Nestlé UK. Nestlé and UK Pensions Enrolment

Transcription

1 Nestlé UK Nestlé and UK Pensions Enrolment Important information for new recruits August

2 To help people save more for their retirement, all employers provide a workplace pension scheme and pay money into it. Jargon buster Nestlé: Nestlé UK Ltd and all other participating employers in the Fund. The Fund: Nestlé UK Pension Fund. Pensionable Earnings: Include your base pay and any work-pattern based elements of pay such as overtime or shift allowance plus, if applicable, the following payments: pay arising from the sale of annual leave entitlement; accrued holiday pay (if paid whilst still in service); graduate location allowance; and car trade-down allowance. Qualifying Scheme: A pension scheme which meets or exceeds the government s standards. 2

3 Introduction To help people save more for their retirement, all employers provide a workplace pension scheme and pay money into it. We ve made pension membership a condition of employment for all new recruits joining Nestlé companies in the UK. This booklet contains all the information we need to let you know about your enrolment into the Nestlé UK Pension Fund (the Fund). You can find out more about the Fund and its benefits on the Fund s website: (password: nestlepensions) as well as in the pension pack enclosed with your offer of employment. What you need to know We won t enrol you immediately. You can choose to join the Fund as soon as you start work with Nestlé, but if you don t join during your first 90 days of employment, we ll enrol you on your 91st day of employment. During your first 90 days you can join the Fund voluntarily. If you join during this period, you ll be able to choose how much to contribute, where your contributions are invested, and benefit from higher contributions from Nestlé. If you wait to be enrolled on your 91st day of employment, you will be enrolled into the Fund at the lowest contribution rate and will have no choice about how much to pay or where to invest your contributions. If you don t want to save into the Fund, you ll be able to opt out, but only after you have first joined or been enrolled into the Fund. 3

4 Joining in your first 90 days During this period you can join DC Core: You have a choice of how much to contribute and where your contributions are invested. You ll also benefit from higher contribution rates from Nestlé. You will build up pension on a defined contribution (DC) basis. This means that the amount of pension you receive will depend on how much you contribute, how your investments perform and the cost of providing benefits at retirement. See the Fund s website (details on back page) and the Benefit Summary in your pension pack for more information about DC Core and how defined contribution works. Use the modeller on the Fund s website to see how much pension you could build up in DC Core and the impact of choosing different contribution rates. If you complete and return a New Member Option Form to join the Fund before your employment starts, your membership will begin on the date you start work (your enrolment date). Otherwise, it will begin on the first of the month in the next available payroll after we receive your completed form. To join before or during this period Fill in the New Member Option Form included in your pension pack and return it to Nestlé Pensions. You can scan the form and send it to us by at pensions@uk.nestle.com (although we will still want to receive the original hard copy with your signature by post). If you want to send the form by , please include the phrase: I have personally submitted this notice to join the Fund in your . 4

5 Joining after 90 days If you do not join DC Core during your first 90 days we ll enrol you into DC Start: We ll enrol you on your 91st day of employment (your enrolment date). You will build up pension on a defined contribution (DC) basis. This means that the amount of pension you receive will depend on how much you contribute, how your investments perform and the cost of providing benefits at retirement. You will have no choice about how much to contribute or where your contributions are invested. Nestlé will only make the legally required minimum employer contribution on your behalf. You can find more information about DC Start and how defined contribution works in the Benefit Summary in your pension pack and on the Fund website. If you re enrolled into DC Start, under current rules, you will have an opportunity to move to DC Core every quarter. Use the modeller on the Fund s website password: nestlepensions Find out how much pension you could receive. Find out how much it would cost to join. 5

6 How much does it cost? As a member of the Fund, you ll contribute a percentage of your Pensionable Earnings each pay period as outlined below. Your contribution will be taken directly from your pay. Nestlé will also contribute a percentage of your Pensionable Earnings. YOU CONTRIBUTE 1% DC Start From 1 August 2017 From 6 April 2018 From 6 April 2019 You contribute Nestlé contributes You contribute Nestlé contributes You contribute Nestlé contributes 1% 2% 3% 3% 4% 5% YOUR MINIMUM CONTRIBUTION 5% DC Core You contribute Nestlé contributes Total into your account 5% 7.5% 12.5% 6% 9% 15% 7% 10.5% 17.5% 8% or more 12% 20% or more Note: If you re enrolled into DC Start, we will hold the first month s contributions as cash in a bank account and will not purchase investment units until the second month of your membership. 6

7 Will my contribution change? As the money you pay in is a percentage of your Pensionable Earnings, the amount will automatically go up and down if your Pensionable Earnings change. Also, under automatic enrolment legislation, the minimum contribution that you have to make will also change in the future, as outlined in the table opposite. Nestlé s contributions will also increase. Tax relief Whichever section you re in, you ll make contributions via salary sacrifice once you have been a member for one month (unless you opt out). You ll already receive tax relief on your contributions, but if you make contributions by salary sacrifice you ll also pay lower National Insurance contributions, meaning the actual cost to you is even less. If you re a basic-rate taxpayer, every 1 you contribute only costs you 80p. If you re a higher-rate taxpayer, it only costs you 60p. More information about salary sacrifice is available in the booklet Salary Sacrifice Information for new recruits. You can use the modeller on the Fund s website to compare how much it would cost to join each section. 7

