Delphi Diesel Systems Pension Plan Member Booklet · The Delphi Diesel System Pension Scheme. Trustee Delphi Diesel Systems Pension Trustee Limited. This factsheet should be read

July 2017

Delphi Diesel Systems Pension PlanMember Booklet

This booklet includes several factsheets to help you learn more about the Delphi DieselSystems Pension Plan (‘the Plan’):

Factsheets

1. Joining the Plan

2. Contributions to the Plan

3. Benefits on Retirement

4. Benefits on Death

5. Benefits on Leaving

6. Miscellaneous

7. Help

8. Data Protection

9. Closed Section members

10. Glossary of terms

Visit www.pensiondepartment.co.uk to download Plan forms and documents.

This booklet highlights the main provisions of the Plan without setting out every detail of itsoperation. Please read Factsheet 6 (Miscellaneous) carefully.

Delphi Diesel Systems Pension Plan Member Booklet

July 2017

Joining the Plan

Factsheet 1

Membership of the Plan

Following a full member consultation which included aballot conducted by the Trade Unions, the PrincipalCompany directed the Trustees to close the pensionscheme to all new members with effect from 1 April 2012.

A new arrangement of a different type has been introducedby the Company for new employees. Please contact yourHuman Resources Department for further information.

Members can opt out of the Plan at any time by giving onecomplete month’s notice and by completing a withdrawalform, available from your Human Resources Department.

Employees who leave the Plan will not be allowed to rejoinin the future.

Following a consultation with the Trade Unions and withactive members of the Delphi Plans in July 2016, thePlan’s benefit and contribution structure changed witheffect from 1st November, 2016 in response to thechanges arising from the abolition of contracting-out from6th April, 2016

Transfer account

This is an arrangement under which the Trustee may allowyou to bring your previous pension rights into the Plan.

Value for Money account

This is made up of:

• your normal Plan contributions at the rate applicable inthe previous scheme year (so for example, from 1st April,2016, 5% of your Pensionable Pay if you are a Memberaccruing benefits at 1.18% in respect of PensionableService after 31st October, 2016).

• a matching Company contribution (so in the exampleabove, 5% in the year from 1st April, 2016).

• interest at the rate of return earned by the Plan asdetermined by the Trustee.

Please note:

1. that it is possible for a year to show a negative overallreturn; and

2. your normal Plan contributions include your notionalcontributions under SMART Pensions (but not your AVCsor notional AVCs under SMART Pensions). (See furtherFactsheet 2).

How the Value for Money guarantee works

When you retire or transfer, the value of your benefits istested to ensure that it is always worth at least as muchas your Value for Money Account. This means you get thebest of both worlds, either:

• a pension with a guaranteed link to your final pay, or

• a pension based (like a personal or stakeholder pension)on the value of your own and the Company’scontributions.

This factsheet should be read in conjunction with the complete member booklet.


July 2017

Contributions to the Plan Page 1 of 2

Factsheet 2

What does it cost?

From 1 November 2016 contributions are payable assummarised in the table below:

You start paying contributions when you join the Plan andstop when you retire or leave the Plan.

Tax relief

So long as you have sufficient Annual Allowance (seebelow), you receive tax relief on all contributions you pay toall tax approved pension schemes (including the Plan) upto 100% of your pay from the Company. This means that forevery £1 you contribute, your take-home pay is onlyreduced by 80p (60p for higher-rate taxpayers).

A standard Annual Allowance (AA) of £40,000 applies forpension inputs in the tax year from 6th April 2016 to 5thApril 2017. (See Factsheet 6 – miscellaneous). Pleasecontact the Pension Department if you think that may applyto you. In broad terms (except for ill-health early retirementpension) the AA of £40,000 is only expected to affecthigher rate taxpayers.

Please note:

If you have accessed any flexible money purchase benefitsafter 5th April 2015 a lower AA of £10,000 (there areproposals to reduce this to £4,000 from 6th April, 2017)would apply to money purchase benefits (such as AVCs) and this would impact on the AA available for DB benefits.

If you are a high income individual (with income from allsources over £110,000 per annum) a lower AA may apply.

Further information can be obtained from the PensionsDepartment if you think that the AA may apply to you.

SMART Pensions

SMART Pensions is the arrangement under which insteadof you paying contributions from your salary, the Companypays an amount equal to what your contributions wouldhave been straight into the Plan. You agree that your pay isreduced by the same amount. This means you and theCompany make savings on the National Insurance youwould have to pay if you made contributions yourself. Forfurther information, see the SMART Pensions booklet.


Accrual Rate Basic Contribution1.25% (80ths) 6.3% of Pensionable Pay1.18% (85ths) 5% of Pensionable Pay


July 2017

Contributions to the Plan Page 2 of 2

Factsheet 2

Additional Voluntary Contributions

You may, if you wish, pay Additional Voluntary Contributions(AVCs) to increase your benefits under the Plan.

