The Maersk Pension Scheme

The Maersk Pension Scheme A guide to your benefits For employees of A.P.Moller Maersk companies in the UK April 2015 Your future at your fingertips For clear pensions information visit: maerskpensionscheme.co.uk

Contents 3...Welcome to the Maersk Pension Scheme 4...The Scheme in summary 5...How does the Scheme work? 6...How much do I have to pay? 9...Investing your Pension Account it s up to you! 13...What will I get when I retire? 15...What do I get if I leave the Company before I retire? 16...What happens if I die? 18...What happens if I am absent from work? 20...I m not sure that I want to be a member what are my options? 22...Who should I speak to if I have a complaint? 24...Do I need to know anything else? 26...Contact details Saving for your retirement is very important The Maersk Pension Scheme allows you to save towards your retirement, helping you build up your income for when you stop working. 2

WELCOME TO THE MAERSK PENSION SCHEME As a member of the Maersk Pension Scheme you are saving towards your retirement and benefiting from Company contributions to your Pension Account. This booklet describes how the Scheme works and the benefits you are entitled to as a member. You will find a summary of how the Scheme works on page 4. Please take a few minutes to look at this even if you don t have the time to read the whole booklet now. Your role as a member If you become a member of the Scheme, we will support you in saving for your future. However, you are responsible for your own Pension Account. Here is what you will need to consider on joining the Scheme: You will receive login details for epa soon after your Pension Account has been opened. epa is our online administration service see the back page for the link to epa. Choose where your Pension Account is invested from the options available pages 9 to 12. Please also refer to the investment guide. Keep your investment choices and contributions under regular review to ensure they are appropriate to your situation. Keep your Expression of Wishes and investment options up to date via epa. Pay extra by making Additional Voluntary Contributions (AVCs), if you want to save more for your retirement page 8. YOUR ROLE More details about these actions are covered in this booklet and are noted with this icon for ease of reference. The Trustee s role The Scheme is an occupational Defined Contribution arrangement established under trust law. The Trustee is Maersk Pension Trustee Limited and it is responsible for the administration and management of the Scheme in accordance with the Trust Deed and Rules governing the Scheme. (Maersk Pension Trustee Limited is also the Trustee of the Maersk Death in Service Scheme.) The Company s role The Company is responsible for paying contributions to the Scheme, but it also chooses to provide the following additional benefits at no extra cost to you: Life assurance cover through the Maersk Death in Service Scheme. Income protection cover through the Maersk Group Income Protection Plan. Any questions? If you have any further questions after reading this booklet, you should contact the Pensions Department using the details shown on page 26. Please note that the Pensions Department is not able to offer any advice on the suitability of the Scheme for you, the level of contributions or your investment choices. It is recommended you consult an Independent Financial Adviser if you need further advice on these issues. You can find a local Independent Financial Adviser at www.moneyadviceservice.org.uk. 3

THE SCHEME IN SUMMARY The Maersk Pension Scheme is open to permanent UK Company employees aged 16 and over. You will automatically join the Scheme and Pension Xchange on joining the Company. A Pension Account is opened in your name. You pay contributions to your Pension Account via Pension Xchange (see page 8). The Company also pays contributions to your Pension Account. You can also pay Additional Voluntary Contributions to boost your retirement benefits. You choose how your Pension Account is invested from a range of investment options. You receive investment returns on the funds your Pension Account is invested in. Your Pension Account builds up over time and is used to provide you with income in retirement. What will I get at retirement? From April 2015, you now have more choice in how you use your Pension Account. You can take it as a cash sum (part of which will be tax-free) and use the rest to buy a pension (annuity) in retirement; you can continue to invest your money, whilst gradually withdrawing it to live on in retirement; or you can (from age 55) take some or all of your retirement savings as one or more cash lump sums. Full details are on page 13. What if I leave the Company? On leaving the Company or opting out of the Scheme you will become a deferred member. You are able to transfer your Pension Account to another arrangement at any time. Under the Rules, the Trustee has the power to transfer a deferred member s Pension Account to an alternative arrangement and will, in accordance with statutory requirements, exercise this power once the member s Pension Account has been held as a deferred benefit for at least12 months. Full details are on page 15. What happens if I die before retirement? The value of your Pension Account is paid as a lump sum(s) to your beneficiaries at the discretion of the Trustee. (For the definition of a beneficiary see page 16). Life Assurance from the Maersk Death in Service Scheme If you are working for Maersk and you die in service, a lump sum benefit of ten times your salary (or four times your salary if you re a Damco employee) at the date of death will also be paid to your beneficiaries at the Trustee s discretion. This benefit is at no cost to you. Full details are on pages 16 and 17. 4

