Flexible Benefits Member Guide - Casuals&Hotdesk Sept 2013

7/30/2019 Flexible Benefits Member Guide - Casuals&Hotdesk Sept 2013

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THE GMG LIFESTYLE PLAN

MEMBERS' GUIDE

Applicable to Casual Workers, including Hotdesk,from 1st September 2013

Word/Perm/Flexible Benefits Member Guide Casuals&Hotdesk Sept 2013


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CONTENTS

1. INTRODUCTION

2. DEFINITIONS

3. JOINING THE PLAN

4. CONTRIBUTIONS

5. INVESTMENTS

6. OTHER PENSIONS BENEFITS

7. DEATH IN SERVICE BENEFITS

8. OPTING OUT

9. LEAVING PENSIONABLE SERVICE

10.TAKING RETIREMENT BENEFITS

11.SECURING RETIREMENT BENEFITS

12.TAX ALLOWANCES

13.LOOKING AFTER YOUR MONEY

14.COMPLAINTS PROCEDURE

15.AMENDMENT OF THE PLAN AND DISCONTINUANCE

16.ASSIGNING YOUR BENEFITS

17.DIVORCE

18.EXTERNAL AGENCIES

19.CONTACT DETAILS

1. INTRODUCTION

The Lifestyle Plan is our own in-house company pension scheme which is run fromthe Guardian Media Groups Pensions Department based in Manchester.



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This guide is designed to explain the Plan in some detail. The exact terms andconditions are contained in the Trust Deed and Rules which is available forinspection on request from the Pensions Department.

The Plan is approved by the Inland Revenue under Chapter I, Part XIV of the Incomeand Corporation Taxes Act 1988.

2. DEFINITIONS

These definitions are provided to assist in reading this guide. Some of the definitionsare an abridged version of the full definition which appears in the Trust Deed andRules.

Beneficiary means one or more persons or bodies as the Trustees consider would

be appropriate recipients of all or part of the lump sum benefits payable on aMembers death.

Pensionable Earnings means actual earnings received each pay period includingshift pay and holiday allowance. Any such item may be excluded if notified by theCompany before it is paid.

Qualifying Service means the most recent period of membership subject to theprovisos in the definition of Qualifying Service set out in the Trust Deed and Rules.

3. JOINING THE PLAN

Eligible casual workers join the Plan, via auto-enrolment in accordance withgovernment regulations. To be eligible for auto-enrolment, workers must be age 22or over, be under State Pension Age, work in the UK, be on the company payroll andearn over 787 a month (for 2013/2014 tax year).

Any casual workers, on the company payroll, irrespective of age or earnings, canchoose to join the Plan by completing an Application to opt-in available from GMGPensions Department.

4. CONTRIBUTIONS

YOUR CONTRIBUTIONS

If you are auto-enrolled into the Lifestyle Plan, you start paying contributions of 1% of



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Pensionable Earnings each month.

You can choose to contribute between 1% and 100%* of your Pensionable Earningseach month (if you choose to contribute 100%, then an allowance will need to bemade for the deduction of National Insurance contributions) . You can change the %

rate at any time by completing the relevant form which is available on request fromthe Pensions Department, or via the casual workers section of our pensions websitewww.gmgpensions.co.uk .

*Please see Section 12 re the maximum total contributions eligible for tax relief.

COMPANY CONTRIBUTIONS

Until 30th September 2017, the company will pay 1% contributions for workers whopay at least 1% contributions themselves. (The company also pays for the lump sum

death in service benefit and meets the general administration costs of running theLifestyle Plan).

From 1st October 2017, the company will pay 2% contributions for workers who pay atleast 3% contributions.

From 1st October 2018, the company will pay 3% contributions for workers who pay atleast 5% contributions.

http://www.gmgpensions.co.uk/http://www.gmgpensions.co.uk/


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5. INVESTMENTS

Please refer to our separate Investment Guide and the website www.gmgpensions.co.ukfordetailed information regarding your investment choices.

Briefly, your contributions, together with the companys contributions and anythingyou transfer in, will all be allocated to your individual Lifestyle account. You willreceive a benefit statement each year showing details of your individual account.The statement will show the value of the contributions you and the company will havemade during the year and will also give details of the way your account is invested.

