A Plan for your future ITV Auto-enrolment Pension Plan explained

Most of us have thought about what it might be like to retire, but have you thought about how you’re going to pay for your retirement? Having a good retirement is all about being prepared. The ITV Auto-enrolment Pension Plan (the Plan) has been designed to help you on your way by helping you save tax-efficiently.

How the Plan works is simple. You (and ITV, if applicable) pay money into the Plan, which is then invested and hopefully grows over time. When you’re ready to retire, you can take part of your pension savings as cash and use the rest to provide benefits such as a lifetime pension for yourself. It’s as easy as that.

The Plan is provided for ITV by a company called NOW: Pensions. It’s set up under what is known as a ‘master trust’ which is run by an independent board of Trustee Directors. This company, and its board of Trustee Directors, look after the Plan and your pension savings. You can find more information about the running of the Plan and the Trustees on page 8.

This guide has been produced by ITV and explains how the Plan works, the benefits it provides and how it’s run. There’s also some general information about State pensions.

If you have any questions about the Plan, contact the Plan Support Team by:

l calling: 0845 309 6197 (available Monday to Friday 8am–6pm)

l emailing: support@benpal.com

Welcome

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Eligible jobholder: Someone who is at least age 22 and below State Pension age, earns more than £9,440 a year (for the 2013/14 tax year) and usually works in the UK.

Non-eligible jobholder: Someone who usually works in the UK and is either: at least age 16 and under 22 or between State Pension age and under 75, and earns more than £9,440 a year (for the 2013/14 tax years); or at least age 16 and under 75 and earns between £5,668 and £9,440 a year (for the 2013/14 tax year).

Entitled worker: Someone who is at least age 16 and under 75, earns less than £5,668 a year (for the 2013/14 tax year) and usually works in the UK.

These categories apply regardless of your contract type or tax status. The only exceptions are office holders and those colleagues employed through a limited company.

What category am I?How much you contributeIf you’re an eligible jobholder or a non-eligible jobholder (see the panel on the right for details)Your standard pension contribution: You contribute 1% of your qualifying earnings to the Plan each month. ITV will help you build up pension benefits by also contributing 1% of your qualifying earnings.

From October 2017, contribution rates for members will increase to 3%, and to 5% from October 2018. ITV’s contributions will also increase to 2% and then 3%.

ExampleSay you earned £30,000 a year, your standard contribution would be £243.32 a year (that is, 1% of £30,000 - £5,668).

Before you decide how much to pay, make sure you understand the allowances that apply to pensions (see page 6 for details).

If you’re an entitled workerYou can decide how much you contribute to the Plan from 0.25% up to a maximum of 10% of upper qualifying earnings. So, for the 2013/14 tax year, the maximum you could contribute would be £4,145 (that is, 10% of £41,450). ITV does not contribute to your pension savings while you’re an entitled worker.

Before you decide how much to pay, make sure you understand the allowances that apply to pensions (see page 6 for details).

To register your contribution choice, visit www.benpal.com or call the Plan Support Team. See page 8 for details.

Building up yourpension savings

The upper level for qualifying earnings which, for the 2013/14 tax year, is £41,450.

Qualifying earnings

Upper qualifying earnings

These are the defined amount of your earnings on which your standard pension contributions are based.

For the 2013/14 tax year, the defined amount is between £5,668 and £41,450 a year (that’s between £109 and £797 a week) of your earnings including overtime and bonuses, not just basic pay.

For example, if you earned £30,000, your standard pension contributions would be based on £24,332 (that is, £30,000 less £5,668).

The lower and upper levels for qualifying earnings will change from time to time.

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Tax advantagesThe Plan is tax registered, which means you’ll get tax relief (including higher rate tax relief if you pay at the higher rate) on your pension contributions. So every £1 you pay will actually cost you 80p if you pay tax at 20%, 60p if you pay tax at 40%, and 55p if you pay tax at 45%. What’s more, you’ll get tax relief directly through your pay so you don’t have to worry about claiming the tax back.

ExampleIf your qualifying earnings are £2,500 a month, your monthly contribution would be £25, but after tax relief it would only cost you £20. What’s more, if you are eligible for contributions from ITV, ITV would pay a further £25 into your pension savings. So you’d build up £50 a month at a cost to you of only £20.

Transferring benefits into the Plan You cannot transfer pension benefits into the Plan that you may have built up from previous jobs or personal pensions.

How your savings are investedYour pension savings are invested automatically for you, using a lifestyle approach. This approach aims to invest your savings in a way that matches your age and how long you have until retirement, as follows:

l When you’re more than 10 years from retirement: your pension savings will be invested in a Managed Diversified Growth Fund. This fund aims to grow your savings, while managing risks sensibly. Investment returns are not guaranteed and the value of your savings may go down as well as up.

l When you’re 10 years from retirement: your pension savings are moved gradually to a Retirement Fund and a Cash Protection Fund. The aim of these funds is to protect the buying power of your pension savings as you approach retirement. Although investment returns are not guaranteed, the aim is to ensure your pension savings are there when you need them and you can provide as much income in retirement from your pension savings as possible.

