Presentation to

Presentation to

Wednesday 12th June, 2013 – 10.30amUnite House

128 Theobald's RoadHolbornLondon

WC1X 8TN

http://www.unitetheunion.org/

PensionsThe next 5 years

In the UK, there are 16 million employees who will be exposed to changes in pensions legislation during the next 5 years.

There are over 8 million of these employees that will automatically be enrolled into a qualifying workplace pension scheme over the next four to five years. In 2014 alone, 1.1 million employers will face additional legislative responsibilities and the requirement to choose an Auto Enrolment Workplace Pension Scheme.

Are employers ready for Auto Enrolment?

PensionsThe next 5 years

Are you aware of the legislative responsibilities?Are you aware of the legislative responsibilities?

BlueSky’s Auto Enrolment and Data PackageBlueSky’s Auto Enrolment and Data Package

Do you have a Qualifying AE Pension Scheme to join?Do you have a Qualifying AE Pension Scheme to join?

BlueSky Pension SchemeBlueSky Pension Scheme

When do you need to commence pension contributions?When do you need to commence pension contributions?

When do you need to commence pension contributions?When do you need to commence pension contributions?

From October 2012, any employer with employees being paid by PAYE has been required, by Government legislation, to nominate a ‘qualifying workplace pension scheme’ and ‘auto-enrol’ certain categories of its employees.

The table below details the date at which an employer needs to commence pension contributions but may be subject to further change by the DWP.

Employer size (by PAYE scheme size) or other description

From (inc.) To (inc.)

120,000 to 800 employees 1st October 2012 1st October 2013799 to 250 1st November 2013 1st February 2014 249 to 50 1st April 2014 1st April 2015 Test tranche for less than 30 1st June 2015 30th June 2015 49 to 30 1st August 2015 1st October 2015 Less than 30 1st January 2016 1st April 2017 Employers without PAYE schemes 1st April 2017New employers 1st May 2017

Staging Dates


Before staging date

6 months before - Posters informing employees that ‘auto-enrolment’ is approaching

Register a point of contact with the Pensions Regulator

4 months before - Register chosen pension scheme with the Pensions Regulator

Provide data covering employer, scheme used, postponement and number of workers

Workers already in a scheme must be provided with information about the scheme

All data must be kept for at least 6 years

Legislation


From Staging date

Eligible Jobholders aged 22 – SPA must be automatically enrolled must be written to with information about the chosen pension scheme must have the option of opting out*

Non Eligible Jobholders and Entitled Workers must be provided with information about the chosen pension scheme must be provided with information on how to ‘opt in’ or join a scheme

Contribute Staging Date to October 2017 - 2% of total pay (employer must pay 1%) October 2017 to September 2018 - 5% of total pay (employer must pay 2%) October 2018 onwards - 7% of total pay (employer must pay 3%)**

Monitor Each pay period, employees need to be assessed for enrolment

*‘Opt out’ employees will need to be re-enrolled every 3 years* *These examples are based on total pay. There are alternative definitions of pensionable pay which may result in higher rates of contributions to be paid.

Legislation


BlueSky’s Auto Enrolment Data and Communication Package

Fully compliant with all legislation

Forms part of BlueSky’s ‘one system for all’ administration system

Online creation and submission tool

Member ‘opt in’ or ‘opt out’ facility

Real Time Information (RTI) reporting

Pre and post Payroll reporting

Full Communication package covering all legislative requirements

No set up fee

Annual fee with 10% employee number fluctuation included

* See appendix for example process

AE Legislation Solution

Do you have a Qualifying AE Pension Scheme to join?Do you have a Qualifying AE Pension Scheme to join?

An Auto Enrolment Qualifying Workplace Pension Scheme

Must not have any barriers to entry

Must not require members to sign any paperwork to be ‘automatically enrolled’

Must have an online process for ‘opting-in’ and ‘opting-out’

and

Must state that contributions to the scheme will reach minimum requirements by 2018

or

Be accompanied by a statement from the employer

Choosing a Pension Scheme


The BlueSky Pension Scheme is a Multiple Employer SuperTrust

The ECA and Unite as its ‘Preferred Supplier’

to the Electrical Contracting Industry

BlueSky is non profit – run for the members

No cost to the Employer, paid by members – 0.3% for 2013

Operational since 1988

Over 250 employers already participating

Funds under management in excess of £260m

Administered in the UK

Trustee Board and appointed professional advisors

Dynamically Managed Target Date Funds or 11 further ‘Self Select’ funds

Web based access for members, employers and advisors (MAP, SUN and APS)

How to choose

Who has recommended

BlueSky?

