SAVE AS YOU EARN #SAVESMARTER 2016 - Computershare
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SAVE AS YOU EARN #SAVESMARTER 2016
Dear Colleague
The Aviva Save As You Earn (SAYE) plan is a great way to back Aviva by being an owner in the business in
which we work, participate and benefit from our Company’s future, and help create a legacy of which we
can all be proud.
It’s a low risk way to save and buy Aviva shares at a fixed price, discounted at the start of the contract, over a
period of 3 and/or 5 years. If you choose not to buy your shares your money will be returned to you.
We’ve also made a significant change to the plan this year. You told us that you would like to save more
each month, so we have increased the Aviva SAYE savings limit to £500 per month – the maximum allowed
by HMRC. This £500 applies to the total of your savings across all Aviva SAYE plans.
Aviva has made huge strides in the past 3 years. But we have a lot to do before we have unlocked our full
potential. We need to demonstrate the full benefits of the composite model for our customers and delivered
consistent, reliable growth in profits and dividends. It’s an enticing prospect, but we’re not there yet.
So, I hope you will redouble your efforts as we continue to transform Aviva, and I know you will demonstrate
the same dedication, achievement and service as we create that legacy.
I hope you will take this opportunity to join me – and become an Aviva shareholder.
Yours sincerely
NEW SAVINGS LIMIT!
#savesmarter
Mark Wilson You can now save up to £500 per month into Aviva SAYE plans.
Group Chief Executive Officer If you save into an existing Aviva SAYE plan, the new £500 limit
applies to the total of your savings across all Aviva SAYE plans.
You will not be able to increase the amount you are currently
contributing into existing plans.
Message from Mark Wilson
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Key Details
• Save a fixed amount between £5 and £500 per month for 3 and/or 5 years
• Savings are deducted from your take home pay; i.e. after Income Tax and National Insurance Contributions (NICs)
• At the end of your chosen saving period (Maturity), you can choose to buy Aviva shares at a discounted price, fixed
at the start of the plan, the Option Price A V I VA
SAVE
Key Benefits AS YOU
• It’s an easy way to save every month EARN
• You get a 20% discount on the price of Aviva shares (at the time of invitation) 2016
• It’s low-risk: If at the end of your chosen saving period, the Aviva share price is:
> higher than the Option Price – you can buy Aviva shares at the Option Price and then sell or hold
them and become an Aviva shareholder
> lower than the Option Price – you can simply take your cash savings back
Features & Benefits
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactStep 1 - You can choose to save:
£5-£500 per month for 3 and/or 5 years
•
These savings are taken directly from your pay, after Income Tax and NICs
•
If you already participate in an Aviva SAYE plan, the new £500 total applies to the total of your savings
across all plans
• The first payment will be taken from your November 2016 salary
•
You cannot change the amount you save. However, you can close your account at any time and have your
savings returned to you. If you do this, you will lose the option to buy shares at the Option Price
• ou can miss up to 6 monthly payments. If you do, your Maturity Date will be postponed by 1 month per
Y
each missed payment
• emember, if you are currently contributing into the 2013 3 year, 2011 5 year and/or any 2009 contract,
R
your savings allowance for the 2016 plan will not be affected by your savings contribution amount into any
of these plans, as they are approaching Maturity
Step 2 - You choose
At Maturity, you can buy Aviva shares at the Option Price
•
The Option Price is the average of the mid-market closing price of an Aviva ordinary share across the 3
days before the Aviva SAYE invitation date
•
A 20% discount is then applied to the average share price and rounded up to the nearest penny
•
Whatever happens to the Aviva share price during your chosen savings period, the Option Price will
stay the same, regardless of the share price changing
•
You can find the Option Price here
More
How it Works
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactStep 2 - You choose
Do I have to buy Aviva shares at the end of the 3 or 5 year period?
No, you have a choice. You can either:
• Buy Aviva shares at the Option Price OR • Take your savings in cash
What you choose to do is likely to depend on the Aviva share price at Maturity.
How it works
If at Maturity, the Aviva share price is:
Higher than the Option Price
You can use your savings to buy Aviva shares at the Option Price. You can then sell them at the current
higher price, or retain the shares and become an Aviva shareholder.
