METAL BOX NEWSLETTER MEMBERS REPORT WINTER 2014/15. In this issue... THE METAL BOX PENSION SCHEME VALUATION UPDATE INVESTMENT UPDATE MND SELECTION

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1 THE METAL BOX PENSION SCHEME METAL BOX NEWSLETTER MEMBERS REPORT WINTER 2014/15 DEFINED BENEFIT SECTION PENSIONER MEMBERS In this issue... PensionER NEWS VALUATION UPDATE Summary report & accounts INVESTMENT UPDATE MND SELECTION

2 Your contacts Equiniti Pension Solutions The Metal Box Pension Scheme c/o Equiniti Pension Solutions Sutherland House Russell Way Crawley RH10 1UH Telephone: (UK) +44 (0) (overseas) Fax: +44 (0) Tax code queries Equiniti aim to respond to your requests within 5 working days. In the majority of cases, a response is sent by letter to your home address. If you haven t received a response within 2-3 weeks, please telephone. If you have any queries regarding the taxation of your pension please contact the Scheme s tax office, quoting the reference 064/HA54605 and your National Insurance number, at the following address: HM Revenue & Customs Pay As You Earn PO Box 1970 Liverpool L75 1WX Telephone: (UK) Telephone: (overseas) HMRC provide us with your tax code to apply to your pension. Please note that we are unable to change your tax code without consent from HMRC, nor are we able to contact HMRC on your behalf as they will not discuss your details with a third party. Scheme website Here you ll find information about the Scheme and can download useful documents and forms. 2

3 Welcome from the UK Pensions Manager Welcome to the Members Report, sent from the Trustee of The Metal Box Pension Scheme and AVC Plan. Once again, this year the Trustee has produced a separate newsletter specifically for the pensioner community. Copies of the newsletters issued to active and deferred members of the Scheme can be downloaded from the Scheme website. We will shortly be starting the selection process for the pensioner member-nominated Trustee Director. If you would like to be involved, please see the back page for further information. In 2015, we will be writing to some pensioners about new options that they might find beneficial which we will be making available for their pension payments. For further information please see page 4. If you have any general queries about your pension, the Scheme administrators, Equiniti, will usually be able to help. You can contact me if you have any problems getting the information you need or if you wish to raise a query directly with the Trustee. Equiniti Paymaster is now known as Equiniti Pension Solutions. The team that looks after your pension records is unchanged, but you may notice its new name on letters you receive about your pension. Cathy Aston UK Pensions Manager See page 4 to find out about new options available in catherine.aston@eur.crowncork.com Tel: +44 (0)

4 Pensioner News How increases to pensions in payment work Your pension is made up of several components, each of which increases in a different way. Increases are applied in line with either the Retail Prices Index (RPI) or the Consumer Prices Index (CPI) up to a maximum depending on the component. All increases to your pension are applied on 1 April each year. Look out for your annual pension increase letter which will provide you with full details of the increases applied. The increases applied to your pension change when you reach GMPA. When you reach GMPA a check is made to ensure that the pension being paid to you is at least equal to the GMP. Each year after you reach State Pension Age (SPA), the Government calculates what your S2P pension plus inflation would have been had you not been in a contracted-out pension scheme. If your GMP is lower than this, the Government pays the difference via the State Additional Pension (AP). This will change for individuals who reach SPA on or after 6 April More information will be provided in due course. What is the Guaranteed Minimum Pension (GMP)? Your pension will include a GMP if you joined the Scheme prior to 6 April 1997 or transferred benefits in from another scheme which was contracted out of the State Second Pension (S2P) (previously known as SERPS). From Guaranteed Minimum Pension Age (GMPA) the Scheme is responsible for paying a pension at least equal to the GMP. GMPA = age 65 for a man or age 60 for a woman. GMP is intended to broadly replace the pension that would have been available under S2P for periods of membership of contracted out pension schemes prior to April New options for some pensioners During 2015, some pensioners will receive information about an offer from the Company to swap some of the future annual increase to their pension for a higher immediate pension. It is expected that letters will be issued in February, with further information in April / May. You do not need to do anything until you hear from us. If you do not receive a letter, then these options are not available to you at this time. 4

