Summary of Benefits – Ceridian Futures Retirement Plan 1
Ceridian Futures Retirement Plan
Summary of Benefits
Summary of Benefits – Ceridian Futures Retirement Plan 1 Introduction The Ceridian Futures Retirement Plan (the ‘Plan’) provides a tax efficient way for you to save for your retirement. This leaflet is
intended to give you a summary of the main benefits provided through the Plan. This should be read in conjunction with the Member Booklet provided in your pack. Please note, however, that this summary takes precedent over the Booklet if there is a conflict.
Who is eligible? All full or part time employees who are not already members of a Qualifying Pension Scheme will be assessed for automatic enrolment and, if eligible*, will be automatically enrolled into the Plan on the first day of the month following two complete calendar months of service. If you do not qualify through auto enrolment assessment, or want to become a member earlier, you can join the Plan from the first day of the month following commencement of employment.
*You are eligible for auto enrolment if you are:
– not already a member of a qualifying workplace pension scheme with your employer;
– aged 22 to State Pension Age (SPA) earning more than £9,440 per annum (2013-14);
– working, or if you ordinarily work, in the UK.
How the Plan works The Plan works in a straightforward way. Contributions are invested through the Plan into your ‘individual account’. You will be sent annual statements showing the value of your individual account and you can view your account online at any time.
At retirement, the value of your individual account (a combination of contributions and return on investments less annual charges) will be used to purchase retirement benefits.
Contributions The Plan operates on a salary sacrifice basis where, instead of contributing directly, an equivalent amount is sacrificed from your salary and paid by the Company to the Plan. You will receive full tax relief at source under this arrangement. It is possible to opt-out of the salary sacrifice arrangement. If you have done so, you will automatically receive tax relief on any contributions you make at your highest marginal rate, because contributions are deducted from your gross salary before tax is deducted.
Employer contribution (%) Employee contribution (%)*
2 2
3 3
4 4
5 5
Auto enrolment legislation says that contributions will increase over time, therefore:
From October 2017 the minimum employee contribution will be 3%.
From October 2018 the minimum employee contribution will be 5%.
Summary of Benefits
Contributions (cont.) Additional Voluntary Contributions (AVCs)
You can pay AVCs to boost your retirement savings. The AVCs are member contributions but are not matched by the Company.
You will, however, still be entitled to tax relief at your highest marginal rate on the AVCs paid, subject to the restrictions imposed by the Annual Allowance (see ‘Useful terms’).
Investing your Contributions
Your contributions are invested through the Plan. They are paid into your personal account and you then choose how your individual account is invested using a range of investment options selected by the Trustee Company of the Plan.
More detail can be found in the Investment Options leaflet which also sets out some of the things you should consider when deciding how to invest your funds. A brief summary is provided below.
Lifestyle
A choice of three Lifestyle options is available. Put simply, Lifestyle aims to provide you with a good long-term rate of investment return over the majority of your working life, whilst aiming to protect the value of your savings as you near retirement.
Your contributions will initially be invested in the DC Cash Fund while you have the option to opt-out of the Plan and will then be invested in the default investment option, Balanced Lifestyle, with a target retirement age of 65. You may subsequently choose a different target retirement age provided it is not less than age 55.
This is not a recommendation and a Lifestyle Option may not be right for you.
Self Select
This option is available for employees who wish to make their own investment decisions. There is a range of nine funds which you may choose from.
Full details of both the Lifestyle and Self Select options can be found in the Investment Options guide and you can change your investment choice at any time after joining the Plan, or after your opt out period if applicable, by contacting BlackRock online, by phone or by email.
Charges under the Plan
An Annual Management Charge (‘AMC’) is applied to your fund. The AMC is the cost of having your assets professionally managed.
The fee pays the manager to select which investment your money (along with that of the other investors in the fund) is invested into.
If a fund invests in a collective investment scheme it will also bear its share of the costs of other services, such as the fees paid to the trustee/depositary, custodian, auditors and registrar. An estimate of these charges is shown under ‘Additional Expenses’
in the Investment Options guide.
Viewing your Account Once you have been enrolled, you will be provided with an Account number and, under separate cover, a password.
This will enable you to login to your Account via blackrock.co.uk/blackrock-pensions/ceridian
This secure site will enable you to get up to date details of your Account and carry out transactions online; such as view the value of your Account; change contribution levels; switch investments and use the Target Plan modeller.
What if I leave
the Plan? Leaving the Plan during the opt-out period
If you do not wish to remain a member of the Plan you are able to opt out during the opt-out period.
You will receive a refund of the contributions you paid into the Plan, including the value of any paid via Salary Sacrifice.
