Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich

 
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
Plan Guide
The Royal Mail Defined Contribution Plan

                                           Get started here
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
Contents
Introduction                             04
How the Plan works
Joining and contributions                05
Voluntary contributions                  10
Investments                              10
Absence                                  15
Leaving the Plan                         16
Taking benefits                          17
Benefits on death                        18
How do I:
  Keep track of my Member Account?       19
  View and make changes to my
  Member Account?                        19
  Make other changes?                    19
  Get more information about the Plan?   19
  Tell my employer about changes to
  my personal information?               19
  Get in touch?                          19
  Make a complaint?                      19
  Get financial advice?                  20
Further Information
Glossary                                 21
State Pensions                           22
Help from external organisations         22
Disclaimer and Data Protection           23
What do I need to do?                    24

                                               2
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
Welcome
This Guide gives you some helpful information about the        Why save into a pension?
Royal Mail Defined Contribution Plan (the Plan).
                                                               To have a comfortable life after giving up work you’ll
The Plan is a registered pension scheme under Finance          probably want more than the State Pension alone. For
Act 2004.                                                      most people, saving something is better than nothing and
You can find more information about the Plan on the            it is seldom too late or too early to start.
website at zurich.co.uk/save/royalmaildcplan.                  Can I opt out?
You can find more information and guidance regarding           You can choose to opt out of the Plan or stop your
your wider pension options at the Trustees’ website at         contributions. If you want to, the ‘What if I do not want to
rmdcp.uk.                                                      join or decide to stop paying contributions?’ section of this
Terms shown in bold are described in the Glossary.             Guide explains what you would need to do.
What do I need to know?                                        What are my other choices?
You don’t have to do anything to carry on saving into the      Once you are enrolled into the Plan you can choose
Plan but you do have choices and these are explained in        to change:
this Guide. You will build up a pension pot, which we call     • Your Selected Retirement Age
your Member Account. You can make choices about it,
such as where it is invested, but you don’t have to.           • Where your savings are invested

What’s in it for me?                                           • Your contribution level.

You’re not the only one paying in. Your employer also          Please refer to the ‘Joining and contributions’ and
contributes and you get tax relief on your contributions       ‘What do I need to do?’ sections to explore your choices in
through payroll without you having to take any action. So,     more detail.
some of the money that would have gone to the                  Is there anything I need to do?
government in the form of tax goes into your Member
Account instead and reduces the cost to you of your            As well as the pension savings you will build up in the
contributions.                                                 Plan, you are covered for life assurance whilst you work
                                                               for Royal Mail Group. It is worth taking a few minutes to
It is easy for you to get started and begin saving for         complete an Expression of Wish form so that the Trustees
retirement. Your current contribution level will depend on     know who you would like to receive this benefit should
when and how you joined (see the ‘Joining and contributions’   you die.
section) but you can choose to increase this. This Guide
explains when you can increase your contributions and          What if I have any questions?
what your employer pays.                                       Please contact the Zurich Royal Mail Service Team with
As a member of the Plan you also get free life cover, to       your pension questions. See the ‘What do I need to do?’
provide benefits for your loved ones (see the ‘Benefits on     page for contact details.
death’ section for more details).                              More information on pensions and saving for later life can
                                                               be found at: gov.uk/workplace-pensions.
                                                                                                                               3
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
Introduction
How it works?
Contributions                  Investments                   Benefits                               Retirement

      You pay                                              Your Member                           Secure lifelong income
      regular                                                Account
   contributions*                                                                               You can use some
                                                            You choose                       or all of your retirement
                                                           when to take                     savings to buy an annuity,
                                                           your benefits                    which provides you with a
                                                                                              regular income for the
                                                                                                 rest of your life.
                                                                                              This income is taxable.
                                                                                           You can also take up to 25%
                                                                                             as a tax-free lump sum.
                                                          Life assurance
                                    Lifecycle               paid for by
                                                                                                           /Or
                                     option               your employer
  Your employer                         or                                                          Flexible income
    also pays
    a regular                        Do It                                                     You can keep your
   contribution                     Yourself                                              retirement savings invested
                                                                                           and take a regular taxable
                                                                                             income and/or one-off
                                                                                            taxable payments from
                                                                                           your savings. You can also
                                                                                            take up to 25% as cash,
                                                                                                    tax free.

                                                                                                           /Or
                                                                                                    Cash lump sum
                                                                                            You can take some or all
  Your voluntary
                                                                                           of your retirement savings
   contributions
                                                                                            as a lump sum - 25% is
    (optional)*
                                                                                                    tax-free.

*You don’t pay income tax on these, which means it may cost you less than you think.
Not all options are available within the Plan. Your contributions will be paid to the Plan via
pensions salary exchange (PSE), if you are eligible.                                                                      4
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
Joining and contributions
When can I join?                                             Enrolled on your 12 month service anniversary                 What choices do I have?
Your employer will write to you when you are eligible to     If after 12 months’ service you have not started paying       When you first join, you’re set up as a member without
join the Plan for pension benefits. Until then you will be   contributions to the Plan, you will be enrolled for pension   having to make any choices.
covered for life assurance benefit, either through this      benefits at that point. The only exceptions are if:
                                                                                                                           You’ll receive details about how to log onto the secure part
Plan or a separate arrangement.                              • you are still under 18, in which case you will start        of the website soon after you start contributions to the
There are two types of members – those enrolled                paying contributions on your 18th birthday, or              Plan. Here you can:
automatically (or who choose to opt-in) and those enrolled   • you are over age 64.                                        • Change how your savings are invested (the Lifecycle
after 12 months’ continuous service.
                                                             How do I join?                                                  option with a 10 year switching period applies until you
Enrolled automatically                                                                                                       make your own choice)
                                                             Enrolled automatically or opt-in
The government has introduced a law designed to help                                                                       • Ask to opt out.
people save more for their retirement. It means employers    You will receive information about the Plan before being
must give workers access to a workplace pension scheme       automatically enrolled and, unless you ask to opt-in, you     If you don’t have access to the internet, you can tell the
and automatically enrol certain categories of worker into    do not need to complete any paperwork to join. You will be    Zurich Royal Mail Service Team and they can take your
a workplace pension scheme.                                  sent information about the choices available to you, once     instructions over the phone (0800 092 8263). You can
                                                             you’ve joined.                                                also use this telephone service to change your Selected
For Royal Mail Group this law came into force on                                                                           Retirement Age (this is 65 unless you tell us otherwise).
1 November 2012, with most of its employees not already      If you wish to opt-in, you will need to complete a Choices
                                                                                                                           Zurich may record or monitor calls to improve their service.
contributing to one of its pension schemes, being            form, which is available from the website or by calling the
automatically enrolled into the Plan on 1 February 2013.     Royal Mail Pay Services Team.

Automatic enrolment into the Plan applies to most new        Enrolled on your 12 month service anniversary or after
employees after 3 months of service. Anyone not              You will receive information about the Plan before being
automatically enrolled can “opt-in” at any time (in other    enrolled on your 12 month service anniversary and you
words, choose to join voluntarily). You will receive more    will not need to complete any paperwork.
information when you join Royal Mail Group and as you
approach your automatic enrolment date.

