PENSION MATTERSFor DB members of the Bayer Group Pension Plan (‘the Plan’)

Group DB Section

DECEMBER 2017

Welcome to Pension Matters...

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The aim of this newsletter is to bring you up to date with recent events that are relevant to your pension benefits. This issue includes:

üa summary of the Trustee Report and Accounts for the year ending 31 March 2017

üa note on changes to the rules around how we hold your data, which come into force in May 2018

üan introduction to BBS - the Plan’s new administration provider

üa warning about pension scams

üreminders to keep the trustees informed if you change address and make sure your Expression of Wish form is up to date

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ANNUAL REPORT AND ACCOUNTS 2017

The Plan’s Annual Report and Accounts for the year to 31 March 2017 has recently been completed and the key points are summarised here. The full document is available through your pension website: bayerpensions.co.uk

PLAN MEMBERSHIP

The membership of the Plan as at 31 March 2017

FINANCIAL REVIEW

The change in total value of assets and the net

income to the Group DB Section over the year to 31 March 2017

Group DB Section

Plan

Actives 118 199

Pensioners 1,472 3,731

Deferred members 1,629 3,305

Total membership 3,219 7,235

£m

Assets at 31 March 2016 544.7

Contributions and transfers in 7.7

Benefit payments and administration costs (22.0)

Net return on assets 109.8

Assets at 31 March 2017 640.2

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CHANGES TO DATA PROTECTION LAWS

Some personal data for members (such as date of birth and home address) is required for the running of the Plan, including paying out the right benefits. The use of this data is currently regulated under the Data Protection Act 1998 (‘DPA’), which places certain responsibilities on those who exercise control over data (known as ‘data controllers’). Data controllers include the Trustee and, in certain circumstances, professional advisers to the Plan, such as the Plan’s actuary.

There are a number of changes being introduced to data protection law from 25 May 2018, when the DPA will be replaced by the new General Data Protection Regulation (‘GDPR’). The changes build on current law to increase protection for personal data and privacy.

The Trustee Directors are currently working with their advisers to review their processes and policies and ensure they meet the new requirements. We will be issuing information notices to members and these will be circulated ahead of the GDPR coming into force in May 2018.

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INTRODUCING BBS - OUR NEW ADMINISTRATION PROVIDER

To ensure members receive an excellent standard of service, from time to time the Trustee Directors review the Plan’s administrative arrangements. After careful consideration, the Trustee has appointed BBS Consultants & Actuaries Ltd (‘BBS’) to provide administration services to the Plan with effect from 1 October 2017 (in place of Capita).

BBS is an external firm of pension professionals, and is in no way affiliated with Bayer.

HELLO FROM BBS...

We are delighted to be providing administration services to the Plan and believe members will enjoy exceptional service standards.

Originally established in 1997, today we have a team of 86 pensions professionals all based at our Bristol office. We pride ourselves on the depth of knowledge and experience of our staff. A dedicated team of 13 people

will be working on the Bayer Plan. We have included details of some of the key members of your team on the following pages.

Your BBS team can be contacted by telephone or email, using the details on page 11.

To find out more, please visit our website: bbs-actuaries.co.uk

The Trustee Directors are responsible for the running of the Plan, but are allowed to delegate certain

functions, such as the administration, to specialist advisers. This does

not release the Trustee Directors from their duties, and they remain

ultimately responsible for all aspects of the Plan.

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MARC DAVIES Administration Manager

Marc is responsible for managing our department of 50 administrators. He joined BBS in October 2002, having previously been an administration controller at Sedgwick Noble Lowndes/Mercer.

Marc has worked in the pensions industry since 1988 and holds the PMI’s qualification in Pensions Administration. He is married with three children and, in what little spare time remains, enjoys reading, watching most sports and participating in a few.

KARINA SNOOK Administration Team Leader

Karina leads the team who provide administration services to Bayer and holds a level 4 NVQ in Pensions Administration. She joined BBS in 2004, having previously worked at Mercer for three years, and became a team leader in 2011.

Outside of work, Karina enjoys spending

time with family and friends.

SALLY NETHERCOTT Senior Administrator

Sally is one of the senior specialists who answers telephone and email queries for Bayer members. She is also responsible for checking others’ work and ensuring deadlines are met.

