FREQUENTLY ASKED QUESTIONS What is a Pension? A pension is a way of saving for your retirement in a tax efficient way. Many people save into pensions monthly or contribute alongside contributions from employers. There are a number of types and names of pension such as defined contribution, defined benefit, final salary, etc. What is an occupational pension scheme? These are schemes set up by employers. They are trust based with the trustees taking responsibility for decisions within the pension fund on the Members’ behalf. Why can I transfer my pension into an occupational scheme when not employed by the employer? There has been a high court ruling that determines that this type of arrangement is legal and can be arranged. Who are the trustees of the Scheme? The Scheme has a Corporate Trustee called: Audax Management Limited, 27 Old Gloucester Street, London, WC1N 3AX. Who manages the Scheme’s investments? The Trustee has appointed Gallium Fund Solutions Limited, an independent company that is authorised and regulated by the FCA (No. 487176) to act as the Investment Manager for the Scheme. Who are the Section 270 Administrators of the Scheme? Gallium House, Unit 2, Station Court, Borough Green, Sevenoaks, Kent, TN15 8AD. Transfer Administrator Blueprint Asset Management Ltd is an Appointed Representative of Absolute Financial Management Limited, which is authorised and regulated by the Financial Conduct Authority. Who are the auditors of the Scheme? Beavis Morgan Audit Limited, 82 St John Street, London EC1M 4JN What are the charges? There is no initial transfer charge. The Scheme has an annual management charge of 0.75% of the investment value. This will be applied to settle the costs and fees of the Trustee, Investment Manager, Administrator, auditor, legal and professional advisers. Am I receiving financial advice? No you are not receiving financial advice from the Scheme’s professional team. The Trustee and/or Administrator will provide you with information only so you can make an informed decision on where you wish to transfer your pension funds. Should I get financial advice? We would recommend that you speak with a financial adviser before making any decisions. The following website will assist you searching for one: www.unbiased.com What paperwork will I receive? Upon joining the Scheme you will receive an information pack that will include confirmation of your acceptance to join the Scheme as a well as contact details. You will also receive annual statements giving you up to date information on the value of your funds and a projection of what your fund might be worth in pension terms at retirement. What is the retirement age for the Scheme? The current retirement age for the Scheme is 70. However, please see the notes on the next page regarding the changes in UK pension regulations. 1 FREQUENTLY ASKED QUESTIONS Can I transfer out? You may transfer out of the Scheme at any time, but please note you should consider investment in the Scheme as a long term investment. The Trustee would prefer Members to remain invested in the Scheme for a minimum of five years to allow the Investment Manager to build a diversified investment portfolio for all Members. What if I die? You should provide your beneficiary details in the Application Form. Your spouse/beneficiaries should contact the Administrator. They will liaise with the Trustee and Investment Manager to make payment of the return of the fund value. What are the new retirement regulations? You no longer have to buy an annuity with your pension funds. In fact, all restrictions on your pension pot have been removed and you will have total freedom over how you withdraw your money, subject to tax considerations. You are able to access your entire pension after the age of 55. 25% of your money can be withdrawn free of any income tax. The remaining 75% of your money will be subject to income tax at your highest marginal rate. You can withdraw it all at once or in stages. Once you have withdrawn your money, you can spend or invest it in any way you see fit. However, we recommend you seek independent financial advice at the time of your retirement. What is auto-enrolment? UK employers have to automatically enrol their staff into a workplace pension if they meet certain criteria. The law on workplace pensions has now changed and every employer must comply. WHAT ARE THE RISKS? The risks include the following: • A penalty may be applied to your existing pension plan if it is transferred. • The Scheme offers an execution-only service and we recommend that you seek professional advice from a suitably qualified financial advisor if you are considering transferring existing pension benefits into the Scheme. • The value of investments can fall as well as rise and is not guaranteed. You may get back less than the amount invested. • Past performance must not be viewed as an indication of future performance. The price of investments may change quickly and can go down as well as up. • In certain overseas jurisdictions there may be different settlement, legal and regulatory requirements to those applying in the United Kingdom and also different practices for the separate identification of customers’ investments. • We do not make investment recommendations. Any investment information is provided solely to enable you to make your own investment decisions and must not be treated as a solicitation or recommendation to buy, sell or otherwise deal in any particular investment. • Some of these risks may not be relevant to your pension, depending on the investment strategy you have chosen. 2 Audax Management Limited 27 Old Gloucester Street London WC1N 3AX Email: [email protected]