DB DC Overview Part II

[Audio] Introduction to Pensions Part II Legal Copy Helvetica Regular 8/9.6 AA Gray.

[Audio] Member Events (ME) Process Overview Legal Copy Helvetica Regular 8/9.6 Black.

[Audio] Types of caseworks Data Change Active Queries Transfer In Preserved Queries Transfer Out Death with spouse AVC New Transfer out overseas Leaver Preserved Settlement Refund Death Settlement Nomination of wish Change of Address Dependent Application Form NI Change Returned Payment Death of dependent HMRC queries Death of spouse GMP Preserved Quotes Marital Status Change Trace Alteration Active Quotes Alteration Child EPB quotes Spouse and Pensioner Quote EPB settlements Pay or Tax Queries Active settlements Death no spouse Refund settlement Other deduction New Entrant Working hours change Bridging Date of Birth change Application to increase life cover Triv comms AVC Change Tax code change Active retirement quotes POA AutoRefund Early Retirement Quotes AVC queries You Can see the type of caseworks processed by the Member Events Team.

[Audio] Statuses of membership ACT Active PP Preserved Pensioner PN Pensioner NL No Liability WB Widow/widower beneficiary These are the employment status of the members. It could by Active, Preserved, Pensioner, Widow/Widower beneficiary or No Liability.

[Audio] No Liability Active Pensioner Preserved Tomb icon Data Change DRS1 Returned Pay New Entrant CHBA DRS2-3 Trace EOW CHAD TV In AVC Leaver SPAG TBPR Retirement Refund TV Out Here is the lifespan and caseworks for each employment status.

[Audio] Legal Copy Helvetica Regular 8/9.6 White.

[Audio] New Entrant This transaction is created to send to new members of the scheme forms with basic information about the scheme New Entrant transaction is created to send to new members of the scheme forms with basic information about the scheme.

[Audio] Expression of wish Legal Copy Helvetica Regular 8/9.6 White.

[Audio] What is expression of wish process? In this process member provide us with nominated beneficiary or beneficiaries. In expression of wish process, member provide us with nominated beneficiary or beneficiaries..

[Audio] What is expression of wish process? Expression of wish process has two stages: 1st – member’s request for EoW form or invalid nomination of beneficiaries (member must distribute 100% of his or her benefits) 2nd – receipt of completed EoW form, system update Expression of wish process has two stages: 1st – member's request for EoW form or invalid nomination of beneficiaries (member must distribute 100% of his or her benefits) 2nd – receipt of completed EoW form, system update.

[Audio] On which process the "expression of wish" has an impact? Legal Copy Helvetica Regular 8/9.6 Black.

[Audio] Relation to other processes Expression of Wish Death Expression of wish process determine beneficiaries after member’s death It is crucial to hold up-to-date information to identify parties entitled to death benefits Expression of wish process has two stages: 1st – member's request for EoW form or invalid nomination of beneficiaries (member must distribute 100% of his or her benefits) 2nd – receipt of completed EoW form, system update.

[Audio] Leaver Legal Copy Helvetica Regular 8/9.6 White.

[Audio] Leavers Leaver is a member of the scheme who stops his membership due to various reasons, in most schemes' underage of Normal Minimum Retirement Age (55) Leave employment and the pension scheme Leave the scheme and continue employment (Opt Out) Types of leavers in respect of service in the scheme: < 3 mths 3-24 mths >24 mths Refund TV out 3. Preserve Pension Preserve Pension TV Out 1. Refund 2. Preserve Pension Leaver is a member of the scheme who stops his membership due to various reasons, in most schemes' underage of Normal Minimum Retirement Age (55) Leave employment and the pension scheme Leave the scheme and continue employment (Opt Out).

[Audio] Transfer Out Legal Copy Helvetica Regular 8/9.6 White.

[Audio] Transfer Out A transaction resulting from the decision of a retail client who is an individual, to transfer preserved benefits (contributions) that are in one pension scheme to another pension scheme. Scheme is being closed Another scheme is cheaper Member in one scheme wants to consolidate all pensions Member wants to move abroad Transfer out is a transaction resulting from the decision of a retail client who is an individual, to transfer preserved benefits (contributions) that are in one pension scheme to another pension scheme..

[Audio] Stages Request from member, IFA or receiving scheme If the request is from a 3rd party check if the company is on the List of Unauthorised firms and individuals to avoid Checking record and documents If we have an authority to provide IFA with requested information Calculation based on preserved benefits Another quote has been sent within the last 12 months Preparing a Quote Transfer Value depends on the current factors Member’s Decision Closing record Required documents Application For Transfer Receiving Scheme Details Form PSTR/HMRC registration letter Bank Details Disinvesting AVCs Settlement Stage Final correspondence to: Member IFA/Receiving Scheme TV OUT Pack includes all the information required to enable transferring benefits from the Scheme, or to enable either new employer's pension scheme or IFA to give member appropriate information or advice regarding a transfer of benefits..

[Audio] Retirement Legal Copy Helvetica Regular 8/9.6 White.

[Audio] Stages Request from member, IFA Checking record and documents If we have an authority to provide IFA with requested information Calculation based on preserved benefits Preparing a Quote Retirement Value depends on the current factors Member’s Decision Required documents Option form Other Pension Benefits Form Bank Details Disinvesting AVCs Settlement Stage Final correspondence to: Member These are the stages of retirement process. Please go through the follow cart before moving to the next slide..

[Audio] Bank Details Legal Copy Helvetica Regular 8/9.6 White.