HOW DOES THE SCHEME WORK? On joining the Scheme a Pension Account is opened in your name. You pay contributions into your Pension Account via Pension Xchange (see page 8), unless you opt out of Pension Xchange. The Company also pays contributions into your Pension Account. YOUR ROLE You decide how your contributions are invested from the range of investment funds on offer. You are responsible for monitoring the investment performance of your Pension Account and for making changes to your arrangements as necessary. You can make these choices by logging on to epa. At retirement, you can choose the benefit most appropriate for you, for example the proceeds of your Pension Account could be used to provide you with a pension and tax-free cash lump sum, or just cash. 5

HOW MUCH DO I HAVE TO PAY? The level of contributions to your Pension Account is a key factor in determining the level of income you will have in retirement. Making higher contributions earlier should help you reach your target retirement income. The Scheme s standard contribution rate is as follows, however some members have a different contribution structure and you can find your contribution rates outlined below. Maersk Oil North Sea UK Ltd employees have a supplement to the booklet setting out their benefits including contribution details. Standard contribution rate Employee contribution Employer contribution Total contribution 7% 14% 21% You may choose to pay a lower contribution if you wish, but bear in mind that the Company contribution to your Pension Account will also reduce. The lower contribution structure you can choose is as follows: Employee contribution Employer contribution Total contribution 3.5% 7% 10.5% By choosing the lower contribution structure, this will reduce the amount of money you have at retirement and may mean that you have to continue to work for longer. Maersk Offshore (Guernsey) contribution rate Employee contribution Employer contribution Total contribution 4% 6% 10% Maersk Broker contribution rate Employee contribution Employer contribution Total contribution 3%* 7%* 10% *Some exceptions may apply. Damco contribution rate (this is determined by your length of service and age) Age scale Age Employee Employer Total contribution contribution contribution 18 2% 4% 6% 30 3% 7% 10% 45 4% 10% 14% Service scale Service Employee Employer Total contribution contribution contribution 5 years 1% 1% 2% 10 years 1.5% 2% 3.5% 15 years 2% 4% 6% 25 years 3% 5% 8% 6

What s basic salary? This is your contractual gross pay before tax, National Insurance contributions and any other deductions. Remember: If you choose the lower contribution structure, you are able to change back to the standard contribution structure at any time. If you wish to change your contribution rate, please contact the Pensions Department for the necessary form. Changes to contributions will be processed in the month following receipt of your instruction. The Company contribution is determined by the level of basic salary you receive, before any reduction for Pension Xchange (see page 8). Unless you opt out of Pension Xchange (see page 8), your basic salary will be reduced by the level of contributions you choose to pay. Pension contributions will increase automatically with any increase to your basic salary (although the percentage rate will remain the same). If you opt for the lower contribution structure there is no adjustment to your salary for choosing to receive lower Company contributions. Subject to any legal requirements, the Company reserves the right to withdraw or reduce their contributions, or to make changes to the Scheme. Some members have different contribution rates to those detailed above. If you are one of these members, you will be provided with further information about your contributions. 7

Pension Xchange Under Pension Xchange your annual basic salary is reduced by an amount equal to your pension contributions and in return the Company increases its contributions to the Scheme by the equivalent amount. Pension Xchange does not reduce your other Company benefits. Your salary for all other Company benefits, such as the life assurance and income protection schemes (referred to on page 3), is not affected by Pension Xchange and will be based on your annual basic salary before the Pension Xchange reduction. Paying pension contributions through Pension Xchange means that you make a saving on your National Insurance contributions. Unless you decide to opt out of Pension Xchange, your contributions to the Scheme will automatically be made via Pension Xchange. Membership of Pension Xchange is voluntary and you may opt out if you wish. Further details of how Pension Xchange may benefit you, together with the opt out procedure, can be found in the Pension Xchange booklet which is available on epa. Can I save more? You can save more than the amounts shown on page 6 by paying Additional Voluntary Contributions (AVCs). AVCs are flexible and can be paid in regular monthly amounts or in one off lump sums. They are deducted from salary before tax is applied to your earnings and consequently you receive tax relief at your highest marginal rate. AVCs are included under Pension Xchange. If you decide to pay AVCs, your basic salary will be reduced further to take account of your AVC payment. Correspondingly, the Company contribution to your Pension Account will be increased. The Company has agreed that the savings it makes on National Insurance contributions (which come about because of the reduction to the member s contractual salary for AVCs) will be paid to the member s Pension Account. The Company reserves the right to amend the terms on which Pension Xchange operates in respect of AVCs from time to time. Any changes will be notified to members. Increasing the amount you pay to your Pension Account may be important if you are considering early retirement or if you started paying into a pension scheme late in your career and you want to make up lost ground. Alternatively, you may just wish to increase the amount of money in your Pension Account ready for when you retire. If you wish to pay AVCs please download an AVC Form from epa, complete and return it to the Pensions Department who will arrange for AVCs to commence. Key points to consider: Any extra contributions you can pay are important. Even if these contributions are relatively small, they will have longer to grow and this can make a big difference. All contributions you pay (normal or AVCs) benefit from tax relief at your highest rate. 8

