About Kingfisher Pensions

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About Kingfisher Pensions

• Helping you to understand your pension benefits

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About Kingfisher Pensions

• A brief guide to the money purchase section of
  the
• Kingfisher Pension Scheme
• (KPS-MP)

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The Kingfisher Pension Scheme
It can be confusing when joining a new pension
arrangement but we hope this presentation will
help you get a better understanding of this
complex area.
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The Kingfisher Pension Scheme
If you decide to go through the whole
presentation, it will take you approximately 10
minutes.
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Kingfisher Pension Scheme
At points during the presentation you will be
need to click on the green arrow (see below) to
go to the next slide.
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State Second Pension Scheme
It is important to mention that KPS-MP
participates in the State Second Pension Scheme
(S2P).
So how does this affect my State benefits?
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State Second Pension Scheme
The State will provide you with both the Basic
State Pension and the additional State Second
Pension (S2P) based on your earnings. You will
pay standard rate NI contributions.
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KPS-MP
The purpose of the KPS-MP is to

• Give you a secure income when you retire

• Provide financial protection for your dependants
  should you die before retirement

• Provide financial protection in the event of your
  prolonged ill-health

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KPS-MP
KPS-MP provides retirement pensions on a money
purchase basis. So what does this mean?
It means that the total of your pension benefits
depends on
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KPS-MP
how much money is put into the fund by you and
for you
how much the fund has grown and
what annuity rate is available when you retire
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Who can join

• All employees are covered for a life assurance
  benefit of two times basic annual salary in the
  event of their death while employed by the
  Company.

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Who can join

• Currently Permanent employees aged between 16
  and 59.
• After a years service, you can apply for your
  own Retirement Account and start saving for your
  pension.
• You will be sent an application pack with an
  Application Form and an Investment Choices Form
  BOTH of which must be returned before you can
  join.

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Part-time employees
I work part-time hours, can I join the Money
Purchase Section?
Yes, you are able to join the Money Purchase
Section if you are a part-time employee.
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Contributions
As a member of the KPS-MP you will pay a minimum
of 3 of your salary into your Retirement
Account. These are called Core Contributions.
You can choose to pay a higher rate of
contributions to your Retirement Account,
increasing in 1 amounts, to provide additional
benefits. These contributions are called
Additional Core Contributions.
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Contributions
You can choose to use some of your Core
Contributions and/or your Additional Core
Contributions to provide a higher lump sum, if
you die in service or a higher ill health
pension, in case you become too ill to work.
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Contributions
Additional Core Contributions can only be paid
from April each year. They must be paid for a
minimum of one year as you cannot increase or
decrease/stop them until the following April.
Because your Core Contributions and Additional
Core Contributions are paid as a percentage of
your salary they automatically adjust if your
salary changes.
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Contributions
The Company also contributes to your Retirement
Account, by paying a matching 3 of your salary
as soon as you join.
Even if you use some of your Core Contributions
to provide larger death in service or ill health
benefits, the Company still pays 3 of your
salary to your Retirement Account.
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Contributions
If you pay Additional Core Contributions, after
you have completed 5 years pensionable service
the Company will match these Additional Core
Contributions up to a maximum of 2. This means
that the Company is paying an equivalent of 5 of
your salary in total into your Retirement Account.
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Contributions
As your contributions are paid directly from your
salary you receive immediate tax relief on your
contributions, so that the full amount is
invested without delay to boost your Retirement
Account.
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Contributions
As well as paying Additional Core Contributions
you can also pay Additional Voluntary
Contributions (AVCs).
AVCs are added to your Retirement Account in the
same way as Core Contributions except you can
start and stop, and change the amount any time
you like. The Company does not pay a matching
contribution.
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Investment of contributions
How are the contributions invested?
All the contributions paid into your Retirement
Account, your contributions, employer
contributions, and any other monies eg a transfer
in, are invested on your behalf by an Investment
Manager chosen by the Scheme Trustees.
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Investment of contributions
Where are the contributions invested?
For KPS-MP the Trustees have chosen Standard Life
Assurance as the Investment Manager. All the
contributions paid into your Retirement Account
are invested in one (or more) of the Standard
Life pooled investment funds.
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Investment of contributions
Lifestyle Option
You can choose from a range of Lifestyle
investment strategies Your Retirement Account
is invested in a mix of different investment
funds and the mixture changes as you get older.
OR
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Investment of contributions
Self Select Option
If you are confident about making investment
decisions, you may select your own investments
from a range of specialist funds offered by the
Trustees.
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Investment of contributions

• Further information about investment choices can
  be found in the booklet Choosing your
  Investments available from the website or your
  HR department.

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Fund values
How do I know what my funds are worth? Whichever
fund(s) you have chosen, you will receive an
annual Benefit Statement showing how your funds
are building up.
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Additional Voluntary Contributions (AVCs)
As the name suggests these contributions are
additional to those you are required to pay and
are completely voluntary.
Why would I consider paying AVCs?
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Additional Voluntary Contributions (AVCs)
AVCs are a way of saving for extra retirement
income and are an ideal way to increase your
pension or tax free cash amount if you Did not
start saving for retirement until later in life
or have any breaks when you werent were not
paying pension contributions or would like to
increase the pension payable to a dependant.
You can now also take your AVCs as part or all
of your tax free lump sum
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Additional Voluntary Contributions (AVCs)
How much can I pay as AVCs?
You receive tax relief on your total
contributions to all registered pension schemes
subject to certain allowances. You will be able
to contribute up to 3,600 or 100 of earnings if
greater, subject to the Annual Allowance.
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Additional Voluntary Contributions (AVCs)
How much can I pay as AVCs?
The table below shows the Annual Allowance for
all contributions to registered pensions on your
behalf. This includes personal pensions,
stakeholder pensions and Additional Voluntary
Contributions. It does not apply in the year in
which you take your benefits in full. You
are liable to a tax charge of 40 on pension
contributions in any tax year that are higher
than these levels
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Additional Voluntary Contributions (AVCs)
Do I get tax relief on the AVCs I pay?
Yes, you would qualify for tax relief at the
highest rate of tax you pay. The AVCs are
deducted from your salary, so the tax relief is
automatic.
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Retirement benefits
Your Normal Retirement Date (NRD) is the last day
of the month in which you reach age 60.
What choices do I have if I continue working
until Normal Retirement Date?
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Retirement benefits