It is important to understand the difference betweennormal Plan benefits and AVCs. With regard to Planbenefits, you pay a fixed contribution rate and in return thePlan provides a fixed level of benefits that are tied to yourFinal Pensionable Pay.

AVCs are different – the amount you will receive atretirement depends entirely on how well an outside AVCprovider (currently either Fidelity or the Prudential) investsyour AVCs and, if AVCs are taken as a pension, on the costof purchasing a pension, on retirement. When you retire,the AVC fund can be used to provide additional benefitsor tax free cash. Taking tax free cash will reduce yourresidual pension.

Please note that information relating to AVCs and thechoices available to you in respect of flexible benefits fromAVCs are set out in a separate document which can berequested from the Pension Department.

Contributing to the Plan by AVCs is, subject to the nextparagraph, a tax-efficient means of saving for retirement.Therefore, if you want to enhance your retirement income,give serious consideration to paying AVCs. Further detailsabout the payment of these contributions are available onrequest from your Human Resources Department orPensions Department. If you participate in SMARTPensions, any regular AVCs must also be made throughSMART Pensions. For further information, see the SMARTPensions booklet.

If the effect of paying AVCs would cause you to exceed theAnnual Allowance or the Lifetime Allowance, you need toconsider the tax efficiency of paying AVCs most carefully.See further Factsheet 6 regarding the Annual Allowanceand the Lifetime Allowance.

AVC investment providers

The Trustee currently holds two insurance policies oneissued by Prudential Assurance Company Limited(“Prudential”) and one issued by Fidelity Insurance Limited (“Fidelity”). Both Fidelity and Prudential areinsurance companies.

Contributions you pay as AVCs are credited to your AVCfund in the Plan and are paid under the insurance policiesto the insurance company. The insurance company thencredits the policy with that premium. Your AVC fund islinked to the value of the interest in the policy purchasedwith your AVC fund.

If an insurance company (such as Fidelity or Prudential)becomes insolvent, the value of the policies issued by theinsurance company will be reduced.

Prudential

At Normal Retirement Date or in the event of death,Prudential guarantees that your fund is always equal to atleast the AVCs paid to Prudential, plus regular bonusesalready added.

At other times, a Market Value Reduction (MVR) may beapplied if the value of the underlying assets is less thanthe value of your fund, including all bonuses. This will havethe effect of reducing the amount payable and, ifinvestment returns have been very poor, you may get backless than you have invested. Prudential's practice, as atMarch 2017, on applying a MVR is to provide the full valueof the accumulated fund on early or late retirement. A MVRmay be applied to any full or partial withdrawals as a resultof switches or transfers out of the with-profits Fund.Prudential's practice, as at March 2017, may change at any time without prior notice.

For further information about MVRs, please refer to the Key Features document. This can be found, amongst many other useful tools and calculators, on Prudential’swebsite at:www.pru.co.uk/pensiondepartment

Please remember that the value of an investment may godown as well as up and inflation may reduce what you canbuy in the future.

Fidelity

You decide on the Fidelity funds in which your AVCs areinvested. The size of your AVC fund at retirement dependson how well these investments perform.

It is the nature of investment markets that the value offunds may go up or down. Fidelity has a number of decisionmaking tools to help members plan for retirement:

• Visit the Fidelity pensions website at:www.fidelitypensions.co.ukand click on the 'Planning for retirement' section.

• Alternatively, you can visit:www.planviewer.fidelitypensions.com

Click on the 'Knowledge Point' tab within Planviewer, thenclick on the link to 'Tools & Learning'. For help with yourusername and PIN, please contact Fidelity’s PensionsService Centre via email at:[email protected]



July 2017

Benefits on Retirement Page 1 of 2

Factsheet 3

Retirement at age 65

The Normal Retirement Date for the Plan is age 65. If youretire from age 65, you will receive a pension which will be thegreater of either:

• Pensionable Service x Accrual Rate x Final Pensionable Pay

• The Pension equivalent of Value for Money Account

The Accrual Rate is:

• 1.25% (1/80th) for Pensionable Service prior to 1st November, 2016

• 1.25% (1/80th) or 1.18% (1/85th) for Pensionable Serviceon or after 1st November, 2016

The Accrual Rate refers to periods of one year of PensionableService and shorter periods will be calculated by reference tocomplete months.

Any benefits resulting from a transfer from a previousarrangement will be included.

There may be an option to exchange part of your pension for:

• Tax free cash.

• Additional spouse’s or dependant’s pension.

Early retirement

Your pension is calculated in the same way as at NormalRetirement Date, but is based on your Final Pensionable Payand Pensionable Service at the date you actually retire fromthe Plan.

You may currently retire and draw a pension at any timebetween your minimum pension age and age 65 - provided youhave completed two years' Pensionable Service.

