1. An introduction to your new workplace pension
Name | Position
13 August 2014

2. What’s today about? What is auto enrolment? Why is this happening?
How does this affect me?
When will I be auto enrolled?
How much will it cost me?
When and how can I take the benefits?
What if I don’t want to join the pension scheme?
Who is NOW: Pensions?
Questions

3. What is auto enrolment?
New government legislation relating to workplace pensions
Requires all employers to automatically enrol specific groups of their workers into a workplace pension scheme
For (insert employer name), the implementation date for auto enrolment is (insert staging date)
Introduced 2012.

4. Why is this happening?
The full basic state pension is £ per week for a single person
This is payable from State Pension Age, currently 65 for men
The government’s aim is to get more people to have another income, on top of the State Pension, when they come to retire
Employers will enrol their workers automatically into a workplace pension scheme to make it easier for people to start saving
The age at which you can claim State Pension is changing. It is currently 65 for men. State Pension age for women is gradually increasing from 60 and will reach 65 by November State Pension age for both men and women will then increase to 66 by October 2020 and after that to at least 68.

5. How does this affect me?
(insert employer name) are required, by law, to automatically enrol you into a workplace pension scheme if you:
are aged 22 or over
are under State Pension age
earn more than £10,000 a year (£833 per month)
and work or usually work in the UK
This makes you an ELIGIBLE employee

6. What if I’m not ELIGIBLE?
Will receive a personal communication explaining what you need to do if you wish to opt-in. You could be:
NON ELIGIBLE
ENTITLED
Be invited to join the scheme if you wish (opt-in)
Receive a personal communication explaining what you need to do if you wish to opt-in
Non eligible – your employer will pay too.

7. When will I be auto enrolled?
(insert employer name) will implement your workplace pension scheme with effect from (insert staging date)
Workers will be auto enrolled, and pension contributions deducted, with effect from (insert end of postponement period, if using postponement)
Your employer is using Postponement

8. How much will it cost me? 5% 3% 3% 2% 1% 1%
Contributions will be taken directly from your pay at every payroll run. A percentage of your pay will be deducted and transferred into your pension pot. In addition, (insert employer name) will pay a percentage of your salary on top, and into your pot.
1 September to 31st Oct 2017
Nov 1st 2017 to 31st Oct 2018
Nov 1st and onwards 5% 3%
Employer
contribution 3%
Employer
contribution 2%
Employer
contribution 1%
Employee contribution 1%
Employee contribution
Employee contribution

9. How much will it cost me?
Contributions will be deducted from your earnings before you pay tax. For example, at a tax rate of 20%, every £10 of contributions only costs you £8. The extra £2 is tax relief from the government. Your employer’s contributions are also paid on top. It may cost you less if you pay tax at a higher rate. The more you put in, the more you save.
Your monthly pay

10. When and how can I take the benefits?
You can currently retire from the age of 55
Your options are:
Use your total pension fund to purchase an annuity (guaranteed income for life)
Take 25% of your fund as a tax-free cash lump sum and use the remainder to purchase an annuity
Take 25% of your fund as a tax-free cash lump sum and take the remainder as a lump sum less tax (only available from 6 April 2015)

11. What if I don’t want to join?
You will receive a personal communication explaining what you need to do if you wish to opt-out
BUT….consider this carefully
Every £20 going into your pot has only cost you £8!

12. Who is NOW: Pensions?

13. Who is NOW: Pensions? Low cost High quality Full transparency
NOW: Pensions is a UK multi-employer Trust
Member focused
Their mission to give everyone in the UK the possibility of a better retirement
Supported by ATP, Denmark’s leading pension provider
Low cost
High quality
Full transparency
ATP – PADA – gap in market for cost efficient, simple pensions with investment funds that perform …

14. Trustee Board – Master Trust Governance
Nigel Waterson
Chair and former
Shadow Pensions Minister
Jocelyn Blackwell
Founder of Dunnet Shaw and Raising Standards in Pensions Administration
Christopher Daykin
The Former Government Actuary
Lord Monks
Member of House of Lords and Former General Secretary of ETUC and TUC
Win Robbins
Former Head of European Fixed Income, Barclays Global Investors and Credit Suisse Asset Management
Wholly independent with a depth of experience to provide rigorous governance.

15. We align our interest to yours
All NOW: Pensions employees are in the same pension as you!

16. Key drivers to a good pension outcome
Contributions paid in
Member returns
Cost and charges
Transition into retirement

17. Member returns to 30th September 2014
Important Notes
From 1st January 2012 to 31st December 2012, NOW: Pensions Investment ran a model portfolio. This entailed making daily decisions concerning implementation of investment strategy as if the assets had been physically held. Whilst returns are not real, all investors in the NOW: Diversified Growth Fund during this period received this return
Member returns for the Diversified Growth Fund during Q4 2013, Q1 and Q included extraordinary returns in respect of assets sold by the NOW: Pensions Trust during 2013.

18. 0.3% of Assets Under Management
The lower the charges, the more you save
Administration charge:
£1.50 per member per month
Annual Product Investment Management charge:
0.3% of Assets Under Management +
No minimum contributions – huge fairness and cost advantage over time for members
Reduced administration charges apply, until 31st Oct 2018, for those earning less than £18,000 per year
£0.30 from now until 31st Oct 2017 and £1 from 1st Nov 2017 to 31st Oct 2018
If you leave, your deferred member charge is capped so it never exceeds 0.5%

19. Glidepath into retirement
Managed Diversified Growth Fund
Return Target: Cash +3%
Retirement Countdown Fund
Return Target: Cash

20. What happens next?

21. Postponement letter
Issued by to you

22. Welcome Joiner pack Login On joining/when enrolled
Welcome pack with log-on to secure on-line account
Contact information via and helpdesk
Welcome
Login
Issued by

23. In summary – What do we get?
Simple and transparent pension
High quality investment solution
Supported transition to retirement
Your own member website and helpline
Low and transparent costs
We live and work by our set of principles, never forgetting that it’s your money and your future we go to work to grow and protect. So, here’s our promise to our members.
We promise to…
Stay simple
Stay transparent
Stay responsible
State of the art managed, diversified growth fund
Retirement protection
Protecting your future retirement income (life cycling with annuity hedge)
Affordable life assurance
Protecting you from the impact of retiring in bad times
Your money is being invested with prudent risk giving long term stable returns
Transfer in/out
Life insurance
Tax efficient? affordable life assurance if you want
Easy for employers
Easy compliance with auto enrolment
Easy technical integration with payrolls
Easy fit with your remuneration and HR strategy
Flexible branding
Branding to fit your communications strategy
Simple communication
Simple, easy to understand communications
Easy for employees
Online and straight through processing with paper where needed
The only decisions you need to make are how much you contribute and when you plan to retire
Full online member services and call center
Future proofing
additional workplace savings products
One charging structure
One transparent charging structure for all
Your contributions are not being eaten by unnecessary costs

24. Want to know more? www.nowpensions.com About NOW: Pensions
About auto enrolment
How we invest your funds
And much more

25. NOW: is the time for a better pension

26. Any questions?
MM /3