Sally’s career in pensions started in 1989, having worked at London and Manchester, Clerical Medical, Hewitt Bacon & Woodrow and Mercer, before joining BBS in August 2008.

Sally is married with two grown up daughters and enjoys walking and trying(!) to learn to speak Spanish.

PAUL O’LEARY Senior Administrator

Paul joined BBS in July 2017, having previously worked for a number of well known administration providers, starting with Commercial Union in 1988, in a pensions industry career currently spanning 29 years. His responsibilities include checking colleagues’ work and ensuring team deadlines are met.

Paul is married with three young children.

CHRIS RANDELL Senior Administrator

Chris joined BBS in May 2012 after completing his A-levels and is one of the senior specialists who will be providing support to Bayer members. He holds the PMI’s Retirement Provision Certificate and Certificate in Pensions Calculations and his responsibilities include peer-reviewing colleagues’ work and mentoring junior members of the team. Chris is also responsible for monitoring the cashflow of the Bayer trustee bank accounts.

Outside of work, Chris is a keen football player and enjoys socialising with friends.

Pensioner members can access details of their

pension payments through:

4myplan.co.uk

If you are a pensioner and have not yet received your letter confirming the change of administrator,

along with details of how to register for 4myplan.co.uk please contact BBS using the details on page 11.

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OUR NEXT ACTUARIAL VALUATION & SUMMARY FUNDING STATEMENT

In order to ensure the Plan’s assets are on target to meet the benefits promised, the Plan Actuary is required to carry out a formal valuation every three years.

The latest actuarial valuation as at the year-end of 31 March 2017 is currently being completed.

A document summarising the result (known as a Summary Funding Statement), will be issued to all members once the valuation process is complete.

SAME-SEX SURVIVOR PENSIONS IN ALL MARRIAGES AND CIVIL PARTNERSHIPS

The Supreme Court recently ruled that survivor benefits in respect of same-sex couples who are either married or registered as civil partners, must now be the same as for an opposite-sex spouse. This means that survivor’s benefits can no longer be restricted to that accrued for service from 5 December 2005 (the date on which civil partnership was brought into UK law).

The Trustee Directors are currently reviewing the Plan Rules to consider whether any amendments are required, but we can confirm that the Plan will operate in line with the above ruling.

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More information on how to avoid pension scams is available

on the Regulator’s website:

thepensionsregulator.gov.uk/individuals.aspx

BEWARE OF PENSION SCAMS

It is vital that you are aware of the increasing number of pension scams that are becoming more common in the UK. To help you avoid these scams, the Pensions Regulator has published a 10-point list to protect your lifetime’s pensions savings:

1. Be wary of cold calls and unsolicited texts or emails

2. Check everything for yourself

3. Make sure your adviser is on the Financial Conduct Authority’s (FCA’s) approved register

4. Check the FCA list of known scams

5. Steer clear of overseas investment deals

6. Don’t fall for promises of ‘guaranteed’ returns or professional looking websites or brochures

7. Don’t be rushed into a decision

8. If you are aged 50 or over and have a defined contribution (DC) pension, talk to Pension Wise:

Web: pensionwise.gov.uk

9. If you have any doubts, ask the Pensions Advisory Service for help:

Tel: 0300 123 1047

Web: pensionsadvisoryservice.org.uk

10. If you’ve already signed and think you’ve been scammed, contact your pensions provider and call Action Fraud:

Tel: 0300 123 2040

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KEEPING THE TRUSTEE INFORMED

It is essential that you keep the Trustee Directors informed should there be a change in your circumstances, e.g. if you change address.

You should have completed an Expression of Wish form when you joined the Plan, setting out who you would like to receive any lump sum benefits arising under the Plan in the event of your death. If you have not completed such a form or wish to update your nominated beneficiaries or other membership details, please contact BBS using the details on page 11.

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We hope you found this issue of Pension

Matters useful. If you have any questions

about the Plan or your pension benefits, the

Bayer administration team at BBS are available

to help you.

Bayer Group Pension Plan BBS Consultants & Actuaries Ltd Canard Court, 23-25 St George’s Road Bristol, BS1 5UU

Email: bayerpensions@bbs-actuaries.co.uk

Tel: 0117 937 8700

Web: bayerpensions.co.uk

© BBS Consultants & Actuaries Ltd | December 2017