5 Pension payment dates Pensions are paid on the 11th working day of each month and cover the period from the beginning to the end of the month. The cut-off date is the last date that amendments can be made to the payroll. Pension payment dates for 2015 / 2016 are as follows: Payment date Cut-off date Payment date Cut-off date 17 April 02/04/ October 02/10/ May 05/05/ November 03/11/ June 02/06/ December 02/12/ July 02/07/ January 05/01/ August 04/08/ February 02/02/ September 02/09/ March 02/03/2016 Beware pension scams You may have seen articles in the press and on TV recently about pension liberation scams, where companies offer individuals access to their pension savings. Individuals who are taken in will lose most, if not all, of their savings. As you are already receiving your pension from the Scheme, this issue does not directly affect you. However, scammers may still try to contact you through letters, mass texting or cold calls. You should be very wary about giving out information in response to any such contact and always ensure you know who you are dealing with. If you are concerned that you may have been targeted, please do not hesitate to call the administration team at Equiniti or the UK Pensions Manager. To find out more information, please visit: 5

6 Valuation update The chart below shows the Scheme s funding position at the last interim valuation as at 31 March 2014 compared to the most recent full actuarial valuation as at 31 March Liabilities 2,071m Shortfall 309m Assets 1,762m Funding Level 85% Liabilities 2,206m Shortfall 369m Assets 1,837m Funding Level 83% 2014 The figures above include DC Section assets and liabilities of: m m 2013 i Why are the DC Section figures included? As the DC Section is part of the Scheme for accounting purposes, the figures need to be included in the assets and liabilities. However, as DC Section members contributions are paid directly to their Personal Accounts with Standard Life, they do not affect the funding of the DB Section. How has the funding level changed since 31 March 2013? The estimated funding level has improved from 83% to 85% between the last full valuation at 31 March 2013 and the interim valuation at 31 March 2014 corresponding to a decrease in the shortfall from 369m to 309m. Although the value of the assets fell over the year by 75 million, the value of the liabilities fell by 135 million over the same period. This means that the gap between the assets and liabilities is smaller, resulting in an improved funding level. 6

7 What is being done to improve the funding position? The Trustee and Company have agreed a Recovery Plan for the Company to pay additional contributions, starting in January 2011 aimed at paying off the shortfall by From January 2015, these contributions amounted to 25.1 million a year (around 2 million per month). What would happen if the Scheme were to wind up? The Trustee is required to tell you how well funded the Scheme would be if the Company became insolvent and the Scheme was discontinued. This information is provided for legal purposes only and there are no plans to wind up the Scheme. If the Scheme s assets had been transferred to an insurance company to buy members benefits on 31 March 2014, it has been estimated that there would have been enough money to provide approximately 66% of the total benefits (63% as at 31 March 2013). As an alternative to buying benefits with an insurance company, the Pension Protection Fund (PPF) may be asked to help. The PPF provides compensation to members if their employer becomes insolvent and leaves a scheme in shortfall. If this happened, the PPF pension you would receive is likely to be less than the full benefits that you had earned in the Scheme. Have there been any payments from the Scheme to the Company? There have been no payments made from the Scheme to the Company since the last newsletter. Where can I get more information about how the Scheme is funded? You can find information in the documents area on the Scheme website You can also request copies from the UK Pensions Manager. What other contributions does the Company pay? The Company also pays contributions to meet the cost of benefits that have not yet been earned. The amount of money paid into the Scheme by the Company can go up or down and it is reviewed regularly by the Scheme Actuary. From 1 January 2014, the Company increased the contributions it pays to meet the cost of benefits earned in the DB Section in the future from 4.5 x Members Contributions to 5.2 x Members Contributions. In addition to this, the Company meets the cost of the Pension Protection Fund (PPF) levy, which in 2014 was 329,000. Is the Scheme subject to any directions imposed by the Regulator? We are required to explain whether the Scheme has been modified by the Pensions Regulator, is subject to directions from the Pensions Regulator, or is bound by a schedule of contributions imposed by the Pensions Regulator. We confirm that none of these situations apply to the Scheme. 77

8 Summary of the Report & Accounts The financial information shown below is taken from the Trustee s Report and Financial Statements. Please note that these figures relate to the DB Section only. Membership of the DB Section Active members Deferred members Pensioner members 31 March ,036 5,265 13,048 Total 19, March ,239 5,546 13,058 Total 19,843 8

9 Financials for the DB Section 2014 thousands 2013 thousands Value of DB Fund at start of the year 1,822,197 1,663,197 Money into the DB Section Member contributions 2,587 2,991 Employer contributions 38,916 38,406 Transfers in (from the Metal Box AVC Plan) 4,383 4,728 Total money in 45,886 46,125 Net returns on investments (22,532) 210,314 Money out of the DB Section Pensions and retirement lump sums (95,850) (93,254) Death benefits (284) (1,173) Transfers out and refund of contributions (3,764) (1,093) Administration expenses (1,967) (1,561) Pension Protection Fund levies (412) (358) Total money out (102,277) (97,439) Value of DB Fund at end of the year 1,743,274 1,822, Value of DB Fund at start of the Year 1,822,197,000 Value of DB Fund Total money out ( 102,277,000) Return on investments ( 22,532,000) Total money in 45,886, at end of the Year 1,743,274,000 9