Leaving the Plan before retirement and after the opt-out period
If you have been a member for two or more years you will have a choice of either transferring your total fund value to another registered pension scheme, providing they are willing to accept it, or retaining your fund in the Plan until you decide to draw your benefits.
If you cease to be a member between three months and two years, you will have a choice of either receiving a refund of the current value of the units purchased by your own contributions (but not those paid via Salary Sacrifice), or transferring your account to a new employer’s scheme, or to a personal or stakeholder pension.
If you cease to be a member between the end of the opt-out period but before 3 months’ membership, you will receive a refund of the current value of the units purchased by your own contributions (but not those paid via Salary Sacrifice).
If you want to transfer your account to another scheme or insurance policy, you must contact BlackRock. If you do not contact
Summary of Benefits – Ceridian Futures Retirement Plan 3 What happens
at Retirement
You can take your benefits any time after the age of 55.
When you are close to your target retirement age, BlackRock will provide you with information on the options available to you to help you with your decision as to what you want to do with your fund.
You will be provided with details of an annuity service selected by the Trustee Company, and their aim is to seek the most competitive annuity rates available at which to buy your annuity (pension) to help maximise your pension benefits at retirement.
The cost of purchasing your annuity (pension) will be made against your fund or can be paid by you directly, but will not be met by the Trustee Company or your employer.
You have the legal right to ‘shop around’ for the highest annuity income rates and the options that best suit you – this is called the open market option.
The annuity options you finally choose will be dependent on your own personal circumstances. In addition to a pension for yourself, you may be able to select one or more of the following:
` the option to give up part of your pension for a tax-free lump sum;
` a level pension or a pension with annual increases;
` a pension for your spouse, civil partner or other dependant in the event of your death;
` a guarantee period, where your spouse, civil partner or dependant would be paid the balance of any pension payments if you die within the guarantee period (which may be up to ten years).
Other ways to take benefits at retirement
You do not need to buy an annuity at retirement. One alternative is known as ‘Income drawdown’ which is the name given to the facility where you continue to keep your retirement savings invested and take an income each year rather than buy an annuity.
This option is not available through the Plan, but you may transfer the value of your benefits to another pension arrangement at retirement where income drawdown is offered. You are recommended to seek independent financial advice if you are interested in this option.
You should be aware that your benefits at retirement from all UK registered pension arrangements are subject to the Lifetime Allowance. If total benefits exceed the Lifetime Allowance (see ‘Useful terms’), tax charges may apply to the excess benefits.
Death Benefits From Ceridian – not the Plan
If you die while you are employed by the Company, please refer to your contract of employment for details of any life assurance benefits that might become payable to your dependants.
From the Plan
In the event of your death before retirement, the value built up in your Account would become available as a lump sum payment.
You should complete and return to BlackRock, at the address overleaf, the Nomination Form provided by BlackRock in the Welcome Pack which identifies the person(s) you wish to nominate to receive any benefits from the Plan that may become payable on your death.
Benefits will be paid at the discretion of the Trustee Company.
Trust Deed and Rules The Plan is a ‘registered’ scheme under the terms of the Finance Act 2004. This results in valuable tax relief on pension contributions. To gain and keep its registered status, the Plan has to conform with requirements set down by HMRC and tax laws.
The Plan is governed by its Trust Deed and Rules. The assets of the Plan are independent from the Company and can be used only for benefit purposes described within the rules of the Plan. Your benefits are governed by these documents together with the Plan Benefit Annex. Anyone entitled to benefits from the Plan (whether a member or a member’s dependant) who would like to inspect the documents should contact BlackRock at the contact details below.
In the event of conflict between this booklet and the Trust Deed and Rules, the latter will apply.
The Trustee Company is Independent Trustee Services Limited and is independent from the Company and BlackRock.
The Company may amend or alter the benefits provided under the Plan at any time, provided such an action does not impair certain rights of participants accrued under the Plan at such time. The Company may also terminate the Plan.
If you have any questions about the Plan, please contact BlackRock at the contact details below.
For more information:
Website: blackrock.co.uk/blackrock-pensions/ceridian Telephone: 01733 353480
Email: uk.ops@blackrock.com
Address: BlackRock Employee Savings Service Centre PO Box 704
Peterborough PE1 1WL
Annual Allowance The Annual Allowance is the maximum amount of pension savings that you can build up in a year without incurring a tax charge.
Savings made by you and also those made on your behalf, for example by the Company, count towards the Annual Allowance.
The Annual Allowance is set at £50,000 until 5 April 2014. From 6 April 2014, it is set to be reduced to £40,000.
Savings in excess of the Annual Allowance may be subject to an Annual Allowance Charge.
