Company contributions

This section answers the following questions:

Why is the Company increasing its contributions?

The Company is committed to working in partnership with employees to help them plan and provide for a comfortable retirement. Following a recent review of the Lifestyle Plan the Company has decided to increase the contributions it pays on behalf of contributing members to reflect this commitment.

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Will the Company be backdating the improvements?

The Company will be backdating the improvements to September 2007 or the date you joined the Plan if later by making one-off additional lump sum contributions. The lump sum will be paid into members' Lifestyle Accounts in March 2008.

The lump sum will be calculated using data as at 1 January 2008 for your pensionable earnings and the contribution scale appropriate to your age band.

You don’t have to do anything to benefit from the Company’s backdated contributions. These will be automatically added to your pension account and will be reflected in your annual benefit statement to be sent to you in the summer.

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Why are younger members getting a bigger increase?

The Company recognises the importance of starting to save for retirement as soon as possible and is keen to help younger employees to make a good start.

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Do I have to increase my contributions to get the higher Company contribution?

You will need to pay at least 2.5% into the Plan to benefit from the higher Company contribution. If you are already paying at least 2.5% you will benefit from these contributions automatically, but it’s worth considering if you could pay more to get the most out of the Company’s contributions.

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How can I get the best out of the Plan?

The more you pay into the Plan, the less tax and National Insurance you will pay and the more the Company pays.

The calculator will allow you see the cost of a given contribution after tax relief and National Insurance savings are taken into account versus what actually goes into your individual pension account from you and the Company.

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What other information can I use to help me plan for retirement?

Your annual benefit statement gives an illustration of the amount of pension your account might buy when you retire. You should use this to help you plan for retirement. There is lots of other useful information on the main pension website, www.gmgpensions.co.uk.

You should also look at the statements from any other pension schemes that you have been a member of, and your State benefits (although the Department for Work and Pensions will not be able to give you a forecast at the moment unless you are due to reach State Pension Age before 6 April 2010).

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Can the Company or the Trustees give me financial advice for my retirement planning?

Neither the Company nor the Trustees are allowed to give you individual financial advice and this announcement is provided for information only and should not be construed as advice. If you require advice, you can find details of your nearest independent financial adviser at www.unbiased.co.uk or by calling 0800 085 3250.

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FAQs