[Audio] What is bank details change process? In this process, following member’s correspondence, we change member’s bank details, to which we pay his or her pension. We can also accept correspondence sent by people/institutions which has Power of Attorney or Court of Protection in respect of relevant member. We cannot accept requests sent by emails. Accuracy and meeting deadlines are two important factors. In bank details change process, following member's correspondence, we change member's bank details, to which we pay his or her pension. We can also accept correspondence sent by people/institutions which has Power of Attorney or Court of Protection in respect of relevant member. We cannot accept requests sent by emails..

[Audio] Relation to other processes Retirement Bank details are required to set up a new pensioner in our systems Bank details change Death Member’s pension may return if we update bank details incorrectly or after Payroll’s cut off Bank details are required to set up a new pensioner in our systems Member's pension may return if we update bank details incorrectly or after Payroll's cut off.

[Audio] Death process Legal Copy Helvetica Regular 8/9.6 White.

[Audio] What is death process? In this process we are notified about member’s death, update our systems accordingly and then send relevant information to relatives/solicitors. In the Death process we are notified about member's death, update our systems accordingly and then send relevant information to relatives/solicitors..

[Audio] What is death process? On the next step we gather all required documents to identify potential beneficiaries, for example: Scheme forms Death certificate Expression of wish The Will Other certificates (marriage, birth, deed poll) Other documents (Grant of Probate, Letters of Administration, full-time education confirmation) On the next step we gather all required documents to identify potential beneficiaries, for example: Scheme forms Death certificate Expression of wish The Will Other certificates (marriage, birth, deed poll) Other documents (Grant of Probate, Letters of Administration, full-time education confirmation).

[Audio] After receiving all required documents member’s death benefits are calculated and possible beneficiaries are verified. Some member’s might not be entitled to any benefits for example dependants or member’s under special scheme rules. After receiving all required documents member's death benefits are calculated and possible beneficiaries are verified. Some member's might not be entitled to any benefits for example dependants or member's under special scheme rules..

[Audio] Benefit types: Pension – for member’s with qualifying dependant: spouse, child, civil partner; dependant’s record is set up in the system Lump sum death benefit – one-time payment to beneficiaries approved by Trustees (based on received documents) for member's with qualifying dependant: spouse, child, civil partner; dependant's record is set up in the system Lump sum death benefit – one-time payment to beneficiaries approved by Trustees (based on received documents).

[Audio] Relation to other processes Expression of wish EoW form might determine potential beneficiaries Death process Retirement Retirment caclulation and date of retirment affect death benefits EoW form might determine potential beneficiaries Retirment caclulation and date of retirment affect death benefits.

[Audio] Relation to the member status Death ACT Death in active PP Death in deferment PN Death of pensioner Here is the relationship of death with the member status.

[Audio] Wealth Management – Team Overview Legal Copy Helvetica Regular 8/9.6 Black.

[Audio] Our Teams Business System Indexing ME & CAST Accounting Managing mailboxes Indexing requests Creating processing requests Assignment of requests Configure Tools Validate & load member data Configure calculations & letters Build system capability UAT/ Regression testing First line support to PA team Managing Data Updates Daily valuations Processing Calculations Managing Events Payroll Data Collection Data Reconciliation Auditor information requests Accounts production Queries and Signing The above sub teams combined is the Wealth team..

[Audio] Pension Regular payment made during a person's retirement by the government, pension plan or an investment fund to which that person or the employer has contributed during their working life. Service Period of employment which is taken into account in calculating benefits. Occupational Pension Scheme A scheme organized by an employer or on behalf of a group of employers to provide pensions and/or other benefits for or in respect of one or more employees on leaving service or on death or on retirement. TERMS Go through the above pension terminologies before moving to the next slide.

[Audio] Basic State Pension Depends on an individual's record of National Insurance contributions paid and credited over their working life. You can get it by building up enough qualifying years before certain age. Accrual Rate The rate at which rights build up for each year of pensionable service in a DB scheme. Commonly it’s 1/80, 1/60. Go through the above pension terminologies before moving to the next slide.

[Audio] Final Salary Scheme A pension based upon the accrual rate, length of service and final pensionable earnings. Final Pensionable Salary The pensionable earnings on which the benefits are calculated in a DB scheme. Are based on the average over a number of consecutive years prior to retirement, death or leaving service. Career Average Revalued Earnings (CARE) The amount of the pension build up each scheme year which is calculated as 1/80th or 1/60th of the pensionable earnings each scheme year during the scheme membership, plus a proportional amount for each complete month. It increases on 6th April each year by the increase of the Consumer Prices Index (CPI). Go through the above pension terminologies before moving to the next slide.

[Audio] Contracted out Employers, instead of paying full National Insurance Contributions (NICs) could pay reduced contributions (shared between them and employees) and provide the members with at least as much benefits as State would provide. GMP (Guaranteed Minimum Pension) The minimum pension which United Kingdom occupational pension scheme has to provide for those employees who were contracted out. PCLS Pension Commencement Lump Sum Tax free amount of cash, up to 25% of total benefits available to the member at Date of Retirement. If member chooses it, his pension is being reduced according to this amount taken. Go through the above pension terminologies before moving to the next slide.

[Audio] Normal Retirement Date This is the age at which member receives full benefits from retirement plans Early Retirement Date This is the age at which member receives reduced benefits from retirement plans Go through the above pension terminologies before moving to the next slide.

[Audio] Thank You! Legal Copy Helvetica Regular 8/9.6 Black.