CHOICE OF FUNDS

You have a choice over how to invest your Lifestyle account. You can spread yourinvestment amongst the available funds in whatever way you choose. It is alwaysimportant to keep an eye on your Lifestyle account and you may wish to move

between the available funds from time to time.

You are able to specify investment in any of the following funds in any proportions:-

The Long Term FundThe Short Term Fund (Bonds Section)The Short Term Fund (Cash Section)UK Equity FundOverseas Equity FundEthical Global Equity FundCorporate Bond Fund

UK Government Stocks FundIndex-Linked UK Government Stocks Fund

AUTOMATIC INVESTMENT STRATEGY

If you dont feel comfortable managing your own investments, there is an automaticarrangement. Under this arrangement, your account is normally invested in the LongTerm Fund, which is currently invested in a mixture of Equities and Bonds. The valueof these investments can be volatile from time to time and can sometimes suffersharp setbacks in times of economic or political difficulty. Despite this volatility andthe absence of guarantees, these types of investments are nevertheless generally

considered to provide an appropriate vehicle for long term growth.

As you approach retirement, it is usually helpful to try to reduce volatility by switchingyour Lifestyle Account into the Short Term Fund which is currently invested in Bondsand Cash. Whilst Bonds can fluctuate, they tend to move in line with interest ratesgenerally thus giving some stability to the pension which you can purchase with youraccumulated account. However, Bonds cannot protect against changes in otherfactors which insurance companies use to determine annuity rates such as mortalitytrends. You should also bear in mind that the Short Term Fund might not beappropriate if you intend to choose a non-conventional annuity or income draw downarrangement (see Lifestyle Plan literature for more information regarding these

choices at retirement).



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Under the default arrangements, your investments are normally automaticallyswitched over the ten years before your retirement from the Long Term Fund into theShort Term Fund. In each of the ten years until retirement 10% of your accumulatedaccount will be switched, so that during the last year before retirement, the whole ofyour account will be in the Short Term Fund. Your retirement date for this purpose is

set to the default (age 65) although you can specify your own Target Retirement Datethus giving you control over the switching into the Short Term Fund. You can changeyour Target Retirement Date at any time.

The default strategy has been designed to provide a carefully worked out investmentstrategy that can be suitable for many members through their careers. However,there could be a number of reasons why you might want to override the automaticarrangements and make your own investment choices, perhaps after seekingindependent financial advice.

6. OTHER PENSION BENEFITS

If you have pension benefits with a previous employers company pension scheme, orperhaps in a personal pension or Stakeholder pension, it may be possible to transferyour benefits to the Lifestyle Plan, subject to the approval of the Trustees. If youwant any information please contact GMG Pensions Department details on backpage.

7. DEATH BENEFITS

In the event of your death, whilst a contributing member of the Lifestyle Plan, a lumpsum of 5,000, plus the value of your Lifestyle Plan account, would be payable toyour beneficiaries.

In the event of your death, whilst a deferred member (not contributing) of the LifestylePlan, the value of your Lifestyle Plan account would be payable to your beneficiaries.

PAYMENT OF LUMP SUM DEATH BENEFITS

Lump sum benefits arising on death are paid under trust. This means that thetrustees have to decide who is to receive the benefit. The purpose of thisarrangement is to ensure that the payment is free from inheritance tax under currentlegislation and that it can be paid quickly without needing to wait for probate.Although the trustees have the final decision as to who should receive any deathbenefit you are encouraged to complete a nomination form to indicate your wishesregarding possible Beneficiaries. A nomination form is available from the PensionsDepartment.

You are advised to complete a new nomination form whenever your personalcircumstances change e.g. marriage, divorce, new children and so on. This isadvisable even if you do not wish to change your nomination(s).



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8. OPTING OUT

You can opt out of the Lifestyle Plan on the official form obtainable from the PensionsDepartment, or on the casual workers section of the website ,www.gmgpensions.co.uk .

If your completed opt-out form is received during your first month of membership thenyou will be removed from the Lifestyle Plan, and any contributions you have alreadymade will be refunded via payroll.