• A retirement annuity OR
• A tax-free lump sum and a smaller residual
  retirement annuity

Standard Life will write to you 6 months before
your NRD, giving you details of your options.
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Retirement benefits
You can start drawing your benefits when you are
still working subject to certain conditions, for
more information contact the Kingfisher Pension
Department
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Retirement benefits
What is a retirement annuity?
In return for paying a premium, an annuity is a
sum of money payable at specified intervals.
You would use part of your Retirement Account to
buy yourself an annuity, which would be payable
in monthly instalments - like a pension.
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Retirement benefits
How do I buy an annuity?
When you retire, Standard Life will tell you how
much of your funds you may use to buy a lump sum
and how much you may use to buy an annuity.
They will also provide you with a quote for
buying an annuity.
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Retirement benefits
Do I have to take up the annuity offered by
Standard Life?
No, you can either
Take up our offer of asking a firm of Independent
Financial Advisers to research the market or
Make your own arrangements.
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Retirement benefits
The type of pension payable and whether it will
increase, for example, will depend on what type
of annuity you choose at retirement.
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Early retirement benefits
Can I retire before age 60?
You may take early payment of your pension at any
time after reaching age 50. From 6 April 2010
the early retirement age will rise to age 55,
therefore if you have not reached age 55 by this
date you will not be able to take benefits before
age 55 past 5 April 2010. Payment is at the
discretion of the Company and the Trustees.
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Incapacity pension
If you have to retire early due to ill-health,
you are entitled to apply to be considered for an
incapacity pension. If granted, an additional
amount will be credited to your Retirement
Account to provide extra pension.
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Incapacity pension
How much extra will be paid to my Retirement
Account? An amount at least equal to the total
contributions already for you by the Company. If
you opted to pay for a higher ill-health pension
then a larger amount could be payable depending
on the circumstances.
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Leaving service
If you have completed less than 3 months
Qualifying Service in KPS-MP the value of your
own contributions will be refunded. If you
have completed more than 3 months but less than
two years Qualifying Service you will have the
option to transfer your benefits to another
registered pension arrangement.
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Leaving service
If you have completed two years Qualifying
Service or more, the options available to you are
...

• To leave your contributions in the KPS-MP and
  attract continuing investment growth OR
• Transfer your fund to another pension
  arrangement. Your fund will continue to attract
  investment growth until the point of transfer.
  Alternatively you can have a refund of the value
  of your contribution

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Transfers out
You mentioned that the other option available is
a transfer out. What does this mean?
It means that instead of keeping your fund, you
can transfer the value of your Retirement Account
to another pension arrangement.
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Transfers out
Can I transfer to any kind of pension arrangement?
You can transfer to another registered pension
arrangement, this could be your new employers
scheme, an annuity policy with an insurance
company or a personal pension arrangement.
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Transfers out
Do I have to transfer immediately after leaving
the company?
No, you may decide to transfer your pension
benefit at a later date, up to one year before
Normal Retirement Date.
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Transfers in
Similarly, if you were a member of another
pension scheme or arrangement before you joined
the company, you may be able to arrange a
transfer payment from the old scheme to give you
extra pension under the KPS-MP.
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Transfers in

• The transfer-in process is not a simple one as
  there is a great deal of legislation that the
  Trustees have to follow. The whole process
  usually takes from three to eight months to
  complete.

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Death in service

• It is important for you to know that your
  dependants will be looked after should you die
  whilst a member of the KPS-MP and still employed
  by the Company.
• The benefits you qualify for are

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Death in service

• A lump sum benefit of
• 2 x basic annual salary, and
• The value of your Retirement Account
• An additional lump sum (and/or dependants
  pension) if you opted to pay for higher death
  benefits

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Lump sum benefit
The lump sum is paid under a discretionary trust.
What does this mean?
It means that the payment does not form part of
your estate and is therefore unlikely to be
subject to Inheritance Tax or Probate.
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Beneficiary forms
I would like to tell the Trustees who should
receive this money.
As the payment is made at the Trustees
discretion, they must decide to whom the payment
should be made. However, you can let the Trustees
know your wishes by completing a beneficiary
form, which states who you would like to receive
any death benefits.
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Beneficiary forms
If your circumstances change you should make sure
that you complete a new beneficiary form, so that
your wishes are always up-to-date. This will
also help the Trustees reach their decision more
quickly.
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Kingfisher Pension Scheme
If I require more information about the KPS-MP,
where can I get this from?
More detailed information is available in the
Members Guide. The booklet is available to view
on our web site or you can contact your personnel
department for a copy.
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Kingfisher Pension Scheme
This concludes the brief overview of KPS-MP.
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your HR department if you need a copy of the
Members Booklet.