Your future, your pension

Pennon Group Defined Benefit Pension Scheme

Key Questions and Answers

Q
A / Why have you not increased the cap?
In order to secure the long term sustainability and affordability of the Defined Benefit Scheme it is vital that we control our costs. The pensionable pay cap is a key element of our strategy to achieve this. However, we recognise that many members have expressed concern about the impact of this limit on pensionable pay and believe that providing an opportunity to join the Defined Contribution Scheme to supplement pension saving is a sensible and affordable alternative.
Q
A / Have the Trustees agreed to these changes?
The Trustees have a duty to protect the benefits already built up in the Scheme. How benefits are built up in the future is largely a matter for the Company after consulting with members and Trustees. Our consultation process has been extensive and thorough and the Trustee Board has agreed the changes.
Q
A / If I am already in the SMART arrangement will I automatically be opted into the SMART in the new Defined Benefit Section?
Yes you will automatically be transferred into SMART whether you choose the standard option or the low cost/retirement age choice.
Q
A / How do I join the Defined Contribution ‘top up’ Scheme?
You will be able to join the Defined Contribution Scheme if you receive a salary increase above the cap and wish to use the additional eligible pay to make DC contributions on. You will need to contact the Pensions team and membership will operate in the same way as for employees already in the DC Scheme. Details of the Scheme can be found on the Pensions internet site http://pensions.pennon-group.co.uk/ or are available from the Pensions team.
Q
A / If I join the Defined Contribution Scheme do I have to use all my ‘above the cap’ eligible pensionable pay?
If you decide to join the Defined Contribution Scheme all your pensionable pay above the cap will automatically be used to calculate your contribution. It will not be possible to only use part of balance.
Q
A / What happens if I want to leave the Defined Contribution Scheme?
It will be possible to leave the Scheme at any time, but you will not be able to stop and start on a monthly basis. Details can be found on the Pensions internet site http://pensions.pennon-group.co.uk/ or from the Pensions team.
Q
A / If I join the Defined Contribution Scheme can I change my contribution rate?
If you join the Scheme your employee contribution will be 3%, 4% or 5% of your eligible pensionable pay above the cap. Should you wish to change your contribution you will be able to do so at the beginning of April each year.
Q
A / Can I contribute more than 5% of my eligible pensionable pay above the cap into the Defined Contribution Scheme?
Yes, you can make Additional Voluntary Contributions (AVCs) to the DC Scheme either as a percentage of your eligible pensionable pay above the cap or as a monthly cash amount. These contributions would not be accompanied by an employer contribution.
Q
A / Will I receive confirmation that you have received my option form?
When we reach the closing date for option applications on 1 July 2014, we will write to everyone to confirm their selection.
Q
A / What will happen next?
Once you have made your selection and have received confirmation you do not need to do anything else. Your employee pension contribution will be adjusted by the Payroll team and you will be able to view your details each month on your electronic payslip in Hermes.

( Help line: 01392 442802 ý Visit: www.yourfutureyourpension.co.uk

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