Introductory Guide to For employees engaged under the BESA/Unite National Agreement A BUILDING ENGINEERING SERVICES ASSOCIATION Holder of the Master Trust Assurance Framework standard
Entitlement What am I entitled to? As you are employed under the terms of the BESA/Unite Operative National Agreement, you are entitled to participate in your employer s contributory pension scheme. Provided you make your employee contributions to the scheme, your employer will also contribute in accordance with the requirements of the National Agreement. The Parties to the National Agreement the Building Engineering Services Association (BESA) and Unite the Union recognise the need for members of the workforce to have additional income in retirement. What contribution will my employer make for me? From the date you are enrolled, your employer will make pension contributions as detailed in the table below. Your employer will continue to make this contribution for you while you: continue to be employed by them remain a member of the Scheme make your contributions. Which pension scheme is my employer going to use? Your employer has chosen, the industry s preferred pension scheme. Do I need to take any action now? No you do not need to take any action to join the scheme now. Your employer will automatically enrol you in the scheme, from your first date of employment. Do I have to make a contribution? Yes, you must make a contribution from your pay towards your own retirement savings. The minimum amount you need to pay is shown in the table below. Date 3 Oct 2016 5 June 2017 2 Oct 2017 5 Feb 2018 1 Oct 2018 1 April 2019 Employer Pension 5% 5% 5% 5% TBC(2) Employee Pension ¾% 1½% 1½% 2¼% 3% TBC(2) Combined Pension 5 ¾% 6½% 6½% 7¼% 8% Combined Target: 9% for Employees engaged Page 2 of 5
Notes: (1) All pension contribution rates in the above table indicate percentage of pre-tax basic pay. Your earnings, based on a 37.5 hour working week, will be above the tax threshold, and so you should receive full tax relief. (2) TBC = to be confirmed You may choose to save more for your retirement by making additional contributions on a voluntary basis. Please contact your employer if you wish to make additional voluntary contributions. Your employer can also choose to make an additional employer contribution. Scheme design What type of pension scheme is? is a defined contribution occupational pension scheme. Contributions buy fund units that are credited to an individual account in your name. The units held vary in price on a daily basis and will be sold on your retirement or death to provide your Scheme benefits. You will be sent a statement each year showing the current value of your fund at that time. Your benefits at retirement or death will depend on: the amount of contributions paid into your fund and the length of time over which these were paid the investment performance of the funds the annuity terms available from your chosen insurer (should you choose to purchase an annuity) and HMRC limits. An Annual Management Charge is deducted from the fund each year to meet the running costs of the Scheme, including investment management charges. The Scheme does not make any other charges, does not pay commission and provides a free, independent open market annuity service on retirement. Details of the Scheme s current charges are available on the Welplan website. Benefits options The Scheme s default Target Retirement Age (TRA) for both men and women is your State Pension Age. You may however choose a different TRA. You can find out your State Retirement Age by visiting www.gov.uk/state-pension-age HMRC regulations may permit you to take some or all of your fund at retirement as a tax-free cash sum. Details will be provided with your illustration of benefit prior to retirement (or at any time on request). From age 55, you may start to take benefits from the Scheme. Full details of the range of options available from the Scheme (and other options) can be found on the Welplan website. In summary: you may take some or all of your fund from the age of 55, and continue to contribute you may purchase a pension annuity from an insurer you may purchase an Income Drawdown policy from a provider you may transfer to another scheme you may defer taking your benefits to a later date. for Employees engaged Page 3 of 5
When will confirm that I am a Scheme member? Following receipt of information from your employer, will confirm that you are an active member of the scheme by sending you a welcome letter. This letter will confirm your contribution rates, and provide information to explain how you may leave the scheme should you wish to. A summary of the Key Features of the scheme will be included, which explains how to find out more information. Pension Scheme documents are available from the Welplan website. Investment How will contributions be invested? Initially contributions will be automatically invested in the default Lifestyle investment option which is managed by Legal & General Investment Management. You then have the option to invest in alternative funds if you so wish. What charges are made on my fund? Under the default Lifestyle investment option an annual management charge of up to 0.6% is deducted from your fund each year to meet the running costs of the Scheme including investment management charges. The scheme does not make any other charges. What if I already pay into a pension arrangement? Pension legislation allows you to be a member of more than one pension scheme at the same time so you can still be enrolled in. Flexibility Can I transfer funds to or from another pension scheme or arrangement? Subject to the requirements of your other scheme provider(s) and HMRC regulations, your funds can be transferred to or from. makes no charge for such transfers. What happens if I change employer? If you change jobs and join another employer who participates in you can normally continue your membership of the Scheme. The level of your contributions and those of your new employer may change, however, in line with your new offer of employment. If your employer does not participate in, you cannot continue as a contributing member of the scheme. Your options are as follows: your fund can remain invested until you retire or die, or, your fund can usually be transferred to another registered pension arrangement, or You can ask your employer to join. for Employees engaged Page 4 of 5
Do I have to participate in? Your employer has chosen to deliver your National Agreement entitlement but you can choose to leave the Scheme at any time. However, you must bear in mind that in doing so you will lose the benefit of your employer s contribution. Can provide me with advice? The Scheme s in-house administration team is able to provide you with full details on all aspects of the Scheme s operation, including what to do if you wish to leave, retire or make a transfer. However, if you require advice about your own personal financial circumstances in relation to Scheme membership, particularly if you wish to consider leaving the Scheme or transferring an existing pension fund to or from the Scheme, then you should seek advice from an Independent Financial Adviser. What happens to my pension savings if my employer becomes insolvent? Pension contributions are invested in funds managed by Legal & General Investment Management. The investment funds are controlled by the Scheme s independent Trustee Board, Trustee Company Limited, not an individual employer. Accordingly, your fund with will not be affected if your employer becomes insolvent. For further information: provide a freephone helpline for any pension queries you may have. The Scheme s in-house administration team is able to provide you with full details on all aspects of the Scheme s operation. Freephone: E-mail: pensions@welplan.co.uk Visit our website at for Employees engaged Page 5 of 5