Babcock Retirement Savings Scheme (BRSS)Part of the Babcock International Group Pension Scheme

www.myoneday.co.uk

Looking after your future, today.

Your Scheme in brief

This leafl et summarises the main factors you should consider when you initially join the Scheme and throughout your membership. It applies to anyone joining the Scheme from 1 April 2013.

Things to consider

Saving for retirement is important, even if it’s not always top of our priorities. But when it comes to putting money aside, you’re not on your own. Babcock is committed to providing you with a valuable range of benefits to help you on your way. This leaflet tells you what you need to know about BRSS.

The State Pension is unlikely to be enough to provide you with the lifestyle you want

· Life assurance cover will be provided through the Scheme. The level of cover you receive is shown on your ‘Benefits and Contributions’ leaflet. If you opt out of the Scheme (see below), you will immediately lose your life assurance.

· You can opt out of the Scheme at any time by completing and returning an ‘Opt-out form’. Providing your completed form is received within one month from the date on your letter confirming membership, you will be treated as having never been an active member of the Scheme and your contributions will be refunded, with appropriate deductions of PAYE and National Insurance Contributions (NIC). If your completed ‘Opt-out form’ is received after the one month period, contributions made by you and Babcock will remain invested in your pension account in the Scheme until you retire or transfer your pension savings to another suitable pension arrangement. In both circumstances, you will not be able to receive a refund of your contributions. Remember, even if you opt out, you will be enrolled back into the Scheme again at least every three years if you continue to meet the Government’s eligibility criteria. ‘Opt-out forms’ are available from the Document library in the BRSS section at www.myoneday.co.uk

To comply with the Government’s automatic enrolment initiative, if you are a new starter and you meet the Government’s eligibility criteria, you will be automatically enrolled into the Scheme from the 1st of the month following the date you join Babcock. If you are automatically enrolled, you can opt out of the Scheme but Babcock is required to enrol you again at least every three years, starting from April 2019.

As a member, on joining:

· You will contribute a minimum of 4.5% to the Scheme. Babcock will also contribute a minimum of 4.5%. The actual amount you are contributing will show on your payslip.

· You can change the level of contributions you are making (see your ‘Benefits and Contributions’ leaflet for details). To make changes you need to complete a ‘Change of contributions form’ available from the Document library in the BRSS area of the Scheme website at www.myoneday.co.uk

· Contributions will be made by Salary Sacrifice, unless you opt out (see page 3 for details).

· Your contributions will be automatically invested in the ‘Target Lump Sum’ Lifestyle Strategy. Once you have received your member details from Aviva, the Scheme’s provider, you can change your investment choice at any time.

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You can find out more about the benefits on offer to you by reading the ‘My guide to the Scheme’, available from the ‘Document library’ in the BRSS section at www.myoneday.co.uk

How does Salary Sacrifice work?Contributions to the Scheme will automatically be made through Salary Sacrifice unless you choose to opt out by completing a ‘Salary Sacrifice opt-out form’.

Salary Sacrifice is a more efficient way of making contributions to the Scheme. With Salary Sacrifice, instead of deducting your pension contributions from your salary, Babcock will make all pension contributions to the Scheme. You then agree to reduce your salary by an amount equivalent to the pension contributions you would have made had you not participated in Salary Sacrifice. As your salary is reduced, you pay less NIC.

Why be in the Scheme?It’s your choice whether you save for retirement and are a member of the Scheme, but some of the reasons why it’s good to be a member are:

It makes financial sense

Finding the money to put aside for retirement isn’t easy. As a member of the Scheme, Babcock will help you save by making contributions to your pension. If you don’t join a Babcock scheme, Babcock won’t make contributions to another pension arrangement – so the money is lost to you.

The State Pension may not be enough

If you are not a member of the Scheme, it is likely you’ll be relying on the State to support you in retirement and this is unlikely to be enough to provide the lifestyle you want.

It’s more than just a pension

You don’t just receive contributions from Babcock. There are other valuable benefits too, like life assurance if you die while working for Babcock and are a member of the Scheme.

how much risk you can afford to take, and your attitude to risk. If you understand investments and you’re comfortable making your own choices, you may want to pick your own range of funds from the Self-select funds available.

For more information about the investment options in BRSS and details about changing how your contributions are invested, refer to the ‘My guide to Investments’ booklet available from the Document library in the BRSS area of the Trustee’s website at www.myoneday.co.uk

So building up your pension will actually cost you less.

For more information about Salary Sacrifice, refer to the ‘My guide to Salary Sacrifice’ available from the ‘Document library’ in the BRSS section at www.myoneday.co.uk

How are contributions invested? The Scheme offers you a range of funds to choose from with varying degrees of risk. The Scheme’s Trustee regularly reviews the investment options offered to make sure there is an appropriate selection for all members. The Trustee also monitors the performance of the investment managers.

When you are enrolled into the Scheme, contributions are paid into a pension account set up in your name. They are automatically invested in the ‘Target Lump Sum’ Lifestyle Strategy where decisions are made for you using an investment strategy set by the Trustee. The funds that are right for you will depend on your age,

How much should I contribute?The amount you should contribute depends on your personal circumstances. Work out how much you think you will need as an income when you retire, then work out what savings you have now. If you are a member, you will receive an annual benefit statement providing a forecast of your pension from this Scheme. Do you have other pension savings, investments in property or savings plans?

According to the Financial Conduct Authority (FCA) most people need about 60% of their current salary in retirement, so it’s important you think about how you’re going to save for this. If you are already a member and don’t think you are currently saving enough, you could consider increasing your pension contributions.

BRSS provides a pension forecasting tool to help you work out how much you might need to contribute. To access it go to www.myoneday.co.uk and login to your account.

The maximum amount of contributions you can make and receive from Babcock depends on your business unit’s practice. For information, refer to your copy of the ‘Benefits and Contributions’ leaflet.

Your Scheme in brief | Looking after your future, today

How can I find out more?This leaflet provides you with a broad overview of the Scheme and is not designed to be a full detailed summary. You can find specific Scheme booklets and all the required forms at www.myoneday.co.uk or by phoning the Babcock helpline on 0345 6044463 from Monday to Friday between 8.30am and 5.30pm. Scheme documents are also available from your local HR representative. 105181 BRSS Scheme Summary Apr 2019