Your guide to the Scheme

Your guide to the Scheme

Your benefits explained Babcock Retirement Savings Scheme (BRSS)

Part of the Babcock International Group Pension Scheme

Looking after your future, today.

myoneday.co.uk

Babcock has provided pension benefits for the people it employs since the beginning of the last century.

The BRSS section of the Babcock International Group Pension Scheme (the Scheme) provides a valuable range of benefits, reflecting Babcock's commitment to attract and motivate staff of the highest quality.

Pensions are important to us all, no matter how far off retirement may seem. The earlier you start to plan for it, the better your pension could be. As well as a pension for life when you retire, the Scheme provides financial protection for you and your family from the day you join.

This booklet is a guide to your benefits and does not cover every aspect of the Scheme. Full details are set out in the Trust Deed and Rules (the Scheme's governing documents), which will always overrule this guide if any question of interpretation should arise. For further information about any aspect of the Scheme, please contact your HR representative.

Occasionally we have had to use specific pension terms ? where this is the case, you'll find a jargon buster on page 14.

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Your benefits explained Babcock International Group Pension Scheme | Babcock Retirement Savings Scheme

Contents

Membership

4

Contributions

5

Benefits on retirement

7

Benefits on death

and leaving

8

Periods of

temporary absence

9

A note on State Pensions 11

Useful information

and contacts

12

Data Protection

13

Jargon buster

14

My guide to the Scheme Looking after your future, today

3

Membership

How to join As part of the Government's automatic enrolment initiative, you will be automatically enrolled into the Scheme when you join Babcock if you:

? Earn above the earnings trigger to qualify for automatic enrolment; ? Are at least age 22 (but under State Pension age); and ? Usually work in the UK. HR will advise whether you are eligible to be automatically enrolled and the process for opting out if you don't wish to be a member of the Scheme. If you do not meet the above criteria, you will not be automatically enrolled into the Scheme but you will still have the opportunity to join and receive contributions from your employer. To join the Scheme, complete an `Opt-in' and `Expression of wish' form available from the Document library in the BRSS section of the Scheme website at myoneday.co.uk

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Your benefits explained Babcock International Group Pension Scheme | Babcock Retirement Savings Scheme

Contributions

The Scheme is a partnership between you and your employer to prepare for your retirement. Contributions are funded from your salary each pay period, matched by your employer and paid into your own pensions savings within the fund. The amount of contributions paid into the Scheme is shown in the `Benefits and Contributions' leaflet.

Tax relief on contributions Pension contributions made by you are eligible for tax relief at the highest rate you pay. For example, if you pay the current basic rate of income tax at 20%, each ?1 contribution only costs you 80p. Any contributions made by Babcock to your pension are free of tax and National Insurance contributions.

However, if your total pension contributions (including any made by Babcock) exceed the Annual Allowance, there will be a separate tax charge, payable via your tax return.

In order to ensure that contributions are made into your pension as efficiently as possible, Babcock operates a Salary Sacrifice arrangement. This means that (unless you choose to opt out or are not eligible) Babcock makes all contributions on your behalf and in return, you agree to reduce your salary by the amount you would have ordinarily paid (plus tax relief) into your pension. For more information on Salary Sacrifice please see the `My guide to Salary Sacrifice' booklet.

This arrangement ensures that as well as continuing to receive immediate income tax relief, you also realise National Insurance savings.

Please note tax rules may change in the future.

My guide to the Scheme Looking after your future, today

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