Lower than the Option Price
You can simply withdraw your cash savings and you will not have lost a penny. If you did buy shares at the
Option Price in this circumstance, you’d be paying more for the shares than you would on the stock market.
Don’t panic!
#savesmarter
You will be sent more information
about your options closer to Maturity.
How it Works
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactWhat our smart savers think
“I like the scheme because it allows “I have used the Aviva
“An easy savings tool. After the first me to invest on attractive terms and SAYE every year since I
month or so you don’t really notice having the money deducted straight joined Aviva and have
the deduction from salary, but you do from my salary makes it easier to save sometimes made a
notice the fund on maturity!” for the future.“ handsome profit and
other times received
Sarah Faherty Rodger Lovel my savings back. I have
always had plans for the
return in the knowledge
that I would at least get
my contributions back.”
Brian Farley
#savesmarter
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactSavings Calculator Option Price
Type in the amount you want to save monthly: £0
£ 3.51
Total 3 year saving: £0 Total 5 year saving: £0
Total share Options Total share Options
available after 3 years: 0 available after 5 years: 0
Select a Maturity price below to see how much your shares could be worth after 3 or 5 years!
£4 £5 £6 £7
Share value at Share value at
£ 0 £ 0
Maturity after 3 years: Maturity after 5 years:
Potential gain Potential gain
£ 0 £ 0
after 3 years: after 5 years:
Savings calculator
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactOur Share price
Over the past 3 years, Aviva has made remarkable progress, moving from a turnaround phase to transformation
and growth.
We have completed the fix phase of the balance sheet. Our Solvency II coverage ratio of 174% (as at HY16) is in
the upper part of our working range and we have proven the resilience of our balance sheet and capital position Profile pic required
during the recent challenging period in investment markets.
(e.g. Mark wilson )
We continue to see improvements in our financial performance. At our recent interim 2016 results, we delivered
13% growth in operating profit, 7% growth in value of new business, a 7% increase in general insurance
premiums and capital generation on a Solvency II basis was £1.2 billion. We have benefited from the Friends
Life acquisition and we are also seeing encouraging progress from our digital and true customer composite
initiatives. We have outlined an ambition to increase our dividend pay-out ratio to 50% of operating EPS by the
end of 2017. We took a step towards this objective in HY16, increasing our interim dividend per share by 10%.
Despite our strong results, we have not been immune from the macro-economic factors that have impacted
share price performance for the insurance sector. A subdued outlook for global economic growth, fears
about the outlook for corporate insolvencies, record low Government bond yields and heightened uncertainty
following the Brexit vote have undermined investor sentiment towards financial firms like banks and insurers.
Nonetheless, we retain strong support in the investment community, with a majority of analysts rating Aviva as a
“Buy” and the solid HY16 results were important in reinforcing the resilience and quality of our businesses.
Aviva is a fantastic company. In my first 6 months here I have seen the passion and focus that people have across
the business to make Aviva a success. By focusing on our strategy and sticking to our values, I’m confident that
we can continue to deliver excellent results which can in turn deliver returns to shareholders.
Chris Esson
Our share price
Group Investor Relations Director
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactOnline Text message
1. Visit our website Aviva Share Plans website To join by text, simply type the following:
2. Enter your Shareholder Reference Number (SRN) (included 1. SAYE (followed by a space)
on your invitation email) and PIN* 2. Your SRN, included on your invitation email
3. Follow the simple instructions (followed by a space)
If you have never used the Computershare online service you 3. Add the number ‘3’ or ‘5’ (followed by a space)
will immediately be asked to change your PIN. This indicates the saving period
*Your PIN has been sent to you separately by either post or 4. The amount you want to save each month in pounds
email. If you were eligible to join a previous share plan, a PIN 5. Then send this message to: 07860 020800
would have been issued to you then. If you cannot remember
your PIN, visit the website and click ‘Forgotten PIN?’ As an example, if you wish to save £25 per month for 3
years your text would read: SAYE C0123456789 3 25
Am I eligible to participate in the Aviva SAYE plan?
#savesmarter
If you have not received a text confirmation within 2
You are eligible to participate in the plan if you are:
hours, please call 0371 495 0105.
