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Frequently Asked Questions - Automatic enrolment

These Frequently Asked Questions have been designed to help you understand how
employees of plc and its subsidiaries are affected by automatic enrolment.

1 Understanding pensions
What is a pension plan?
A pension plan is a way to save for retirement. provides a personal pension plan (a defined
contribution plan). This means:
When you join, you get your own account. Both you and save into this account. The Government
will also contribute by giving you tax relief.
The money that you have in your account is invested to help it grow (you choose where).
When you retire, the savings in your account can be used to buy a retirement income.
How much will you receive in retirement?
How much you receive in retirement depends on:
the amount of contributions that go into your pension plan;
how well your investments perform while youre a member of the pension plan;
how much you pay in fees; and
the cost of the retirement income you choose when you take your benefits.
What happens if you change jobs?
You can move the money in your pension plan into another registered pension arrangement. This
could be your new employers pension plan.
We recommend you seek financial advice before making transfer decisions.

2 Understanding automatic enrolment

What is automatic enrolment?
The Government has introduced laws that encourage more people to join a pension plan.
The new laws mean that most workers who arent already saving through a pension plan will be
automatically signed up to one by their employer. This is called automatic enrolment.
How will this affect employees?
If youre not a member of one of our pension plans by a certain date, and meet specific requirements,
you will be automatically enrolled into one. From this date, both you and will need to pay money
towards your pension. The Government will also contribute by giving you tax relief.
Dont worry, you have options and you can opt out if you want to.
Will everyone be automatically enrolled into a pension plan?
You may be automatically enrolled into a different pension plan if you meet certain criteria see
below. 002

Some employees may have two options depending on their eligibility:

Join the Personal Pension Plan when the rules allow.
Wait to be automatically enrolled (if eligible) into the Automatic Enrolment Plan.
The two plans are different and have different contribution structures. However, both are Qualifying
Schemes, which means that they meet or exceed all of the requirements of the automatic enrolment
laws.
What criteria must you meet to be automatically enrolled?
Employers must automatically enrol eligible employees into a pension plan if the employees:
are aged between 22 and State Pension age;
earn more than 9,440 a year*; and
work in the UK.
If you earn less than this, are under age 22 or are over State Pension age, you also have the option to
opt in to a pension plan.
*This is the pay limit for the 2013/14 tax year and is subject to change each April.
Employees will be notified if they are affected by automatic enrolment.
What if youre already a member of a pension plan with plc?
Employers need to ensure that most employees are in a pension plan that meets certain minimum
requirements. The Personal Pension Plan, The Pension Plan and Automatic Enrolment Plan meet
these requirements. If you are already in one of these plans we will not need to enrol you into another
plan to meet the Governments requirements.
When will plc employees be affected?
The laws will affect employees of plc and its subsidiary companies from different dates, depending on
the Company they are employed by.
Employers are required to assess employees against the automatic enrolment requirements from:
their Staging Date; or
the date they first become an eligible jobholder (see the jargon buster on page xx)
The Staging Date is the date that a company has to implement automatic enrolment from. The laws
allow us to defer the implementation of automatic enrolment for a maximum of three months from the
relevant Staging Date. This date is known as the Deferral Date.
The Company has decided to postpone automatically enrolling all employees for the full three months
to allow time to inform employees and implement the necessary changes in the administration
processes.
The Staging Dates and
Staging Date
Deferral Date
Deferral Dates applicable to
each division are shown in
the table below: Employer
plc
1 November 2014
1 February 2015