INVESTING YOUR PENSION ACCOUNT IT S UP TO YOU! You need to decide how your Pension Account is invested. This is an important decision because the investment returns achieved will have a direct impact on the size of your Pension Account when you reach retirement age and this affects the income you have in retirement. YOUR ROLE You have two options; you can either: Decide how your Pension Account is to be invested and choose from the range of funds offered on page 10; or if you don t want to manage your investments then you can select the Lifestyle option described on page 11. Please note that on joining the Maersk Pension Scheme your Pension Account is automatically invested in the Lifestyle option. You can change your investment options via epa. Please note that on switching between funds, whilst there are no explicit charges, you may incur trading costs associated with selling and buying units. You also face out of market risk which, subject to market movements, may mean that you suffer a loss during switching. Please see the investment guide for more details. How do I make the right investment choice? The following description of general investment principles has been provided by Towers Watson, the Scheme Administrator. A further investment guide is on epa. When considering your investment strategy you should think about how long you might be investing before you reach your retirement age, what other savings you have and how much risk you are comfortable with. Bear in mind that although higher risk funds may be more likely to go up and down in value, they may give better investment returns over the long term. It is important to choose a fund or funds that suit you. As a general investment strategy you should be looking to maximise capital growth (your investment return) when you are young and some way from retirement. As you move towards your retirement the emphasis changes; capital growth becomes less important as you focus on protecting the value of the investment you have built up by switching your investments to lower risk funds. Over the long term, the lower risk funds will tend to give smaller investment returns, while the higher risk funds are more likely to give a greater investment return. However, the value of funds can go down as well as up and it is important to remember that past performance is not a guide to future performance. Careful investment and regular monitoring of your Pension Account via epa gives it the best opportunity to grow over the years to retirement. 9

Would you like to choose your own? You can choose to invest your Pension Account in any of the following investment funds below. Chosen by the Trustee, these funds offer a wide range of choice and flexibility. Fund Name Annual Management Charge Total Expense Ratio Money Market 0.050% 0.180% Inflation Linked Bond 0.130% 0.140% Fixed Bond 0.140% 0.150% Passive UK Equity 0.130% 0.130% Passive Global Equity 0.150% 0.160% Diversified Growth 0.473% 0.497% Alternative Assets 0.800% 0.840% Active Global Equity 0.900% 0.990% Amanah 0.450% 0.450% Ethical 0.750% 0.780% In addition to the annual management charges, some funds are subject to additional fees. For example, custody, audit and legal fees. The annual management charge plus these additional fees make up the Total Expense Ratio which is paid by you. The above table sets out the Total Expense Ratio of each fund. The Company pays for the administration of the Scheme. The only costs met by the members are the annual charges referred to above plus any additional fees applicable to funds. The Trustee selects and monitors the underlying investment managers for each of the funds and can change these managers if, following advice from its specialist investment advisers, it considers it appropriate to do so. It is recommended that you regularly review your investment decisions to ensure that the funds you have selected remain appropriate for you. There are no explicit charges for switching your funds (which can be done via epa), however, there may be transaction costs. Please see the investment guide for further details. It is recommended that you regularly review your investment decisions to ensure that the funds you have selected remain appropriate for you. 10

The Lifestyle option If you do not make a decision about where your Pension Account is invested, it will automatically be invested in the Diversified Growth fund under the Lifestyle option (the default investment option). Under the Lifestyle option your Pension Account is invested in accordance with a set pattern. It follows the general investment principles described on page 9 and the switching of your investment as you near retirement is carried out automatically every quarter. With the Lifestyle option, while you are more than ten years away from your retirement age (which we assume is age 65 unless you selected a different Target Retirement Age), 100% of your Pension Account is invested in the Diversified Growth Fund. As you approach retirement age your Pension Account is gradually moved to the Fixed Bond Fund and the Money Market Fund. By the time you reach retirement age, 25% of your Pension Account will be in the Money Market Fund (because this is the maximum tax-free cash sum you can currently take on retirement) and 75% is in the Fixed Bond Fund. You cannot invest in any of the individual funds if you choose to invest in the Lifestyle option, although you can select a different investment strategy for your AVCs. You pay charges for the relevant fund when you choose the Lifestyle option. For example, if you are more than 10 years away from retirement, you will be invested fully in the Diversified Growth fund, so you will pay an annual management charge of 0.52%, plus additional charges of 0.04% per annum. 11

