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 firstname.lastname@example.org We hope you find this update useful and look forward to hearing from you. From Lloyds Bank Offshore Pension Trust Limited 2 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
3 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.
4 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. 4
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 5 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
6 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.
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: 7 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. • See what pension benefits you have. • Update some of your personal information.
• Let us know who you’d like to receive any benefits if you die. • Change how much you’re saving. • Make Pension Extra investment fund changes. • Obtain quotes. • 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.
8 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 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.
IF YOU’D LIKE THIS NEWSLETTER IN LARGE PRINT, BRAILLE OR AUDIO FORMAT, PLEASE CONTACT THE SCHEME ADMINISTRATOR.