If you joined the Plan prior to 6 April 2006 you may retire fromthe Company from age 50. If you have joined the Plan since6 April 2006 your earliest retirement age is 55.

Your pension is subject to a reduction of 0.3% for each month it is taken before age 65, to take account of the earlier payment. Any pension that is reduced due to earlyretirement must not be less than your Guaranteed MinimumPension (GMP) at State Pension Age. GMP is that part of yourpension which relates to contracting out of the State EarningsRelated Pension Scheme (SERPS) before 6 April 1997. Anypension that is reduced due to early retirement must not beless than your GMP at GMP pension age (60 for a woman and65 for a man). If the GMP exceeds your pension, you may notbe able to retire early.

You may have an additional option to exchange part of yourpension for a Temporary pension to your State Pension Age asdetermined at the time of exchange.

Incapacity

Subject to satisfactory medical evidence you may retire earlyat any age due to permanent ill health or incapacity.

Your pension is paid in full without any reduction for earlyretirement. It is based on your Pensionable Service toretirement date with the addition of either 50% or 100% of thePensionable Service you would have completed up to age 65,depending on the degree of ill health. For the projected periodof Pensionable Service, the accrual rate (either 1.25% or1.18%) is that applicable to you immediately before yourPensionable Service ended. Your early retirement pension maybe withdrawn or reduced if there is sufficient improvement inyour health.


July 2017

Benefits on Retirement Page 2 of 2

Factsheet 3

Pension increases

Pensions in payment will be increased each year by the lowerof 5% and the annual increase in the Retail Prices Index (RPI)for Pensionable Service up to and including 31 January 2008and the lower of 3.75% and the annual increase in the RPI forPensionable Service from 1 February 2008.

The Company and Trustee may award additional increases attheir discretion. The guaranteed increases will be payable inApril each year based on the increase in the RPI as at theprevious 31 December. The first guaranteed increase will be aproportion of the increase that you would have received hadyour pension been in payment for a full year. For example, ifyou have a 1 April retirement date you will receive 12/12th ofthe increase in April of the following year. On the other hand, ifyou have a 1 March retirement date of the same year, you willreceive 1/12th of the increase. At the Company’s absolutediscretion, additional increases may also be provided on top ofthe guaranteed increases. Where a discretionary increase isgranted the Company does not intend that the increase shouldin any way impart any legal obligations to grant any otherdiscretionary increase. The pension increases described arenot provided on that part of your pension which representsyour Guaranteed Minimum Pension after you have reachedGMP age, 65 for a man and 60 for a woman.

See Factsheet 6 for further information about GMPS andindexation of GMPS.




July 2017

Benefits on Death

Factsheet 4

Before retirement

If you are single - so no Spouse’s or dependent’s pension is payableYour dependants would receive a lump sum of four timesyour annual Basic Pay at the date of death and a lump sumof twice your total contributions to the Plan (including anysalary sacrifice made through SMART pensions) plus:

• your AVC account; and

• the present value of any member contributionstransferred into the Plan.

If you are marriedYour dependants would receive a lump sum of three timesyour annual Basic Pay at the date of death, plus:

• your AVC account;

• the present value of any member contributionstransferred into the Plan; and

• a Spouse’s pension of 1% of your annual PensionablePay for each year of Pensionable Service (enhanced bythe period which would have been completed to age 65)with a maximum of 36%.

If you are not living with your Spouse (or are not married),the Trustee may pay a Spouse's pension to someone elsewho is financially dependent upon you at the time of yourdeath (but when a dependant pension is payable, aminimum pension in respect of any period of contracted-outmembership remains payable to a lawful Spouse and thedependant pension is reduced accordingly). A Spouse'spension is for life and does not cease on re-marriage.However, if you marry after Normal Retirement Date, theSpouse's pension will be reduced if your Spouse is morethan ten years younger than you.

Your Spouse is the person of the opposite sex to whomyou are legally to married at the date of your death.

Civil PartnersA surviving Civil Partner is entitled to the same benefits asa Spouse, but based only on:

• benefits which you have accrued after 4 December 2005; and

• contracted-out benefits built up after 5 April 1988 andbefore 5 December 2005.

Civil partners include same sex spouses.

If you have Eligible ChildrenIf there is one Eligible Child, an allowance of half theSpouse’s pension is payable. If there are two or more Eligible Children, pensions equal in total to the Spouse’spension are payable.

This allowance is paid until the Eligible Children reach age16, or 22 if in full-time education. In addition, if the child isin full-time education or approved training, it can continueduring that period of education or approved training but notbeyond age 22. It can also continue while the child isreceiving State disability benefits and is not in paid employment.

The total Spouse and Eligible Children’s pensions cannotexceed the Her Majesty’s Revenue & Customs (HMRC)limits which applied immediately prior to 6 April 2006 (thepensions cannot in aggregate exceed the amount of yourpension before any commutation or surrender).