Your retirement age, for the purpose of the lifestyle investments, is age 65, but you can change it to suit your plans. This is called your target retirement age and you can select an age between 55 and 75 by going online – see Keeping track of your pension on page 3 for details.

In the future, the Plan will also offer a Sharia Law Fund. This is a specialised fund for members that want to invest in line with the principles of Islamic Sharia law. If you’re interested in investing your pension savings through this option, contact BenPal on 0845 309 6197.

You can find more information about these funds and your lifestyle options by logging on to BenPal – see page 3 for details.

ChargesYou’ll pay an administration charge each month. This is deducted directly from your pension savings. The exact amount depends on whether you’re an active member (that is, you’re working for ITV and are contributing to the Plan) or a deferred member (that is, you no longer contribute to the Plan or have stopped working for ITV). The current charges are shown below and are valid until 28 February 2015; after this time, they’ll be reviewed and may be revised.

Active members£1.50 administration charge each month

Deferred membersAdministration charge each month of the lower of 0.0167% of the annual value of your pension savings, or £1.50

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Keeping track of your pensionYou can review and manage your pension savings online. Here’s how.

While you’re contributing to the PlanVisit www.benpal.com and log on to BenPal to:

l view the current value of your pension savings

l see a statement showing how your pension savings have changed during the year from 1 April to 31 March

l review and change your target retirement age

l access further information

Once you’ve withdrawn from the Plan or stopped working for ITV If you leave the Plan, NOW: Pensions will send you details of your pension savings and let you know how to get online access to:

l view the current value of your pension savings

l see a statement showing how your pension savings have changed during the year from 1 April to 31 March

l review and change your target retirement age

l access further information

BenPal is a simple online tool that makes planning and controlling your pension easier. The Plan Support Team will send you an activation email. Once you’ve activated your BenPal account, you can log on at any time to view and manage your pension savings.

Log on at www.benpal.com using your personal username and password. If your activation email has expired or you need help, contact the Plan Support Team by:

calling: 0845 309 6197 available Monday to Friday 8am-6pm

emailing: support@benpal.com

BenPal

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If you stop working for ITVIf you stop working for ITV (or withdraw from the Plan while you’re working for ITV), you’ll become what’s known as a deferred member. Your pension savings will be kept in the Plan until you’re ready to use them at retirement. They’ll continue to be invested and their value will change in line with investment performance.

Stopping your membership of the PlanYou can cancel your membership of the Plan at any time.

l If you’re an eligible jobholder or non-eligible jobholder you can opt out within the statutory opt-out period: If you decide to opt out of the Plan within the first month of joining or being enrolled (this is known as the statutory opt-out period and is one month from the date of the enrolment notice that the Plan Support Team sends to you), any contributions that have been deducted will be refunded at the next available payroll date. You can opt out by:

• logging on to BenPal – see page 3 for details.

• calling 0333 240 9566 and using the automated opt-out service. You’ll need your 9-digit user ID number from the enrolment notice issued to you by the Plan Support Team.

l If you stop membership of the Plan after the statutory opt-out period or you’re an entitled worker: If you decide to stop your membership of the Plan after the statutory opt-out period has expired, or at any time if you’re classed as an entitled worker, and are still employed by ITV, you’ll become a deferred member of the Plan. Your pension savings will be kept in the Plan until you’re ready to use them at retirement. They’ll continue to be invested and their value will change in line with investment performance. You’ll need to log on to BenPal and follow the steps to leave the Plan – see page 3 for details.

You’ll be sent confirmation of your decision once it has been processed.

Before deciding to withdraw from the Plan you should think carefully about your decision and consider the benefits you’ll be giving up. You should also take independent financial advice.

If you’re a Plan member during different periods of employment with ITV

If you work for ITV and are a member of the Plan on more than one occasion (for example, you have a number of contracts with us over a period of time), the pension savings you build up for each period of Plan membership will be recorded separately. You’ll be able to view them by logging on to www.benpal.com whilst you’re an active member and NOW: Pensions website if you become a deferred member of the Plan. You’ll be given separate login details for each account.

Absences from workMost absences from work (during your period of employment) are relatively short and may not affect your membership of the ITV Auto-enrolment Pension Plan. However, if you’re absent from work for a long period of time due to sickness, maternity, paternity, parental or adoption leave, your membership may be affected.

Please contact HR Services by calling 0161 952 1922 or emailing HRServices@itv.com for details of how your contributions and membership may be affected.