Can I change my investment choice? Yes. It is possible to either switch the value you have built up in your Pension Account or redirect future contributions to another investment fund. You can do this at any time vie epa so any decisions you make are not final and can be changed. If you switch to the Lifestyle option, it must be for both your future contributions and the value of your Pension Account already built up. By changing your investment choice you may be subject to market movements and transaction charges. You should review your investment decisions regularly to ensure that they continue to meet your requirements. What happens if I can t make an investment decision? If you cannot choose where to invest, your Pension Account will automatically be invested in the Diversified Growth fund under the Lifestyle option which has a target retirement age of 65. You can switch out of this option at any time via epa. It is recommended that you review this option to ensure it continues to meet your requirements Please note, the provision of a default investment option does not constitute a recommendation and it is likely that this option will not be suitable for everybody. 12

WHAT WILL I GET WHEN I RETIRE? New legislation means that from 6 April 2015 you will no longer be required to buy a pension at retirement. Instead, you will have a number of different options when the time comes to take your money out of the Scheme. A pension for life If you wish you can buy a pension (annuity) at retirement. You can normally take up to 25% of your Pension Account as a tax-free cash sum and use the balance to buy a pension that will pay you with an income for the rest of your life. The level of pension you receive at retirement will depend on the value of your Pension Account, the cost of purchasing the pension and the type of pension you choose, for example, does it include annual increases or a spouse s pension? The common options are: Provide a pension for yourself only If you choose this option, the pension will cease on your death. Include a spouse s or dependant s pension This will give your spouse or dependants an income following your death. It also means that your pension will be smaller because you are using part of your Pension Account to provide additional pension after your death. Include annual pension increases to provide a level of protection against future inflation You decide the level of annual increases which will be provided during retirement. Generally, the higher the level of increase, the more expensive it is to provide. This means the initial amount of pension you are able to buy with your Pension Account will be smaller under this option. Include a guarantee period This ensures your pension will be paid for a minimum period. Normally guarantee periods are between 5 and 10 years. If you die during this period, the remainder of your pension due to be paid during the guarantee period would be paid as a lump sum to your spouse or dependants. Flexible income You can continue to invest your money, whilst gradually withdrawing it to live on in retirement. This is known as income drawdown. You will be able to take a tax-free lump sum of 25% of your retirement savings when designating them as available for drawdown and the income you take is taxed at your marginal rate of income tax. If you want to take flexible income, or if you want to take multiple lump sums over time, you would currently need to transfer your Pension Account out of the Scheme to a regulated arrangement which permits this flexibility. The consent of the Trustee of the Scheme and Maersk may be required. Please contact Towers Watson for further information. Cash From age 55, you can take some or all of your retirement savings as one or more cash lump sums. The first 25% of each lump sum will be tax free, however, the remaining balance would be taxed at your marginal rate of income tax. You will be contacted in the run up to your retirement with further details about your options and what you need to consider. 13

