AN INTRODUCTION TO THE LUXFER GROUP RETIREMENT SAVINGS PLAN

Transcription

1 AN INTRODUCTION TO THE LUXFER GROUP RETIREMENT SAVINGS PLAN

2 CONTENTS 1. Welcome to LGRSP 2. What is a Group Personal Pension Plan 3. Investment 4. Retirement 5. Generic Illustrations of pension benefits 6. Risks 7. Financial services compensation scheme 8. Key Features 9. Important information 10. Application Form 11. Luxfer Group Life Assurance Plan Expression of Wish Form 12. Luxfer Group Life Assurance Plan Dependants nomination 13. Questions and Answers on Pensions LGRSP 1

3 WELCOME TO THE LUXFER GROUP RETIREMENT SAVINGS PLAN LUXFER GROUP RETIREMENT SAVING OPTIONS Luxfer Group believes that it is important to help employees to provide for their retirement and, in the unfortunate event of their premature death, for their dependants. In the UK, the principal Group arrangement is the Luxfer Group Retirement Savings Plan (the Plan ), the primary objective of which is building a retirement pot with both employee and employer contributions through a Group Personal Pension (GPP) arranged with Aviva. In addition a lump sum is payable though a separate life assurance policy in the event of death before retirement. All new UK employees are encouraged to join the Plan in order to obtain these benefits. The full range of retirement and death benefits provided by the Group in the UK is: Life insurance When you start employment, you will be automatically covered with life insurance of three times your earnings over the 12 months before your death, payable in the event of your death while employed by a Group company in the UK. This benefit is provided, whether or not you join the Plan, whilst you remain in employment. If you join the Plan your life insurance cover increases to 7 times your earnings. Further information about when and how the death benefits are paid is included in this booklet. Retirement saving options The first part of this booklet explains when you are eligible to join the Plan and the contributions and benefits payable if you join. The second part provides more detailed information about how the Plan works and gives some examples of what you may get out of the Plan when you retire. If you do not join the Plan on these terms, your employer is legally required to auto enrol you in the Luxfer Auto enrolment Scheme when you meet the auto enrolment requirements. The auto enrolment requirements are set out in a separate letter from your employer. Important note Luxfer Group Limited have appointed Cullen Wealth Limited (Cullen Wealth) who are authorised and regulated by the Financial Conduct Authority to provide advice to members of the Plan in relation to the GPP. This booklet has been produced jointly by Luxfer Group and Cullen Wealth to explain the benefits provided by the Plan and all the other information you will need to make a decision to join. This includes information about the product available, including the potential benefits, charges and expenses Please carefully read this document and keep it safe for future reference. The Plan has been designed with you in mind, so we hope you make good use of it. March 2017 version LGRSP 2

4 PART 1 WELCOME TO LGRSP BENEFITS AND CONTRIBUTIONS THE GROUP PERSONAL PENSION Plan membership To help employees to provide for their retirement the Group has arranged for the payment of contributions for investment in the Aviva Group Personal Pension Scheme (GPP) which you are encouraged to join. Both your employer and you make regular contributions to the GPP. How your contributions are invested and the advice available is explained in the second part of this booklet How do I join? Joining the Plan is simple. If you satisfy the eligibility conditions all you need do is complete the application form at the end of this booklet To be eligible to join the Plan you must be: Aged 16 or over; Employed in the UK by a company within the Luxfer Group; You must apply to join the Plan before the date notified to you by your employer, and as soon as you apply to join you will be covered for the life assurance benefits of 7 times earnings described in this booklet (very occasionally there may be exceptions to this but you will be told if this applies to you). Your contributions, and those of your employer, start from the 1 st of the following month. If you do not apply to join the Plan, you will be enrolled in the Auto enrolment Scheme when eligible, and you will be covered for the life assurance benefits of 3 times earnings. What do I pay? You directly contribute 4.8% of Pensionable Earnings, which will be taken from pay after deduction of tax and National Insurance Contributions. HM Revenue & Customs (HMRC) pay to your GPP a tax rebate currently equal to 25% of your contribution (i.e. 1.2% of your Pensionable Earnings) giving a gross contribution of 6%. (This is based on the standard rate of income tax (20%) so the direct contribution may change if the standard rate alters. Higher rate tax payers can claim a further tax rebate from HMRC through PAYE or the self assessment system.) Pensionable Earnings are your earnings (ignoring any salary sacrifice agreement with your employer) less the State lower earnings limit in force as at 6 April each year. Your contributions will be deducted from pay each month, based on your pensionable earnings in that month. LGRSP 3

