Business Empowered Stuart Cameron, Pensions Services Director, Xafinity Paul Munro, Principal Consultant, Xafinity EQUINITI’S PROPOSED MOVE TO THE NATIONAL PENSION TRUST In association with The purpose of this presentation  Recap on the Company’s proposal to: □ Close the Equiniti Pension Plan (EPP) and □ Equiniti’s participation in the National Pension Trust (NatPen)  Overview of NatPen: □ □ □ □ □ □ What is a DC Trust and how does it work? Contribution rates What investment options you have? Your benefit options at retirement What happens if you leave? Options in respect of previous pension benefits  Protection Benefits  Next Steps & Timings  Questions What is the National Pension Trust? High quality trust based solution Benefits High:  Governance  Member engagement  Investment support  Decumulation support Low:  Governance requirements on employer  Costs to employer A comprehensive cost effective DC Trust based pension scheme – the only master trust to be awarded the PQM for its ‘core’ product Strong Governance Independent Professional Trustee: ■ Governs Trust to a high level ■ Ensures clear communications channels between all providers ■ Ensures appropriate levels of: □ Risk management □ Internal controls □ Administration service standards □ Quality of record keeping ■ Maintains an action plan and corrects any problems The Trustee is wholly independent of all service providers How does a Defined Contribution (DC) Trust work? How DC schemes work Your Pension Account Annual Income Company Pension Contributions £ Pension Pot converted into benefits Tax Free Cash Member Contributions Spouse’s / Dependant’s Pension Protection Company Payment Benefits No change to Contributions Under age 30 Employee Nothing 1% 2% 2%+ Employer 4% 5% 6% 6% Total 4% 6% 8% 8%+ Employee Nothing 1% 2% 2%+ Employer 6% 7% 8% 8% Total 6% 8% 10% 10%+ Employee Nothing 1% 2% 2%+ Employer 8% 9% 10% 10% Total 8% 10% 12% 12%+ Age 30-44 45 and over Investing the Pension Pot Inflation Asset class returns 10 Options at Retirement 23 Decision Tree  Trustee-established service to     24 help you review your benefit options at retirement Clear and simple language Allows a member to understand their options Information not advice Professional and bespoke Retirement Support ■ Open market (whole of market) ■ Benefit Design support □ Escalation / Spouse / Guaranteed Period □ Impaired life annuity ■ On-line access to model different bases □ Prior to retirement □ At retirement ■ Free Member Helpline ■ Tailored report 25 Retirement Support The NatPen approach addresses tPR concerns about retirement decisions Shopping around can be significantly beneficial The availability of an independently selected Annuity Service ■ Provides members with the best opportunity to select the option that is suitable for them ■ Ensures efficient processes are in place to convert members’ funds ■ Emphasises the importance of proper advice 26 Protection Benefits 27 Death in Service Benefits ■ If you join NatPen, the benefit payable on death in service is: □ The value of your DC Fund at the date of your death; □ In addition, an insured lump sum payment of x Basic Salary* at date of death is payable from a separate Group Life Assurance trust established by Equiniti ■ Pension benefits from previous arrangements may be payable in addition * Members are able to increase or reduce the level of lump sum benefit through Flex benefits system All employees are covered for x Basic Salary, irrespective of pension scheme membership 28 What happens if I leave Equiniti? 29 Leaving Equiniti  If your employment with Equiniti ceases you can no longer be an active member of NatPen and contributions will stop  If you have been in NatPen for more than years, you can □ Leave your funds invested □ Transfer the money from your pension account to your new employer’s pension scheme, (provided it will accept the transfer) or a personal pension  If you have been in the plan for between months and years you can □ Leave your funds invested (if more than £5k) □ Transfer the money from your pension account (as above) , or □ Take a refund of your contributions (less a tax charge) 30 Transfers in from other arrangements 31 Existing pension plans Other pension schemes  NatPen is able to accept transfers of benefits from other registered pension schemes  Alternatively, your other funds can remain where they are and will remain subject to the fund charges for your existing scheme The Equiniti Pension Plan  Once current staff are enrolled in NatPen, the EPP will be wound up  Before the wind-up commences, you will have the opportunity to transfer your funds in the EPP to NatPen (or to a separate arrangement of your choice)  Unless you transfer to NatPen or another arrangement, your EPP fund value will be transferred over to NatPen under an independently certified transfer plan agreed by the EPP Trustees  Investment options letters will be issued to home addresses (Ensure yours is up to date!) 32 Forms for completion: ■ Beneficiary Nomination ■ Investment instruction 33 ■ A separate form should be completed for the Death in Service lump sum, which is payable under a separate trust 34 35 Next Steps  If the Company’s proposal is implemented you will need to: □ Consider whether you want to change the level of contributions you are paying □ Review your Investment options  Irrespective whether you join NatPen or not you should complete a Nomination Form to ensure that any lump sum benefits can be paid to your beneficiaries promptly  Staff considering opting out are encouraged to seek personal independent financial advice 36 Any Questions? 37