We recommend you get guidance or advice to help you make your decision. Pension Wise is a new service from the Government that will offer free and impartial guidance. Guidance will be available via online resources, telephone sessions and face-to-face appointments. If you are approaching retirement and interested in this service, you can find out more at www.pensionwise.gov.uk. When can I retire? You are no longer required to retire at age 65 and can continue working. You may, with Company consent, draw your pension at any time from age 55. The minimum age for drawing your benefits is increasing to 57 from April 2028. Your Pension Account will generally be smaller the earlier you retire because fewer contributions will have been paid, and it will have been invested for a shorter period of time. Pensions are also generally more expensive to buy the earlier you retire as they are likely to be paid for longer. The opposite is true if you retire later. If you continue to work for Maersk after reaching age 65, contributions to your Pension Account continue until you decide to retire. Cover under the death in service benefits (i.e. the lump sum benefit on death in service) continues through to age 70 whilst you continue working for Maersk. However, you need to be aware that cover under the Group Income Protection Scheme ceases at age 65 regardless of whether you remain in employment with Maersk. Benefit limits Your pension benefits are subject to the Lifetime Allowance (LTA). The Lifetime Allowance is set by the Government and relates to the value of your pension benefits from all sources. The LTA is currently set at 1.25 million (from April 2014). The value of your pension benefits from all pension schemes over your working life are tested against this limit. Where the total value of your benefits exceeds the allowance, you will be subject to a tax charge on the excess. The tax charge is broadly 55%. There is no limit to the amount of contributions you can pay to the Scheme, however, contributions paid by you and the Company over the Annual Allowance of 40,000 (2014/15 tax year) or 100% of your earned income (or 3,600 a year, if higher) will be subject to tax at your marginal rate. If you think you may be affected by any tax charges on your Pension you should seek independent financial advice. If you are in doubt about how much you should contribute to the Scheme, you should consult an Independent Financial Adviser who may charge a fee for this service. You can find a local Independent Financial Adviser at www.moneyadviceservice.org.uk. State benefits Membership of the Maersk Scheme does not affect your entitlement to State Pensions. This means that when you reach State Pension age, you will be entitled to the basic and additional State Pension, provided you have paid sufficient National Insurance contributions throughout your working life. To find your State Pension age go to www.gov.uk/calculate-state-pension. More details about State benefits at retirement, how to obtain a State Pension statement, information on Winter Fuel payments and other support, can be found online at www.gov.uk. 14

WHAT DO I GET IF I LEAVE THE COMPANY BEFORE I RETIRE? If you leave the Company before you retire, or opt out of the Scheme you will become a deferred member of the Scheme. You can transfer the full value of your Pension Account to another pension arrangement at any time if you wish. Under the Rules of the Scheme the Trustee has the power to transfer your Pension Account to another pension arrangement without your consent. The Trustee will, in accordance with Statutory requirements, exercise its right to automatically transfer your Pension Account once your deferred pension entitlement has been held in the Scheme for 12 months. Before proceeding with the transfer the Scheme Administrator will contact you to remind you of your option to choose another pension arrangement to receive the transfer payment. Transferring the value of your Pension Account You can ask the Scheme Administrator to make a transfer of the cash value of your Pension Account to another registered pension arrangement which is able and willing to accept it and which meets any conditions imposed by the Trustee. There are no explicit charges for transferring out of the Scheme, although you may incur transaction costs. You can download a Transfer Request Form from epa. 15

WHAT HAPPENS IF I DIE? Death in service As a member of the Maersk Pension Scheme, the Company provides life assurance cover of ten times salary (four times salary if you re a Damco employee) at no cost to you while you are working for Maersk. The life assurance cover is provided under the Maersk Death in Service Scheme, a separate insurance arrangement outside of the Maersk Pension Scheme. The full life assurance benefit under this policy may be subject to special conditions imposed by the life assurance company for individual employees. You will be notified if any restrictions apply to you. In addition a lump sum benefit is payable from the Maersk Pension Scheme equal to the value of your Pension Account at the date of death. Payment of lump sum death in service benefits The lump sum death in service benefits payable from both the Maersk Death in Service Scheme and the Maersk Pension Scheme are currently payable free from inheritance tax, provided the Trustee has ultimate control over who receives the money. You are, however, able to make your wishes known to the Trustee to help in its selection of beneficiaries. YOUR ROLE You can nominate one or more beneficiaries to receive the lump sum death in service benefits by completing the Expression of Wishes screen on epa. Please ensure that you update your nominations if your circumstances change. Beneficiaries may include: Your spouse, partner or civil partner; Your children or other family members; Anyone you nominate; Any person, who in the Trustee s opinion, was wholly or partially financially dependent on you The lump sum benefit, together with the total value of any other pension benefits, is subject to the Lifetime Allowance. Note the Expression of Wishes screen covers benefits from both the Maersk Pension Scheme (return of Pension Account) and the Maersk Death in Service Scheme (ten times salary or four times salary if you re a Damco employee). Death after leaving service If you die after leaving service but before you reach retirement, a lump sum equal to the full value of your Pension Account will be paid, at the Trustee s discretion, to one or more beneficiaries. Therefore, keeping your Expression of Wishes screen up to date is relevant even if you have left service with a deferred pension benefit held in the Maersk Pension Scheme. Terms and conditions of the Death in Service Scheme and Income Protection Plan The Maersk Death in Service Scheme and Income Protection Plan are provided by the Company under separate insurance arrangements outside the Maersk Pension Scheme. The provision of life assurance and income protection cover is contingent on appropriate insurance being available, on acceptance by the insurer and subject to the insurer s terms and conditions, which may vary from time to time, and subject to acceptable terms for the Company. These benefits are provided by the Company at its absolute discretion and it may vary the terms of these benefits or withdraw them at any time without providing replacement schemes or cover. 16

