2.70 MB - Jaguar Land Rover Pensions

LAND ROVER PENSION SCHEME
PLAN YOUR FUTURE
MARCH 2015
WELCOME
Welcome to your newsletter for members of the
Land Rover Pension Scheme (the Scheme).
In early 2014, members were invited to take part in an online
pension survey. In response to some of the feedback we received,
we have added extra articles to this newsletter. Many of you wanted
to hear more about retirement planning and Additional Voluntary
Contributions (AVCs), which you can read about on page 3.
In the summer newsletter we mentioned the changes to pensions
being proposed by the government. The changes have now been
through their consultation period and the Trustees are considering
the implications for the Scheme. If any changes are required, we
will let you know in a future newsletter.
INSIDE...
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Keep up to date with what’s
happening in the Scheme.
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We are always interested to hear from members and welcome your
ideas about how we can make the newsletter more relevant to you.
You’ll find contact details on the back page.
Rob Lummis
Chairman of the Trustee Board
START
Website quiz
£50 voucher to be won!
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Summary of the
Report and Accounts
For a brief summary of the
Scheme’s financial position,
membership figures and
investment performance.
If you are not already receiving your newsletter by email and would
be happy to switch from the printed version, please let us know
(further details are on the back page). Receiving your copy by email
will not only help to reduce our print and postage costs, but will
also help to reduce our carbon footprint.
In this issue we’re running a quiz, aimed at improving members’
knowledge of the pensions website. For your chance to win a £50
Amazon voucher, see page 4.
Scheme news
7
Summary Funding
Statement
For information about the
Scheme’s funding position.
SCHEME NEWS
PENSIONER TRUSTEE
ELECTION UPDATE
Following the completion of the election ballot,
we are very pleased to announce that Mr Marcus
Sinclair Taylor was re-elected, unopposed, from
the Scheme’s pensioner constituency.
We are also pleased to announce that Mr Stephen Cluff has been
elected by the pensioners of the Jaguar Pension Plan.
Stephen received 1,555 votes from a total of 2,534 cast. He
will take his place on the Trustee Board when the next Member
Nominated Trustee steps down.
MARCUS
SINCLAIR TAYLOR
Re-elected
STEPHEN
CLUFF
Elected
HOW THE SCHEME WORKS – A REMINDER
The Scheme is a final salary scheme which means your pension at retirement will
be calculated using:
– How much you were earning at the time you retired
– How long you have worked for your employer
ACCRUAL
RATE
X
FINAL
PENSIONABLE
EARNINGS
X
PENSIONABLE
SERVICE
PRIVILEGE
DISCOUNTS
If you are a pensioner member of the Scheme, you
are eligible to use your Jaguar, Land Rover and Ford
Privilege discounts when purchasing a new Jaguar,
Land Rover or Ford vehicle. To do so, you will need
to contact the Jaguar/Land Rover Privilege Helpline
on 0800 055 6481 or the Ford Privilege Helpline on
0845 710 0400. You will need to provide your 6 digit
payroll number. You will then be guided through
the process and provided with a voucher to use at
the car dealership.
For more information visit ford.co.uk/
privilege or email info@privilege.co.uk
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L AN D ROVER PENS I O N SCH E M E - PL AN YOU R F UTUR E W IN TE R 2 0 1 5
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YOUR ANNUAL
PENSION
RETIREMENT PLANNING
What is your retirement goal?
What you need to consider
Many members have questions about planning for
retirement. The key to successful retirement planning
is to set a goal.
–When do you want to retire?
–Where does your money come from at the moment
and how will this change in retirement?
–What lifestyle would you like in retirement?
You may want to think about these questions in terms of your own finances or jointly with your spouse
or partner. The Scheme offers one-to-one meetings if you need some help with the benefits of the
Scheme. See the back page for more information.
Building up additional benefits
As you will be aware, Additional Voluntary Contributions (AVCs) are no longer available to new investors,
however if you were paying AVCs on a regular basis before 6 April 2013, you are able to continue to increase
your Scheme benefits in this way.
