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AGPP Guide 1
AGPP Guide 1
AGPP Guide 1
Pension planner
Use this to show how much you might get when you retire.
Booklets
Pension Investment Approach Guide Pension Funds Investors Guide Your guide to with-prots Policy Provisions Important notes for application
Indulge-o-meter
Find out if spending a bit less on treats could give you spare cash for your company pension.
Loading Instructions
Hardware To get the best from this CD, run it on a Pentium based personal computer running Windows 95 or higher with at least 16Mb RAM. If the CD includes some audio and video sequences, a soundcard will be required and you should ensure that the Video for Windows options have been installed under your operating system. Loading Instructions Place the CD inside your PCs CD drive. Double click on start.exe in Windows Explorer or le manager. The application may take a few moments to load, so please be patient!
Virus Protection We have checked this CD for computer viruses and we have taken every reasonable precaution to ensure that no viruses which may be present on our computers are transmitted to yours. However, we strongly recommend that you check the CD with your preferred virus scanning software before you use it in your computers. Scottish Widows accepts no responsibility for any loss or damage resulting directly or indirectly from the use of the CD or its contents. 2007 Scottish Widows. Copyright Scottish Widows 2007. All rights reserved. Unauthorised reproduction of any material or programming contents contained on this disc is prohibited. All trademarks recognised.
If you are unable to access this CD or would prefer a paper copy of the contents, please call 08457 556 557. We may record and monitor calls to help us improve our service.
Contents
What we mean when we say Whats in it for me?
2 3
Your invitation to join Why join? Salary sacrifice How much can I contribute? What about the State Pension? What else could you be relying on in your old age? How much income will I need to live on when I stop work? How much should I pay into my company pension? What are the charges? How will my pension fund be invested? Use our Investment Decision Tool Want to take a more hands on approach to investing your company pension? Self investment option Changing your investment choice later on Retirement/death/leaving What happens if I die before I retire? What happens if I leave before I retire? Why your employer has chosen Scottish Widows?
How to join
We hope this guide answers all your questions, but if not, please speak to the pensions department or go to your plan website. Your plan website is shown at the bottom of each page.
www.scottishwidows.co.uk/agpp 1
Retirement date
The retirement date will be 65 but you can normally start taking your pension at any age from 5575.
Pension fund
The payments to your company pension that build up in your name. When you retire, this fund will be used to pay an income for life together with a tax-free cash sum if chosen.
Pensions department
This is the AECOM Ltd pensions department.
Your employer
AECOM Ltd or other AECOM operating company as appropriate.
Tax-efcient investment
Our pension investment funds are generally free of UK income and capital gains tax. However, we cant reclaim tax deducted at source from the dividends of UK company shares. Tax rules can change.
We/us
Scottish Widows.
www.scottishwidows.co.uk/agpp
www.scottishwidows.co.uk/agpp
By sacricing 80 of your reference salary per month, your net pay after income tax and National Insurance Contribution deductions will reduce by just over 55 a month to save 180 a month into your plan* *This assumes a basic rate tax payer with a reference salary of 24,000 a year sacricing 4% of their salary and their employer paying 5% of reference salary.
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Whatever you want your retirement to be, having a pension could help you enjoy it more
Giving up work doesnt mean giving up living. When you retire, what do you think youll be looking forward to most?
Enjoying the simple pleasures in life? your choice No longer having to work Spending more time at home and with your family Taking up new activities that you havent had time for to date Or something more exotic? Seeing more of the world Buying a place in the sun Moving abroad
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Why join?
A company pension is a good way to help get the retirement income you need
Unless your retirement is already on the horizon, you may struggle to picture exactly what youll be doing in 2040 years time. But, whatever you want your retirement to be, a company pension should help give you a nancial cushion to enjoy it that bit more. When you join, theres the feel-good factor of knowing your company pension is there in the background, quietly doing its job. Because its earmarked for your retirement, you cant dip into your company pension or fritter it away. So, although its tied up until you retire, you should be able to rely on it being there when the time comes. You dont have to retire or stop work before taking your company pension. Your plan has a retirement age of 65 but currently you can start taking your pension at any age from 5575.