                                                                                                                                                                                    5
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
How much does it cost?
You will pay a regular contribution, taken from your Pensionable Pay, into the Plan. You can choose to pay more if you wish.
Your contribution level depends on what type of member you are, as explained below:

When did           In your first year of employment         On your 1 year anniversary of
                                                                                                     After working for Royal Mail
you join           (whether you were automatically          employment or 18th birthday
                                                                                                     Group for more than a year
the Plan?                 enrolled or opt-in)                          if later

                  Entry Level                                Life cover is provided but no
                                                            contributions are paid into the
                  After 3 months
                                                                 Plan in your first year
                  (or earlier date if opting in)
Regular                                                         or 18th birthday if later
contribution      You pay       RMG pays
in your first     5%            3%
year of
employment        of Pensionable Pay during your
                  first year of service

                                                                                             Choose to                 Are
If you...                                                                 Opt-in            change your              enrolled
                                                                                          contribution rate        automatically

                  Standard Level
                  You can choose one of the contribution rates shown below:                       Entry Level
Regular
contribution      You pay   Your employer pays                                                    You pay RMG pays
after your        4%        8% Tier 1                                                             5%      3%
first year of     5%        9% Tier 2
                                                                                                  of Pensionable Pay
employment        6%        10% Tier 3
                  of Pensionable Pay

                                                                                                                                    6
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
How are contributions made to the Plan?                          Your participation in PSE is a change to your terms and          Standard Level
                                                                 conditions of employment and you will be deemed to have          If you join at the Standard Level you will be set up to
For eligible employees, contributions to the Plan are            accepted the change if you do not opt out. It is therefore
automatically made via pension salary exchange (PSE),                                                                             pay a 6% contribution and your employer will pay 10%. If
                                                                 important that you read and understand the information           you wish to change your contributions, you need to complete
which is a more efficient way of making contributions to         on PSE at: http://www.myroyalmail.com/pensions.
the Plan. In brief, your entitlement to your pay is reduced                                                                       and return a Choices form available from the Zurich Royal
by an amount equal to the pension contributions you              You can opt-out of PSE and still be a contributing member        Mail Service team or from zurich.co.uk/save/
would usually make. Royal Mail Group then pays this              of the Plan. If you do not wish to participate in PSE, please    royalmaildcplan. Once you are paying contributions at the
amount to the Plan on your behalf along with its usual           contact Royal Mail HR Services on 0345 6060 603 for              Standard Level you can not reduce your contributions
employer contribution. Making pension contributions via          further information and to request a PSE opt out form.           below 4% of Pensionable Pay or pay contributions at the
PSE means:                                                                                                                        Entry Level.
                                                                 Entry Level
• you can save National Insurance Contributions (NICs), if       If you join the Plan in your first year of employment (whether
  you pay them;                                                  automatically enrolled or opted in), you will pay 5% of            Example for someone who is automatically
• the Plan still receives the same amount of pension             Pensionable Pay during the first 12 months of service.             enrolled (Entry Level)
  contributions in total;                                        Your contributions will then increase automatically to the 6%
                                                                                                                                    If you earn £300 a week, a 5% contribution is £15 a
                                                                 Standard Level rate. At that point, you can choose to pay
• the amount of money you take home each week or                                                                                    week but your take home pay only goes down by £12
                                                                 one of the other Standard Level contribution rates.
  month is increased by the amount of any NIC saving                                                                                a week - due to tax relief. The total amount invested in
  you make, and;                                                 If you join on your one year anniversary or 18th birthday if       your Member Account, including your employer’s
                                                                 later (because you didn’t meet automatic enrolment criteria        contribution, would be £24 a week.
• PSE is designed not to affect your other Royal Mail            and did not elect to opt in) you were provided with life cover
  benefits such as overtime, bonuses, sick pay and life          in the first year (or until your 18th birthday) but did not        After a year of employment, your contribution rate will
  assurance cover which continue to be based on your             contribute to the Plan. Your contributions will then               automatically increase to 6%. If you are still earning
  pre-PSE salary or wages.                                       commence at the 6% Standard Level rate. At that point, you         £300 a week, your contribution will go up to £18 a
Royal Mail Group automatically enrols you into the Plan via      can choose to pay one of the other Standard Level                  week although tax relief means that your take home
PSE providing your pay after PSE is over the PSE participation   contribution rate Tiers.                                           pay will only go down by £14.40 a week. Your employer
limit (which for the year 2019/20 is £10,000 a year - that’s     If you join after working for Royal Mail Group for more than       will pay a contribution of £30 a week, giving a total of
£833 a month or £192 a week). Other eligibility conditions       a year and later than your 18th birthday, you can choose to        £48 a week going into your Member Account.
also apply for PSE and further information can be found at:      increase contributions from the Entry Level rate to one of
http://www.myroyalmail.com/pensions.                             the Standard Level rates. If you wish to increase your
                                                                 contributions, you need to complete and return a Choices
                                                                 form from zurich.co.uk/save/royalmaildcplan, otherwise
                                                                 your contributions will stay at the Entry Level.

                                                                                                                                                                                           7
Plan Guide The Royal Mail Defined Contribution Plan - Get started here - Zurich
How much should I save in the Plan?                        How do I save tax by being a member?                          Your choices depend on what member type you are:
The online pension planner tools at zurich.co.uk/save/     Your employer takes your contributions from your pay          If you are enrolled automatically
royalmaildcplan can give you an idea of how much pension   before taking off income tax. You only pay tax on what’s      You cannot decide that you do not want to join the Plan.
your and your employer’s contributions are likely to buy   left. So whether you pay tax at basic, higher or additional   Nor can you opt out of the Plan until you have been
when you come to take your benefits.                       rate you get the full tax relief on the contributions you     automatically enrolled. This is to comply with legislation
                                                           pay. For example, if you pay a contribution of £18 a week     and not something that the Trustees or Royal Mail Group
You can also use the online budget tool, so you can work
                                                           and you are a basic rate tax payer, the cost to you after     can override.
out how much you can afford to save.
                                                           tax relief is £14.40.
                                                                                                                         Once enrolled you’ll receive log in details for a secure
                                                           In this example, the £18 a week taken from your pay           website. Here you can opt out of the Plan within 1 month
                                                           before income tax, saves £3.60 in tax payments and the        of receiving your welcome pack. If you don’t have access to
                                                           cut in take-home pay is only £14.40 a week. Your              the internet you can call the Zurich Royal Mail Service Team
                                                           contributions will be paid to the Plan via pensions salary    and they will take your instruction over the phone. If you
                                                           exchange (PSE) if you are eligible (see the previous page     opt out within the 1 month period, you will receive a full
                                                           for further details).                                         refund of your own contributions through payroll and be
                                                                                                                         treated as never having been a member of the Plan.
                                                           What if I do not want to join or decide to stop
                                                           paying contributions?                                         If you do not opt out within the 1 month period but decide
                                                                                                                         later that you want to stop your contributions, you need to
                                                           If this happens, you will need to rely on other savings and   contact the Zurich Royal Mail Service Team and they will
                                                           State benefits. Your employer will not pay into another       explain the process to follow. Treatment of your benefits
                                                           pension arrangement.                                          will depend on how long you have been a member of
                                                           All Royal Mail Group employees are provided with life         the Plan.
                                                           assurance, either through the Plan or through a separate      The ‘Leaving the Plan’ section of this Guide provides more
                                                           arrangement. The value of the benefit will be less if you     details on the choices open to you if you decide to stop
                                                           decide not to become a member of the Plan or stop             making contributions to the Plan.
                                                           making contributions to the Plan (see the ‘Benefits on
                                                           Death’ section).                                              You will normally be automatically re-enrolled into the
                                                                                                                         Plan every three years, even if you have opted-out or
                                                                                                                         decided to stop your contributions. You will be notified at
                                                                                                                         the time and following your automatic re-enrolment you
                                                                                                                         may choose to opt out or stop your contributions in the
                                                                                                                         same way, if you want to.
                                                                                                                         If you change your mind and want to opt-in to the Plan,
                                                                                                                         you are free to do so up to age 74.