For the children of a single parent, a notional Spouse’spension is used to calculate their pension.


Page 1 of 2

Benefits on Death


In retirement

If you die within five years of receiving your pensionA tax-free lump sum may be available. It will be theremaining balance of five years’ lifetime pension less anypension (ignoring any future increases) to be paid to asurviving spouse in the same period (and assuming thatthe surviving spouse survived to the end of that period).

If you are marriedA Spouse’s pension of half your pension at retirementbefore you exercised the lump sum or temporary pensionoptions, plus any increases awarded since will be given.

Restrictions relating to a Spouse pension, the definition ofSpouse and civil partner benefits apply as for death before retirement.

If you have eligible children, similar benefits will be payableto those applicable on death before retirement.

See Factsheet 5 – If you die before retirement with adeferred pension.

July 2017 Factsheet 4This factsheet should be read in conjunction with the complete member booklet.

Page 2 of 2


July 2017

Benefits on Leaving Page 1 of 2

Factsheet 5

If you leave Pensionable Service with less than threemonths' Qualifying Service

As the Plan closed to new members from 1st April, 2012this class will be empty for current leavers.

If you leave Pensionable Service with at least threemonths' but less than two years' Qualifying Service

As the Plan closed to new members from 1st April, 2012this class will be empty for current leavers.

If you leave Pensionable Service with at least twoyears' Qualifying Service

A deferred pension based on your Final Pensionable Payand your Pensionable Service at your leaving date ispayable from age 65. With Trustee consent it is payable atany time after age 55 (or earlier in cases of ill-health) at anappropriately reduced rate. The reduced pension must notbe any less than your Guaranteed Minimum Pension (GMP)at GMP pension age (60 for a woman and 65 for a man).When your deferred pension comes into payment it will becompared with the pension equivalent of your Value forMoney Account. You will receive whichever is the greater.

Revaluation

That part of the deferred pension which represents theGuaranteed Minimum Pension (GMP) is increased annuallyin the period to age 65 for men and 60 for women before itcomes into payment by a rate set by the Government. Ifyou were in contracted-out employment on 5th April 2016,following the abolition of contracting-out with effect from6th April 2016, the rate set by the Government is 3.5% peryear (as at the date of this Factsheet) if you leavepensionable service after 6th April 2017

That part of the deferred pension in excess of the GMP, andwhich relates to Pensionable Service before 6 April 2009,is increased over the period until normal pension age or, ifearlier, when the pension comes into payment by the lowerof the increase in the Index (see below) over the number ofcomplete years of deferment and 5% a year compound overthe same period.

That part of the deferred pension in excess of the GMP andwhich relates to Pensionable Service after 5 April 2009 isincreased by the lower of the increase in the Index over thenumber of complete years of deferment and 2.5% a yearcompound over the same period.

Index means the inflation index determined by reference tothe Retail Prices Index for, in broad terms, periods prior to2010, and for periods after 2009 by reference to theConsumer Prices Index. The exact increase is specifiedeach year in an Order made by the Government.



July 2017

Benefits on Leaving Page 2 of 2

Factsheet 5

Transfers

As an alternative to a deferred pension, you can transferyour accrued benefits (including your AVCs – or you can also, in general, transfer your AVCs separately) to another tax-approved or tax-qualified pension scheme – such asyour new employer’s scheme or a personal or stakeholderpension scheme – so long as that scheme agrees to andcan accept the transfer. The transfer payment will be thegreater of the cash equivalent of your deferred pension, oryour Value for Money Account. The Trustee calculates thecash equivalent of the benefits taking into account yourage, Pensionable Service and investment marketconditions at the time. Transfers do not take into accountany possibility of discretionary benefit improvements andmay be reduced by the Trustee.

Whether or not you have left Pensionable Service, you mayask the Pensions Department for an estimate of thetransfer value. The written statement of entitlement thatwill be provided to you in respect of your defined benefits isguaranteed for three months from the date that it wascalculated. You are only entitled to a statement once ayear, unless it is required for divorce proceedings.

If you die before retirement with a deferred pensionand you are:

Single: a lump sum of twice your own total contributions tothe Plan (including any salary sacrifice made throughSMART pensions), plus your AVC account.

Married: a Spouse’s pension of half the deferred pensionas increased to the date of death, plus your AVC accountpaid as a lump sum.

A dependant pension may be payable in the same way ason death before retirement. If you have Eligible Children,broadly similar benefits will be payable to those applicableon death before retirement (see Factsheet 4) based on theSpouse pension above.

Restrictions relating to a Spouse pension, the definition ofSpouse and civil partner benefits apply as for death beforeretirement (see Factsheet 4).

You will be treated as having died in Pensionable Serviceon your leaving date if you die within five years of beingmade redundant and you have (in the Trustee’s opinion) notbeen in employment or self-employment since you left theCompany.