5 WELCOME TO LGRSP BENEFITS AND CONTRIBUTIONS What will my employer contribute? The amount your employer contributes to your GPP each year depends on your age at each 1 April, and your Pensionable Earnings through the year. When you join the Plan your age, at the date of joining, counts until the next 1 April. The contribution rates are shown below. Employer Contributions Age Band and older Contribution as % of Pensionable Salary The employer contributions increase as you get older because they will be invested for a shorter time and therefore have less time to grow in value. What about bonus? Both you and your employer pay contributions at the rates shown above on the bonus payments you receive. The maximum level of bonus on which contributions will be paid in any year will be restricted to the higher of (a) the guideline level of management bonus applicable to your job position (ie half the maximum bonus potential for the position) and (b) 5,000. Can I increase my contributions? You may increase the contributions you pay to your GPP to increase your retirement benefits. These can be started or increased, stopped or reduced at any time during the year provided you give one month s notice to your Local Pensions Administrator. As with your ordinary contributions, they will be deducted from your pay and a tax rebate, currently 25% of the amount you contribute, will be paid to your GPP by HMRC. With your employer s permission, you may pay an additional lump sum once a year. If you opt for this, the payment will be collected with the March payroll. If you wish to change your current contributions, please contact your Local Pensions Administrator. Advice on paying additional contributions can be obtained from your Cullen Wealth consultant. LGRSP 4

6 WELCOME TO LGRSP BENEFITS AND CONTRIBUTIONS What is the maximum I may contribute? HMRC limit the maximum you and your employer may contribute to the GPP, and to any similar registered pension schemes, to 40,000 per year. If you draw benefits from any money purchase arrangement this maximum may reduce to 4,000.per year. For employees with taxable income and total pension contributions of 150,000 or more the maximum reduces on a sliding scale to 10,000. There is also a limit on the value of retirement benefits payable at retirement of 1 million. Any contributions or benefits in excess of these limits will be subject to tax. Note: the regulations relating to the calculation of maximum contributions and benefits are complex. If you have any questions these should be referred to the Pensions Manager or your Cullen Wealth consultant. When do the contributions stop? Your own contributions, and those paid by your employer, will be paid as long as you remain in Group employment (there is no upper age). You may opt out of the GPP at any time provided you give at least one month s written notice, but if you do the employer s contributions will also stop and you will revert to a life insurance benefit of 3 times your earnings. If you then qualify, you will be enrolled in the Auto Enrolment Scheme. Similarly, if you leave service, your own and your employer s contributions will stop and you will no longer be covered for any death benefits. In either case the contributions you and your employer have already paid will remain in your GPP. What does the Plan cost? Aviva deducts expenses from your GPP investment. (see page 9). State benefits When planning your retirement, please remember the State benefits you will receive in addition to your pension from the Plan. There is more information about these benefits on the Government s website at go to the working, jobs and pensions section. Also see page 10. LGRSP 5

7 WELCOME TO LGRSP BENEFITS AND CONTRIBUTIONS Benefits payable in the event of death If you die at any time while employed by a Luxfer Group company in the UK, the death benefits shown below will be payable to your Beneficiaries. Lump Sum Death Benefit A lump sum will be paid equal to: 3 times your earnings over the 12 months before your death; If you have joined the GPP the lump sum will be equal to: 7 times your earnings over the 12 months before your death. Earnings means the earnings which are pensionable without the deduction of the State lower earnings limit. The value of your GPP fund will also be paid to your Beneficiaries. If you are a member of the Auto enrolment scheme with NEST the value of this fund will be paid to your Beneficiaries. The lump sum death benefit is provided through life insurance policies, held in trust under the Luxfer Group Life Assurance Plan. The Trustees will decide who will receive the benefit. Under current tax rules, making payment this way enables any lump sum to be paid free of tax. In deciding, the Trustees will take into account your personal circumstances and any wishes you have expressed. You should make your wishes known by completing the Expression of Form attached. Whilst legally the Trustees decide to whom these benefits will be paid, it is their preference to follow your wishes unless there are, in their opinion, good reasons not to do so. The reasons for this are obvious only you know how you want the benefits paying and you cannot expect the Trustees to "second guess" your wishes. Therefore if you do not complete these forms you risk the Trustees paying the lump sum to the "wrong" persons. It is a condition of the life insurance policies that, in certain circumstances, the insurer may request medical evidence before covering you for part or all of your benefits. You will be informed if this applies to you. In such case, the Trustees reserve the right to restrict your cover in line with any special terms imposed by the insurer. Your employer pays the full premium for your benefits under the life insurance policies. LGRSP 6