Salary sacrice
Your company pension has been set up on a salary sacrice basis. This has the advantage of effectively reducing the amount of National Insurance contributions you pay. With a typical company pension with no salary sacrice arrangement you get tax relief at source on the contributions you make, but there is no exemption from National Insurance contributions, so you pay National Insurance contributions on your salary before pension contributions are deducted. However, with salary sacrice, you dont make regular employee contributions into your pension plan. Instead, your gross salary is reduced and the same amount is paid as an employer contribution to your company pension on your behalf. The result is: and Your net income increases slightly as you pay less National Insurance contributions. Exactly the same amount will be paid into your pension plan
Why join?
But remember, the earlier you take your pension, the less time your pension fund has the opportunity to grow.
Your employer continues to maintain a reference salary i.e. the salary you would receive if you had decided not to sacrifice some of it. This is used for things like overtime, life assurance multiples, and salary reviews. The pensions department can give you more information on this.
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The example assumes that You have a personal allowance of 6,475 a year (so you only pay tax on any amount earned above that) and You only pay NI contributions on any amount earned over 5,720. This is the primary earnings threshold for tax year 2010/11.
You agree to sacrice 4% of your reference salary into your plan which amounts to 80 a month.
Non Salary Sacrice 24,000 3,505* 2,011 768 net (960 gross) 17,716 Salary Sacrice 23,040 3,313 1,906 n/a amount has been sacriced 17,821
Tax year 2010/11 Salary Tax you pay National Insurance (NI) you pay Minus current pension contribution Salary after tax, NI and current pension contribution
You should remember that this is only an example and not guaranteed. The value of the tax benets of a pension plan depend on your personal circumstances. Your circumstances and tax rules may change in the future.
Salary sacrice
If you choose to sacrice 4% of your reference salary, your employer will pay an additional 5% into your plan. By sacricing 80 of your reference salary per month, your net pay after income tax and National Insurance Contribution deductions will reduce by just over 55 a month to save 180 a month into your plan. *Please note that in a non salary sacrice arrangement members receive income tax relief as a result of their net pension contribution being grossed up by basic rate tax when it is paid to the pension plan. This means the final income tax liability in the above example is the same regardless of whether the gross pension contribution of 960 is paid by you, or exchanged for an employer contribution of the same amount.
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Additional contributions
You can also make additional contributions to your plan using salary sacrifice. Currently, your employer increases any additional contributions you make by 10% which means for every extra 100 you pay into your plan, they will add 10. Your employer pays these into your plan together with your main contributions. You can also make single contributions to the plan or pay in transfer payments from other pension plans. These contributions will not receive a contribution from your employer. Your employer will ask you if you want to increase or reduce your additional contributions at each Flex renewal. You may be able to change these contributions at another time if you have a lifestyle event (see the FlexAbility rules for the denition of a lifestyle event).
As a percentage of your reference salary 3% 4% 5% More than 5% 4% 5% 6% 6% 7% 9% 11% More than 11%
Your employer works out what they contribute as a percentage of your reference salary. You may choose to pay a Flex charge greater than 5% of your reference salary but your employer will not contribute more than 6% of your reference salary. Your employer will treat any amount you pay which is more than 5% of your reference salary as an additional contribution.
The sooner you start contributing, the longer your contributions have the potential to grow
Your retirement may seem a long way off, but dont fall into the trap of putting off joining because youve got plenty of time. Take it from people retiring today, it will come round much faster than you think. The ip side, of course, is that the longer you delay the more youd need to pay in to try and get the same size of pension income.
The longer you live, the more money youre likely to need
Most people retiring at 65 will live to their early-80s (based on current gures from the Ofce for National Statistics). With new medical advances helping to tame many killer diseases, your life expectancy could continue to rise.