Are fees paid to any party?

Is BlueSky proven?

Who monitors the

BlueSky Pension

Scheme?

What are the members’ investment

options?

What are the costs?

How accessible is

BlueSky?


Investment Options

12 member selected options

Default

Target Date Funds – offering dynamic asset allocation aiming to provide a risk reduced age appropriate diversified fund

Plus 11 ‘white labelled’ funds – with overview and monitoring

Global Equity Passive - aims to passively track performance of global equities.

Global Equity Active - aims to outperform global equities on a risk adjusted basis over three to five years

UK Gilts - aims to passively track performance of UK gilts

UK Property - aims to outperform UK property on a risk adjusted basis over three to five years

Index Linked Gilts - aims to passively track performance of UK index linked gilts

Cash - aims to perform in line with wholesale money market short-term interest rates

UK Corporate Bonds - aims to outperform UK corporate bonds on a risk adjusted basis over three to five years

Emerging Markets - aims to outperform emerging market equities on a risk adjusted basis over three to five years

UK Equity Active - aims to outperform UK equities on a risk adjusted basis over three to five years

UK Small Cap - aims to outperform UK small capitalisation equities on a risk adjusted basis over three to five years

Multi Asset Sharia – investing in Sharia compliant diversified funds


Target Date Funds

• Key features:Age appropriate diversified growth fundsMix various asset classes with age appropriate allocationAre monitored daily by strategist and consultant

Aim - To reduce risk providing greater member outcome

0%

20%

40%

60%

80%

100%

40 yrs 30 yrs 20 yrs 10 yrs 0 +10 yrs

Allo

catio

n

Short Duration Index-Linked Gilts

Long Duration Index Linked Gilts

Short Duration Gilts

Medium Duration Gilts

Long Duration Gilts

UK Long Duration Corporate Bonds

Global Corporate Bonds

Global Property

Emerging Market Equities

Global Developed Market Equities

UK Equities

TargetYears

Adventurous Managed Balanced Managed Cautious Managed Defensive Managed

One Fund for Life Allows Members to Focus on Saving


Benefits

• No short service refunds of contributionsEncouraging pension savings

• Transfers inConsolidation, taking advantage of BlueSky’s annuity sourcing service on retirement

• Transfers outNo restrictions or charges - the value of the member’s account is the amount transferred

• Pre retirement planningAt 5 years, 2 years, 6 months and 3 months before retirement

• Retirement processingAnnuity sourcing at no extra cost and drawdown options

• Death benefitsPaid at the discretion of the Trustee as either a return of fund or, if selected, an annuity


Costs

• There is no cost to the Employer of operating BlueSky • With other providers, many of the functions described

above will need to be undertaken by the employer• BlueSky provides full support and expertise to the employer

enabling them to minimise the time dedicated to pension operations

• Annual Management Charge (AMC) 2013 : 0.3%• jdgfbJOBDGJ;sbdg;jbSDGJB;bgd;JB 2014 : 0.3%• Investment costs as low as 0.2%• Default option 2013 : 0.33%• Default option 2014 : 0.26%• Annuity set up at no extra cost

BlueSky

The complete pension solution

For members For employers For management


Appendix


Appendix


Appendix


Appendix


Appendix


Structure

BlueSky Pension Scheme

Accreditations and referees

BlueSky Pensions

Ltd

Management TeamsSupport Team

Contracted Partners

JIB Trustee Company

Ltd

Executive

Administration Teams


Administration Setup

IntellipenBlueSky

Database

Annuity Portal

HSBC gateway

Contribution InterfaceCalculations

Auto enrolment

package

Payroll

Member portal

Scanning system


The BlueSky Pension Scheme is a Multiple Employer SuperTrust

How to choose

Who has recommended BlueSky?

Are fees paid to any party?

What are the costs?

Is BlueSky proven?

Who monitors the BlueSky Pension Scheme?

What are the members’ investment options?

How accessible is BlueSky?

Documents

Presentation to