Plan summary. Aon Bigblue Touch

Transcription

1 Plan summary Aon Bigblue Touch September 2017

2 Aon Bigblue Touch Provider Aon Consulting Ltd Membership of Aon Bigblue Touch represents an important and valuable benefit from Aon. Aon Bigblue Touch provides you with a tax efficient way to save for your retirement, with help from Aon. When you decide to start accessing your pension benefits you are able to take them flexibly as cash, use them to purchase a regular, steady income (an annuity) or draw down income over a period of time as you choose. Currently, 25% of those benefits can be paid tax free and the rest is subject to Income Tax. The more you know about the Plan the more control you have over your financial future. Three useful documents are included in your Welcome Pack: and Your Plan s Terms and Conditions and Key Features Document provide you with the Plan terms and details should you need to reference these in future; This Plan Summary provides you with the specific details of your Plan. The Bigblue Touch Investment Options Booklet is also available to download from your pre-joining Bigblue Touch online web service; or if you have access to the full online services The Investment Options Booklet explains the basics of investing and how funds work within Bigblue Touch, and the risk ratings associated with funds. We strongly recommend you read this booklet along with this Plan Summary when considering your investment choices. After you have had a look at them, we suggest that you keep these documents together and somewhere easily retrievable. You can get the latest versions at any time from the Plan Information & Documents section of the Bigblue Touch member online service under the My Pension area. The information in this document is current as of the dates shown but is subject to change. For the most up-to-date information, refer to your Bigblue Touch member website at 2 Plan summary

3 Contact Details For questions about your benefits, or help with transactions Website: Telephone: Monday to Friday between 9:00 am and 5:00 pm (except bank holidays) If you want to contact the Bigblue Touch Customer Contact Centre by post, the address is: Bigblue Touch Pension Administration PO Box 1325 Peterborough PE1 9RN Please quote your Account Number when you contact us. Your Account Number is shown on the covering letter of your Welcome Pack. Your secure member online service Your Welcome Pack includes your login details in the covering letter, including your User ID for your secure online service. You will also need a password to log in. You will receive a temporary password very soon after receiving your Welcome Pack. This will arrive by if we have been provided with your address or by post if we do not have an address for you. You will be prompted to choose your own password when you log in for the first time. Here are just some of the things you will be able to do on the member website: Check your account balance Check and make changes to your contributions Plan your savings Research your investment options Find out about your options at retirement See what your pension account might provide when you retire Check the latest version of the documents for your Plan. We hope that you will log in regularly to learn more about the Plan and take control of your journey to and through retirement. 3

4 Eligibility Enrolment into Aon Bigblue Touch is automatic (as set out in your contract of employment). Once you have been enrolled you can, however, opt out if you don t want to be in Aon Bigblue Touch. Please note that, under auto enrolment legislation, if you opt out your eligibility will be reassessed every three years and you may be auto enrolled again. If you wish to opt out, you should download an opt out form from the Aon HR Portal Upoint within one month from receipt of your Welcome Letter and this to the address on the form. If Aon does not enrol you automatically, or you wish to rejoin after opting out, you can join Aon Bigblue Touch at any time and will be enrolled as soon as is practicable but normally from the first day of the following month. You would need to action this by downloading an opt in form from the Aon HR Portal (Upoint) and ing this to the address on the form. Aon is subject to the auto-enrolment regulations. All colleagues who are not members of Aon Bigblue Touch will be assessed for automatic enrolment, and if eligible, will be automatically enrolled into the Plan at the appropriate time. 4 Plan summary

5 Pension Salary Sacrifice Aon Bigblue Touch operates contributions on a Salary Sacrifice basis known as Pension Salary Sacrifice (PSS). PSS is an arrangement under which you agree to sacrifice part of your salary and Aon agrees to pay an equivalent amount into Aon Bigblue Touch as an employer contribution. PSS reduces your National Insurance payments and therefore increases your take home pay. Please note that by participating in PSS, you are agreeing to a change in the terms and conditions of your employment. You will automatically participate in PSS unless you fall into certain earnings- or age-related categories and you are also able to opt out of PSS if you wish to do so. PSS will not impact on any existing rights you may have relating to salary increases, any overtime or allowances you receive, bonus payments or other employer-provided salary-related benefits (i.e. life cover) or references (i.e. loan or mortgage applications). Your salary before the reduction will continue to be used for these purposes. If you wish, you can opt out of PSS once enrolled or at a later date and pay contributions from your monthly salary. This is the traditional way of making personal pension contributions. You will receive your salary each month in full and then pay your contribution from it. You will need to action this via Select. Your contributions are taken from your pay and paid into the Plan each month along with Aon s contributions. You can change the amount you contribute at any time via Select. (Subject to legislative requirements, Aon reserves the right to withdraw Pension Salary Sacrifice facility.) Contribution rates Details of the contributions from you and your employer can be found on Select. Contributions are based on your basic pay. Please note that there is an annual limit on contributions that may benefit from tax relief and you should refer to for further details. Aon reserves the right to vary the rates of future contributions; you will be given advance notice if it intends to do this. 5