July 2017

Miscellaneous Page 1 of 3

Factsheet 6

Company consent

Where reference is made in the booklet to the Company’sconsent being required, the giving of consent by theCompany on any occasion does not in any way commit theCompany to give its consent, whether in the samecircumstances or different circumstances, on any othersubsequent occasion. The Company is entitled, in giving orwithholding its consent, to act in its own exclusive interest.

References in this booklet to consent include any exerciseof discretion by the Company.

Where the consent of both the Company and theParticipating Employer are needed, the previous paragraphshall apply as if references to Company are separatereferences to the Company and the Participating Employer.

Whilst the Company intends to maintain the Planindefinitely, it may amend or terminate the Plan at any time.In the event of termination, the benefits payable will bedetermined in accordance with the Trust Deed and Rules.

Tax relief

The Plan is a tax-approved (or registered) pension schemeunder the Finance Act 2004. This means that it enjoyscertain tax privileges.

The pension that you are building up in the Plan countstowards your Annual and Lifetime Allowances under theFinance Act 2004. If you go over either of them, you pay aspecial pensions tax charge on the excess. However, theseallowances should affect very few people.

Annual Allowance

The Annual Allowance (AA) is the yearly amount of taxadvantaged retirement benefits you can build up in thePlan, and other pension schemes registered under theFinance Act 2004, before you must pay a special taxcharge on them.

From 6th April, 2016, the standard Annual Allowance (AA)is £40,000 for pension inputs for the tax year from 6thApril, 2016 to 6th April, 2017. There are some transitionalarrangements effecting how the AA operated in 2015/16so individuals may have an annual allowance slightly higherthan £40,000 for that year. Please see below regardingcircumstances when a lower AA may apply.

If you were a member of the Plan and your pension inputwas less than £50,000 for the tax year 2013/14, £40,000for the tax year 2014/15 and £40,000 (as adjusted for thetransitional arrangements) for the tax year 2015/16 youwill be able to carry forward that notional unusedallowance.

Please note:

• If you have accessed any flexible money purchasebenefits since 5th April, 2015 a lower AA of £10,000(there are proposals to reduce this to £4,000 from 6thApril, 2017) would apply to money purchase benefits(such as AVCs) and this would impact on the AA availablefor DB benefits.

• If you are a high income individual (with income from allsources of £110,000 per annum) a lower AA may apply.

This booklet highlights the main provisions of the Plan as they apply to the Open Sectionwithout setting out every detail of its operation. The Plan is constituted by a formal legaldocument, known as the Trust Deed and Rules, which is amended from time to time and willprevail in the event of any discrepancy. Rights to benefits are conferred only by the formaldocument.



July 2017


Factsheet 6

Further detailed information can be obtained from thePensions Department if you think that the AA may apply toyou. The description above is a very broad summary of theAA requirements. If you think that the AA may apply to youplease contact the Pensions Department for moreinformation.

Please note that it is your responsibility to keep track of your benefits against the Annual Allowance. If you are overthe allowance for the tax year, you will pay a tax charge(known as the ‘Annual Allowance charge’) on the excessover the allowance.

Lifetime Allowance

The Lifetime Allowance (LTA) is the total value of retirementbenefits you can build up over your working life before youmust pay a special tax charge on them.

This applies to benefits from all UK tax-approved (orregistered) pension arrangements, so if you have benefitsdue from tax-approved or registered company schemes youwere in before you joined the Company, or any personalpension plan, stakeholder plan or retirement annuitycontract, they all count.

When you come to draw your pension, the Trustee will aimto arrange for the value of your pension to be calculatedand checked against the LTA.

The Trustee will need to ask for details of benefits you havein other tax-registered schemes (and may postponepayment of your benefits or deduct additional tax if you donot supply this information).

The LTA should only affect a small number of people. From6 April 2016, the LTA was reduced to £1 million. Pleasenote that it is your responsibility to keep track of yourbenefits against the LTA. If you are over the LTA when youtake your benefits, you will pay a special tax charge on theexcess (at the date of this booklet. an effective rate of 55%).

Unauthorised payments

There are certain benefits which were permitted by HerMajesty’s Revenue & Customs (HMRC) before 6 April 2006,but which if paid now could be classed as ‘unauthorisedpayments’. Even if you had accrued a right to thesebenefits before 6 April 2006, they can now only be paid ifboth the Company and the Trustee agree. If any benefit,through oversight, is paid by the Trustee which is classedas unauthorised by HMRC, then that benefit will be treatedas paid by mistake and you will have to repay it.

The descriptions of benefits contained in this booklet must be read subject to that caveat. However, in normalcircumstances it is not expected that the benefits in thisbooklet would fall into this category.