10 Investment update At 31 March 2014, the investments were split as follows: Liability Matching Assets 1 804m Investment Grade Credit 257m 1) Gilts, swaps, inflation linked bonds, cash, currency hedge 2) Re-insurance, emerging market currency, volatility premium Private Equity 127m Developed Market Equities 144m Hedge Funds 91m Alternative Credit Opportunities 98m Infrastructure 69m Alternative Betas 2 60m Emerging Market Equities 48m Property 45m 10 How are the investments performing? The Trustee compares the return achieved on the assets with a benchmark return (a measure of the liabilities), which it aims to beat over time. Scheme returns The performance of the DB Section assets (pa) against this benchmark (pa) is shown below: 1 year 3 years 5 years -3.9% 10 years -1.5% 6.1% 7.5% 7.2% 7.9% 8.3% 9.7% % Benchmark Over the last year, the assets beat the benchmark by 2.4%. The percentages shown are negative because, as explained on page 11, the value of both the assets and liabilities got smaller during the year. The longer-term performance reflects the volatility experienced by the financial markets in the last ten years.

11 Missing deferred members The Trustee has been trying to locate deferred members of the DB Section who have gone past age 65 and not yet claimed their pension. If you recognise any of the names in the following list as ex-colleagues, could you please ask them to get in touch with Equiniti to see if they have a pension in the Scheme: Name Current age Worked at Left company Mr Martin J Bennett 70 Unknown August 1975 Mr J L Boult 67 Unknown May 1974 Ms Joyce Bullen 74 Winsford March 1979 Mr Derek Cunliffe 66 Westhoughton March 1979 Mr Jeffrey Terence Donald 66 Neath October 1980 Mr Stephen Duncan 80 Unknown September 1980 Mr Brian Field 70 Manchester July 1978 Mr John Alan Fletcher 67 Stelrad, Hull October 1980 Ms Brenda Garner 69 Unknown October 1975 Mr Derek Goad 65 Wantage June 1976 Mr Brian C Green 68 Acton May 1976 Mr Richard John Hamblin 65 Wantage September 1976 Mr John Charles Holt 74 Formflo May 1980 Mr Charles Richard Horn 66 Reading April 1981 Mr W Horrocks 67 Speke April 1976 Mr Mendel King 71 Dublin Sales December 1981 Mr Kwabena Kyei 66 Unknown September 1978 Mr David Labrosse 67 Portsmouth Bottles April 1979 Mr Colin Maddison 70 Swindon June 1980 Mr Gordon Grantley Marfell 65 Stelrad May 1981 Ms Margaret McCann 74 Unknown February 1979 Mr William George Morrey 65 Speke February 1980 Mr Brian William Porter 72 Rochester September 1978 Mr Robert W Prow 65 Arbroath March 1985 Mr M Roberts 74 Unknown December 1983 Mr Alan Donald Sands 68 Unknown December 1979 Mr Kadir Sheikh 66 East London June 1980 Ms Margaret Annora Stephens 74 Unknown July 1975 Mr John Andrew Watt 68 Unknown May 1980 Miss Sheila Lilian White 72 Leicester May 1980 Mr Joseph Williams 72 Unknown April

12 Who looks after the Scheme? Metal Box Pension Trustees Limited (the Trustee) is responsible for the stewardship of the Metal Box Pension Scheme and AVC Plan. There are currently four employer-nominated and two member-nominated Trustee Directors: The employer-nominated Trustee Directors are: Terry Cartwright (Chairman) Consultant The member-nominated Trustee Directors are: David Powell Pensioner MND selection Paul Browett Vice President and Treasurer, CROWN Europe Richard Westcott Head of Methods and Standards, CROWN Europe Appointed 1 July 2014 Howard Lomax Retired Appointed 1 March 2014 John Riley Director of Engineering, CROWN Food Packaging, Baltimore, USA Member-nominated Trustee Directors are appointed for a three-year term. David Powell was appointed in April 2012 and his period of office will expire on 31 March Any pensioner who is receiving a pension in his or her own right, who has at least three years contributory membership of the Scheme and has the support of at least 15 Scheme Members, may now apply to be considered for selection as a Director. If you would like further information and an application form, please contact Cathy Aston, your UK Pensions Manager. Designed and produced by Anthony Hodges Consulting Ltd 2015_ On behalf of Metal Box Pension Trustees Limited, the Trustee of The Metal Box Pension Scheme 2015 The closing date for applications is 6 March 2015.