Leaving ITV

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Taking your benefits at retirementWhen you can take your benefitsYou would normally receive your pension benefits at age 65.

However, you can take your benefits at any time from ages 55 to 75. Remember, if you’re not planning to retire at age 65, you may want to review the age that is used for how your pension savings are invested (your target retirement age) – see page 3 for details.

Remember, the earlier you decide to take your benefits the lower your pension is likely to be. This is because you’ll have paid in fewer contributions, your pension savings will have less time to grow, and your pension will be paid for potentially more years. Of course, if you decide to take your benefits after age 65, the reverse is also true and your benefits may be higher.

Your benefits at retirementWhen you’re ready to retire, you can take up to 25% of your pension savings as cash (currently tax free). You’d generally use the rest of your pension savings to buy an annuity. This is a word insurance companies use to describe annual income – what most of us would call a pension.

You can buy different types of annuities: ones that are paid at a fixed rate or that increase after they start to be paid; ones that stop when you die, or that continue to be paid, at a lower rate, to your spouse or partner. You don’t need to worry about this now. You’ll be sent details as you approach retirement to let you know your options and how to turn your pension savings into annual income.

It’s not possible to tell you in advance how much your pension will be. This is because your pension depends on a number of things:

l the total amount you contribute and, if applicable, ITV’s contributions

l the investment returns achieved on your pension savings, less the administration charges

l the type of pension you decide to provide, and the rates that insurance companies are offering for turning your pension savings into annual income (annuity rates)

l the amount of your pension savings you take as cash

If you die before receiving your benefitsIf you die before you’ve started to receive your pension benefits, the value of your pension savings will be paid as a lump sum. So that the money can be paid free of any personal or inheritance tax that may otherwise be due, the Trustee who looks after the Plan must have discretion to decide who to pay the money to. However, you can let the Trustee know who you’d like the money paid to by completing a Nomination form (although the Trustee is not bound by your request). You can request a copy from the ITV Pensions Department by calling 01772 884488 or emailing enquiries@itv-pensions.com.

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State pension benefitsAs well as the retirement income you’ll get by saving through the ITV Auto-enrolment Pension Plan, you may also receive a pension from the State. There are currently two parts to the State pension: a basic State pension and the State Second Pension (S2P). Both are paid from State pension age.

l The basic State pension: a flat-rate amount set by the Government each year. You need 30 qualifying years to get the full basic State pension.

l The State Second Pension (S2P): the amount you receive depends on the level of your earnings. If you die before you start to take your pension, your husband, wife or registered civil partner may be eligible to part of any S2P you’ve earned.

You can get a forecast of your expected State pension by going to The Pensions Service website at www.gov.uk/state-pension-statement

The Government has announced plans to abolish S2P and to increase the basic State pension from 2017. ITV will keep you updated with any changes, but if you’d like more information on State benefits please visit the Department for Work and Pensions’ website at www.gov.uk

State pension ageIn recent years, measures have been introduced that will see State pension age increase gradually. The current situation is:

l For men born before 6 December 1953, State pension age is 65.

l For women born before 6 April 1950, State pension age is 60.

l For women born on or after 6 April 1950 but before 6 December 1953, State pension age is between 60 and 65.

l For men and women born after 5 December 1953, State pension age will gradually increase to age 68.

You can find out your exact State pension age by using the Government’s online State Pension Calculator – simply enter your date of birth and sex. www.gov.uk/calculate-state-pension

Pension allowances

The Annual AllowanceThere is an annual allowance on the amount of pension savings you can build up tax efficiently between 6 April and 5 April each year (called the pension input period).

The Annual Allowance for the 2013/14 tax year is £50,000. This allowance is set by the Government and will reduce to £40,000 for the 2014/15 tax year.

The amount tested against the Annual Allowance includes your and your employer’s standard contributions to the ITV Auto-enrolment Plan, any contributions you make to another pension arrangement such as a personal pension, and the increase in the value of any defined benefit pension you might have. Any amount tested that’s above the Annual Allowance will normally be subject to a tax charge, although you can carry forward any unused Annual Allowance from the last three tax years to the current tax year.

You can read more about the Annual Allowance at www.hmrc.gov.uk/pensionschemes/understanding-aa.htm

The Lifetime AllowanceThere is a limit on the amount of pension benefits you can build up over your lifetime tax efficiently. This limit is called the Lifetime Allowance. For the 2013/14 tax year, the Lifetime Allowance is £1.5 million (reducing to £1.25 million for the 2014/15 tax year). The allowance applies to all the pension savings you have built up during your lifetime but excludes your State pension and any pensions payable when you die. You can save more than the Lifetime Allowance, but your benefits above the allowance would be subject to a tax charge.

The vast majority of members won’t be affected by this limit, but if you think you may have or may in future exceed this limit, you should speak to an independent financial adviser. If you don’t have a financial adviser, see page 7 for details of how to find one.