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Whether this part of your pension has been built up within State Second Pension (S2P) or by contracting out of it.
The forecast will also tell you what you may get from the S2P. Your plan will not be used to contract you out of the S2P unless you request us to do so. However, if you have contracted out using another plan you will remain contracted out. You can nd out more on contracting out at: www.direct.gov.uk/en/Pensionsandretirement planning/StatePension/DG_183780 Please ask your pension adviser if youd like to know more about contracting out.
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See how your company pension compares to some other investment options
Investment Options Your company pension Your employer can pay in# Buy-to-let property Inheriting money ISAs
**
n/a
**
You can sacrice your salary and increase your take home pay You cant spend the investment before you retire You can take some of the proceeds or benets tax-free All of the income or proceeds is tax-free You dont have to give up your time to manage things
*
Your employer may change its level of contributions. Any employer contributions would stop if you leave the company.
* If under the inheritance tax nil rate limit, this can be tax-free. ** Please note its not possible to reclaim the 10% tax credit on UK dividends.
Tax treatment depends on your personal circumstances and may be subject to change in the future. For more information on any of these investment options or their tax implications, please speak to a nancial adviser.
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Expenses
Ongoing food drink clothing bills The income needed to cover these various expenses can come from a number of sources e.g.: buy-to-let property income from savings freelance work Reducing mortgage paid off travel to work work clothes Increasing leisure activity costs medical or care costs One-off buying a car holidays replace the washing machine
But a pension plan could be key to helping you put a bit more away to help make sure you have enough money in retirement to do all the things you plan. The next section will help you think about how much to pay in.
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Giving up work doesnt mean giving up living. When you retire, what do you think youll be looking forward to the most?
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I could nd about
a month
Little cutbacks could give you some spare cash to pay into your company pension.
Approximate monthly saving Walk to work once a month instead of taking a bus Eat one less chocolate bar a week Buy one less magazine a week Catch one less taxi a month Smoke one less cigarette a day (20p each) Hire one less DVD a month Have one less take away for two, a month Buy one less CD or DVD a month Have one less glass of wine at the pub each week Make one less mobile phone call a day Money you could sacrice into your company pension instead 1.00 2.20 3.80 7.50 6.00 3.50 11.00 11.00 12.00 12.00 70.00
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A company pension is a good way to help get the retirement income you need. Unless your retirement is already on the horizon, you may struggle to picture exactly what youll be doing in 20-40 years time. But whatever you want your retirement to be, a company pension should help you give a financial cushion to enjoy it that bit more.
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80
60
40
20
15
10
UK and Global equity SW SSgA 50:50 Global Equity Index Fund Gilts & Bonds Scottish Widows Corporate Bond Fund Scottish Widows Indexed Stock Fund Scottish Widows Pension Protector Fund Cash Scottish Widows Cash Fund
or Be very hands-on selecting from our wide range of internally and externally managed investment funds.
The next section of the guide explains whats involved with these options.
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The discounted total annual fund charge for the Pension Investment Approaches is currently 0.3% and the non-discounted total annual fund charge is currently 0.8%.
A plan using this Pension Investment Approach is expected to have the most frequent and noticeable ups and downs in value. It has the potential to provide the highest growth over the longer term, but it could also make the biggest losses.
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In the last ve years before your retirement date we gradually start switching to lower risk investment funds, to help protect the value of your pension fund during the run-up to your retirement. At your retirement date your pension fund will be split approximately: 25% in our Cash Fund 75% in our Pension Protector Fund
for the main part they aim to grow your pension fund as much as possible whilst matching the level of investment risk youve chosen the closer you get to retirement, they gradually switch from an aim of going for growth to helping protect what youve built up.
ready to provide your tax-free cash and income for life. If you retire earlier than your selected retirement date this will have an impact on any lifestyling as your investments will be at a different stage of switching than originally intended.