Relationship with the pre-6 April 2006 tax regime

The limits imposed on the Plan by the tax regime whichexisted before 6 April 2006 will continue to apply tocontributions and benefits payable after 5 April 2006 fromthe Plan, other than where the Company and the Trusteeexpressly agree otherwise.

Your benefits may be reduced if they would otherwiseexceed these limits as provided for in the Trust Deed andRules. Furthermore, adverse tax consequences can arise ifthe new HMRC rules are not complied with or allowancesare exceeded – see the previous paragraphs for further details.

Forfeiture

It is illegal to attempt to use any benefit under the Plan assecurity for a loan. Any attempt to do so could lead to aforfeiture of benefits.



July 2017


Factsheet 6

Additional Voluntary Contribution (AVC) investment providers

This booklet summarises, in broad terms, certainprovisions of the legal documents issued by the AVCinvestment providers (Prudential and Fidelity) to theTrustee. This booklet confers no rights to benefits underthose legal documents.

If there are differences between the summary of the legaldocuments set out in this booklet and the terms of thelegal documents, the terms of the legal documents willprevail over the summary. Further information about theway AVCs can be invested is given in the AVC guidesprovided by Prudential and Fidelity.

Please note that information relating to AVCs and choicesavailable to you in respect of flexible benefits from AVCsare set out in a separate document which can berequested from the Pensions Department.

Contracted-out employment

If you were a member of another pension scheme and werecontracted out of SERPS before 6 April 1997, and youtransferred those rights into the Plan, then you have aGuaranteed Minimum Pension (GMP) in respect of thosecontracted-out rights in the Plan. Legislation requires theGMP to be treated differently from the rest of your pension.

If you were in contracted-out employment after 5th April,1997 and before 6th April, 2016, by reference to the Plan(or any other contracted-out salary related pension schemefrom which rights have been transferred into the Plan)service was contracted-out using the reference schemetest basis. Broadly, this required that the Plan actuarycertified that the Plan was expected to provide pensions forat least 90% of contributing members, which were at leastas good as those under a “reference scheme” set out inthe Pension Schemes Act 1993.

Contracting out no longer applies from the start of 6th April, 2016.

Indexation of GMPs

As set out at Factsheet 3, the pension increases describedin that Factsheet do not apply to the part of your pensionwhich represents your GMP. Prior to 6th April, 2016, GMPswere, in general, effectively “increased” in line withincreases in the cost of living. Except for the increasesreferred to below for which the Plan is responsible, these“increases” were effectively paid by the State directly toyou as part of your Basic State Pension. However, if yourGMP was greater than the State Earnings Related Pensionin respect of your period of contracted-out membership,such “increases” paid by the State may have beenrestricted until the position was equalised.

The Plan is responsible for paying the first 3% (or increasein cost of living if less) on that part of your GMP accruingfrom 6th April, 1988 to 5th April, 1997. The exact level ofthe increase is specified in an annual order made by theGovernment which is based on the lower of 3%, and theincrease in the Consumer Prices Index.

After 5th April, 2016, the part of the GMP "increase"effectively paid by the State will be included in the calculation of the new Single Tier State Pension while thePlan’s responsibility will remain as set out above.



July 2017

Help

Factsheet 7

Questions about the Plan

If you have any questions about the Plan, you can contact thePensions Manager:

Phone: 01582 427016

Email: [email protected]

In writing: Pension DepartmentGriffin HouseOsborne RoadLUTONLU1 3YT

Website: www.pensiondepartment.co.uk

You can download various items, including:

• Forms (Expression of Wish, Change of Address, etc.)

• Annual Report

• The Trust Deed and Rules

Dispute resolution procedure

The Trustee tries to run the Plan so that members do not havecause for complaint. If a problem does occur, you should raiseit first informally with the staff of the Pension Department (seeabove for contact details). You may also, at any stage, use theservices of The Pensions Advisory Service (see opposite fordetails).

If any disagreement cannot be resolved informally, you mayuse the Pension Department’s formal dispute resolutionprocedure. A member, beneficiary or prospective beneficiarycan initiate the following procedure:

1) Request a copy of the procedure from the PensionDepartment.

2) Complete and return the application form (included in thecopy of the procedure) to the Pension Department.

3) You will receive a decision from the Pensions Manager. If you are unhappy with the decision, you can send theManager’s decision to the Trustee, along with your reasons foryour dissatisfaction. If you are unhappy with the Trustee’sdecision you may take your case to the Pensions Ombudsman(see opposite for details).