                                                                                                                                                                                  8
If you are enrolled on your 12 month service anniversary      If you become a contributing member through
You do not have to join the Plan for pension benefits. If     auto-enrolment
you choose not to do so, you should contact the Zurich        You can opt out by calling the Zurich Royal Mail Service
Royal Mail Service Team before your 12 month service          Team or using the on-line service. You must complete and
anniversary.                                                  submit your opt out request within 1 month of the Zurich
                                                              Royal Mail Service Team sending you full Plan information
Once you’ve started contributing, you can choose to stop.
                                                              in order to receive a refund of any contributions made
You will need to contact the Zurich Royal Mail Service Team
                                                              either via PSE or deducted from your earnings if you did
for further details about the process and your options.
                                                              not participate in PSE. Contribution refunds are made
You may be automatically enrolled, at some point in the       through Royal Mail Group payroll. Please be aware that if
future. This is to comply with legislation and beyond the     you are weekly paid, it is likely that several weeks’
control of the Trustees or Royal Mail Group. You will have    contributions would be paid before they can be stopped.
the right to opt-in if you change your mind and wish to
                                                              In all other circumstances (see below), then the Zurich
re-join.
                                                              Royal Mail Service Team processes your pension benefits in
Can I transfer benefits from another pension                  line with the Rules of the Plan. This may include a refund,
scheme?                                                       while legislation permits.
It may be possible to transfer benefits into the Plan from    If you become a contributing member on your
previous pension arrangements. Individual transfers are       12 month service anniversary or age 18 if later (or
accepted at the Trustees’ discretion. Please contact the      you opt-in and are not affected by auto-enrolment)
Zurich Royal Mail Service Team for further information.       If you joined the Plan after 1 October 2015 and then leave
                                                              the Plan after 30 days of membership, then a refund is not
If I opt out, can I have a refund on my                       possible under legislation. However, your Member Account
contributions?                                                would remain invested in the Plan; although the Trustees
Yes, in certain circumstances.                                may transfer your Member Account to a separate pension
                                                              policy in your own name (after giving you notice).
                                                              Alternatively, you can transfer the value of your Member
                                                              Account to another pension scheme, or you can take your
                                                              benefits from age 55 onwards.

                                                                                                                            9
Voluntary                                                        Investments
contributions                                                    What affects the value of my Member Account?

Can I make extra contributions to the Plan?                           Contributions
It is possible to pay voluntary contributions in addition to          These come from:
your Entry, Interim or Standard contributions. Limits
apply to voluntary contributions taken through payroll                           You                            Your employer
where necessary, to meet other liabilities (such as the
payment of National Insurance).
Should you decide to pay voluntary contributions, the                  Investment returns
                                                                                                           Investment returns can go up and down over time,
amount of these contributions will not change automatically                                                 so the value of your Member Account may also go
if your regular contribution level increases (for example,                                                               up and down over time.
you move from the Interim Level to the Standard Level).
What’s the maximum extra payment I                                     Charges
can make?                                                                                           Charges will be taken from your Member Account. Details of the
                                                                                                       current charges are shown in the Investment Summary.
If you wish to pay additional pension contributions, your
contributions to the Plan may have to be restricted (to a
maximum of around 85% of pensionable pay) to ensure
that any normal regular deductions can still be made from
your earnings. However, if your contributions exceed the         What are investment returns?
Annual Allowance you may be subject to a special tax
                                                                 If you wanted to save for a new car or a holiday, you might    be invested in different types of investment funds (made-
charge. A tax charge also applies if your Member Account
                                                                 open a savings account with a bank. In return for your         up of shares, bonds or a mixture), and each investment
(plus the value of other pension benefits) grows by more
                                                                 savings, the bank will usually give you interest, which can    fund offers a different potential return on your money –
than the Lifetime Allowance. These limits will not affect
                                                                 help your money grow, if it keeps up with inflation.           usually the higher the potential return, the greater the
most members.
                                                                                                                                risk of a sharp fall in value. The Investment Summary
                                                                 The aims of investing your Member Account are similar.
If you participate in PSE (see the ‘Joining and contributions’                                                                  provides an explanation of the levels of risk and return
                                                                 The key difference is that the value of your Member
section for further details) then your voluntary contributions                                                                  associated with each investment fund offered under the
                                                                 Account can go up or down, so there is no guarantee that
will also be made via PSE.                                                                                                      Plan. More details can be found in the ‘What investment
                                                                 you will get back more than has been paid in and you may
                                                                                                                                fund choices are there?’ section.
                                                                 get back less. This is because your Member Account will

                                                                                                                                                                                      10
Why not just use a savings account?                           The intention is to achieve higher returns in your earlier                                       If you find you have to retire early, the Default Lifecycle
                                                              years, when your savings can afford to ride the ups and                                          option may not have started moving your Member
The difference with pension schemes is you get extra          downs of the stock market. As you move to middle-age,                                            Account to lower risk funds. Should you be planning to
money from your employer and tax relief on your               your savings are gradually moved from the Blended Equity                                         retire earlier or later than the Normal Retirement Age
contributions, so you would miss out on these if you just     Fund (which aims for long-term growth) to the Diversified                                        of 65, you can choose a Selected Retirement Age that
used a savings account.                                       Assets Fund (which aims for stable growth). These two                                            suits you. The Default Lifecycle option will start to switch
Pension scheme investment funds can provide a better          stages form the accumulation phase. Then, as you near                                            your Member Account ten years before the age you
rate of return compared to savings accounts, although as      retirement and need greater certainty the Default                                                choose. The Plan’s Normal Retirement Age of 65
already noted their value can go down as well as up.          Lifecycle option gradually moves your Member Account                                             applies if you do not choose a Selected Retirement Age.
                                                              to lower risk funds that aim to protect its value.
Where is my Member Account invested?                                                                                                                           You can see how the Default Lifecycle option works in the
                                                              The move into the protection phase will start ten years                                          graph below.
When you join the Plan, all contributions are invested in     before your Selected Retirement Age. This is the
the Default Lifecycle option. You will then have the choice                                                                                                    The left of the chart shows the two stages of the
                                                              ‘switching period’.
of selecting your own investments through the Do It                                                                                                            accumulation phase i.e. ending 10 years before the
Yourself option. You can change how your Member               The Default Lifecycle option is designed for those people                                        Selected Retirement Age. Over the 10 year switching
Account is invested at any time, through the Plan website     planning to take all of their Member Account as a cash sum.                                      period, the Member Account gradually moves from
or by completing and returning a Changes Form which                                                                                                            investments aiming for growth to finish invested around
                                                              There is no guarantee that returns from the Default
can be found at zurich.co.uk/save/royalmaildcplan. More                                                                                                        25% in the Cash Fund and 75% in the Diversified Bonds
                                                              Lifecycle option will be better than choosing the Do It
information on investing your money, including details of                                                                                                      Fund.
                                                              Yourself option for investing your Member Account.
the funds, is in the Investment Guide or the Investment
Summary leaflet at: zurich.co.uk/save/royalmaildcplan.
                                                                                                                             10 Year Royal Mail Lifecycle Strategy
How the Default Lifecycle option works                                                                   100%                                                                                           Cash
                                                                   How your Member Account is invested