Governance
An important benet of the Scottish Widows Pension Investment Approaches is the robust governance review undertaken by us each year. This process looks in detail at a number of key components of the approaches including: The asset mixes used The proportions of those assets used at the various stages of the lifestyle switching The switching timeframes within the lifestyle switching phases The funds used to provide exposure to the required assets Assessment of new asset classes for possible inclusion in the Approaches.
We undertake to communicate the results of this review process, highlighting any changes which affect your plan.
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1. Your employer offers you a bonus, which you can take as cash, shares or a mixture of both. The shares have a 50/50 chance of doubling in value, or becoming worthless over the next year. What would you do?
your choice
0 1 2 Take it all in cash Take half cash and half shares Take it all in shares
What to do
Using the tool, which you can do in just a few minutes: 1. First answer the questions in the panels starting opposite, using the tick boxes as you go.
There arent any right or wrong answers, so go with your instinct! 2. At the end, add up your scores (these are shown within the tick boxes). 3. Then mark your total score on the investment scale overleaf. Doing this will match you to one of our three Pension Investment Approaches Adventurous, Balanced or Cautious.
your choice
0 1 2 Inexperienced Reasonably experienced Experienced
your choice
0 Limiting loss is more important than getting above-average returns Limiting loss and achieving above-average returns are equally important Achieving above-average returns is more important than limiting loss
4. If you were investing in the UK stockmarket and it suddenly fell by 40%, what would you do?
your choice
0 1 2 Get out quickly Sell some of my investment Stay put
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5. This chart shows how much you could make or lose in a year, with three imaginary investments of 10,000. But you wont know in advance what the result will be. Which one would you invest in?
8. How would you end this statement? With a long time to go before I retire its important to invest my pension ...
your choice
2 All in shares Mostly in shares, but also other investments Mostly in lower risk investments but also some in shares
your choice
Potential Loss Potential Prot
1 0
0 1 2
-6,000 -4,000 -2,000
10,000
+2,000
+4,000
+6,000
6. You are appearing on the hit game show Win a Million! But you dont know the answer to the next question. What would you do?
your choice
0 2 1 Avoiding losses Wanting to make money Both are equally important
your choice
0 1 Not answer and take the 5,000 Eliminate 2 wrong answers, leaving a choice of 2. If you guess right youll have 7,500. If not, youll get only 2,500 Guess the answer. If youre right, youll have 10,000. If not, youll get nothing
10. Two years ago you invested 10,000 in a stockmarket fund. But the value recently fell to 8,500. What would you do?
your choice
0 Switch whats left into something safer thats less likely to fall, but offers lower returns Stay where you are, in the hope of recouping your losses when the market picks up again Stay where you are and invest more money while share prices are low, in the hope of making more money when the market picks up again
7. Youre offered a new sales job with a choice of three pay options. Which one would you take?
your choice
0 1 15,000 a year 10,000 a year, plus a performance bonus of 0 to 10,000 5,000 a year, plus a skys the limit performance bonus
My total score is
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Your result
Mark your total score on this investment scale, to see which of our three investment approaches might suit you best. If youd like to know more about each approach, please see the Pension Investment Approach Guide. Youll nd it on the CD (if youre reading this on paper) or on the literature page if youre online.
20
19
Adventurous
How will my pension fund be invested?
18 17 16
15
14 13 12 11
Balanced
10
9 8 7 6
Of course, you may decide you want to be a hands-on investor instead. In which case, you can link your company pension to a selection of pension funds from our range. Please see pages 22-25.
5
4
Cautious
3 2 1
20
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Some by other UK investment managers, such as Fidelity, Schroders, Invesco Perpetual, Jupiter and Newton.
Most of the investment funds have been placed into our different risk approach ratings to help make your investment choice easier. The funds and their charges are listed in the coming pages but you can nd out more about them in our Pension Funds Investors Guide on the enclosed CD. Please remember, if you go down this route: You should regularly review your choice to decide whether its still right for you. If you decide it isnt, you can ask us to switch to another fund (or funds) or you can do this online via the online member services as we wont automatically do this for you, and Some of the funds may have a higher yearly charge compared to those used for the Pension Investment Approaches. A complete list of our fund range and total annual fund charges can be found on pages 2225. We may change the selection of funds we make available at any time.