6 Investments The Bigblue Touch Investment Options Booklet explains more about choosing investments. The funds that are available to you are shown on the following pages. There are two main choices: Aon Managed Retirement Pathway Funds The Aon Managed Retirement Pathway Funds are a series of target date funds, each covering a three-year period, which adjust where they invest depending on the term to their target date. When you are initially enrolled in the Plan, you will automatically be invested in the fund with a target retirement date that most closely represents when you will reach Plan Retirement Age or your Target Retirement Age if different. The funds aim to provide an appropriate investment strategy for the majority of members, recognising that members will need to address different risks as they approach retirement and may wish to access their pension fund in a number of different ways leading up to and beyond their Target Retirement Age. The funds initially aim to generate long-term growth in your pension savings by investing in predominantly equity-based investment. As the funds approach their target date, the fund manager will change the asset allocation and invest in other assets, such as fixed interest. This means that when you are younger your Account is invested in assets that aim to provide you with greater opportunity for growth and as you get older the fund will invest in lower risk assets. In this way, the funds seek to provide smoother returns during extreme market conditions as you approach your Target Retirement Age and beyond. Self Select This option is available for those colleagues who wish to make their own investment decisions. The Plan offers a range of funds and further details can be found in the Bigblue Touch Investment Options booklet and in the My Pension section on Don t worry about changing your mind about where you want to invest in future; you can instruct switches of your existing funds and/or redirect future contributions into different funds at any time. However, if you have been automatically enrolled or have opted in under auto enrolment legislation, you may not switch between investment funds until the end of your opt out period.* Further information on the fund choice available can also be found in the My Pension section on The welcome pack will also include details of how to access your own Personal Account on-line. *If you have been automatically enrolled or have opted in under auto enrolment you will be invested in the cash fund during the one-month opt-out period to ensure that a full refund can be provided if necessary, after which time you will be invested into the default Target Date Funds and also be able to switch between investment funds (not applicable if contractually enrolled). 6 Plan summary

7 Plan charges The charges you pay for investing will depend on which funds you are invested in. They are made up of: The Annual Management Charge (AMC); and Additional expenses (only payable on certain types of fund) The AMC is a percentage charge applied to each fund and represents the amount that will be deducted from the fund s value each year to cover some of the costs of administering the Plan and managing the funds, including the underlying manager costs. The AMC includes any fee payable to HRMSL for the management of the funds. Your account value reflects the amount of money in your account after charges have been deducted. One component of the AMC applied to each fund is the underlying manager costs. For those Aon Managed Funds that are more actively managed, the AMC may fluctuate as changes are made to the underlying fund holdings that is, the underlying funds used and the allocation of funds to each. For each of these Aon Managed Funds a maximum overall charge has been set. Additional fund expenses are costs that are necessary to the management of the portfolio, but not covered by the manager s AMC. Most fund managers have to pay fees such as for auditors, lawyers, trustees and valuers involved in the day-to-day operation of the funds. These fees are taken from the underlying fund and are reflected in the value of your investment. These costs are monitored quarterly and reviewed on a yearly basis and can change. The AMC plus the additional fund expenses make up the overall fund charge, which is sometimes called the Total Expense Ratio (TER). Changes to fund charges For funds which do not have a maximum overall fund charge you will be notified of any change to the AMC. For funds which do have a maximum overall fund charge: You will be notified of any: (a) Changes to the AMC if that change causes the overall fund charge to exceed the maximum in place at that time; and (b) Changes to the maximum overall fund charge. You will not usually be notified of any changes to the AMC if that change results in an overall fund charge that is equal to or less than the current maximum overall fund charge. Changes to fund charges are expected to happen from time to time as part of management of the funds within a maximum overall fund charge. These changes occur as an effort of achieving improved outcomes for members. In certain circumstances you may be notified of changes to the AMC even if that change does not cause the overall fund charge to exceed the maximum in place at that time. 7

8 How to find up-to-date fund charges You will be able to find the most current charges at any time by logging on to the online services website clicking through to the My Pension section and locating Fund choices on one of the six links at the bottom of the screen. Click the Change button to get a list of funds and their Annual Management Charges. You will be able to close the information box without changing your investments. Additional expenses are shown on Fund Factsheets, which are available in the Plan Information & Documents section of the website. You can also find the most recent version of this Plan Summary in the My Pension section of the member website by looking in Plan Info & Documents. We have also set out below the current AMC and Additional expenses for the Non-Aon Managed Funds. You will be notified of any change to the current AMC for these funds. Default Target Fund Fund name AMC 1 Additional fund expenses 2 Overall fund charge 3 Maximum overall fund charge AMC 4 Aon Managed Retirement Pathway This is the Annual Management Charge as at 18 August Charges are explained in the preceeding section. 2 Additional expense figures shown are based on the annual average expenses as at 31 March The overall fund charge is the sum of the AMC and the additional fund expenses shown. 4 Some of the funds have a maximum overall fund charge, and this is the maximum at 18 August We will not notify members if a change to the AMC results in an overall fund charge that is equal to or less than the current maximum overall fund charge. 5 There is no maximum overall fund charge for this fund and you will be notified of any change to the current AMC. 8 Plan summary