8 WELCOME TO LGRSP OTHER INFORMATION The statements below apply to the Plan. If you have joined the Auto enrolment Scheme you should refer to the information provided by NEST. Change of Circumstance It is important that you tell Aviva and your Local Pensions Administrator of any change of address or change of name. To make sure the Trustees know how you would like any death benefits paid you should make sure your Expression of Wish and Dependant s Nomination Forms are up to date. Blank forms are available from the pensions website or your Local Pensions Administrator. Alteration and Termination Luxfer Group Limited reserves the right to alter or to terminate these arrangements at any time, subject to appropriate consultation with the employees affected. Maternity, Paternity or Adoption Leave You will be treated as a contributing member of the Plan until the end of your paid maternity, paternity or adoption leave. The contributions you pay will be based on the actual pay you receive (if any). Your employer s contributions and your death benefits will be based on your ordinary pay. Absence Due to Sickness or Injury In the event of absence due to sickness or injury, both you and your employer will continue to make contributions. While you receive full sick pay, these contributions will be based on your pensionable earnings as if you were actively at work. When your entitlement to sick pay is exhausted, you may notify your employer that you wish your pensionable earnings to be based on the lower level of sickness benefit you are receiving. This will mean a reduction in your contributions and those of your employer. Your death benefits will be based on your full earnings as if you were actively at work. Who manages the arrangements? The GPP is managed by Aviva. Their performance, both as administrators and investment managers, and the performance of Cullen Wealth Limited, is overseen by a Luxfer Governance Committee made up of Plan members and company representatives. Neither Luxfer nor your employer is responsible for or liable for the performance of Aviva or the advice provided by Cullen Wealth Limited. The death benefits are provided through life insurance policies and held by Trustees. The terms of the life insurance policies are reviewed regularly and the provider may change if better terms can be obtained. Further information If you have any questions about the Plan or your benefits, please contact the Pensions Manager at david.mead@luxfer.com. LGRSP 7

9 PART 2 WHAT IS A GROUP PERSONAL PENSION PLAN (GPP)? A GPP is simply a collection of individual Personal Pensions. GPP schemes are designed to help employees build a retirement fund in a tax efficient way and at retirement, you have the choice of how to take the accumulated pension fund from the following benefits: Take a tax free cash sum: up to a maximum of 25% of the accumulated fund based on current HMRC regulations. Buy an annuity, with or without annual increases to the income amount you receive. Include benefits for your dependants, when you die. Withdraw the fund in full or part as an uncrystallised funds pension lump sum or as flexi access drawdown 25% tax free; Balance taxed at marginal rate of income tax The amount of any pension or benefits will depend on: The amount of money you and your employer pay into your individual pot. The investment growth on your money. Impact of charges. The type of pension you buy at retirement. The price of pensions when you buy at retirement. A GPP is designed to give you maximum flexibility: Within HMRC limits, you may choose how much to contribute. You can draw on the benefits at any time from the age of 55 (this will increase to age 57 from 2028). You may continue to contribute to the plan even if you leave the Company. Should you die before retirement, the accumulated fund may be paid to your nominated beneficiaries tax free before the age of 75, and as taxable income post 75. LGRSP 8