If you were not paying regular AVCs and would like to start building up additional benefits, you can do so by
making additional payments through Zurich, the provider of the JLR Defined Contribution Fund (the Fund). If
you are interested in making additional payments, you can find a guide to the Fund and an application form at
jaguarlandroverpensions.com
Investments
AVCs work differently to your benefits from the Scheme. You choose where to invest the money you contribute
and the performance of your investments will affect the value of your retirement benefits.
Before you decide how to invest your AVCs, you should know what the different types of investments are and how
they are managed. The Trustees of the Scheme have chosen a range of AVC investment funds to help meet the
needs and preferences of a typical member.
You can find out more about your AVC investment choices by visiting the website at
jaguarlandroverpensions.com
SURVEY UPDATE 2014
Following on from our survey update in the summer
newsletter, we have taken on board more of your
comments and are continuing to take action on the key
findings:
–Improved AVC information
–More information online and promotion of the website
EXPRESSION OF
WISH FORM
If you die as a member of the Scheme, the
Trustees are guided by your Expression of Wish
Form in the distribution of any benefits payable.
It is therefore important that you keep this form
up to date. If your circumstances change you
should complete a new form, available from
jaguarlandroverpensions.com
L AND ROV ER P EN S I O N S C HEM E - P L A N YO UR F UTUR E W IN T ER 2015
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PENSION NEWS
PENSION SCAMS REMINDER
In the last newsletter, we told you about pension liberation, where benefits are transferred out of registered
pension schemes to a different arrangement which promises access to your retirement savings before age 55. This
issue has not gone away and such schemes are now considered ‘scams’. You may be contacted through cold calls,
texts or online. You still need to be vigilant about who you give personal information to and remember to verify
who you are speaking with to check the source is legitimate.
To find out how to avoid becoming a victim of pension fraud visit:
thepensionsregulator.gov.uk/pension-scams
WEBSITE QUIZ
WIN £50
In this edition we are running a quiz for all members. You will find the answers by
looking at the information on the website at jaguarlandroverpensions.com
Q1.What percentage of your Pensionable Earnings do you contribute to the Scheme?
a) 7%
b) 5.75%
c)12%
Q2.When did the Jaguar Pension Plan and Land Rover Pension Scheme close to new entrants?
a) 18 April 2010
b) 15 March 2012
c) 17 September 2009
Q3.When was salary sacrifice introduced?
a) 1 May 2008
b) 1 September 2009
c) 1 January 2007
For your chance to win a £50 Amazon voucher, email your answers to pensions@jaguarlandrover.com
with ‘Pension quiz’ in the subject line. The competition closes on 17 April 2015. The winner will be drawn
on 27 April 2015
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L A N D ROVER PENS I O N SCH E M E - PL AN YOU R F UTUR E W IN TE R 2 0 1 5
60 SECONDS
WITH JONATHAN
GAINSFORD
Q. Why did you want to become an actuary?
A. I studied maths at university, so wanted to pursue a career that would allow me
to continue to use my maths training. I became an actuary because it combined
problem solving with client consulting.
Q.What is it that you do to help the Scheme?
Jonathan
Gainsford Scheme actuary
A. My role is to advise the Trustees. Primarily, I help the Trustees monitor the funding
position of the Scheme. This is an ongoing process, however there are formal
actuarial valuations every three years. The next valuation will be carried out with
an effective date of 5 April 2015. In the work that I do, I assess how the value
of the Scheme’s assets compare to its liabilities and answer the key question of
whether there is enough money in the fund to pay the benefits that members
have earned to date; i.e. whether there is a surplus or deficit. I also assess how
much needs to be paid by the Company, on top of members’ own contributions,
to meet the cost of future benefits. If there is a deficit I help the Trustees to agree
a Recovery Plan, with the Company, to restore the Scheme to full funding. We use
this information as part of the Summary Funding Statement.