If your opt-out form is received after your first month of membership, then thecontributions made by both you and the company will remain invested in yourLifestyle Plan account (until you either take retirement benefits or transfer youraccount to an alternative pension arrangement).

9. LEAVING PENSIONABLE SERVICE

Whenever you leave, irrespective of the length of your qualifying service, all ofthe money paid into your Lifestyle account can remain invested until you retire, whenit can be used to buy a pension in the normal way. You can still choose from the fullrange of investment options.

Once you have ceased to be a contributing member of the Plan, at any time you canchoose to transfer the value of your Lifestyle account to another suitably approvedoccupational pension scheme or to a personal pension, or Stakeholder pension, withan authorised provider such as an insurance company.

10. TAKING RETIREMENT BENEFITS

The earliest you can take retirement benefits is age 55. Please contact GMGPensions Department if you would like a retirement illustration.

11. SECURING RETIREMENT BENEFITS

On retirement your pension is normally secured by the trustees by the purchase of an

annuity with an insurance company.

The Lifestyle Plan's pension advisers are responsible for advising the trustees on thechoice of insurance companies for the purchase of each member's benefits.Quotations are always obtained for each member's benefits at the time of retirementfrom the panel of insurance companies used from time to time. However, you can ifyou wish specify any insurance company to be used for the purpose of securing yourbenefits.

You get to choose (subject to some restrictions) the design of your pension in termsof how much pension you want, what pension is payable to your spouse on your

death, whether the pension is to be guaranteed and how much the pension is to beincreased each year. You will be given details of the choices and the features



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relating to your pension at the time of retirement.

On retirement, or early retirement, you may elect to take a tax free lump sum of anyamount up to the maximum laid down in the Trust Deed and Rules which reflects therequirements of Her Majestys Revenue and Customs (HMRC) rules. This is typically

25% of your individual Lifestyle account at retirement.

12. TAX ALLOWANCES

.Contributions

To qualify for tax relief, total contributions from both you and the company (across alltax-approved pension arrangements) in any one tax year must be within the AnnualAllowance (AA). For the purposes of the Plan, the year over which you will be

assessed will be each Plan year, ending 31

st

March.

The AA for 2013/14 is 50,000. Any contributions in excess of the AA will be taxed atthe workers full marginal rate of income tax. (It is possible to carry forward anyunused Annual Allowance from the previous three tax years).

From 6th April 2014, the AA reduces to 40,000.

.Pension at Retirement

There is a limit on the amount of pension that qualifies for tax relief, known as the

Lifetime Allowance (LTA). It applies when benefits are taken and applies to allpension benefits that individuals build up, over their entire working life, across allpension schemes.

The LTA for 2013/14 is 1.5 million. From 6th April 2014, the LTA reduces to 1.25million.

The onus is very much on individuals to monitor their total pension benefits againstthe LTA as their total pension benefits could comprise a number of pensionentitlements from previous employment and/or personal pensions, in addition to theirLifestyle Plan fund(s).

If you think you may be affected by this limit please contact the Pension Departmentfor an estimate of the value of your Lifestyle Plan benefits.

13. LOOKING AFTER YOUR MONEY

The Lifestyle Plan is a money purchase scheme, registered with HM Revenue &Customs.

The day to day running of the Lifestyle Plan is dealt with by the Guardian MediaGroup Pensions Department - see Section 19.



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The Lifestyle Plan has trustees who are ultimately responsible for the proper runningof the Plan. The members elect some of the trustees. The Trustees have adoptedregulations governing the procedures for election of trustees, which they may reviewand amend from time to time.

Audited accounts are prepared every year and are available for inspection onrequest.

The Lifestyle Plan's investments are handled by independent investment managersappointed by the trustees. Investment returns are regularly monitored by independentadvisors. The costs of investment management are deducted from the funds. Eachyear you will be given details of the investment returns along with other financialinformation about the Lifestyle Plan.

14. COMPLAINTS PROCEDURE

The trustees of the Lifestyle Plan have established procedures for dealing withdisputes in accordance with the requirements of the Pensions Act 1995.