10 INVESTMENT How are my contributions invested? The contributions paid into your Group Personal Pension Plan are invested in the Mixed Investments Lifestyle strategy, which is a default strategy offered by Aviva. Do I have a choice of investment? Once you are enrolled in the plan you have access to a large range of investment choices. You can select the fund in which you want your contributions to be invested. Your choice will depend on your attitude to investment risk, and whether you take an active interest in investment matters. Please note that if you do not select a fund(s), then contributions will remain in the Mixed Investments Lifestyle fund. A number of specialist funds are also available investing in very specific sectors of the market (e.g. a defined geographical area or particular market sector). If you should decide to choose one of these specialist funds, you should only proceed if you are willing and able to take the increased level of risk that is ordinarily associated with them. You should also consider your ability to cope with a capital loss on the investment. Can I switch between funds? Yes, you may switch your monies between any of the funds with no charge, at your discretion. However, Aviva do reserve the right to limit the number of switches that can be made by an individual policyholder in each plan year. How do I know the value of my account? You will automatically receive an annual statement prepared by Aviva which shows you how many units in each fund your contributions have bought and the current value of those units. There are also excellent online facilities which provide members with access to up to date values and contribution history and pension calculators providing members with the ability to calculate what impact changes in contributions or retirement assumptions will have on their final pension plan. What are the charges? The plan offers an annual management charge of 0.35%. The annual management charge is deducted from your fund on a monthly basis. There may be additional annual charges, depending on the investment funds chosen. LGRSP 9

11 RETIREMENT What type of benefit is permitted? Many of the decisions regarding your pension benefits do not have to be made until you wish to access your fund, which currently can be from age 55. You will therefore make your choices based on your personal and financial circumstances at the time. Some of the options (under current HMRC rules) include: Cash Sum: Take 25% of the accumulated fund as tax free cash. Annuity: Payable for life and taxed as earned income. Dependant s Pension: This becomes payable on your death post retirement. Income Drawdown: Drawing your tax free cash sum and/or retirement income while your pension remains invested. Flexi access drawdown: Tax free cash of 25% and any amount of income up to 100% of the fund which is taxed at the marginal rate of income tax. Uncrystallised pension lump sum: up to 100% of the fund. 25% tax free with the balance taxed at the marginal rate of income tax. State Benefits State pensions are paid from state pension age (SPA) currently age 65 for men and between 63 and 65 for women born after 5 December The SPA is set to increase from age 65 for both men and women born after 5 December 1953 and is set to reach age 68 for those born after 5 April You are able to confirm your state pension age on state pension age calculator at; your state pension age. The Basic State Pension is a flat amount reviewed every year by the government which is paid to everyone who has a full National Insurance (NI) record. (The amount of basic state pension will be reduced if you have less than a full NI record). You can go online and find out how to request a State Pension forecast at pension statement LGRSP 10

12 FINANCIAL ADVICE This booklet, together with the relevant enclosures does not represent personalised advice and is not confirmation that the Group Personal Pension Plan matches your financial requirements. If you should have any doubts about whether this product meets your own needs you should seek independent financial advice so that your individual circumstances can be considered. Independent financial advice is available from Cullen Wealth Limited if required and we will contact you, at your request, to discuss how the Group Personal Pension Plan will affect your pension provision, or alternatively we will complete a full personal analysis of your overall financial position to ensure any recommendation is both relevant and appropriate to your own circumstances. We will fully disclose in writing any additional fees or charges for detailed personal financial planning, before undertaking any specific work on your behalf, and any such fees or charges will be payable by you should you decide to proceed in taking advice. Alternatively, you can seek financial advice from your own adviser. However, you must be made aware that the cost of seeking this advice will be borne by you. LGRSP 11

13 GENERIC ILLUSTRATIONS FOR THE LGRSP The illustrations shown in the following pages are examples of the pension that might be payable at retirement. These are based on various levels of contributions to a Group Personal Pension Plan. The illustrations should be read in accordance with the following notes, which apply to the three examples: All firms use the same rates to show how your funds may be converted into pension income. These figures are only examples and are not guaranteed they are not minimum or maximum amounts. What you will get back depends on how your investment grows and on the tax treatment of the investment. Your retirement fund could be more or less than this. Your pension income will depend on how your investment grows and on interest rates at the time you retire. It will also depend on your personal circumstances and the choices you make when you retire. Any contributions to your Group Personal Pension Plan will not affect your eligibility to the Basic State Pension or State Second Pension. The figures overleaf do not take any Basic State Pension or State Second Pension entitlements into account. To comply with the EU Gender Directive we use unisex annuity rates in our projections. The illustrations give you an indication of how much you would be able to buy with your pension, if it were payable today. We have assumed a rate of inflation of 2.1%. The following tables show what the benefits might be if your investment grows at 2%, 4% and 6% per year, and assumes an annuity rate of 7% at retirement. The illustrations factor in an annual management charge of 0.35%. The actual annual management charge will depend on the funds you invest in. The growth rates for funds with a high money market or fixed interest content are likely to be lower than those quoted. It assumes that your contributions remain at current levels, therefore does not factor in the age tiering of the contributions from your employer. The pension in payment assumes no guarantee, no dependant pension and no escalation in payment. LGRSP 12