• Employed by a Participating Company
• Tax-resident in the UK, Channel Islands or the Isle of Man
• Employed on the invitation date (8 September 2016), and
• Remain employed on the date of grant (4 October)
Calls from a BT line will be charged at standard daytime and evening rates plus
The Participating Companies are:
network charges. Lines are open from 08.30 - 17.30, Monday - Friday (excluding
• Aviva Employment Services Limited public holidays). Text messages will be charged at your standard network rate.
• Aviva Investors Employment Services Limited You can find the terms and conditions for participating in the Aviva SAYE 2016
• Solus (London) Limited and for applying by text at www.computershare.com/avivashareplans, under
• Friends Life Management Services Ltd ‘Plan Documentation’ or alternatively by calling the helpline on 0371 495 0105 to
• Friends Life Services Ltd request a copy. You will be deemed to have read these documents and that you
• Friends Provident International Limited agree to all terms and conditions.
• Sesame Services Ltd
I work part-time. Will I be able to participate in the Aviva SAYE plan?
Yes. The same limits will apply to you as to full-time employees.
How to join SAYE 2016
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactWho is the Aviva SAYE plan Administrator? Do I have to join the Aviva SAYE plan each year? The return address is detailed on the form. If you miss
Computershare Plan Managers (Computershare). You No, however, if you wish to join any savings contracts more than 6 monthly payments during your savings
can contact them about the Aviva SAYE plan using the in the future, you will not be able to save more than period, you will lose your option to buy Aviva shares
contact details on the contact page. the maximum monthly savings limit of £500 in total at the Option Price and you will need to close your
for all Aviva SAYE contracts. account and your savings will be returned to you.
Where are my savings kept?
The monthly contributions deducted from your pay Can I change the amount I contribute each How do I know how much I can contribute if I’m
after Income Tax and NICs will be transferred by month? already paying into an existing plan(s)?
your employing company to an Aviva SAYE account No. Once you have joined the plan you cannot increase You can view how much you are currently contributing
opened with The Royal Bank of Scotland plc by or decrease that amount. You can however, miss up to by logging into the Aviva Share Schemes website.
Computershare. 6 monthly payments if you need to or you can cancel
your plan at any time. When applying to join the 2016 plan, you will only
Can I participate while I am on temporary leave be able to enter the amount you have the capacity to
(e.g. maternity leave, or sick leave)? Can I miss any monthly payments? contribute.
Yes you can still participate in the Aviva SAYE plan. You can miss up to a maximum of 6 monthly
However, if you are on temporary leave, your payments payments during the savings contract. If you do, the Any plans maturing in 2016 (including the 2013 3 year
will be suspended as soon as you start your period of date on which your contract matures, i.e. the date plan, 2011 5 year plan or any plans from 2009) will
leave. You will need to make separate arrangements you can choose to buy Aviva shares at the contract not count towards your savings limit.
with Computershare to arrange for a standing order to Option Price, will be postponed by 1 month per
be set up. missed payment. You cannot increase the amount
of subsequent payments to make up for missed
You can contact Computershare using the details here. payments.
If you miss more than 6 monthly payments during your
savings period, you will lose your option to buy Aviva
shares at the Option Price and you will need to close
To suspend any payments please complete and return
the Aviva SAYE plan Payment Suspension Form. Visit,
More
your account and your savings will be returned to you. www.computershare.com/avivashareplans, select the
‘Company Info’ tab, then ‘Downloadable forms’.
Questions & Answers
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactWhat happens if I do not exercise my option Do I need to advise payroll of the cancellation? Will any dividends be paid on the Aviva shares I
within 6 months of the contract Maturity Date? No. Computershare will advise payroll of your buy through the Aviva SAYE plan?
Your option to buy Aviva shares at the Option Price cancellation. Your deductions will stop in the month You will not become a shareholder until the end of
will lapse. after your cancellation instruction is received, i.e. the contract, and only then if you choose to buy Aviva
if you submit your cancellation instruction during shares (rather than have your savings returned). No
What is the tax treatment of my participation August, your last deduction will be taken from your dividends will accrue or be payable until you have
in the SAYE?* August salary and no deduction will be taken from bought shares at the end of the contract. Once you
For employees in the UK, under normal circumstances your September salary. Any overpayment will be become an Aviva shareholder, you will have the same
you will not usually have to pay Income Tax or NICs returned to you either through payroll or directly rights as every other Aviva shareholder. You will be
on the exercise of your option to buy Aviva shares at to you by cheque. entitled to receive any dividends due on your Aviva
the Option Price. However, the Option Price will be shares, attend and vote at shareholder meetings.
the base price for Capital Gains Tax (CGT) purposes How much interest will I receive when my savings
and you will need to review your CGT position are returned? *Please note, tax rules in the Isle of Man may be
when exercising your Options or selling the resulting The bonus and interest rates applied to SAYE contracts different.
shares (by either contacting your local tax office or a are set by HMRC. No bonus or interest is payable on
professional tax advisor). 2016 contracts. For details of bonus and interest rates
on previous contracts please log in and visit ‘Plan
Documentation’.