The Pensions Advisory Service (TPAS)

TPAS is available at any time to help members andbeneficiaries of an occupational pension scheme withpensions questions and issues they have been unable toresolve with the trustees or administrators of the pensionscheme. TPAS can be contacted through your nearest Citizen'sAdvice Bureau or at:

In writing: 11 Belgrave RoadLONDONSW1V 1RB

Phone: 0300 123 1047 Email: www.pensionsadvisoryservice.org.uk

(complete online enquiry form)

Page 1 of 2


Page 2 of 2


July 2017

Help

Factsheet 7

Pensions Ombudsman

In cases where a complaint or a dispute cannot be resolved,normally after the intervention of TPAS, an application foradjudication can be made to the Pensions Ombudsman.Subject to any limits on his jurisdiction imposed by thePension Schemes Act 1993, the Pensions Ombudsman mayinvestigate and determine certain complaints or disputesabout pensions that are referred to the Ombudsman inaccordance with the Pension Schemes Act 1993. The servicesof the Pensions Ombudsman are available to members,beneficiaries and prospective members ofpension schemes.

In writing: 11 Belgrave RoadLONDONSW1V 1RB

Phone: 020 7630 2200 Email: [email protected]

The Pensions Regulator

The Pensions Regulator may intervene in the running ofschemes where trustees, employers or professionaladvisers have failed in their duties: The address is:

In writing: Napier HouseTrafalgar PlaceBRIGHTONBN1 4DW

Phone: 0345 609 0707Email: [email protected]



July 2017

Data Protection

Factsheet 8

The Trustee will hold personal data provided by you (and,where appropriate, by third parties such as your employeror medical advisers or any pension Plan or arrangementfrom which benefits are transferred to the Plan) for thepurpose of calculating and providing your benefits and yoursurvivors’ benefits under the Plan.

They may also make that information available to others(within the United Kingdom or in any other country) wherethe Trustee thinks it is necessary or desirable to do so inconnection with the Plan or with its administration or thepayment of benefits under it. In particular, the Trustee maymake the information available to its professional advisers,the administrators responsible for providing benefits, andany other persons who may become involved in orresponsible for providing benefits.

In addition, they may make that information available toyour employer and other companies in your employer’sgroup, or with whom your employer is dealing (within theUnited Kingdom or in any other country) where required forthe preparation of accounts or other financial information,for the calculation of remuneration packages or thedevelopment of remuneration policy, or otherwise inconnection with the business of your employer’s group.

In particular, they may make that information available tocompanies which are considering acquiring or haveacquired your employer or the whole or part of youremployer’s business, or to the trustees, administrators orprofessional advisers of any pension plan to or from whichyour rights under the Plan may be, are being or have beentransferred, or to any company participating in such a Plan.

Some data processing is or may be done outside theEuropean Economic Area (EEA). For example, data may betransferred to databases held by other companies in youremployer’s group worldwide outside the EEA and access tothis data may be provided to authorised persons in thosecompanies. In territories outside the EEA, laws andpractices relating to the protection of personal data may beweaker than those within the EEA.

It should be noted that the Trustee may require to hold orotherwise process data for legitimate purposes other thanthose described above.

The reference in this statement to the Trustee includes anyperson within the employer’s group who processespersonal data on its behalf.

Where any personal data is transferred to a third party inthe circumstances provided above and that third partybecomes a data controller in relation to that data, theparagraphs above will apply as if references to the Trusteewere references to that data controller.

It is a condition of membership of the Plan that youconsent to the holding, processing and transfer of theinformation needed to calculate and pay your own benefitsand your survivor's benefits in the ways described above.

If you want to know more about the information held by theTrustee or the purposes for which it is held, please contactthe Pensions Manager.



July 2017

Closed Section members Page 1 of 2

Factsheet 9

How does my pension differ from the Open Section?

There is a Closed Staff Section of the Plan and a ClosedWorks Section. The following is a summary of the specialprovisions that apply solely to the closed sections.

Contributions

From 1st November 2016 contributions are payable asshown in the table below:

However, if you are a 29 Year Member who:

•is a Closed Scheme member who has achieved 29 years’continuous company service,

•joined the Lucas Pension Plan at your first opportunity,

•remained in membership up to 6th January 2000 and

•elected to transfer your past service rights from thatarrangement to the Plan with effect from 7th January2000,

from 1st November 2016 your contributions are shown inthe table below.

Please note SMART Pensions applies to the Closed StaffSection and the Closed Works Section (see Factsheet 2).

Retirement at age 65

The Normal Retirement Date for the Plan is age 65. If youretire from age 65, your pension is calculated at the rate of:

• 1.6% (1/62.5th) of Final Pensionable Pay for PensionableService in the Plan prior to 1st November, 2016.

• 1.6% (1/62.5th) or 1.51% (1/66th) of Final PensionablePay for Pensionable Service in the Plan on or after 1stNovember, 2016.

Any benefits resulting from a transfer from a previousarrangement will be included.

Early retirement

If you retire early from age 50, your pension will be reducedby 0.3% for every month that it is taken before age 60.

An Early Retirement Allowance (ERA) is paid if you retireearly on immediate pension (other than incapacity). Thiscash allowance is currently £464 for each year (up to amaximum of 30 years) of:

• Pensionable Service – Closed Staff Section

• Pensionable Service from 12th November 1991 – Closed Works section.