14 GENERIC ILLUSTRATIONS FOR THE LGRSP Projection based upon a 25 year old person with 40 years to retirement with a gross monthly contribution of 50 per month Projected growth rate of 2% Projected growth rate of 4% Projected growth rate of 6% Before the effects of inflation without a 25% Tax Free Lump Sum 33, with an 2, , with an 3, , with an 6, Before the effects of inflation with 25% Tax Free Lump Sum After the effects of inflation After the effects of inflation with 25% Tax Free Lumps Sum 8, with a 1, , with an 1, , with a , with a 2, , with an 1, ,743 with a 1, , with a 4, , with an 2, , with a 1, Projection based upon a 35 year old person with 30 years to retirement with a gross monthly contribution of 100 per month Projected growth rate of 2% Projected growth rate of 4% Projected growth rate of 6% Before the effects of inflation without a 25% Tax Free Lump Sum 46, with an 3, , with an 4, , with an 6, Before the effects of inflation with 25% Tax Free Lump Sum After the effects of inflation After the effects of inflation with 25% Tax Free Lumps Sum 11, with a 2, , with an 1, with a 1, , with a 3, , with an 2, , with a 1, , with a 4, , with an 3, , with a 2, LGRSP 13

15 GENERIC ILLUSTRATIONS FOR THE LGRSP Projection based upon a 45 year old person with 20 years to retirement with a gross monthly contribution of 200 per month Projected growth rate of 2% Projected growth rate of 4% Projected growth rate of 6% Before the effects of inflation without a 25% Tax Free Lump Sum 56, with an 3, , with an 4, , with an 6, Before the effects of inflation with 25% Tax Free Lump Sum After the effects of inflation After the effects of inflation with 25% Tax Free Lumps Sum 14, with a 2, , with an 2, with a 1, , with a 6, , with an 3, , with a 2, , with a 4, , with an 4, with a 3, LGRSP 14

16 RISKS The illustrations within this pack are only examples and are not guaranteed. What you will get back depends on how your investments grow and on the tax treatment of the investment. Any employer contribution into your plan is dependent upon the continued solvency of your employer. In the event that your employment status changes, we would recommend that your retirement planning is reviewed. Depending how it is taken, your pension income may also depend on interest and annuity rates at the time you retire. This investment is intended as a long term investment and under current HM Revenue & Customs practice it is not normally possible to access the fund(s) prior to the age of 55. The Government is increasing the minimum age to 57 from 2028 with further increases as State Pension Age goes up. The value of your fund can go down as well as up and the value will depend on how much you save, the charges you pay and the rate at which your investment grows. All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs practice. Levels and bases of tax relief are subject to change. LGRSP 15

17 FINANCIAL SERVICES COMPENSATION SCHEME ( FSCS ) The FSCS was set up under the Financial Services and Markets Act 2000 and exists to protect clients of FCA authorised firms and covers deposits, insurance and investments. The Scheme can pay compensation to clients who have lost money as a result of their dealings with FCA authorised firms that are unable to pay claims against them, usually because they are insolvent or have stopped trading. For pensions, life assurance and non compulsory insurance (e.g. home and general), the compensation level is 100% of the claim. You are aware that where you are investing in Aviva investment that itself purchases external investments, should one of the external investments fail to meet their liabilities, then Aviva may make a claim on behalf of all policy holders, the extent of Aviva s claim is limited. However, as Aviva itself is not in default, you will not be in a position to claim via the Scheme. An example is individual bank cash deposit fund held within an investment vehicle such as an Investment Bond. You should note in this instance that the institution providing the investment vehicle is deemed to be an institutional investor and may only be able to raise one claim within the agreed limits, on behalf of all policyholders. In other words, as a policyholder you could not raise a claim on an individual basis. Please refer to the Aviva literature for further information on the risk factors, charges, and full details of your cancellation rights. LGRSP 16