There are also a range of other matters that I advise the Trustees on, to help them
run the Scheme and manage risks.
Q.What do you enjoy about your job?
A. After nearly 30 years, I still enjoy the two things that attracted me to become
an actuary in the first place – interacting and consulting with a variety of people
around the Trustee table, and helping them solve their issues.
Primarily
I help the
Trustees
monitor
the funding
position of
the Scheme
Q.What do you think is the most important part of your job, from a member’s
perspective?
A. I think members should take comfort that the Trustees and their team of
advisers are running the Scheme in accordance with its Rules and the relevant
legislation. As the actuary, I help them to stay on top of the key risks that the
Scheme is facing, so ultimately members can have confidence that they will
receive their benefits.
Q.Thinking about the members, what do you want them to think and feel about
their pension?
A. I’d like them to know they are members of a good, well-run pension scheme.
Q.Finally, can you tell us a bit about your hobbies and interests?
A. In my spare time I enjoy eating and drinking, fast cars and fly fishing!
L AND ROV ER P EN S I O N S C HEM E - P L A N YO UR F UTUR E W IN T ER 2015
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SUMMARY OF
THE REPORT AND
ACCOUNTS
Below is a brief summary of the Scheme’s financial position together with membership
figures and details of the performance of the investments.
LAND ROVER PENSION SCHEME
The information on the following pages is a summary of the financial position of the Scheme as at 5 April 2014. The
full version of the Report and Accounts is available on request from the Scheme’s administrator (contact details are on
the back page).
Members
2,177
6,997
DEFERRED
ACTIVE
TOTAL MEMBERS
12,464
3,290
PENSIONER
£2,610,228,000
Financials
£000
Net assets of the Scheme as at 6 April 2013
2,634,779
Money into the Scheme
Contributions and other income
148,097
Return on investments
(113,636)
Total money in
34,461
Money out of the Scheme
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NET ASSETS AT 5 APRIL 2014
Benefits paid to members
(48,791)
Other payments
(1,300)
Leaver payments
(3,190)
Administration expenses
(2,079)
Investment management expenses
(3,652)
Total money out
(59,012)
Net reduction
(24,551)
Net assets of the Scheme as at 5 April 2014
2,610,228
L A N D ROVER PENS I O N SCH E M E - PL AN YOU R F UTUR E W IN TE R 2 0 1 5
Investment performance
Overall, in the 12 months to
31 March 2014, the Scheme’s
investments had a return of -1.7%,
compared with the benchmark
return of -2.9%. Over the longer
term (three years to 31 March
2014), the Scheme’s investments
produced a positive return of 7.8%,
compared with the benchmark
return of 7.3%.
The overall return achieved in the
last 12 months is disappointing,
but it reflects the returns in global
investment markets generally. On
a positive note, the investment
firms beat the benchmark return.
Looking longer term, which is
always more important, the overall
return has been very good, with
the investment firms again adding
further value.
SUMMARY FUNDING
STATEMENT
Below is information about the Scheme’s latest funding position and the steps being
taken to protect your benefits.
HOW WELL FUNDED IS THE SCHEME?
The most recent actuarial valuation was carried out as at 5 April 2012. Here we compare the actuarial update
as at 5 April 2014 with the 2013 figures.
2014
Funding
Position
89%
Liabilities: £2,910m
Assets: £2,585m*
Shortfall: £325m
2013
Liabilities: £3,014m
Assets: £2,611m
Funding
Position
87%
Shortfall: £403m
* This figure is lower than the figure on page 6 because
it excludes AVCs.
The Trustee recognises that the Company is
also required to report the Scheme assets and
liabilities, but under Company accounting
rules (International Accounting Standard 19R).
The numbers reported by the Company in its
accounts are therefore legitimately different
from both the funding liabilities shown above
and the discontinuance basis, mentioned
below. In addition, the Company must
include all of the defined benefit schemes
supported by Jaguar Land Rover in this
calculation, not just the scheme of which you
are a member.