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INCREASING RISK
The following table categorises our funds in accordance with these investment approach risk categories. The funds are listed alphabetically in each risk category, with Scottish Widows Internally Managed Funds rst. It also details information on the annual fund charges that apply to each fund. Scottish Widows do not offer any funds that are categorised as secure. Secure investments provide safety to the amount invested and can be expected to offer relatively low growth over the medium to long-term. They cannot fall in actual value but can fall in real value due to the effects of ination. Types of secure investments would be National Savings Accounts and Bank/Building Society Term Accounts. We may change the risk categorisation of funds in the future. Please go to your plan website to see if any changes have been made. Information regarding the fund aim and any associated risks can be found within our Pension Funds Investors Guide on the CD.
Fund Name
Scottish Widows Cash Fund Scottish Widows Cautious Portfolio Fund Scottish Widows Corporate Bond Fund Scottish Widows Fixed Interest Fund
CAUTIOUS
Scottish Widows Pension Protector Fund* Scottish Widows UK Fixed Interest Tracker Fund SW Fidelity MoneyBuilder Income Fund SW Invesco Perpetual Corporate Bond Fund SW JPM Cautious Total Return Fund SW Schroder Gilt & Fixed Interest Fund SW SSgA Sterling Corporate Bond All Stocks Index Fund SW SSgA Sterling Liquidity Fund
* This fund has a cautious approach when used for investment approaching retirement. Scottish Widows Balanced Portfolio Fund Scottish Widows Cautious Managed Fund Scottish Widows Defensive Managed Fund Scottish Widows Diversied Assets Fund Scottish Widows High Income Bond Fund Scottish Widows Indexed Stock Fund 0.900 0.652 0.612 0.900 0.800 0.303 1.172 0.300 0.300 * 1.467 1.197 1.094 0.839 1.097 0.953 1.400 1.152 1.112 1.400 1.300 0.803 1.672 0.800 0.800 * 1.967 1.697 1.594 1.339 1.597 1.453
BALANCED
Scottish Widows Multi-Manager Diversity Fund Scottish Widows SafetyPlus Fund Scottish Widows Strategic Income Bond Fund Scottish Widows Unitised With-Prots Fund SW Fidelity Multi-Asset Strategic Fund SW Invesco Perpetual Distribution Fund SW Invesco Perpetual Global Bond Fund SW Investec Cautious Managed Fund SW Jupiter Distribution Fund SW New Star Fixed Interest Fund
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Fund Name
SW New Star Managed Distribution Fund
BALANCED
SW Newton International Bond Fund SW Newton Managed Income Fund SW SSgA Index Linked Gilts All Stock Index Fund SW SSgA Index Linked Gilts Over 5 Years Index Fund SW SSgA UK Conventional Gilts Over 15 Years Index Fund
* There is an equivalent charge for with-prots units which we currently expect to be at a yearly rate of about 0.8% for the Non-Discounted Total Annual Fund Charge basis or 0.3% for the Discounted Total Annual Fund Charge basis.