9 Self select funds: Aon Managed Funds Fund name AMC 1 Additional fund expenses 2 Overall fund charge 3 Maximum overall fund charge AMC 4 Aon Managed Retirement Pathway to Annuity Aon Managed Retirement Pathway to Cash Aon Managed Core Retirement Pathway N/A 5 Aon Managed Core Retirement Pathway N/A 5 to Annuity Aon Managed Core Retirement Pathway N/A 5 to Cash Aon Managed Passive Corporate Bond Aon Managed Pre-Retirement Bond Aon Managed Bond Phase Aon Managed Diversified Multi Strategy Bond Aon Managed Liquidity N/A 5 Aon Managed Long term Inflation Linked N/A 5 Aon Managed Initial Growth Phase Aon Managed Progressive Growth Phase Aon Managed Property and Infrastructure Aon Managed Global Equity Aon Managed Active Global Equity Aon Managed Active UK Equity This is the Annual Management Charge as at 18 August Charges are explained in the preceding section. 2 Additional expense figures shown are based on the annual average expenses as at 31 March The overall fund charge is the sum of the AMC and the additional fund expenses shown. 4 Some of the funds have a maximum overall fund charge, and this is the maximum at 18 August We will not notify members if a change to the AMC results in an overall fund charge that is equal to or less than the current maximum overall fund charge. 5 There is no maximum overall fund charge for this fund and you will be notified of any change to the current AMC. 9

10 Self select funds: Non-Aon Managed Funds Fund name AMC 1 Additional fund expenses 2 Overall fund charge AMC 3 HSBC Amanah Pension Fund LGIM Ethical Global Equity Index DC Aquila Emerging Markets Equity Index DC Aquila MSCI World Equity Index DC Aquila World (Ex-UK) Equity Index DC Aquila UK Equity Index This is the Annual Management Charge as at 18 August Charges are explained in the preceding section. 2 Additional expense figures shown are based on the annual average expenses as at 31 March Some of the funds have a maximum overall fund charge, and this is the maximum at 18 August We will not notify members if a change to the AMC results in an overall fund charge that is equal to or less than the current maximum overall fund charge. Self select funds: Full fund range In addition the Plan offers a range of different funds, managed by different investment managers. Further details are explained in the Investment Options Booklet available from the My Pension section of the web service A full list of these funds is also available in the members website under Plan Information in the Available Funds section. If you need Financial Advice Neither your employer nor the Plan administrators are allowed to give you financial advice. You can contact the Bigblue Touch Member Services Team on or at bbt.memberservices@aon.co.uk and they can provide advice, for a fee, on Aon products and transferring benefits into the Plan. Alternatively, you can find information about financial advisers by going to and searching for finding an adviser. Please remember that a financial adviser will charge you for providing advice, but they will discuss the cost of this with you before you use their services. 10 Plan summary

11 What happens if I leave employment? If you leave employment before the end of your opt out period any contribution will be refunded. If you leave the Plan after your opt out period you will have a choice of either transferring your total fund value to another registered pension scheme, providing they are willing to accept it, or retaining your fund in the Plan until you decide to draw your benefits. Death benefits* If you die before retirement the value of your Bigblue Touch Account may be used to provide a cash sum or pension for your dependant(s). *Information regarding contribution arrangements and other non pension benefits have been accepted in good faith from your employer. No responsibility can be accepted by Aon Consulting Limited for any errors, omissions or inaccuracies in the information provided or for any loss or damage that may result from reliance being placed upon it. 11

12 Contact details Website: Telephone: Past performance is not a guide to future performance. The value of investments and the income from them can fluctuate and are not guaranteed. Investors may not get back the amount invested. Rates of exchange may cause the value of investments to go up or down. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Any objective or target will be treated as a target only and should not be considered as an assurance or guarantee of performance of a fund or any part of it. A fund s objectives and policies include a guide to the main investments to which a fund is likely to be exposed but a fund is not necessarily restricted to holding these investments only. Subject to a fund s objectives, a fund may hold any investments and utilise any investment techniques, including the use of derivatives, permitted under the FCA s Conduct of Business Sourcebook which contains the rules by which investment of the funds is governed. About Aon Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance. Nothing in this document should be treated as an authoritative statement of the law on any particular aspect or in any specific case. It should not be taken as financial advice and action should not be taken as a result of this document alone. You should consider seeking financial advice if you are unsure. References to tax in this document are based on our interpretation of current tax law and Her Majesty s Revenue & Customs practice. Tax law, rates and the basis on which tax reliefs are granted may be subject to change. Bigblue Touch is a brand name of Aon Consulting Limited. Aon Consulting Limited is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales. Registered No Registered Office: Briarcliff House, Kingsmead, Farnborough, Hampshire GU14 7TE. Phone: Copyright Aon Consulting Limited. All rights reserved. (Splash/344909/Aug17)