The Scheme’s funding position on a
discontinuance basis was 50% as at
5 April 2012. This assumes that the Scheme
was discontinued on the valuation date. We
are legally required to provide this figure,
it does not mean there is an intention to
wind up the Scheme.
Calculations of a pension scheme’s funding
position can only ever be approximate, as
the arrangement runs for many years. The
valuation and the update use assumptions on
a variety of factors, such as potential returns
on investments and how long people will live.
Why have the assets and liabilities changed
since the 2013 update?
The funding position has improved since 2013, primarily
due to contributions paid which are included in the assets.
A rise in interest rates on government bonds also reduced
the value of the liabilities. This has been partly offset by
lower than assumed investment returns.
How is the funding position being improved?
As part of the 2012 valuation the Trustee, having considered
the advice of its advisers, agreed a Recovery Plan with the
Company which has been in place since 21 June 2013.
Has the Company received any payments
from the Scheme?
There have been no payments made from the Scheme to
the Company in the past twelve months.
Has there been any intervention from the
Pensions Regulator?
The UK Pensions Regulator can change the Scheme, give
directions about how the liabilities are calculated as part of
a valuation or impose a schedule of contributions. We are
pleased to say that the Pensions Regulator has not needed
to use its powers in this way for the Scheme.
L AND ROV ER P EN S I O N S C HEM E - P L A N YO UR F UTUR E W IN TER 2015
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YOUR PERSONAL
DATA
In order to operate the Scheme, Jaguar Land Rover Pension Trustees Limited
(“the Trustees”/“we”) need to process personal data about you and those of your
dependants who may benefit under the Scheme.
The Trustees take data protection very seriously and part of that involves keeping you informed about how
your personal data is and will be used. You can view at any time full details of how the Trustees use, share and
protect your personal data in our privacy policy by visiting jaguarlandroverpensions.com/privacy-policy. If you
do not have easy access to a computer, you can obtain a hard copy at any time by contacting us as set out below.
We set out below a brief summary of the information in the policy:
–We hold information about you and your dependants necessary to administer the Scheme and provide
appropriate benefits. This includes your name, age, contact details and address, salary, pension and other
benefits and information about your dependants. Sometimes, it will include sensitive personal data, such as
health, for example in the case of ill-health early retirement. If any of your personal information changes,
please make sure to let us know to assist us in ensuring that our records are accurate and up to date.
–We need to share your data with Jaguar Land Rover and with companies we appoint to assist us in administering
and providing your pension benefits.
–Some of those companies, for example Jaguar Land Rover, third party benefit providers like Legal & General,
and some specialist service providers like Aon Hewitt, the Scheme actuary, Jonathan Gainsford, and
our lawyers Squire Patton Boggs are also data controllers. Other contractors and service providers process
data on our behalf, as data processors, under agreements that require them to only process your data in
accordance with our instructions, and to keep your data secure. Sometimes your data will be processed
outside the European Economic Area by staff of our service providers, subject to more stringent safeguards.
–If you wish to access, update or correct personal information held about you, or would like a paper copy of our
privacy policy, please contact the Trustees, care of JLT Benefit Solutions Limited using the contact details below.
One-to-one meetings
If you would like to arrange a one-to-one meeting to discuss any questions you have about your
pension, you should visit jaguarlandroverpensions.com
Getting in touch
You can contact the administrators of the Scheme:
In writing:
Land Rover Pensions Administration Team
JLT Benefit Solutions
St James House
7 Charlotte Street
Manchester
M1 4DZ
@
By phone:
0845 300 2967
0044 207 806 8908 (if calling from
outside the UK)
By email:
landrover@jltgroup.com
If you are receiving a printed version of this newsletter but would be happy to switch to email, please email
landrover@jltgroup.com and provide your email address by 31 July 2015.
Produced by Anthony Hodges Consulting Limited 2015_101646
–The Trustees are the data controller of your pensions related data, with responsibility for complying with the
Data Protection Act 1998 (“the DPA”).