Scottish Widows Consensus Fund Scottish Widows Dynamic Property Fund Scottish Widows Mixed Fund Scottish Widows Opportunities Portfolio Fund Scottish Widows Progressive Portfolio Fund
0.300 0.978 0.308 0.900 0.900 1.038 0.620 0.905 1.026 0.844 0.736 1.481 0.490 0.619
PROGRESSIVE
Scottish Widows Property Fund SW Baillie Gifford Managed Fund SW BlackRock Managed Fund SW Fidelity Managed Fund SW Invesco Perpetual Managed Fund SW JPM Managed Fund SW New Star UK Property Fund SW Newton Managed Fund SW Schroder Managed Fund
Scottish Widows Environmental Fund Scottish Widows Ethical Fund Scottish Widows European Fund Scottish Widows European Real Estate Fund Scottish Widows Global Equity Fund Scottish Widows International Fund Scottish Widows Multi-Manager Global Real Estate Fund Scottish Widows Multi-Manager International Equity Fund
0.300 0.300 0.300 0.800 0.300 0.338 1.139 1.000 2.000 1.000 1.000 1.000 0.312 0.300 0.303 0.920 0.528 1.156 1.161 0.600 0.700 1.174
0.800 0.800 0.800 1.300 0.800 0.838 1.639 1.500 2.500 1.500 1.500 1.500 0.812 0.800 0.803 1.420 1.028 1.656 1.661 1.100 1.200 1.674
ADVENTUROUS
Scottish Widows Multi-Manager Select Boutiques Fund Scottish Widows Multi-Manager UK Equity Focus Fund Scottish Widows Multi-Manager UK Equity Growth Fund Scottish Widows Multi-Manager UK Equity Income Fund Scottish Widows North American Fund Scottish Widows UK All Share Tracker Fund Scottish Widows UK Equity Fund Scottish Widows UK Opportunities Fund Scottish Widows UK Real Estate Fund SW Artemis UK Growth Fund SW Artemis UK Smaller Companies Fund SW Baillie Gifford 60:40 Worldwide Equity Fund SW Baillie Gifford North American Equity Fund SW BlackRock UK Dynamic Fund
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Fund Name
SW BlackRock UK Smaller Companies Fund SW BlackRock UK Special Situations Fund SW Fidelity 50:50 Special Situations Fund SW Fidelity American Fund SW Fidelity European Fund SW Fidelity Global Special Situations Fund SW Fidelity Special Situations (2006) Fund SW Invesco Perpetual High Income Fund SW Investec American Fund SW Investec Global Free Enterprise Fund SW JPM Europe Dynamic (ex-UK) Fund SW Jupiter Income Fund SW Jupiter UK Growth Fund
ADVENTUROUS
SW Jupiter Undervalued Assets Fund SW New Star Higher Income Fund SW New Star UK Alpha Fund SW Newton 60-40 Global Equity Fund* SW Newton Growth Fund SW Newton Higher Income Fund SW Newton International Growth Fund SW Newton UK Equity Fund SW Schroder European Alpha Plus Fund SW Schroder Global Property Securities Fund SW Schroder Income Maximiser Fund SW Schroder UK Alpha Plus Fund SW Schroder UK Mid 250 Fund SW SSgA 50:50 Global Equity Index Fund SW SSgA Europe ex UK Equity Index Fund SW SSgA International Equity Index Fund SW SSgA North America Equity Index Fund SW SSgA UK Equity Index Fund
* From April 2010 this fund will be changed to SW Newton 50:50 Global Equity Fund. Scottish Widows Emerging Markets Fund Scottish Widows Japanese Fund SW Baillie Gifford Japanese Equity Fund SW Fidelity Japan Fund 0.800 0.300 0.750 1.251 1.323 1.155 1.155 0.870 1.215 1.215 0.300 0.300 1.300 0.800 1.250 1.751 1.823 1.655 1.655 1.370 1.715 1.715 0.800 0.800
SPECIALIST
SW Fidelity South-East Asia Fund SW JPM Emerging Markets Fund SW JPM Natural Resources Fund SW Newton Oriental Fund SW Schroder Tokyo Fund SW Schroder US Smaller Companies Fund SW SSgA Asia Pacic ex Japan Equity Index Fund SW SSgA Japan Equity Index Fund
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We also have four Pension Portfolios which are used in our Pension Investment Approaches. The Pension Portfolios have not been risk rated in line with our other fund links as they were primarily constructed to provide specic asset class exposure within our Pension Investment Approaches. These portfolios form the building blocks with which we operate our Pension Investment Approaches and as such the same portfolio can be used in more than one Pension Investment Approach. Please see the Pension Investment Approach guide on the CD for more details. The table below details the total annual fund charges that apply to the four pension portfolios. Discounted Total Annual Fund Charge% 0.300 0.300 0.300 0.300 Non Discounted Total Annual Fund Charge% 0.800 0.800 0.800 0.800
Fund Name Scottish Widows Pension Portfolio One Scottish Widows Pension Portfolio Two Scottish Widows Pension Portfolio Three Scottish Widows Pension Portfolio Four
