COMPASS GROUP PENSION PLAN (the ‘Plan’)

New Freedom and Choice in Pensions You may have read in the press about the way pensions are provided being changed from 6 April 2015. This leaflet summarises these changes and the options available to you. What are the new pension flexibilities? From 6 April 2015, those aged 55 and over with defined contribution (DC) pension savings will have the right to access their entire DC fund with no requirement to purchase an annuity. Instead, if their pension arrangement allows this, these individuals may:

receive up to 25% of their fund tax free; and

use the remainder of their fund in any combination of cash payment, withdrawing money from their pension savings over time (known as “drawdown”) or annuity purchase, all being subject to tax at individuals’ marginal rates.

The Plan will not currently be offering the new flexible DC options in respect of any Plan DC savings. My benefits The benefits which you have accrued within the Plan are classed as DC benefits. Details of the Plan DC pension options are set out in your retirement quotation, including the option to take your benefits to the open market and purchase an annuity elsewhere. External pension providers are likely to offer a wide range of products, including the option to purchase an annuity, and charges will be incurred with the provider in order to access your benefits flexibly. The amount of charge is likely to vary between options and providers.

In relation to your DC savings, depending on how you access your benefits, there may be different tax implications as pensions are taxable as income and the rate of income tax increases as your income increases.

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The different options which are available will have different features, rates of payment, charges and tax implications. What options do I have if I want to access the new flexibilities? If you wish to access the flexibilities, you could transfer your benefits to a registered DC arrangement of your choice that is willing to offer these options. We strongly recommend that you consider seeking independent professional advice before taking any decisions on your benefits. The website www.unbiased.co.uk can be used to find a qualified independent financial advisor in your area. Alternatively, you can contact Unbiased on 0330 1000 755. The government has also introduced Pension Wise, a free and impartial service, to help people with DC benefits understand their retirement choices. This help is available to members online, over the phone or face to face. For more information about Pension Wise and the choices members have visit www.pensionwise.gov.uk. The enclosed letter includes more details of how you can access the new Pension Wise service. Additionally, you can access the Money Advice Service Leaflet ‘Your Pension: It’s time to choose’ on https://www.moneyadviceservice.org.uk/en/articles/free-printed-guides#pensions-and-retirement Please also see the attached ‘Generic Risk Warnings’ as set out by the Pensions Regulator. The Compass Group Pension Plan Trustees and the administrators in the Compass Group Pensions Department are not authorised to give you advice.

Contact details In the event that you are considering taking a transfer, please send your written request to the Compass Group Pensions Department at the following address: Compass Pensions 5th Floor, Halford House 2 Coval Lane Chelmsford Essex CM1 1TD Please note, a request for a transfer value quotation will be actioned within 6 to 8 weeks and no later than the statutory 12 week deadline.

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Dear Saver,

Yours faithfully,

The government has removed the restrictions on what you can do with your pension savings. You now have the freedom to choose the option that’s right for you.

Pension Wise is a new government service that offers you:

tailored guidance (online, over the telephone or face to face) to explain what options you have and help you think about how to make the best use of your pension savings;

information about the tax implications of different options and other important things you should think about; and

To receive free, impartial guidance from the government, go to www.pensionwise.gov.uk

The Pension Wise team

Choosing what to do with your pension savings is an important financial decision; you can often get more for your money by shopping around.

In this pack you’ll find important details about your pension. Use them – and Pension Wise – to help you make the decision that’s right for you.

tips on getting the best deal, including how to shop around.

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Generic Risk Warnings  

 

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