18 KEY FEATURES Key Features of the Group Personal Pension Plan Important information you need to read: Its aims: To help you invest for your retirement in a tax efficient way by building up a pension fund that can provide you with an income when you retire. To enable you to take part of your pension fund as a tax free lump sum at retirement in return for a smaller regular pension. To provide benefits for your dependants on your death. Your commitment: To make regular contributions, or at least one single contribution into your plan. If you stop paying into your plan, take a payment break or start taking your pension earlier than your chosen retirement date, any target benefit may not be achieved. To wait until a certain age, usually between age 55 and age 75, to take your pension and/or any lump sum. To tell us if you intend to leave the UK and become non resident in the UK for tax purposes, as this may affect your right to tax relief on contributions you make. Risk factors: If you cancel your plan within the 30 day period, you may not get back all that you invested. When you retire, your pension and any lump sum is not guaranteed and may be lower than expected. This could happen for a number of reasons. For example, if: investment performance is lower than expected; annuity rates when you retire are lower than expected; our charges increase; the real value of your fund is eroded by the effects of inflation. Your plan may invest in a range of pension funds that may hold stocks and shares. These funds carry differing levels of risk and their value can go down as well as up. Where pension funds invest in overseas securities their value may change as a result of movements in exchange rates. The tax treatment and the pension law which apply to registered pension schemes may change. Depending on your personal circumstances any pension benefits you receive from your plan may reduce your entitlement to means tested state benefits. You should be aware that if you stop contributing, it is possible that your employer will stop contributing too. You should therefore check with your employer before deciding to stop. This Group Personal Pension Plan is designed for employed people who want to invest in a tax efficient way for their retirement. LGRSP 17

19 IMPORTANT INFORMATION How do I cancel my plan? You have a right to cancel this plan. This will run for 30 days from receipt of your policy documentation. If you wish to cancel your plan you should complete and return the Cancellation Form that accompanies your Policy Schedule, before the expiry of this period to: Aviva P O Box 520 Norwich NR1 3WG If you cancel the plan and the market has fallen, you may not get back all that you have invested. If you do not cancel your plan the monies will remain invested with Aviva until your retirement date or until such date as you wish to transfer your funds to another registered pension scheme. How to complain about Provider The Pensions Advisory Service (TPAS) TPAS is an independent voluntary organisation providing guidance to members of the public covering state pensions, occupational pensions and personal pensions including stakeholder schemes. It also helps members of the public who have a problem, complaint or dispute with their occupational or personal pension scheme. TPAS can be contacted at: 11 Belgrave Road London SW1V 1RB The Pensions Ombudsman The Pensions Ombudsman can be asked to adjudicate between a member and the trustees or scheme administrator for an occupational pension scheme or personal pension where TPAS has not been able to assist. The dispute may relate to maladministration or a dispute over a fact of law. The Pensions Ombudsman can be contacted at: 11 Belgrave Road London SW1V 1RB LGRSP 18

20 LUXFER GROUP RETIREMENT SAVINGS PLAN Application Form Please complete using block capital letters where appropriate. Once completed, you should forward the form to your Local Pensions Administrator. Surname: First Names: Married/single/other (please specify) Sex*: M/F Address: Post Code: Date of birth: National Insurance No: Date employment commenced Your ordinary contributions are 4.8% of pensionable salary. If you wish to increase your regular contributions write the additional amount (% of pensionable earnings) here. Remember HMRC will pay a tax rebate of 25% of this contribution. % *Please circle as appropriate I apply to become a member of the Luxfer Group Retirement Savings Plan and consent to my employer deducting contributions from my pay. I confirm that I wish to be enrolled into the Aviva Group Personal Pension Scheme and my contributions will be placed in the Aviva Mixed Investments Lifestyle strategy pending my pension meeting with Cullen Wealth Limited. I understand, and accept, that if I exercise my right to cancel my membership of the Group Personal Pension, my membership of the Plan will be cancelled. Signed:... Date of Application:... For Company use Pensionable Earnings Employer contribution rate %

21 LUXFER GROUP LIFE ASSURANCE PLAN Expression of Wish Your Name:... National Insurance No... This form applies to any lump sums becoming payable under the life insurance policy. If a lump sum death benefit becomes payable, the Trustees of the life insurance policy will decide who will receive the benefit. Making payments this way avoids the need for payment of tax. The Trustees will take into account your personal circumstances and any wishes you have expressed. You should make your wishes known to the Trustees by completing and returning this form. In the event of my death, it is my wish that the person or persons named below are considered as recipients of any lump sum death benefit payable. (Please use block capitals only. You may continue on a separate sheet of paper, if necessary). Full name Current Address Relationship to myself (if any) % of benefit I understand that this Expression of Wish Form will not be legally binding on the Trustees. Signed: Date: The completed form should be placed in a sealed envelope marked Luxfer Group Life Assurance Plan Expression of Wish Form with your name and National Insurance number and given to your Local Pensions Administrator for safe keeping.