The Lifecycle option makes investing easier because you                                                  90%
                                                                                                                                                                                                        Diversified
do not need to make any decisions about where you invest                                                 80%                                                                                            Bonds
your Member Account. The Default Lifecycle option uses                                                    70%                                                                                           Diversified
an investment strategy which changes depending on how                                                    60%                                                                                            Assets
many years away from retirement you are. It has two aims:
                                                                                                         50%                                                                                            Blended
• the first aim is to give your Member Account high                                                      40%
                                                                                                                                                                                                        Equity
  potential for growth, and                                                                              30%
• the second aim is to protect the value of your Member                                                  20%
  Account closer to retirement.                                                                           10%
                                                                                                           0%
                                                                                                                10   9   8        7      6       5      4       3     2      1      0
                                                                                                                                Years to Selected Retirement Age

                                                                                                                                                                                                                        11
What are the Alternative Lifecycle options?                                                                                The Do It Yourself option
5 Year Royal Mail Lifecycle Strategy                          10 Year Royal Mail Annuity Strategy                          What investment fund choices are there?
This strategy is the same as the Default Lifecycle option     This strategy is designed for those people planning to use
                                                                                                                           The investment funds listed below are available through
except the switching period is 5 years instead of 10 years.   their Member Account to provide a lifetime income.
                                                                                                                           the Do It Yourself option.
When you are younger the Lifecycle option invests the         When you are younger the Lifecycle option invests the
                                                                                                                           You can also choose to invest in the Lifecycles as part
savings in your Member Account in the Blended Equity          savings in your Member Account in the Blended Equity
                                                                                                                           of this option. More information about the Lifecycle
Fund, gradually moving to the Diversified Assets Fund to      Fund, gradually moving to the Diversified Assets Fund to
                                                                                                                           options can be found in the Investment Guide and the
provide long-term and then more stable growth.                provide long-term and then more stable growth.
                                                                                                                           Investment Summary.
As you approach your Selected Retirement Age your             As you approach your Selected Retirement Age your
                                                                                                                           Active Emerging Market Equity
pension savings are gradually moved into the Cash Fund        pension savings are gradually moved into the Cash Fund
and Diversified Bonds Fund. This aims to help protect         and Annuity Bonds Fund. This aims to help protect against    The Active Emerging Market Equity Fund invests in
against short-term market movements and lowers the            short-term movements in markets and changes in the           equities (also known as shares) of emerging market
risk reward of your investments.                              cost of buying a pension.                                    companies, aiming to achieve long term growth. The
                                                                                                                           shares are actively chosen by the manager with the
When you reach your Selected Retirement Age your              When you reach your Selected Retirement Age your             objective of outperforming the emerging market equity
Member Account will be invested approximately:                Member Account will be invested approximately:               index. The value of equities can go up and down sharply
• 75% in the Diversified Bonds Fund and                       • 75% in the Annuity Bonds Fund and                          – particularly in the short-term.
• 25% in the Cash Fund.                                       • 25% in the Cash Fund.                                      Active Global Equity
The move into the Diversified Bonds Fund will start           The move into the Annuity Bonds Fund will start              The Active Global Equity Fund aims to achieve long term
5 years before your Selected Retirement Age.                  10 years before your Selected Retirement Age.                growth, but accepting some shorter term volatility
                                                                                                                           associated with investing in equities (shares). This fund
                                                                                                                           invests in shares of UK and overseas companies which are
                                                                                                                           actively chosen by the manager with the objective of
                                                                                                                           outperforming the global equity index.
                                                                                                                           Annuity Bonds
                                                                                                                           The Annuity Bonds Fund invests in fixed interest
                                                                                                                           government bonds (gilts) and corporate bonds issued by
                                                                                                                           UK companies.
                                                                                                                           The Annuity Bonds Fund can provide stability as you draw
                                                                                                                           closer to your Selected Retirement Age as the cost of
                                                                                                                           buying a pension varies and depends partly on the price of
                                                                                                                           bonds. Moving savings in your Member Account into the
                                                                                                                           Annuity Bonds Fund when you are close to taking your
                                                                                                                           benefits can help protect the value of the pension you buy.

                                                                                                                                                                                   12
Blended Equity                                                 Ethical                                                        How do I choose how to invest my Member
The investment manager(s) of the Blended Equity Fund           The Ethical Fund invests in UK and overseas shares.            Account?
use their expertise to try to achieve a return above           It aims to invest in companies that have adopted approved      You need to strike your own balance between the risk you
inflation over the longer-term and to protect against          governance structures. It avoids investment in certain         wish to take and the return you need from your
falling share markets. A diversified range of traditional      industries. As with the Shariah Fund, the range of             investments. Before you decide, make sure you consider:
and alternative asset classes are used to achieve this.        investment opportunities may be restricted due to the
                                                                                                                              1. How close you are to retirement
Cash                                                           nature of the fund.
This fund is composed of short-term cash investments                                                                          2. How much you can afford to contribute to your pension
                                                               Inflation-linked Bonds
but is not a deposit account. The value can go down as         This fund invests in government bonds (gilts) with an          3. Your other savings or investments
well as up. If you are about to take your benefits, moving     interest rate tied to inflation. It aims to minimise the       4. How much money you will need to live comfortably in
some of the savings in your Member Account into the            conversion risk of buying a pension which increases with          retirement
Cash Fund could help protect the value of any tax-free         inflation. It can be used in a similar way to the Annuity
cash lump sum you might want to take.                                                                                         5. Whether you are a cautious investor or are comfortable
                                                               Bonds Fund and is most suitable for members wishing to
                                                                                                                                 taking some risk in the hope of a greater investment
Diversified Assets                                             buy a pension that will increase each year.
                                                                                                                                 return.
This Fund aims to provide more stable returns than             Passive Global Equity
funds that invest in one type of asset, by investing in a                                                                     If you don’t want to decide where to invest, the Lifecycle
                                                               The Passive Global Equity Fund invests in equities             options will automatically move between investment
mix of growth assets such as equities, commodities and         (also known as shares) of both UK and overseas
high-yield bonds.                                                                                                             funds. This approach may not necessarily produce the
                                                               companies, aiming to achieve long term growth. The value       best returns or match your attitude to investment risk.
Investing in a mix of assets can mean that if one asset is     of equities can go up and down sharply – particularly in       You can switch between Lifecycle options and to the Do It
performing poorly, it could be offset by a better performing   the short-term.                                                yourself option, and you can invest in a Lifecycle and the
asset. This is because not all assets react to market          Shariah                                                        Do It Yourself option at the same time.
conditions in the same way.
                                                               The Shariah Fund invests in shares. Shariah investment is      If you want to take an active role in managing your pension
Diversified Bonds                                              a way of investing that complies with Islamic Shariah          savings, or feel that none of the Lifecycle options are right
The Diversified Bonds Fund invests in government bonds,        principles.                                                    for you, then you should choose the Do It Yourself option.
corporate bonds and derivatives with the aim of producing      As this Fund has some limits on the companies in which         The table on the next page compares a Lifecycle option to
positive returns irrespective of market conditions.            it can invest, it does not have as many investment             the Do It Yourself option.
The Diversified Bonds Fund can therefore provide stability     opportunities open to it as, for example, the Passive Global
if the absolute value of your benefits at retirement is        Equity Fund.
important, for example if you want to take your whole          You can find further information about these investment
benefits as a cash lump sum.                                   funds in the Investment Guide and Investment Summary.