Auto Enrolment Auto enrolment (also called AE or ‘workplace savings’) is a new approach to pension saving that was introduced in October 2012.
Starting with the largest, but eventually being rolled out to cover any employer of any size, the Government now requires every employer to enrol their employees into a workplace pension scheme that meets new legal standards – known as a ‘qualifying’
scheme. Employees who meet certain conditions will automatically be enrolled into a qualifying workplace pension.
If you are:
` not already a member of a qualifying workplace pension scheme with your employer
` aged 22 to State Pension Age (SPA) earning more than £9,440 per annum (2013-14)
` working, or if you ordinarily work, in the UK
You will be automatically enrolled into your employer’s qualifying workplace pension – in this case, the Plan.
More information can be found at:
Useful terms
Summary of Benefits – Ceridian Futures Retirement Plan 5 Company Ceridian and any affiliated company whose employees are admitted to the Plan.
Company Contributions Contributions paid by the employer in addition to Member Contributions that you would have paid if you were not part of the salary sacrifice arrangement.
Individual Account An Account set up in your name to which contributions are paid.
Jobholders Your category of jobholder determines whether or not you are eligible for auto enrolment; have a right to opt in;
or have a right to join:
Eligible jobholders must be auto enrolled
` Aged 22 to State Pension Age
` Working in UK
` Earning above £9,440 (2013-14) Non-eligible jobholders have a right to opt in
` Aged 16 to 21 or State Pension Age to 74
` Working in UK
` Earning above £9,440 (2013/14) OR
` Aged 16-74
` Working in UK
` Earning above £5,668 but below £9,440 (2013-14) Entitled workers have a right to join
` Aged 16-74
` Working in UK
` Earning below £5,668
Lifetime Allowance The total value of retirement benefits from all UK registered pension arrangements you can draw before tax penalties apply.
The Lifetime Allowance is £1.5 million until 5 April 2014 when it is set to be reduced to £1.25 million.
It is recommended that you seek independent financial advice if you believe you may be affected by this.
Member Contributions The contributions you will pay to the Plan if you are not part of the salary sacrifice arrangement, otherwise any such contributions will be paid by the Company under the salary sacrifice arrangement.
Normal Retirement Age 65th birthday.
Pension Input Period (‘PIP’)
The period used for measuring the increase in your pension benefits against the Annual Allowance for tax relief purposes.
Please note that the PIP for the Plan is 6 April to 5 April each year. Any contributions you make to the Plan during any PIP will count toward the Annual Allowance applicable to that tax year.
Pensionable Pay In the case of the Plan, pensionable pay is defined as basic salary.
Qualifying Earnings These are total earnings as determined by the Company and may include the following, if an individual is in receipt of them:
salary, wages, commission, bonuses, overtime, statutory sick pay, statutory maternity, paternity and adoption pay.
To qualify for auto enrolment, your earnings must be more than £9,440 for the tax year 2013-2014. Both your contributions and those from the Company are then based on earnings between
£5,668 and £41,450 for the tax year 2013-2014.
Trustee Company Independent Trustee Services Ltd (‘ITS’)
Information regarding the eligibility, contribution arrangements and other non pension benefits have been accepted in good faith from Ceridian. No responsibility can be accepted by BlackRock for any errors, omissions or inaccuracies in the information provided or for any loss or damage that may result from reliance being placed upon it.
Past performance is not a guide to future performance. The value of investments and the income from them can fluctuate and are not guaranteed. Investors may not get back the amount invested. Rates of exchange may cause the value of investments to go up or down. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Any objective or target will be treated as a target only and should not be considered as an assurance or guarantee of performance of a fund or any part of it. A fund’s objectives and policies include a guide to the main investments to which a fund is likely to be exposed but a fund is not necessarily restricted to holding these investments only. Subject to a fund’s objectives, a fund may hold any investments and utilise any investment techniques, including the use of derivatives, permitted under the FCA’s Conduct of Business Sourcebook which contains the rules by which investment of the funds is governed. The BlackRock Life Limited notional fund units have a single unit price.
The unit prices are normally calculated on each business day. For performance reporting, notional units are valued at special closing prices on the last working day of each quarter to enable comparison with the relevant benchmark index. This document relates to the products of, and is issued by, BlackRock Life Limited, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. BlackRock Life Limited, 12 Throgmorton Avenue, London EC2N 2DL.
Phone: 020 7743 3000 Fax: 020 7743 1000. Registered in England number 2223202. BlackRock is a trading name of BlackRock Life Limited.
Contact Details
Website: blackrock.co.uk/blackrock-pensions/ceridian Telephone: 01733 353480
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