22 QUESTIONS AND ANSWERS ON PENSIONS

23 About your plan your questions answered: What is a Group Personal Pension Plan? It is an investment plan that can help you to invest for your retirement in a tax efficient and cost effective way. Contributions can be made regularly and lump sums can be added whenever you wish. Payments may come from you, your employer or a combination. Do I have to join the scheme? No. Your needs could be met through investing in a Stakeholder Pension Plan. However your employer may not be willing to make contributions on your behalf into a Stakeholder Pension Plan if your employer is contributing into this Group Personal Pension Plan which you are eligible to join. How flexible is the plan? Your Group Personal Pension Plan is designed to be flexible. You can: Make regular or one off contributions at any time. Change your regular contributions. You can take a contributions break, subject to your employer s agreement, and stop paying and restart at a later date. However, you will need to check how this will affect any employer contributions. Stop contributing permanently and the fund you have built up at the date payments stop will remain invested until you retire. Redirect future contributions and/or switch your accumulated contributions between the funds available. There is no charge for redirecting or switching, however fund charges may vary. Decide to transfer your funds to another registered pension scheme at any time. We make no charge for this. Do I get any tax relief on my contributions? Under current legislation and tax practice, you will benefit from income tax relief at the basic rate on the contributions you pay into your plan, subject to certain limits. You are entitled to receive tax relief on all your pension contributions up to a maximum of 3,600 per annum regardless of earnings, or up to 100% of your earnings each tax year if this is higher. This means that for every 100 you pay into your plan as a net contribution, your plan will be credited with tax relief of 25 which we will automatically claim on your behalf. If you are a higher rate taxpayer, you can claim higher rate relief from HM Revenue & Customs. Employers pay gross contributions, which they can offset against any corporation tax. If the combined total of all contributions paid by you and your employer exceed a particular level, you may be subject to a tax charge (See What is the Annual Allowance? ). Your

24 employer may allow you to make contributions through salary exchange also known as salary sacrifice. This is where you agree to a reduction of your salary in exchange for higher employer pension contributions. What is the Annual Allowance? The Annual Allowance is the maximum contribution to all pension arrangements including those from your employer which can be made without you being subject to a tax charge. Tax relief on personal contributions will still be limited to 100% of earnings or 3,600, whichever is the greater. The purpose of the Annual Allowance is to ensure that tax relief on contributions is restricted to the level set out by the government for that year. The Annual Allowance is set at 40,000 for the tax year 2017/18. This may reduce to 10,000 if your taxable income plus total pension contributions exceed 150,000 per annum. For contributions in excess of the Annual Allowance you may be subject to a tax charge at your marginal rate of tax on the excess amount. However, where the total contributions paid into all of your pension arrangements have been less than 40,000 per annum in any of the past three years, these unused elements of the Annual Allowances may be carried forward and used to permit a taxefficient pension contribution of greater than 40,000. This is subject to you having been a member of a registered pension scheme at some time during each of the three tax years. In certain circumstances where you draw benefits from any defined contribution pension plan you may be subject to a reduced allowance of 4,000 per annum. Do I need to pay income tax or capital gains tax? Subject to the limits explained elsewhere in this document, e.g. the Annual Allowance and Lifetime Allowance, any income or capital gains within a registered pension scheme prior to taking benefits are free from UK income tax and capital gains tax. Income tax will only usually be payable once you have taken your benefits, for example, purchased an annuity. What is the basis for this tax information? The above comments are based on our understanding and interpretation of current UK tax law and HM Revenue &Customs practice at the time of printing. Both tax law and practice may of course change. You should remember that the tax law applicable depends on your own situation and residency status. If you have any doubts about this, you should seek professional advice.