Cover is dependent on employees satisfying the insurer s definition of actively at work that is, employees are fully capable of performing their normal work duties at the date they are first eligible for cover and they are not at work against medical advice. If the employee does not satisfy the actively at work condition, cover will normally only commence on the employee s return to work to undertake their normal work duties in full. Please note, for employees based offshore or on secondment abroad, the insurer reserves the right to impose specific terms and conditions. In certain circumstances individual underwriting may be required by the insurer. You will be notified within a reasonable period if this applies to you. Full cover may not be in force until the underwriting process has been completed. For example, underwriting may be required in the following circumstances: You are not actively at work when first eligible for cover, but this was due to a non-life threatening condition. You did not join the Maersk Pension Scheme when first eligible to do so. Your salary gives rise to a benefit in excess of a certain threshold. Following completion of any underwriting you will be advised if the insurer has imposed any adverse acceptance terms for example medical exclusions, premium loading or denial of cover. More detailed provisions are contained in the formal insurance policy document. If there is any conflict between the information contained in this booklet and the policy document, the terms of the policy document will prevail. 17

WHAT HAPPENS IF I AM ABSENT FROM WORK? Temporary Absence If you are absent from work and not in receipt of a benefit from the Income Protection Plan, you can remain a member of the Scheme for a maximum of one year. Life cover will continue in the event of absence through ill health until the age of 65 or until the ill health policy ceases after five years. In the event of absence due to activity in the armed forces, life cover will continue for one year. Life cover continues for a period of three years on absence from the Scheme for any other reason. Income protection cover does not continue during periods of temporary absence for any reason other than ill health. Maternity/Adoption Leave You remain a full member of the Scheme during your statutory maternity leave period. Whilst in receipt of Statutory Maternity Pay (SMP) or Statutory Adoption Pay (SAP) your pension contributions cease but the Company contributions, based on your pre-leave pay, will continue. All contributions to the Scheme cease when SMP/SAP finishes and will recommence on return to work. You continue to be covered under the separate Death in Service Scheme and Income Protection Plan. Parental Leave Contributions will continue during absence for as long as you continue to be paid. Contributions to the Scheme stop at the same time your salary ceases to be paid and will recommence at the appropriate level on returning to work. You continue to be covered under the separate Death in Service Scheme and Income Protection Plan. Ill health As a member of the Scheme, you are covered under the Income Protection Plan. If you do not join the Scheme at the first opportunity, you may have to provide evidence of health before benefiting from the Income Protection Plan. You may also have special conditions and/or exclusions imposed on your cover. You will be notified of this if it affects you. 18

The Income Protection Plan provides you with an income in the event of long-term sickness or accident which prevents you from following your own occupation. The benefits are secured through an insurance policy, the cost of which is met by the Company. Payment of benefits to members is in accordance with the Policy Document which is available for inspection on request from the Pensions Department (see the back page). 17 The Income Protection Plan Your claim will be assessed by the insurer and, if accepted, the benefit will become payable following 26 weeks continuous absence from work due to disability. Please inform your HR department as soon as possible if there is any possibility that you may wish to claim under this policy. This will help prevent any delay in commencement of your benefit while the insurance company undergo their assessment of your claim. Under the Income Protection Plan, disability is defined as being unable by reason of sickness or accident to perform the material and substantial duties of your own occupation. Evidence of disability is required by the insurer in respect of any claim for benefit prior to the benefit being paid and at regular intervals during the claim period. In the first instance, your doctor will be asked for evidence to support your claim and, where required, the insurer will approach your consultant/specialist for additional information. The Income Protection Plan provides you with 75% of your basic salary immediately before the commencement of your long-term absence from work. This benefit ceases on return to work in your original capacity/salary level. It may be the case that you can return to work but with reduced hours, in a limited capacity or in a less well paid job as a result of your sickness/disability. In this case, your benefit can, subject to agreement by the insurer, continue but at a proportionately reduced level. The benefit is subject to tax, National Insurance and pension contribution deductions and is payable for a maximum period of five years, until you return to work or reach age 65. The benefit will increase by 2.5% each year for claims in payment for more than 12 months. Your membership of the Income Protection Plan ceases on leaving employment or if you opt out of the Scheme. The benefit is subject to the insurer s maximum benefit limits and may be subject to special conditions imposed on individual employees. You will be notified if any such restrictions apply to you. 19