Notes
1. The Discounted Total Annual Fund Charge is equal to the Non-Discounted Total Annual Fund Charge less the scheme member discount. If you leave your employer or regular monthly payments stop being paid into your plan for more than 12 months, the scheme member discount will stop and the Non-Discounted Total Annual Fund Charges will apply to your plan. If you leave your employer and wish to continue to receive a scheme member discount you can do so by continuing to pay at least the minimum monthly contributions applying at the time. This is currently a gross contribution of 100 per month. The applicable Total Annual Fund Charge of a fund is the sum of: a) the Scottish Widows Annual Management Charge, b) if applicable, an External Fund Management Charge, c) if applicable, a Multi-Manager Fund Management Charge, and d) if applicable, an allowance for any Other Expenses. The Management Charges of a), b) and c) above cover fund management, administration, marketing and the cost of sales, and also for c) the multi-manager selection service. Other Expenses include, for example, trustees fees, auditors fees and regulators fees. For the Scottish Widows Multi-Manager Diversity Fund weve not allowed for any annual management fees or performance fees charged by investment trusts or certain investment companies which the fund may invest in. The allowance for Other Expenses can change on a regular basis. If any of a) to d) above changes for a fund, the applicable Total Annual Fund Charge for that fund will also change. We may add or take away units from your plan in order to arrive at the correct level of charges for your plan. Please see your policy documents for more information. 4. This leaet should be read in conjunction with the relevant product literature, including our Pension Funds Investors Guide and any Key Features illustrations. 5. The value of an investment is not guaranteed and can go up and down depending on investment performance (and currency exchange rates where a fund invests overseas). 6. What you get back from investing in the With-Prots Fund depends mainly on the investment prots and losses of the fund and the decisions we make about their distribution, and is only guaranteed in certain circumstances. If you cash in at other times we may apply Market Value Reductions. You could get back less than you invested. Please read the Key Features and With-Prots Guide for further details. 7. Full terms and conditions are available on request from Scottish Widows. Charges, terms and limits may change. 8. We may change the selection of funds that we make available. There may be restrictions on the amount that can be invested in certain funds. Please contact us for details of any restrictions that apply. 9. The Total Annual Fund Charges are those current at the time of going to print (May 2010). 10. SafetyPlus is a registered trademark of Scottish Widows Plc. 11. Details provided in this leaet reect the fund charges available for the AECOM Group Personal Pension. For details of the fund charges for other Scottish Widows Pension products please contact us. 12. Please see our Pension Investment Approach guide for information on the underlying investment funds used by each approach. The Total Annual Fund Charges shown in this section are applied to these underlying investment funds. 3.
2.
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Share Dealing
Separate Share Dealing accounts can be set up for each part of your Retirement Account. This allows direct investment in stocks and shares instead of an HM Revenue and Customs recognised stock exchange. Once set up this will allow you or your pension adviser to invest directly in stocks and shares with our Share Dealing partner Stocktrade. Full details of the assets available to you and the charges applying are available in our Retirement Account guide.
Fund Supermarket
Many clients may feel that theres more than enough choice within our range of Scottish Widows Pension Funds. However, perhaps you have a specic fund in mind that youd like your Retirement Account to invest in. Within the Retirement Account we offer a Fund Supermarket which provides access to a large range of external funds. Whats more, because weve negotiated terms on behalf of our customers, you could benet from lower investment charges on the funds offered through the Fund Supermarket than if you were buying them direct.
