UCL (Former Medical Schools) Pension Scheme Informal meeting with members on Friday, 13 January 2012 Jack Foster, Director – Special Projects Extn 48223;

Purpose of Meeting Informal meeting to communicate to members about exploratory work being undertaken by UCL staff Wish to allay fears that members might have Have invited the trustee and pensions lawyer to respond to questions No decisions have been made – UCL is considering the options

Sustainability of Scheme Funding position of scheme has deteriorated over last two valuations Employer’s contributions 34.3% Employer’s contribution to administrative costs is £132k p.a. Compares with employer’s contributions in SAUL of 13% Backdrop of review of ‘final salary’ schemes generally

Review of Future Options UCL Finance Committee have asked to explore options for the future Early discussions with SAUL indicate transfer of benefits may be possible Desire to retain ‘final salary’ link Desire robust and secure alternative scheme (SAUL has 2,000 UCL members) SAUL is larger scheme so has the resources to be more a efficient/effective scheme

Preferred Option Accrued pension benefits into SAUL Benefits converted to SAUL’s basis (i.e. 1/80ths) The capital value of your past service benefits taken as a whole will not be lost Future benefits with SAUL accrue under ‘final salary’ rules If it goes ahead, transfer to occur before 1 July 2012 Existing UFMS scheme to be wound up at the end

The Process UCL to undertake more preparatory work to see if the preferred option works If UCL goes ahead, accrued benefits converted to SAUL basis Formal consultation process started Members informed individually of conversion rate Access to independent financial advice paid for by UCL Individual Member’s CONSENT required to transfer

The Process (continued) Following consultation, final decisions made by trustee and employer Pension Fund assets used to buy-out policies of pensioner/deferred members Payment to SAUL for liabilities of ‘actives’ If the process moves forward, UCL would make good any deficit and the trustee would decide how any surplus is used

Non-consenting Members A decision not to consent will result in cessation of future benefit accrual Past benefits treated as for deferred member Deferred benefit obligation bought-out with insurer Member to make arrangements for pensionable service with USS/SAUL (CARE schemes)