What if you leave Aviva?
What if I want to stop making payments and
have my savings returned?
You may cancel your Aviva SAYE plan contract Do I have to make contributions via my payroll?
and have your savings returned to you at any Yes, unless the payments are not made through a UK
time by logging into www.computershare.com/ or Isle of Man payroll, for example if you are on any
avivashareplans. unpaid leave, such as maternity leave. Please contact
Computershare if this applies to you.
You will need to contact Equiniti on 0371 384
2040 to cancel a contract taken out prior to 2011.
On receipt of your cancellation, the savings carrier
(Computershare or Equiniti) will close your account
and return your savings to you. You should normally
receive payment within a week of submitting your
cancellation.
Questions & Answers
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactIf you are employed by a participating company on the invitation date, 8 September 2016, and remain employed on the date of grant, 4 October 2016, you are eligible to join
the Aviva SAYE plan. If you are due to leave the company, as long as your leaving date is after the date of grant, in some circumstances you may still benefit from joining the
Aviva SAYE plan. Please read on for further details.
What if I leave Aviva before my Aviva SAYE plan If you do not exercise your option to buy Aviva shares at If on exercise date the shares are at a price of £5 per share,
contract matures? the Options Price within 6 months of your leaving date your the following calculations will apply:
If you leave Aviva before the end of your SAYE contract, you Options will lapse.
will not lose any of your savings. Normally your option to buy • Six monthly contributions of £500 = £3,000
If you leave the company you will receive a letter with full details
shares at the Option Price will lapse and you can choose to: • Shares bought at the Option Price (£3,000/£4) = 750 shares
of what options are available to you. You should receive your
• Total value (750 x £5.00) = £3,750
1. Have your savings returned to you; or letter within 6 weeks of leaving. If you do not receive your letter
• Total gain made is £750
within this time, please email Computershare at AvivaSAYE@
2. Continue saving until the end of the contract. Please
computershare.co.uk.
note however, there is no bonus or interest payable for The above information is to highlight that even employees
savings made under the 2016 3 or 5 year plan. about to leave Aviva may find it beneficial to join the Aviva
What do I do if I join the Aviva SAYE plan but leave
SAYE plan.
after the date of grant (4 October 2016)?
If you leave due to:
As long as your leaving date is after the date of grant, in
How do I cancel my contract and stop the first
• retirement some circumstances you may still benefit from joining the
deduction from my salary if I leave after the
• redundancy Aviva SAYE plan.
date of grant?
• injury or disability
Where you leave Aviva due to redundancy, retirement, or Please email Computershare at AvivaSAYE@computershare.
• the company or business unit in which you are employed
other leaver reason listed in the rules, your option to buy co.uk by 30 November 2016 in order that Computershare
ceases to be part of the Aviva group
Aviva shares will not lapse immediately, and you may choose may advise your payroll accordingly. After this date you
• any other reason (except misconduct) 3 years after the
to continue making your chosen Aviva SAYE contribution for should use the online cancellation service.
date of grant as shown on your Option Certificate, or for
up to 6 months from your leaving date. You can then choose
any other leaver reason listed in the plan rules.
to use the savings you have made to buy Aviva shares at the
As well as the choices above, you can choose to: Option Price.
3. Exercise your option to buy Aviva shares at the contract Example: You apply for a 2016 Aviva SAYE plan contract
Option Price within 6 months of leaving, using the with an Option Price of £4 and agreed to contribute £500
money you have saved to date; or per month. You are made redundant on 30 November 2016
but chose to continue saving for a further 6 months and
4. If you have not already made all your payments, continue
then exercise the option to buy Aviva shares.
to save, making payments direct to Computershare,
during the 6 month exercise period, in order to increase
the number of Aviva shares you can buy as in choice 3.