I M NOT SURE THAT I WANT TO BE A MEMBER WHAT ARE MY OPTIONS? Membership is not compulsory. You can choose to opt out by completing the Opt Out Form, which is available from the Pensions Department at the address shown on the back page. It is also possible to download an Opt Out Form from epa. Before you do consider opting out, please think about the valuable benefits you will be missing out on: You will not receive a benefit at retirement in relation to this period of employment with Maersk. You forfeit the employer contribution to your Maersk Pension Scheme Pension Account. You should consider seeking independent financial advice if you re not sure about your membership. Under automatic enrolment legislation, if you are not a member of the Scheme you will automatically be re-enrolled at least every three years. You will need to opt out again if you still do not want to be a member. If I opt out of the Scheme when I start working for the Company, can I still join later? If you decide to opt out of the Scheme you will only be able to re-join the Scheme at a later date if the Company and Trustee agree. You may be required to provide evidence of health or undergo a medical in order to benefit from full cover under the Death in Service Scheme and Income Protection Plan. It is possible that the level of cover under these policies could be restricted, as membership will be based on your health at the date of joining. Can I change my mind once I have joined? Membership is optional and you may opt out at any time. If you wish to opt out you will need to complete an Opt out Form and return it to the Pensions Department. Your pension contributions will cease in the month following receipt of your instruction. If you subsequently decide to re-join, you may be able to do so at a later date subject to the Trustee s agreement see above. Can I be a member of the Scheme if I am paying into another pension scheme? Yes, you are allowed to contribute to a personal pension or stakeholder plan at the same time and receive tax relief on your contributions, as long as your combined contributions do not exceed the Annual Allowance of 40,000 or 100% of your total earnings (or 3,600 a year, if higher) see page 14 for full details. Please note, the Company will only contribute to the Maersk Pension Scheme. I have benefits in another scheme; can I transfer them into the Maersk Pension Scheme? The Trustee may accept transfers of pension benefits to the Scheme in certain circumstances. However, transfers in respect of Guaranteed Minimum Pensions and/or Protected Rights will not be accepted. If you wish to investigate the possibility of transferring benefits into the Scheme, you should contact the Scheme Administrator at the address shown on the back page for the necessary forms or download these from epa. Transferring benefits from other pension schemes may not always be in your best interests. 20

If you are in any doubt about whether to transfer in any benefits, it is recommended that you seek independent financial advice. 21

WHO SHOULD I SPEAK TO IF I HAVE A COMPLAINT? It is a statutory requirement that all occupational pension schemes operate a formal disputes procedure or Internal Dispute Resolution in order to resolve any queries you may have. The following tells you about the disputes procedure that applies to members of the Scheme. Who can apply for a formal review? Anyone who is a member of the Scheme or who is, was or may be entitled to benefits from the Scheme. You may ask someone else to help you apply for a formal review or to apply on your behalf, if you prefer. What kind of queries are covered by the procedure? Broadly speaking, any queries relating to the administration of the Scheme. How do I apply? You should write to the Secretary to the Trustee, at the address shown on the back page with full details of your query and complaint. What happens next? The Secretary will thoroughly investigate your query and, where possible, reply within two months with a response. This reply will also include details of what to do next if you are unhappy with the decision. In the unlikely event that a reply cannot be given within two months, an interim reply explaining the reasons for the delay will be given. What if I am still unhappy? You can ask for your query to be referred to the Trustee. You must write to the Trustee including the reasons why you are unhappy with the decision. The Trustee will reconsider the decision and write to you if possible within two months, either reconfirming the decision or with a new decision. The Trustee s reply will include a full explanation. It will also include information about what you can do if you are still not satisfied. 22

TPAS TPAS (The Pensions Advisory Service) is available at any time to assist members and beneficiaries of the Scheme in connection with any pension query they may have or difficulty which they have failed to resolve with the Trustee or Scheme Administrator. If you have a problem which cannot be resolved under the complaints process described on page 22, you may refer it to The Pensions Advisory Service (TPAS): Address: The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB Website: www.pensionsadvisoryservice.org.uk Telephone: 0300 123 1047 The Pensions Ombudsman The Pensions Ombudsman may investigate and determine any complaint or dispute of fact or law in relation to an occupational pension scheme where the person makes a complaint in accordance with the Pension Schemes Act 1993. If TPAS fails to resolve your dispute, you can contact the Pensions Ombudsman: Address: The Office of the Pensions Ombudsman 11 Belgrave Road London SW1V 1RB Website: www.pensions-ombudsman.org.uk Email: enquiries@ pensions-ombudsman.org.uk Telephone: 020 7630 2200 The Pensions Regulator If your complaint relates to a failure of the Trustee, the Company or the Scheme Administrator, in their duties in the running of the Scheme, you can contact: Address: The Pensions Regulator Napier House Trafalgar Place Brighton BN1 4DW Website: www.thepensionsregulator.gov.uk Telephone: 0845 600 7060 23