8 Leaving the Fund Opting out If you decide that you don t want to be a member of the Fund, you can opt out, but only after you ve become a member. It s not possible to opt out in advance. The table below shows how your opt-out will be treated depending on when it s received. Opt-out period begins A B C Your first day of employment (if you apply to join DC Core before starting work). OR The date at which we receive your New Member Option Form if you apply to join DC Core during your first 90 days of employment. OR Your 91st day of employment if you do not join the Fund voluntarily and are automatically enrolled. If we receive your opt-out request before payroll cut-off, you will be treated as not having become a member of the Fund. You will receive a refund of your contribution in your pay, taxed at your normal tax rate, and have no further contributions deducted. Payroll cut-off Payroll cut-off is normally on or around the 9th of each month. If the 9th falls on a weekend, the cut-off will be earlier. If we receive your opt-out request after the payroll cut-off in your opt-out period, you will continue to be a member of the Fund for a second month. We will deduct a second contribution and then remove you from the Fund in the next payroll run. You will receive a refund of both contributions in that payroll. Opt-out period closes 8 A B C 30 days after the day you first started work. OR 30 days after the date on which we received your New Member Option Form. OR 30 days after your 91st day of employment. If you want to leave the Fund after your opt-out period has closed, you will become a deferred member of the Fund. As a deferred member, your benefits will remain in the Fund until you take your pension or until you choose to transfer your benefits to another recognised pension scheme.

9 Before opting out, you might want to take independent financial advice. To find an independent financial adviser in your area, visit: To opt out, you need to download an Opt-out Form from the Fund s website or request one from Nestlé Pensions. You need to complete, sign and return the form to Nestlé Pensions at the address on the back page. Alternatively, we will accept a scanned version of your completed, signed form by to: pension.optout@uk.nestle.com. For your request to be valid, you must sign the form and complete all the mandatory fields and, if submitted by , it must include the words I have personally submitted this notice to opt out of the Fund in your . Opting out and re-joining at a later date If you opt out of the Fund, you will be able to rejoin at any time. All you need to do is complete, sign and return an Opt-in Form to Nestlé Pensions. The Opt-in Form is available on the Fund s website or on request from Nestlé Pensions. If you submit your request to rejoin the Fund by , it must include the words I have personally submitted this notice to join the Fund in your . Re-enrolment Under automatic enrolment, Nestlé is required to re-enrol employees who have opted out of pension saving every three years. This means that if you opt out of the Fund and remain in our employment, you may be put back in the Fund again in the future. In some cases it may be sooner than three years (see page 11). You can only opt out of the Fund in respect of your current employment. This means that if you change jobs and move to a job with another Nestlé Group company in the UK, we may have to automatically enrol you again. In either case, before we do this, we will write to let you know what s happening and what your options are. 9

10 Automatic v contractual enrolment There are two different ways in which employers can comply with the automatic enrolment legislation for pensions: Contractual enrolment Pension membership is a condition of employment under the terms of the employee s contract of employment. Under contractual enrolment, all employees are enrolled into the pension scheme. This is the method that Nestlé has chosen to use for all new employees. Automatic enrolment The employer is only required to enrol those employees who meet the age and earnings criteria defined by the automatic enrolment legislation. This is described opposite as it may affect you if you opt out. 10

11 Under automatic enrolment If on the 91st day after the date we are first required to assess you for the purposes of automatic enrolment, you are not a member of a Qualifying Scheme, you work or usually work in the UK and are: Between age 22 and State Pension Age AND earning more than 10,000 a year* ( 833 a month) We will automatically enrol you into DC Start. You have the right to join before then if you wish. (Group 1) Under age 22 OR over State Pension Age (but under age 75) OR earning between 5,876 and 10,000 a year* ( 490 and 833 a month) We will NOT automatically enrol you into DC Start. However, you will have the right to join DC Start, if you wish. (Group 2) Under age 75 AND earning less than 5,876 a year* ( 490 a month) We will NOT automatically enrol you into DC Start. However, you can ask to join DC Start, if you wish. (Group 3) *For the 2017/18 tax year. In all cases, if you join or are automatically enrolled into DC Start, both you and Nestlé will be required to contribute every month as described on pages 6 and 7. If you opt out of the Fund, Nestlé has a duty to re-enrol you again in the future under automatic enrolment. In practice, if we have to re-enrol you, this is most likely to be in three years time, but in some cases may be sooner. If you opt out and are in Group 2 or Group 3 above, we will have to monitor your circumstances every month and if, in future, your circumstances change and you meet the Group 1 criteria, we will have to re-enrol you. We will write to tell you if we need to do this. You ll still be able to opt out again if you wish. 11

12 For further information about the Nestlé UK Pension Fund: Write: Nestlé Pensions 1 City Place Gatwick RH6 0PA United Kingdom Tel: pensions@uk.nestle.com Website: (password: nestlepensions) Designed and produced by AHC 2017_