's assets exceeds the value of its liabilities. If this happens, the Trustees may, with the consent of Agilent, pay all or part of the surplus (less tax) to the Employers in such proportions as they consider appropriate. However, the Trustees may only do this if and to the extent that they are allowed to do so by Section 37 of the Pensions Act 1995 (payment of surplus to employer). A /1.0/10 Mar

33 20 Participating Employers 20.1 Inclusion in the Scheme Agilent may allow any employer to participate in the Scheme. An employer wishing to participate in the Scheme must enter into a deed with Agilent and the Trustees, agreeing to comply with the Rules Ceasing to participate An Employer may cease to participate in the Scheme at any time by giving 13 weeks' written notice to the Trustees, and will cease to participate if required to do so by Agilent. When an employer ceases to participate in the Scheme, any Members who are then in employment with that employer will become entitled to benefits as if they had then left Employment. A /1.0/10 Mar

34 21 New Principal Employer The Trustees may allow another employer or holding company to take over the role of Agilent in relation to the Scheme. This requires the agreement of Agilent, however, unless Agilent has been dissolved. A /1.0/10 Mar

35 22 Termination of the Scheme 22.1 Time of termination Agilent may terminate the Scheme at any time by giving 13 weeks' written notice to the Trustees. The Trustees will terminate the Scheme if Agilent goes into liquidation, unless another employer or a holding company agrees to take over the role of Agilent in relation to the Scheme Effect of termination After the Scheme terminates, the Trustees will continue to provide benefits in accordance with th~ Rules, but all the Members will be treated as having left Employment and no further contributions or death-in-service benefits will become payable, unless the Scheme is reopened Reopening the Scheme At any time before the Trustees decide to wind up the Scheme, the Trustees and Agilent may agree to reopen the Scheme, so that Employees can again start qualifying for benefits. If the Scheme is reopened, all the Rules will again apply but, unless the Trustees and Agilent agree otherwise: (a) no contributions will be payable in respect of the period between the termination of the Scheme and its reopening; and (b) no death-in-service benefits will be payable under Rule 6.1 (benefits on death in Employment) in respect of any Member or other Employee who dies during the period between the termination of the Scheme and its reopening. A /1.0/10 Mar

36 23 Winding up the Scheme 23.1 Time of winding up The Trustees will wind up the Scheme at any time if so directed by Agilent. The Trustees may, however, defer winding-up the Scheme and meanwhile pay benefits in accordance with the Rules. While the winding-up of the Scheme is deferred, the power of alteration in Rule 24 (changing the Rules) may be exercised by the Trustees alone. If Agilent is dissolved before the winding-up is completed, the Trustees may exercise any powers given to Agilent, unless another employer or a holding company has taken over the role of Agilent in relation to the Scheme Use of assets After the Trustees have decided to wind up the Scheme, they will pay all sums that became due for payment before the winding-up started, including lump sums in respect of Members who died before the winding-up started. The Trustees will then set aside sufficient assets to pay the expenses of the winding-up. The Trustees will then use the rest of the Scheme assets as described in Rules 23.3 to 23.6 below Buying annuities The Trustees will buy an insurance policy or annuity contract from an Insurance Company in the name of each person entitled to benefits under the Scheme, except those for whom they provide benefits as described in Rules 23.4 (winding-up lump sums) or 23.5 (transfers to other schemes and arrangements).the insurance policy or annuity contract will comply with the Contracting-out Laws. The annuity contracts bought for pensioners must provide benefits that are as nearly as practicable the same as the benefits that would otherwise have been provided for, and in respect of, the pensioners under the Scheme. Any insurance policy or annuity contract that was bought in the name of the Trustees, before the winding-up started, to provide benefits in respect of a particular person, will be assigned to the person concerned Winding up lump sums When winding up the Scheme, the Trustees may pay an immediate lump sum instead of providing other benefits, if payment of a "winding-up lump sum" is permitted under Part 4 of the Finance Act The Trustees will pay the lump sum to the person in whose name they would otherwise have bought an insurance policy or annuity contract Transfers to other schemes and arrangements When winding up the Scheme, the Trustees may make transfer payments in accordance with Rule 17.2 (transfers to other pension schemes and arrangements) in respect of all or any of the people entitled to benefits under the Scheme, instead of buying insurance policies or annuity contracts. A transfer of benefits in respect of contracted-out employment must be approved by the Secretary of State in accordance with Section 50 of the Pension Schemes Act Surplus assets If any assets of the Scheme remain after all benefits have been provided in full, the Trustees will pay them to Agilent or, if Agilent has been dissolved, to the other Employers in such shares as the Trustees decide. A /1.0/1 0 Mar

37 24 Changing the Rules Agilent and the Trustees may together, by deed, change these Rules at any time (and may do so retrospectively) subject to the provisions of sections 67 to 671 of the Pensions Act 1995 as amended by Section 262 of the Pensions Act 2004 (modification of subsisting pension rights). 25 Governing law English law governs the Scheme and its administration. SIGNED as a DEED by Agilent Technologies LOA UK Limited by.. :~.::~atur#~ ~ Director re~~~ SIGNED as a DEED by the said James Stewart in the presence of: Witness's signature Name Address Occupation ~~6/L 5 LGC..~ ll'.)~ C 0 I N~ (/vl~ \-\ ~t-\\ L ~tff A /1.0/10 Mar

38 SIGNED as a DEED by the said Vikki Harrower in the presence of: }ffi~ Witness's signature Name Address Occupation ~J!:t:. ) LCJC (c-\ n \)E:: IA\.J E ~<2 ~U\ N-/S.U \IL<\ ~ {;t-\~ t_ ~ bj f ~ s\ o"-' 'IV\ ~V'-JIA: <-, ~ SIGNED as a DEED by the said lain Rooney in the presence of: Witness's signature Name Address Occupation :) coc ~.J,uc_ ~~N0E ~D I r-...}{su\1-s~ {;: ~ \ L S!)-J A /1.0/10 Mar

39 SIGNED as a DEED by the said Wayne Harris in the presence of: Witness's signature Name v, (.\A-- S \y Address ~ o-t- \-t~d.ca~ c.jos<=.. ~~c~ ~X '2.-'-,c, I...+-LA E-- A /1.0/10 Mar