If you are aged between 62½ and 65 on early retirement, this sum is reduced by 1/30th for each complete month after age 62½.

The ERA is used to provide additional pension benefits.

The ERA is decided and reviewed by the Company fromtime to time with the approval of the Trustee.


Accrual Rate Basic Contribution1.60% (62.5ths) 7.8% of Pensionable Pay1.51 % (66ths) 6.5% of Pensionable Pay

Accrual Rate Basic Contribution1.60% (62.5ths) 3.3% of Pensionable Pay1.51 % (66ths) 2.0% of Pensionable Pay


July 2017

Closed Section members Page 2 of 2

Factsheet 9

Redundancy

If you retire early as a result of redundancy from age 50, your pension will be reduced by 0.3% for every month that it is taken before age 55.

The ERA is also paid on redundancy. It is the same as forvoluntary early retirement except that Closed WorksSection members can count all their Pensionable Serviceup to a maximum of 30 years.

Special note

The Value for Money check does not apply to Closed Section members.



July 2017

Glossary of terms Page 1 of 2

Factsheet 10

Basic Pay

Basic salary excluding shift pay, directors’ fees,commission and, unless the Company decides otherwise,overtime, bonus and any other fluctuating work-related pay.

Civil Partner

• A surviving Civil Partner is entitled to the same benefitsas a Spouse, but based only on:

• benefits which you have accrued after 4 December 2005;and

• contracted-out benefits built up after 5 April 1988 andbefore 5 December 2005.

Civil partners include same sex spouses.

Company

Delphi Diesel Systems Limited.

Eligible Child

A child (including a legally adopted child, an unborn child, a step-child, or a child in relation to whom the Trusteebelieves you stood in the place of the child’s parents) who:

(a) is under 16 (except where the child is not your naturalor adopted child, in which case he or she must alsohave been financially dependent on you at the date ofyour death); or

(b) is under 22 and is in full-time education or training forany trade or profession or vocation approved by theTrustees (except where the child is not your natural oradopted child, in which case he or she must also havebeen financially dependent on you at the date of yourdeath); or

(c) is receiving a State disability benefit but is not in paidemployment (including self-employment).

Final Pensionable Pay

Your annual Pensionable Pay in the Plan year ending on 31st March of:

• the same calendar year in which your PensionableService ends, if that happens on or after 1 July; or

• the calendar year before your Pensionable Service ends, if that happens before the 1 July.

It is increased in respect of each complete calendar monthfrom the end of that Scheme year up to the day before yourPensionable Service ends by the change in the RPI.

The change in the RPI is measured using the RPI fourmonths before Pensionable Service ends.

If you work part time, your Final Pensionable Pay iscalculated as if you worked full time during any suchperiod, but your Pensionable Service during that period ofpart time working is rated down proportionately (subject to an earnings cap inthe case of members who are treated as having joined thePlan on or after 1st June, 1989 for the purposes of HMRClimits prior to 6th April, 2006).

Guaranteed Minimum Pension (GMP)

The part of your pension which relates to contracting out ofthe State Earnings Related Pension Scheme (SERPS)before6 April 1997.

Normal Retirement Date

Your 65th birthday.

Pensionable Pay

Your annual rate of Basic Pay.



July 2017

Glossary of terms Page 2 of 2

Factsheet 10

Pensionable Service

Your service as a member of the Plan. This is normallycontinuous Company service.

Qualifying Service

Your service as a member of the Plan. This may alsoinclude other categories of service.

Spouse

The person of the opposite sex to whom the member waslawfully married at their date of death.

State Pension Age (SPA)

The table below gives an indication of an individual's statepension age by reference to his or her date of birth andgender (but please note that this is subject to review andincrease by the Government from time to time). SPA will be 68.

The Plan

The Delphi Diesel System Pension Scheme.

Trustee

Delphi Diesel Systems Pension Trustee Limited.


Date of Birth State Pension Age

Woman born before 6thApril 1950

60

Man born before 6thDecember 1953)

65

Woman born after 5thApril 1950 but before 6thDecember 1953

Greater than 60 but lessthan or equal to 65

Man or woman born after5th December 1953 butbefore 6th October 1954

At some point between 65thand 66th birthday dependingon exact date of birth

Man or woman born after5th October 1954 butbefore 6th April 1960

66

Man or woman born after5th April 1960 but before6th March 1961


Man or woman born after5th March 1961 butbefore 6th April 1977

67

Man or woman born after5th April 1977 but before6th April 1978


Man or woman born after5th April 1978

68

Documents

Delphi Diesel Systems Pension Plan Member Booklet · The Delphi Diesel System Pension Scheme. Trustee Delphi Diesel Systems Pension Trustee Limited. This factsheet should be read