                                                                                                                                                                                        13
You can use the Fund Information Sheets to find out more
                 Lifecycle options                                  Do It Yourself option
                                                                                                                      information on where the funds are invested, their aims
What is          Investment strategies that automatically           You create your own investment mix from the       and past performance. The Investment Guide also gives
involved?        switches your Member Account from higher           range of eleven funds, choosing funds that suit   more detail on each of the investment funds. Both of
                 risk investments into lower risk investments as    your own needs and attitude to risk.              these are available on the website.
                 you approach retirement.
                                                                                                                      What are the charges?
Who makes        The Trustees (with specialist investment           You decide on the asset mix, but the Trustees     Charges for managing the Plan and providing investment
the decisions?   advice) choose the asset mix and                   decide on the investment managers.                and communication services are deducted from your
                 investment managers.                                                                                 Member Account. The Investment Summary contains
What should      Because the lifecycle options switch funds         If you don’t regularly review your investments    details of the current charges.
I consider?      automatically before you retire, they don’t take   – particularly as you approach retirement         The annual benefit statements you receive from Zurich,
                 into account what’s happening in the markets at    – you may find that the value of your             on behalf of the Trustees, reflect an estimate of the
                 the time. This means you may be switched           Member Account falls and you are left with        charges to be deducted and the effect on the future value
                 from good-performing funds to funds that           lower retirement benefits than you might          of your Member Account.
                 perform less well. However, the overall risk in    have expected.
                 your Member Account will be reduced as you                                                           Investment charges are taken from some of the investment
                 approach retirement.                                                                                 funds each day before calculating the fund’s value.
                                                                                                                      Because of this you may not see all investment charges on
What would I     You will need to consider which lifecycle best     You will need to select investment funds that     your benefit statements but you will see the charges for
have to do?      fits the way you intend to take the benefits       take into account your savings goals, attitude    managing the Plan and providing communication services.
                 from your Member Account at retirement.            to risk and how long you will be investing for.   Charges taken will affect the return on your Member
                                                                    You will need to review your strategy regularly   Account. Each fund has different charges. If a fund has
                 You should review your choice regularly,
                                                                    to check it is helping you achieve your savings   higher charges, you should make sure you are happy that
                 to check that your selected lifecycle is helping
                                                                    goals – and if it’s not, you should reconsider    it offers the potential for greater growth or protection
                 you achieve your savings goals.
                                                                    your choices.                                     from risk, to make this extra cost worthwhile.
Where can I      Read the ‘Lifecycle option’ sections.              Read the ‘Do It Yourself option’ section.
find out more?   Consider speaking to a financial adviser.          Consider speaking to a financial adviser.

                                                                                                                                                                            14
Absence
What if I am absent from work?
Most absences for short periods will not affect your
membership of the Plan. However, your employer and the
Trustees decide if you can continue as a member of the
Plan if you are off work for a long time. Your employer
decides whether the contributions will continue and if you
remain covered for life assurance benefit and for how long.
You may pay voluntary contributions on your return to
work if you wish to make up for any shortfall in your
regular contributions during your period of absence.
What If I’m on maternity/paternity/adoption
leave?
You will continue as a member of the Plan while on paid:
• maternity leave
• paternity leave, or
• adoption leave.
Your contributions will continue, based on your actual pay.
Your employer’s contributions also continue but based on
the Pensionable Pay you would have received if you were
working normally.
You may pay voluntary contributions on your return to
work to make up for any shortfall in your regular
contributions during your period of absence.

                                                              15
Leaving the Plan
If you have been a member of the Plan for…

                             At least 30 days and                                                                            What happens to my Member Account if,
                                                                                  Less than 30 days                          after leaving, I leave it in the Plan?
 You are under                           You are age 55
 age 55                                  and over                                                                            You won’t be able to pay any more contributions into your
                                                                                                                             Member Account. You can still change the investment
 You can leave your Member               You can start to receive pension         The value of your Member Account           funds within the choices offered by the Plan. The value of
 Account invested in the Plan and        benefits immediately                     in respect of your contributions           your Member Account will continue to move in line with
 take your pension benefits from         OR you can leave your Member             (that were not made via PSE),              the performance of the funds you’ve chosen to invest in.
 age 55 onwards. However, the            Account invested in the Plan.            will be refunded less tax (currently
 Trustees may transfer your              However the Trustees may                 20% on refunds up to £20,000 and           How do I transfer my benefits to another
 Member Account to a separate            transfer your Member Account to          50% on the excess of refunds above         pension scheme?
 pension policy in your own name         a separate pension policy in your        £20,000) plus investment growth
 (after giving you notice)                                                        (if any) on your contributions             If you want to transfer your benefits to another pension
                                         own name (after giving you notice)                                                  scheme you should ask the Zurich Royal Mail Service
                                                                                  (you are responsible for paying tax
 OR you can transfer the value of        OR you can transfer the value of                                                    Team for a statement of the transfer value of your benefits
                                                                                  on this part of the refund via your
 your Member Account to another          your Member Account to another                                                      and details on how to transfer. The value actually
                                                                                  tax return or direct to HMRC).
 pension scheme.                         pension scheme.                                                                     transferred will be the value of your Member Account on
                                                                                  Note: you lose the benefit of the          the day your benefits transfer.
                                                                                  employer contributions made on
                                                                                  your behalf, as these are not              What if I have been offered membership of
                                                                                  refunded to you. If you have made          the Defined Benefit Cash Balance Scheme?
                                                                                  contributions to the Plan via PSE
                                                                                                                             Some members will be able to join the Cash Balance
                                                                                  then your employer will make a
                                                                                                                             Scheme. If you are offered membership to the Cash
                                                                                  special payment to you of your PSE
                                                                                                                             Balance Scheme, you may benefit from increased
                                                                                  contributions, less deductions for
                                                                                                                             contributions by Royal Mail Group. However, you may be
                                                                                  tax and National Insurance.
                                                                                                                             better off remaining in the Plan.
If you are automatically enrolled then you will be able to opt out within 1 month of being notified that you are a member.   Carefully read the information that you have been sent,
Your contributions will be returned through payroll and you will be treated as never having been a member of the Plan.       before making a decision. *
                                                                                                                             Please note that it is not possible to transfer the value of
                                                                                                                             your Member Account to the Cash Balance Scheme.
                                                                                                                             * More information is provided on rmdcp.uk by the
                                                                                                                             Trustees to help you with your choices.