Leaving Aviva
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | Contact8 Aviva SAYE 2016 Invitation Date
application period starts
September
28 Closing Date – Computershare must receive
your application by 5pm on this date
September
4 Date of Grant – you must remain employed on the
date of grant in order to participate in the plan
October
November
You make the first payment
directly from your salary
1 Your first payment is added
December to your SAYE account
Dates for your diary
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactSave As You Earn vs. Matching Share Plan
Aviva employees can choose to invest in the Aviva MSP, SAYE or both. But what are the main features and
differences between the plans?
The Aviva MSP is currently only available to employees in the UK only.
Matching Share Plan (MSP) Save As You Earn (SAYE)
Flexibility You can start, stop or change the monthly amount you The amount you save is fixed. Annual invitation
invest at any time window to join
Contributions Invest between £5 and £150 per month Invest between £5 and £500 per month
What you buy Partnership Shares at the market price each month Aviva Option Price fixed at the start @ 20% discount at the time
will match 2 free shares for every 1 share purchased up of invitation. You can choose to purchase shares at the
to the first £40 you contribute each month Option Price at the end of the saving period
Your pay Contributions deducted via payroll from Contributions deducted via payroll from
gross pay (before Income Tax and National Insurance net pay (after Income Tax and National Insurance
Contributions are deducted) Contributions are deducted)
Shareholder rights Become a shareholder right away and receive dividends You might not become a shareholder. After 3 or 5
on your shares years you have the choice to buy shares or take your
cash savings
Leaving* If you leave within 3 years, your shares held in the plan If you leave before the end of your 3 or 5 year savings
will be released to you, subject to Income Tax and Na- contract, you get your savings back
tional Insurance Contributions (NIC)
Tax If you keep your Partnership Shares and Matching If you choose to exercise your Options and buy shares,
Shares for 5 years (or 3 years for Dividend Shares), any there is potential Income Tax liability on any future
sale is free of Income Tax and NIC. There is no Capital dividends and potential Capital Gains Tax (CGT) liability
Gains Tax (CGT) payable when you withdraw shares on any future sale of your shares
from the plan - your CGT base price is the price when
the shares are withdrawn
Holding period You must keep your Partnership Shares for 3 years in If you choose to exercise your Options and buy shares,
order to keep your Matching & Dividend shares (whilst you can sell them at any time
you remain employed)
*Leaving due to redundancy or retirement (or any other reason stated within the Plan rules), mean that
different options will be made available to you. Please see the FAQs
on the Aviva Share Plans site for full details.
SAYE vs. MSP
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactContact Us About Computershare Plan Managers
If you have any questions, please get in touch with our specialist team The Aviva SAYE is administered by Computershare Plan Managers.
at Computershare.
You can find out more about Computershare at www.computershare.com
or by contacting them using any of the details on this page.
www.computershare.com/avivashareplans
Please note that this communication and its content is for information only.
AvivaSAYE@computershare.co.uk
It does not constitute personal, financial or tax advice. Remember that
the value of Aviva shares, like any asset, can increase or decrease and you
0371 495 0105* may not get back the amount that was invested. If you are in any doubt
as to whether or not this plan is right for you, please seek independent
professional advice. In the event of any inconsistency between this brochure
*Calls from a BT line will be charged at standard daytime and evening rates and the rules of the Aviva Savings Related Share Option Scheme (the Plan)
plus network charges. Lines are open from 08.30 - 17.30 Monday - Friday or the relevant legislation, the rules of the plan and relevant legislation will
prevail. Any references to taxation are for guidance only. Please note that
(excluding public holidays).
your participation in the Aviva SAYE plan does not form part of your contract
of employment and is governed by and subject to the Aviva SAYE rules. The
rules contain specific provisions relating to your rights under the Aviva SAYE
plan. There is no guarantee that the Aviva SAYE plan will be operated in
future years, or if it is operated, that you will be eligible for participation in
it. Copies of the Aviva SAYE rules and prospectus are available on the Aviva
Share Plans website at www.computershare.com/avivashareplans.
Any Questions?
Welcome | Features & Benefits | How it works | Smart savers | Calculator | Our Share price | How to join | Q&As | Key Dates | MSP vs. SAYE | ContactYou can also read