In the first instance it is hoped that all questions and complaints will be dealt withsuccessfully on an informal basis either by the Pensions Department or in somecases by individual trustees.

However, if you are dissatisfied with the response to a question or complaint andwish to bring a formal complaint you will need to follow the formal procedures.

If you wish to make a formal complaint you should contact the Pensions Departmentfor Members' Notes on the Internal Disputes Resolution Procedure and a form to usein making the complaint.

The first stage of the procedure is initiated by either yourself, or someone nominatedto act on your behalf, making a complaint to J Woodman, Pensions Manager,Guardian Media Group (address on back page).

On receiving your complaint the Pensions Manager will respond to it within twomonths.

If you are dissatisfied with the reply you receive you may refer the case to thetrustees for reconsideration. On receiving your complaint the trustees will respond toit within two months.

15. AMENDMENT OF THE PLAN AND DISCONTINUANCE

The Trust Deed and Rules contains provisions for the amendment of the Plan andalso for the termination of the Plan or the termination of participation in the Plan ofany employer.



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16. ASSIGNING YOUR BENEFITS

You are not allowed to assign your benefits or use them as security for a loan.

17. DIVORCE

In the event of your divorce, one of the options available for dealing with yourbenefits under the Lifestyle Plan is for the court to make a Pension Sharing order.The order would specify an amount to be deducted from your Lifestyle Account. Theamount would then be transferred into a pension arrangement nominated by your ex-spouse or into a new Lifestyle Account in his/her own name.

The Trustees have established scales of administration charges for dealing with

Pension Sharing court orders. These charges would be payable by divorcingcouples. Details of the charges are available from the pensions department.

18. EXTERNAL AGENCIES

The Pensions Advisory Service (TPAS)

The Pensions Advisory Service (TPAS) is an independent voluntary service thatprovides free help and advice to members and other beneficiaries of occupational

and personal pension schemes. TPAS is available at any time to assist membersand other beneficiaries of the Plan, in connection with any pensions query they haveor any difficulty they have failed to resolve with the trustees or administrators of thePlan. You can contact TPAS through your local Citizens Advice Bureau or at 11Belgrave Road, London, SW1V 1RB.

Tel: 0845 601 2923www.pensionsadvisoryservice.org.uk

The Pensions Ombudsman

The Pensions Ombudsman can investigate and determine any complaint or disputeof fact or law relating to an occupational pension scheme made or referred inaccordance with the Pensions Act 1993. The Ombudsman may be contacted at 11Belgrave Road, London, SW1V 1RB.

Tel: 020 7630 2200Email: [email protected]

http://www.pensionsadvisoryservice.org.uk/mailto:[email protected]://www.pensionsadvisoryservice.org.uk/mailto:[email protected]


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www.pensions-ombudsman.org.uk

How to trace old pensions

The Trustees have given information about the Plan, including details of an addressat which they can be contacted, to the Register of Occupational and PersonalPension Schemes. A tracing service run by the Registrar may be of help to you if youneed to contact the trustees of a previous employers pension scheme and cannottrace them yourself. The Registrar can be contacted at Pension Scheme Registry,PO Box 1NN, Newcastle Upon Tyne, NE99 1NN.

Tel: 0845 600 2537

The Pensions Regulator (TPR)

TPR is a regulatory body that is responsible for overseeing the running ofoccupational pension schemes and is able to intervene where trustees, employers orprofessional advisers have failed in their duties. TPR may be contacted at NapierHouse, Trafalgar Place, Brighton, East Sussex BN1 4DW.

Tel: 0845 600 0707Email: [email protected]

19. CONTACT DETAILS

Guardian Media Group, Pensions Department, Centurion House, 129 Deansgate,Manchester, M3 3WR. Telephone 020 3353 2000.

http://www.pensions-ombudsman.org.uk/mailto:[email protected]://www.thepensionsregulator.gov.uk/http://www.pensions-ombudsman.org.uk/mailto:[email protected]://www.thepensionsregulator.gov.uk/

Documents

Flexible Benefits Member Guide - Casuals&Hotdesk Sept 2013