                                                                                                                                                                                      16
Taking benefits
When can I take my benefits?                                     You can use some of your Member Account to purchase            How much will my benefit be?
                                                                 a pension for your spouse or civil partner or another          Information on your retirement choices is provided six
You can choose the age you take your benefits. Retirement        Dependant after your death, via the Annuity that you
no longer has to mean finishing work – it can mean                                                                              months before the date you expect to take your benefits
                                                                 choose. For example, you can choose that one half of the
reducing your hours, with your employer’s agreement, as                                                                         (your Selected Retirement Age). The pension you receive
                                                                 pension that you receive from your Annuity will continue
you approach retirement.                                                                                                        depends on the decision you make at your Selected
                                                                 to be paid to a spouse, civil partner or Dependant. If you
                                                                 choose this option, the pension that is paid to you for your   Retirement Age.
The Plan’s Normal Retirement Age is 65. However, you
can take your benefits from age 55 or earlier if you are ill     lifetime will be lower than it would have been if you had      You can use the planner on the website to get an
and cannot work. You don’t have to take your benefits            purchased an Annuity on your life only.                        illustration. This will give you an idea of the pension your
until age 75 at the latest.                                                                                                     retirement savings could possibly provide. It can also show
                                                                 You may be able to buy a higher pension if you are in ill
                                                                 health or there is a reason why your life expectancy may       you how much more you could get if you increase your
What choices do I have?                                                                                                         contributions.
                                                                 be reduced.
You have three broad choices and, based on your individual                                                                      You can also ask for an illustration from the Zurich Royal
circumstances, choosing how to take your benefits can be         3 Flexible income (drawdown)
                                                                                                                                Mail Service Team. Your annual benefit statement will also
complex. Royal Mail will pay for financial advice to help you    If you want flexible access to your money, you may want
                                                                 to look at drawdown which keeps your retirement savings        provide an illustration.
make the appropriate choice.
                                                                 invested and allows you to take a regular taxable income
1 Take cash from your Member Account                             when it suits you. You can choose to increase or decrease
You may want to take your Member Account as a lump               the amount of income you take to match your needs. You
sum and not take any income but you should understand            can also take one-off taxable payments from your
the different options available and the potential tax            retirement savings.
consequences. You also need to think about how you’re
going to provide an income throughout your retirement.           Alternatively, you can take your tax free cash and, if you
                                                                 choose, then take a regular income and/or one-off payments
You may be able to take all or part of your retirement           which are taxed as income. Usually 25% of your retirement
savings in one or a few lump sums. Of this, 25% will be tax      savings can be paid as a tax-free lump sum. The bigger
free, with the rest taxed as income.                             the lump sum you take, the less you’ll have left to provide
2 Use your Member Account to buy a pension                       an income.
    (known as an Annuity)                                        As part of this decision you should consider whether this
If your Member Account is large enough, the Trustees’            income will last throughout your retirement – remember
appointed annuity bureau can help you to buy an Annuity.         investments and withdrawals will reduce your retirement
This will pay you a pension for the rest of your life. You can   savings. With this option your savings remain invested
still take some of your Member Account as tax-free cash          and any fall in value could affect how much income you
if you want.                                                     can afford to take and how long you can take it for.
If buying an Annuity is the right choice for you, you can get    It’s important you regularly review your retirement
quotes from the annuity bureau on how much pension your          savings if you take a flexible income.
Member Account will buy. In the same way as you would
shop around to buy car insurance, the annuity bureau will        Transfer your Member Account
look across the insurance market for the best value Annuity      Alternatively, you might choose to transfer the money in
for you. Your employer currently pays for this service, so       your Member Account to another pension scheme.
there is no cost to you.
                                                                                                                                                                                         17
Benefits on death
What happens if I die?                                       • a lump sum equal to the value of your Member               Are the benefits subject to tax?
                                                               Account, if you have one. (You will not have a Member
The benefits payable depend on your circumstances:             Account if you have not paid contributions, if your        The life assurance and dependant’s lump sum benefits
                                                               contributions were refunded or if your Member              paid on death are normally paid tax free. The value of the
What if I die while contributing, or before I                                                                             Member Account paid on death is also normally paid
have completed 12 months’ service?                             Account has been transferred out of the Plan).
                                                                                                                          tax free.
• a life assurance benefit of four times* your Annual        • If you used your Member Account to buy an Annuity,
                                                               the death benefits paid will depend on the Annuity you     If you are over age 75 when you die any benefit paid to
  Pensionable Pay at your death (less any other death-                                                                    your survivors may be paid to a dependant as a regular
  in-service lump sum payments from other Royal Mail           chose. (Please see previous page).
                                                                                                                          income, or as a lump sum which will be taxable.
  Group pension arrangements) is paid;                       What if I die after leaving Royal Mail Group?
                                                                                                                          Who do the Trustees pay the money to?
• if you are survived by a Dependant, an additional lump     Your benefits depend on what has happened to your
  sum of two times* your Annual Pensionable Pay will         Member Account.                                              The Trustees decide who to pay benefits to on your death
  be payable; and                                                                                                         – this usually means payments of lump sums are paid free
                                                             • a lump sum equal to the value of your Member               from inheritance tax. However, the Trustees will take
• a lump sum equal to the value of your Member                 Account, if you have one, is paid from the Plan. (You      your wishes into account. You can let them know who you
  Account, if you have one.                                    will not have a Member Account if you have not paid        would like to receive the benefits by filling in an Expression
*Life assurance benefits are only payable up to the            contributions, if your contributions were refunded or if   of Wish Form. This form is available on the website or by
amount of the insurance cover held by the Trustees and         your Member Account has been transferred out of the        calling the Zurich Royal Mail Service team. If your
to the extent that the insurance provides funds to the         Plan). If your Member Account has been transferred         circumstances change (for example you marry or divorce)
Trustees. In certain circumstances this could mean that        to another arrangement, the death benefits paid will       you should make sure that you complete a new form.
death benefits have to be reduced.                             depend on the terms of that arrangement.

