AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018

 
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AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
AN UPDATE FROM
YOUR PENSION
SCHEME TRUSTEE
SUMMER 2018
For members of the Lloyds Bank Offshore Pension Scheme
(including Pension Investment Plan section)
AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
WELCOME
This update provides you with details of a number of activities and changes that may be of
interest to you as a member of the Lloyds Bank Offshore Pension Scheme (the Scheme).

There’s some important information regarding ring-fencing changes along with an
introduction to two new Trustee Directors. We’re also taking this opportunity to remind you
of the useful things you can do via Your Pension and to register your email address
(if you’ve not already) if you’d like to receive information about your pension by email.

During July 2018, the Scheme’s Report & Accounts for 2017 will also be available on the
Group Pensions website. You’ll find this by visiting lloydsbankinggrouppensions.com/
schemedocuments

We’d really appreciate your feedback on this update and we’d love to know what you’d
like to hear about from the Trustee in future editions. So let us know by sending us an
email at feedback@lloydsbankingpensiondocuments.com

We hope you find this update useful and look forward to hearing from you.

From Lloyds Bank Offshore Pension Trust Limited

  General Data Protection
  Regulation (GDPR) –
  Changes to data protection laws
  On 25 May 2018, the rules surrounding
  how the Trustee, as a data controller, may
  hold, process and/or share your personal
  data changed.

  To find out more and to read the Trustee’s
  updated privacy notice, please visit
  lloydsbankinggrouppensions.com/data

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AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
Ring-fencing update
You may be aware that the structure of Lloyds Banking Group is changing as a result of
banking reform legislation to better protect customers. The new rules mean that large UK
banks must separate personal banking services from risks in other parts of the business.
This is called “ring-fencing”. For the Group, Lloyds Bank plc will be the “ring-fenced bank”
going forward (and will be by far the biggest part of the Group).

How will ring-fencing affect the Scheme?
Lloyds Bank plc is currently the principal employer of the Scheme. We can reassure you
that, after the ring-fencing changes, Lloyds Bank plc will continue to be the principal
employer of the Scheme. This means that the Scheme will sit within the ring-fenced part of
the Group. However, Lloyds Bank International Limited and Black Horse Offshore Limited,
the other participating employers, will not be within the ring-fence (as they are not based
in the UK) and will therefore leave the Scheme.
The Trustee and the Group have agreed that additional support will be provided to the
Scheme to reflect the changing Group structure:
• An additional cash payment will be made into the Scheme.
• The pool of assets that provides security to the Scheme if the Group is unable to meet
   its commitments to the Scheme at any point while there is a funding deficit is being
   increased in size.
• Lloyds Banking Group plc will also provide a guarantee to the Scheme.
The Trustee has worked hard with the support of its professional advisers to agree this
package with the Group and is satisfied that it provides the Scheme with important
protection for the changes being made by ring-fencing.

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AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
Get to know your new Trustee Directors
                 Stuart Langan – Group Appointed Director
                 Stuart lives on the outskirts of Glasgow with his wife and two teenage
                 children. He’s an avid football fan and this takes up most of his spare time
                 being a season ticket holder at Glasgow Rangers and he’s also the Head
                 Coach of an under 17s youth football team.
                 Stuart has worked for the Group for over 15 years, initially joining HBOS
                 as Head of HR for Group Technology. Since then, he’s held a number
                 of senior positions including HR Director for the Group’s international
                 businesses.
In 2014, Stuart was appointed as the Service Delivery HR Director where he was
responsible for HR’s operational service lines as well as the Change and Transformation
portfolio. In 2016, Stuart was appointed as Chief Operating Officer for the People, Legal
and Strategy division. Following the Group restructure in July 2017, he continues these
responsibilities in the newly formed People and Productivity division.
He is also a Trustee of the Bank of Scotland (Ireland) Staff Benefits Scheme and is a
Chartered Member of the Chartered Institute of Personnel and Development.

                 Wendy Leedham – Member Nominated Director
                 Wendy lives in Jersey with her husband and two daughters. She enjoys
                 the islands life (previously living in the Isle of Man and Guernsey) and the
                 lovely coastlines viewed both from the seashore in her kayak or walking
                 the cliff paths. She’s also a keen cook and gardener.
                 Wendy has undertaken a variety of leadership roles for various teams in
                 the Group. These include relationship management, retail/community
                 and international banking, Chief Operating office, change delivery and
                 employee engagement.
Currently, Wendy is Head of Business Management for the branches and subsidiaries in
the Crown Dependencies and Gibraltar. In addition, she also leads the development and
delivery of the organisational design for the business in preparation for ring-fencing.
Previously, Wendy was also a Board Director for the Group’s subsidiaries in the Islands.

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AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
Important changes to pensions tax relief in Guernsey
and the Isle of Man
If you’re a member of the Scheme and you live in Guernsey or the Isle of Man, you need to
be aware of some recent changes to tax relief on pension contributions.