Commercial Property
Under current tax rules, your Retirement Account can help you gain signicant tax efciency from commercial property investments, although this does mean, for example, that you will be unable to access the value of the property until you retire. A Retirement Account will not be suitable for everyone and different charges will apply. You should contact your pension adviser for more information. You can also nd more information on the self investment option on your plan website at www.scottishwidows.co.uk/agpp
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Time to decide
What investments will you choose for your company pension? Are you going to be a hands-on investor and self-select investment funds from our wide range of funds, or Choose one of our Pension Investment Approaches, and let us do the work?
your choice
Adventurous Pension Approach Balanced Pension Approach Cautious Pension Approach Hands-on Number of years until you retire
But you cant invest: In more than one Pension Investment Approach at a time, or In both investment funds and a Pension Investment Approach at the same time.
Delays in switching may apply in certain circumstances. Please refer to your Policy Provisions for further information.
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Whatever your personal ambitions, youll need money to enjoy life to the full. Thats where this company pension could help.
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Retirement
When you retire, you can use the value of your plan to provide you with benets. In general, this is a cash sum and a pension often referred to as an annuity. An annuity is an income you receive for the rest of your life. Under current law, you can take up to 25% of your fund as a tax-free cash sum and use the rest to buy an annuity. You can choose what type of annuity you receive, as follows. You can choose whether to receive increases to your annuity each year and at what rate (for example, 3%). You can choose to have a percentage of your annuity paid to your husband, wife, partner or dependant if you die (for example, 50%). You can have your annuity guaranteed to be paid for a specic period (for example, for ve years).
Retirement/death/leaving
Your plan also offers you an open market option when you retire which allows you to buy your annuity from another pension provider if you want to. Your employer offers an annuity service to help with the open market option. Your pension adviser will search for the best rates available from a pool of leading annuity providers based on what type of annuity you choose and the value of your plan. For more information please contact the pensions department.
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All these success factors help to make Scottish Widows one of the UKs leading nancial institutions and a company you can rely on.
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How to join
You can join via Flex Online
Youll need to ll in the relevant section and choose how much you want to sacrice. If you dont join at your rst opportunity your employer will give you the chance to join at the Flex renewal each year.
What next?
Deciding to join will help increase your chances of a nancially secure retirement. Please read the Key Features and example illustration. These give you important details about how your company pension works.
Regular updates
Need advice?
We have not provided you with advice. If youre not sure if this product is suitable for you, or if youre not condent about deciding how to invest, you can: or Use your own nancial adviser, if you have one. Speak to your pension adviser
Every year well also send you a statement showing how much has been paid into your pension fund and what its currently worth. Remember that all payments will show as employer payments because you are using salary sacrice.
How to join
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Online access
By joining your company pension, you have online access to your plan. This includes: Current and historic fund values Access to unit purchase history Change address/contact details Request copies of previous annual benet statements Fund switching. What if? calculator.
Useful contacts
Pensions Department Tel: 01727 535832 Email: pensions.europe@aecom.com Scottish Widows Helpline Tel: 08457 556 557 TISCO Financial Planning Ltd Tel: 01727 734 040 website: www.tisco.co.uk
Feedback
The pensions department welcomes any feedback on any aspect of your plan. If you have any comments or suggestions please visit the pension feedback area on your employers intranet, myAECOM.
Our range of online services provides you with a quick and simple way to keep track of your plan. You can access these facilities online at www.scottishwidows.co.uk/agpp Your employer takes its responsibility seriously and would like to make sure it provides the best possible services to members. Therefore your employer may sometimes obtain details of the value of your pension fund for the purposes of administering your plan.
Online access
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www.scottishwidows.co.uk/agpp
As part of the Lloyds Banking Group, Scottish Widows is proud to be an Official Provider of the London 2012 Olympic and Paralympic Games. Scottish Widows plc. Registered in Scotland No. 199549. Registered Office in the United Kingdom at 69 Morrison Street, Edinburgh EH3 8YF. Telephone: 0131 655 6000. Scottish Widows plc is authorised and regulated by the Financial Services Authority. Our FSA Register number is 191517. 47957 (AGPP) 04/10