What if I die after opting out of the Plan or                • If your Member Account has been used to purchase
                                                               an Annuity, the death benefits paid will depend on the
stopping my contributions but still work for                   Annuity you chose. (Please see previous page).
Royal Mail Group?
                                                             Separate dependants’ pensions are not provided under
• if you are under age 75, a life assurance benefit of two   the Plan although the lump sum life assurance benefit
  times* your Annual Pensionable Pay (less any other         could be used to buy a dependant’s pension, if required.
  death-in-service lump sum payments from other
  pension arrangements of Royal Mail Group) may be
  paid from a separate life assurance arrangement, and

                                                                                                                                                                                     18
How do I…
Keep track of my Member Account?                              Make other changes?                                          Get in touch?
You receive a benefit statement each year from the Plan.      You can use a form to tell the Zurich Royal Mail Service     If you have a question about your benefits or want to tell
This shows the value of your Member Account and a             Team about other changes you would like to make. The         us about changes to your Member Account, you can get
projection of the pension that your Member Account            following forms are available on the website:                in touch with Zurich at:
might provide at your Selected Retirement Age.
                                                              • Changes form – used to change the Selected                 Zurich Royal Mail Service Team
View and make changes to my Member                              Retirement Age and/or investment choice                    PO Box 1073
Account?                                                                                                                   Cheltenham
                                                              • Choices form – complete this if you wish to opt-in
                                                                                                                           Gloucestershire
                                                                before you are enrolled automatically, or change your
                                                                                                                           GL50 9NN
                                                                contributions
                                                                                                                           Email: royalmailserviceteam@uk.zurich.com
                                                              • Expression of Wish form – used to tell the Trustees
                                                                who you would like to receive any death benefits.          Phone:0800 092 8263
                                                              Get more information about the Plan?                         Lines are open Monday to Friday 8.00am – 5.30pm
                                                                                                                           (except public holidays).
                                                              The Trustees’ annual report and accounts is available
                                                              from the Zurich Royal Mail Service Team or the website.      An answer phone operates outside these hours. Any
                                                              The Trustees’ annual report and accounts for the             messages are dealt with on the next working day. Calls may
                                                              Plan year to 31 March are normally available from the        be recorded or monitored for training and quality purposes.
                                                              following October.                                           Make a complaint?
                                                              Tell my employer about changes to my                         If you have a problem with your pension, you should first
                                                              personal information?                                        speak to the Zurich Royal Mail Service Team.
Once you are a member of the Plan you will receive a          If you are still employed by Royal Mail Group, please tell   The law requires the Plan to have a formal Internal
password and user number. This gives you access to the        your HR department if your address or personal               Dispute Resolution Procedure to help solve disputes. This
website and enables you to view and make changes to           circumstances (e.g. marital status) change. If you are no    procedure should be used before going to the Pensions
your Member Account. The guide to getting on-line             longer employed by Royal Mail Group, please contact the      Ombudsman. You can obtain full details of the Internal
explains how this works. The website also has more            Zurich Royal Mail Service Team.                              Dispute Resolution Procedure from the Zurich Royal Mail
information on the investment choices offered under the                                                                    Service Team or the Plan Secretary.
Plan, including a detailed Investment Guide and Fund                                                                       The Plan Secretary can be contacted at:
Information Sheets. You don’t need a password to see these.
                                                                                                                           Royal Mail Defined Contribution Plan
Don’t worry if you do not have access to the internet, the                                                                 Second Floor
Zurich Royal Mail Service Team will provide you with help                                                                  11 Ironmonger Lane
on the telephone or by email. Please see the ‘What do I                                                                    London
need to do?’ section for details of how to get in touch.                                                                   EC2V 8EY

                                                                                                                                                                                   19
Get financial advice?
If you’re unsure about joining the Plan or making an
investment decision, you should take financial advice.
For details on how to find a financial adviser near you, go
to unbiased.co.uk or vouchedfor.co.uk. You will usually
have to pay for any financial advice you receive. However,
Royal Mail will pay for financial advice to help you decide
how to use your Member Account when you decide to
take your benefits. You are able to take your retirement
benefits after age 55. The Zurich Royal Mail Service Team
will be able to inform you of the choices available to you.

                                                              20
Glossary
The terms that appear in bold throughout this booklet are    Annuity – this is the regular retirement income that will      If you are contracted to work less than full time it means:
defined below:                                               be paid by an insurance company in return for a sum of         • your basic salary or wage for your contractual hours,
Administrator – this is a reference to Zurich Corporate      money paid from the proceeds of your Member Account              plus
Savings (Zurich), the company appointed by the Trustees      at retirement. The level of the Annuity will depend upon
                                                             the age at which you retire, your health, the size of the      • the salary or wage that you earn for non-contractual
to carry out the day-to-day administration and record                                                                         hours worked each pay period (which is a week if you
keeping for the Plan. Zurich are also responsible for        lump sum being invested and even where you live. There
                                                             are different types of Annuity (and associated options)          are a weekly-paid employee and a month if you are a
running the Plan’s website. Their dedicated helpline                                                                          monthly-paid employee). Earnings for hours of work
number is 0800 092 8263, or you can email them at            available which will also affect the size of your income, as
                                                             will the level of market interest rates when the Annuity is      that are in excess of the number of hours normally
royalmailserviceteam@uk.zurich.com.                                                                                           scheduled for someone working full time in your role
                                                             bought.
Annual Allowance – an annual limit on the amount that                                                                         will not be counted for the purpose of Pensionable
can be paid by yourself (and your employer) to all the       Beneficiaries – any person or persons other than a               Pay. Bonuses and other items will not be counted for
pension arrangements you may have. The Annual                Member who are entitled or potentially entitled to a             the purpose of Pensionable Pay.
Allowance is currently £40,000.                              benefit under the Plan.
                                                                                                                            Plan – refers to the Royal Mail Defined Contribution Plan.
If total contributions amount to more than the Annual        Dependant – broadly someone who, in the opinion of the
                                                             Trustees, was financially dependent on you at the date of      Selected Retirement Age – the age you tell the Trustees
Allowance you may have to pay tax on the excess.                                                                            you intend to take your benefits. If you do not choose a
                                                             your death or someone with whom you were in a
To work out the Plan contributions that count towards your   relationship of mutual financial dependency.                   Selected Retirement Age, the Trustees will assume you
Annual Allowance, you need to determine the total of all                                                                    intend to take your benefits at Normal Retirement Age.
the employer and employee contributions that have been       Lifetime Allowance – the total value of the pension
                                                             benefits that you can take from all your pension               State Pension Age – the age at which State pension is
paid into your Member Account in a ‘pension input period’.                                                                  payable. The State Pension Age is currently 65 for both
                                                             arrangements over your lifetime, before you have to pay
If you are a high earner the amount of the Annual            a tax charge. The standard Lifetime Allowance is               women and men. The State Pension Age for both men
Allowance is reduced and the amount it is reduced by         currently just over £1 million.                                and women will then start to increase to reach age 66 by
depends on the level of your income, referred to as                                                                         6 October 2020. The government has also announced
                                                             Member Account – this is made up of the contributions          that the State Pension Age will increase to age 67
‘tapered annual allowance’. For more information visit
                                                             paid into the Plan by you and your employer and the            between 6 April 2026 and 6 April 2028. If you want to find
the ‘Tax on your private pension contributions’ pages at
                                                             investment returns they receive.                               out more about your State Pension, visit the ‘Working,
gov.uk.
                                                             Normal Retirement Age – is 65.                                 jobs and pensions’ area at gov.uk.
The Plan’s ‘pension input period’ is currently the period
from 6 April to 5 April.                                     Pensionable Pay – means your basic salary or wage              Trustees – the Trustees are responsible for the overall
                                                             (excluding overtime, bonuses or any other items) if you        running of the Plan and it is their duty to act in the best
Annual Pensionable Pay – this is the greater of:
                                                             are employed on a full time contract.                          interests of all the Members and Beneficiaries.
• Your Pensionable Pay in your last full month or week
  of work multiplied by 12 or 52 depending on whether
  you are monthly or weekly paid; and
• Your total Pensionable Pay for the last year. 12 or 52
  complete pay periods will be used for this calculation
  depending on whether you are monthly or weekly paid.