Guernsey
From 1 January 2018, the limit for tax relief on pension contributions has been reduced
from £50,000 to £35,000 a year (or, if lower, 100% of your taxable income). Contributions
above this limit will not benefit from tax relief.
The withdrawal of personal tax allowances for higher earners in Guernsey has also been
extended and now includes pension contributions over £1,000. This means that the full
withdrawal of pensions tax relief (except for the first £1,000 of contributions) will occur
where a person has an annual income above £234,396 in 2018.
For further information, please visit gov.gg/taxpensions

Isle of Man
From 6 April 2018, the limit for tax relief on pension contributions has been reduced from
£300,000 to £50,000 per year.
New measures have also been introduced in the Isle of Man to combat the “recycling” of
pension funds. This includes a new rule that tax relief will not apply to a contribution made
to an approved pension scheme – such as the Scheme - if all or part of the contribution
consists of funds withdrawn from another approved pension scheme.
For further information, please visit gov.im/categories/tax-vat-and-your-money/income-
tax-and-national-insurance/budget-2018

                                                  Are your nominations
                                                  up to date?
                                                  It’s very important that your nomination
                                                  information is up to date. The Trustee
                                                  uses this information to help decide
                                                  who may receive your Scheme benefits
                                                  should you die. The Trustee is not
                                                  legally bound by your nominations,
                                                  but will take the wishes you express
                                                  into account when making its decisions.
                                                  You can check and make changes to
                                                  your nominations by logging into
                                                  Your Pension at
                                                  epa.towerswatson.com/accounts/lbg

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AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
Increases to the amount of small pension Jersey and
Isle of Man members can take as a cash lump sum
In some circumstances, members have the option to take all of their benefits from the
Scheme as a cash lump sum. This applies where the value of the member’s benefits is
below a certain level.
Subject to meeting certain conditions:
• Members in the Isle of Man can now take benefits worth up to £100,000 as a cash lump
   sum (previously £50,000).
• Members in Jersey can now take benefits worth up to £19,000 from the Scheme alone
   (previously £18,000). When taking benefits from the Scheme, in conjunction with benefits
   from other approved schemes, members in Jersey can now take up to £35,000 in total
   (previously £30,000).
Please contact the Scheme administrator at lloydsbankinggrouppensions.com/contactus
for more information and details of the conditions that apply.

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AN UPDATE FROM YOUR PENSION SCHEME TRUSTEE SUMMER 2018
Please register your email address with us
(if you’ve not already)
If you’d like to receive important information about your pension as soon as it’s available,
please tell us your email address. There are many advantages to email communications
including:
• Receiving information from us more quickly.
• Accessing information at a time convenient to you via your mobile, laptop, iPad etc.
• Reducing printing and postage costs.
• It’s better for the environment.
Registering your email is simple. You’ll need your user ID, which has been sent to you
from the Scheme administrator, then register at lloydsbankinggrouppensions.com/email_
collection and let us have your preferred email address.
Please be reassured that we won’t share your email address with any third parties who are
not related to the running of any Group pension schemes. If we need to send confidential
information to you, this will either be attached to the email in a password protected
document or you will be told where this information is available online.

Your Pension
Your Pension is a quick and easy way to view and make changes to information about your
pension benefits. Depending on whether you’re still working for the Group, have left or
retired, you can:

   • See what pension benefits you have.       • Change how much you’re saving.
   • Update some of your personal              • Make Pension Extra investment
      information.                                 fund changes.
   • Let us know who you’d like to receive     • Obtain quotes.
      any benefits if you die.
                                                • View pension payslips.

If you’ve not already registered, it’s easy, just go to Your Pension at epa.towerswatson.
com/accounts/lbg
You’ll need your user ID and password which have been sent to you.
If you’ve forgotten your user ID or password try the user ID reminder at epa.towerswatson.
com/accounts/id_reminder or Reset your Password service at epa.towerswatson.com/
accounts/pass_reminder
If you’re still experiencing problems registering or logging in to Your Pension,
please contact the Scheme administrator.
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Contact Us
If you have any questions about the Scheme, please contact the Scheme administrator:
      Lloyds Pension Administration
      Willis Towers Watson
      PO Box 545
      Redhill
      Surrey
      RH1 1YX

      +44 (0)1737 227 522

      LBGOffshore@willistowerswatson.com

      lloydsbankinggrouppensions.com

Independent Financial Advice
If you’d like to talk to a financial adviser in your local area regarding your pension
benefits, visit:
• Jersey Financial Services Commission jerseyfsc.org/investment-business
• Guernsey Financial Services Commission gfsc.gg
• Isle of Man Financial Services Authority iomfsa.im

   IF YOU’D LIKE THIS NEWSLETTER IN LARGE PRINT,
   BRAILLE OR AUDIO FORMAT, PLEASE CONTACT
   THE SCHEME ADMINISTRATOR.

Disclaimer
The full terms and conditions of the Scheme are contained in the Trust Deed and
Rules. The Trust Deed and Rules are formal documents that are the legal basis of the
Scheme and will prevail in the event of any inconsistency with this or any other member
communications or booklets. Nothing in this document confers any entitlement
to benefits.

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