DO I NEED TO KNOW ANYHING ELSE? Every effort has been made to ensure that this booklet summarises all of the benefits of the Scheme in clear, easy to understand terms. The Trust Deed and Rules define the precise details of the Scheme and will prevail should there be any inconsistency between the two. This booklet is valid until further changes are made to the Scheme by the Company and the Trustee, or as a result of changes in legislation. You will be given a benefit statement each year showing the current value of your benefits in the Scheme, together with a projection of the possible benefits you might receive at retirement. You will also be kept informed of any changes made to the Scheme. You can monitor your Pension Account at any time via epa. Changing or closing the Scheme While the Company intends to maintain the Scheme in the form described in this booklet, it reserves the right to amend or discontinue the Scheme in accordance with the Trust Deed and Rules at any time in the future. In the unlikely event that the Scheme is discontinued, the Trustee will use the assets of the Scheme to secure your benefits in the way set out in the Trust Deed and Rules and prescribed by legislation. Legal and technical information The Scheme is run by the Trustee. It is the Trustee s responsibility to run the Scheme in accordance with the Trust Deed and Rules and other legislation, and in the interests of the members. The Scheme has been established under trust so that its assets and liabilities are kept entirely separate from the Company and so that they qualify for the tax concessions offered by the Government. The Trustee has appointed several professional advisers to assist in the running of the Scheme. Details of the Trustee and its advisers are published annually in the Trustee s Report and Accounts. A copy of the annual report is available on request from the Pensions Department or can be viewed online via epa. The day-to-day administration of members accounts has been delegated by the Trustee to Towers Watson Ltd. The day-to-day investment of the funds has been delegated by the Trustee to Fidelity and other investment managers. Data protection The Scheme Administrator will hold personal data for the purpose of calculating and providing your benefits and the dependants benefits under the Scheme and the related Death in Service Scheme policy. The processing of your data may be carried out by the Scheme s advisers and administrators and will be undertaken in accordance with the Data Protection Act 1998. To maintain the security of any information held on computer, the Trustee is registered under the Data Protection Act 1998. Tax Status of Scheme The Scheme is approved by Her Majesty s Revenue & Customs (HMRC) and is operated in accordance with the Income and Corporation Taxes Act 1988 and from 6 April 2006 has acquired Registered Scheme status. The Trustee is the administrator of the Scheme for the purposes of the Act. HMRC approval imposes some restrictions on the payment and use of pension benefits, but currently brings the following tax advantages: You receive full income tax relief on any contributions that you pay to the Scheme within the allowances set out on page 13. You may take part of your Pension Account as a tax-free cash lump sum at retirement. Lump sum death benefits can usually be paid free from inheritance and income tax. Investments grow largely free from tax. 24

Your pension will be taxed in the same way as earnings, using the PAYE system. Pension Sharing on divorce or Dissolution of a Civil Partnership As part of a financial statement on divorce, or following the dissolution of a civil partnership, a Court can split your Pension Account between you and your former partner. The value of the benefit granted to your former partner will be deducted from your Pension Account as instructed by the Court order and paid to another pension provider. 25

CONTACT DETAILS Towers Watson Scheme Administrator Address: The Maersk Pension Scheme DC PO Box 545 Redhill Surrey RH1 1YX epa: https://epa.towerswatson.com/doc/msk/login.htm Email: maerskdcpensions@towerswatson.com Telephone: 01737 788104 The Trustee Address: Maersk Pension Trustee Ltd Maersk House Braham Street London E1 8EP Secretary to the Trustee Address: Maersk House Braham Street London E1 8EP Pensions Department Address: John McGurk Head of Pensions Maersk House Braham Street London E1 8EP Email: john.mcgurk@maersk.com or cathy.adams@maersk.com Telephone: 020 7712 5448 or 020 7712 5449 Financial advice Both the Company and Trustee are unable by law to give you specific financial advice. If you require individual advice, you should contact an Independent Financial Adviser (IFA), who will be able to offer you advice in relation to your own financial circumstances. You can obtain details of IFAs in your area by visiting www.moneyadviceservice.org.uk. You may be charged a fee for any advice that you receive and the Company will not meet the cost of this advice. Pension Wise Pension Wise is the Government's free, impartial retirement guidance service that's open to anyone seeking information about how they can turn their pension fund into a retirement income. Visit www.pensionwise.gov.uk for more information on this service. 26