                                                                                                                                                                                    21
State Pensions                                              Help from external organisations
The State Pension is a regular payment from the             The Pensions Advisory Service (TPAS) is available at any     You can contact the Financial Ombudsman Service by:
government that you can claim when you reach                time to help you or your beneficiaries (or potential
                                                                                                                         Letter:  The Financial Ombudsman Service
State Pension Age.                                          beneficiaries) in connection with any query that you or
                                                                                                                                  Exchange Tower
                                                            they may have about your pension. TPAS’s services are
The way it works changed from 6 April 2016. To qualify                                                                            London
                                                            free of charge. You can contact TPAS by:
for any State Pension, you’ll need to have at least ten                                                                           E14 9SR
years of national insurance contributions. You’ll need 35   Letter:  The Pensions Advisory Service                       Phone: 0800 023 4567 or 0300 123 9123
years of national insurance contributions to receive the             11 Belgrave Road                                    Website: financial-ombudsman.org.uk
maximum amount, currently £168.60 a week. Some                       London
people might receive more than this if they would have               SW1V 1RB                                            The Pensions Regulator regulates occupational pension
been entitled to a higher income under the old rules.                                                                    schemes in the UK. Its priorities include protection of the
                                                            Phone: 0800 011 3797
                                                                                                                         benefits of members of work-based pension schemes and
                                                            Website: pensionsadvisoryservice.org.uk
                                                                                                                         the promotion of good administration of work-based
                                                            The Pensions Ombudsman is appointed under section            pension schemes. The Pensions Regulator is able to
                                                            145(2) of the Pension Schemes Act 1993 and may               intervene in the running of a scheme where the trustees,
                                                            investigate and determine any complaint or dispute of fact   employers or their professional advisers have failed in
                                                            or law in relation to an occupational pension scheme made    their duties.
                                                            or referred in accordance with that Act. You or your
                                                                                                                         The Plan is registered with The Pensions Regulator.
                                                            beneficiaries (or potential beneficiaries) can contact the
                                                                                                                         You can contact The Pensions Regulator by:
                                                            Pensions Ombudsman by:
                                                                                                                         Letter:  The Pensions Regulator
                                                            Letter:  The Pensions Ombudsman
                                                                                                                                  Napier House
                                                                     10 South Colonnade
                                                                                                                                  Trafalgar Place
                                                                     Canary Wharf                                                 Brighton
                                                                     E14 4PU                                                      BN1 4DW
                                                            Phone: 0800 917 4487                                         Phone: 0345 600 7060
                                                            Website: pensions-ombudsman.org.uk                           Website: thepensionsregulator.gov.uk
                                                            Although the Pensions Ombudsman deals with most
                                                            complaints and disputes with regard to occupational
                                                            pension schemes, there are some circumstances in which
                                                            you may wish to contact the Financial Ombudsman
                                                            Service. The Financial Ombudsman Service deals with
                                                            complaints about firms which are regulated by the
                                                            Financial Conduct Authority. Broadly, where you have a
                                                            complaint concerning Zurich (or any other organisation
                                                            regulated by the Financial Conduct Authority) then you
                                                            may wish to contact the Financial Ombudsman Service.

                                                                                                                                                                                 22
Disclaimer                                                          Data Protection
This booklet only provides a summary of the benefits provided       The Trustees have chosen Zurich Assurance                     You can find details of our selected third parties
under the Plan. The Trust Deed and Rules are the formal             Ltd (Zurich, also we, our or us) as its pension               with whom we may share your personal
documents that govern the Plan. If the provisions of this           scheme provider.                                              information in the leaflet ‘Your privacy is
booklet conflict with the Trust Deed and Rules, the provisions                                                                    important to us’.
                                                                    This section tells you how Zurich Assurance Ltd
of the Trust Deed and Rules will prevail. A copy of the Trust
                                                                    (part of the Zurich Insurance Group) will deal with           We may also process your personal information by
Deed and Rules can be obtained from the Trustees.
                                                                    your personal information. Where Zurich                       means of automated decision making and profiling
The Trust Deed and Rules may be amended from time to                introduces you to a company outside the group,                for the purposes of targeted marketing, where
time. Royal Mail Group has the right to discontinue the Plan        that company will tell you how they will use your             appropriate, or where we have consent to do so.
at any time.                                                        personal information. Zurich Assurance Ltd will               You can ask for further information about our use
This booklet is based on current legislation and tax regulations.   only act after receiving instructions from the                of your personal information or complain about its
Legislation and regulations may change from time to time.           Trustees to enrol you into or join the Plan.                  use, by contacting our Data Protection Officer in
                                                                    We and our selected third parties will only collect           the first instance at: Zurich Insurance Group, Tri-
                                                                    and use your personal information (i) where the               centre 1, Newbridge Square, Swindon, SN1 1HN
                                                                    processing is necessary in connection with                    or by emailing the Data Protection Officer at
                                                                    providing you with a quotation and/or contract of             gbz.general.data.protection@uk.zurich.com.
                                                                    insurance; (ii) to meet our legal or regulatory               If you remain concerned about our processing of
                                                                    obligations; or (iii) for our `legitimate interests’. It is   your personal information, or are not satisfied with
                                                                    in our legitimate interests to collect your personal          our handling of any request by you in relation to
                                                                    information as it provides us with the information            your rights, you also have the right to make a
                                                                    that we need to provide our services to you more              complaint to the Information Commissioner’s
                                                                    effectively including providing you with information          Office. Their address is: First Contact Team,
                                                                    about our products and our services. We will                  Information Commissioner’s Office, Wycliffe
                                                                    always ensure that we keep the amount of                      House, Water Lane, Wilmslow, SK9 5AF.
                                                                    information collected and the extent of any
                                                                    processing to the absolute minimum to meet this               Full details of how we use your personal
                                                                    legitimate interest. Full details of the way we will          information can be found in the leaflet ‘Your
                                                                    use your personal information and details about               privacy is important to us’.
                                                                    your rights as a data subject can be found in the             The Trustees’ privacy statement is also available
                                                                    leaflet ‘Your privacy is important to us’. We will            to view or download on rmdcp.uk.
                                                                    contact you to obtain consent prior to processing
                                                                    your personal information for any other purpose.

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