You can read more about the Lifetime Allowance at www.hmrc.gov.uk/pensionschemes/understanding-la.htm

State pensions and allowances

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Finding out moreGetting financial adviceIf you need advice about the Plan, you should speak to an independent financial adviser. If you don’t have a financial adviser then you can find one in your area by looking in your local classified directory or by contacting:

IFA Promotion www.unbiased.co.uk

The Personal Finance Society www.findanadviser.org

You would need to enter into a private agreement with the adviser and would be responsible for their fee.

The Pensions Advisory Service (TPAS)TPAS is a free and confidential service which was established to give help and advice to members of the public who have problems concerning their rights under company and personal pension arrangements.

TPAS is available to assist members and beneficiaries of pension schemes in connection with any pensions query or difficulty they may have which they’ve failed to resolve with the trustee or administrators of pension schemes.

phone: 0845 601 2923web: www.pensionsadvisoryservice.org.ukpost: The Pensions Advisory Service 11 Belgrave Road, London SW1V 1RB

The Pensions OmbudsmanIf your complaint isn’t resolved to your satisfaction, you may be able to refer your complaint to the Pensions Ombudsman.

The Pensions Ombudsman can be contacted by:

phone: 020 7630 2200post: The Pensions Ombudsman 11 Belgrave Road, London SW1V 1RBweb: www.pensions-ombudsman.org.uk

The Pensions RegulatorThe Pensions Regulator’s purpose is to make members’ benefits more secure. To do this, it makes sure that pension schemes are run in a way which complies with the law. The Pensions Regulator can become involved in the running of a scheme if trustees, employers or professional advisers do not carry out their duties properly.

The Pensions Regulator can be contacted by:

phone: 0845 600 1011post: Napier House, Trafalgar Place, Brighton East Sussex BN1 4DWweb: www.thepensionsregulator.gov.uk

The DWP Pension Tracing ServiceThe DWP maintains a register of pension schemes established in the UK. The purpose of the register is to enable people who have lost touch with their previous pension schemes to trace their pension rights.

The DWP’s Pension Tracing Service can be contacted by:

phone: 0845 600 2537post: Pension Tracing Service The Pension Service, Whitley Road Newcastle upon Tyne NE98 1BAweb: www.gov.uk/find-lost-pension

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Running the PlanHow the Plan is set up and runThe Plan is set up and provided by NOW: Pensions. NOW: Pensions is a new UK version of a pension provider called ATP that has provided pensions to a large proportion of the Danish working population for over 40 years.

The Plan is set up under what is known as a master trust which is run by an independent board of Trustee Directors. They have a duty to look after the interests of members of the ITV Auto-enrolment Pension Plan. You can find the names of the current Trustee Directors by visiting www.nowpensions.com or by calling NOW: Pensions on 0333 332 2020 or emailing members@nowpensions.com.

If you have a problem or complaintThe aim of NOW: Pensions is to provide you with good service at all times, but if you’re at all unhappy please contact NOW: Pensions and they’ll try to resolve the issue.

If you still remain dissatisfied with the outcome, you can make a formal complaint through NOW: Pension’s dispute resolution process. This provides a step-by-step escalation process involving, as needed, the Trustee, The Pensions Advisory Service (TPAS) and the Pensions Ombudsman. To find out details of the process while you’re an active member of the Plan, log on to BenPal or call the Plan Support Team; once you’re a deferred member, refer to the Contacts section of your online NOW: Pensions account.

The process is available to all members of the Plan including their dependants, and individuals who are eligible to become members. Former members may use the process for up to 6 months after leaving the Plan. The person registering a complaint may nominate a representative to act on their behalf.

Keeping in touch with youTo ensure the Plan operates at the highest environmental standards, to manage costs and ensure a high-quality service, information about the Plan and your membership will be sent to you online. If you prefer, or if you’re unable to access these documents online, you can ask for hard copies by contacting:

l If you’re an active member – BenPal call: 0845 309 6197 (available Monday to Friday 8am-6pm) email: support@benpal.com

l If you’re a deferred member – NOW: Pensions call: 0333 332 2020

(available Monday to Friday 9am-5pm) email: members@nowpensions.com

About your personal informationThe Trustee of the Plan takes seriously its responsibility to hold and use your personal data properly and securely. It has a legal obligation and legitimate interest to process data about you in order to calculate and pay benefits, for statistical and reference purposes, and to administer the Plan. For the purposes of the Data Protection Act 1998, NOW: Pensions is regarded as the Data Controller, and can be contacted at Sutherland House, Russell Way, Crawley, West Sussex RH10 1UH.

As a member of the Plan, you agree that the Trustee and its advisers can process this data, and acknowledge that it may need to pass this data to third parties to manage your pension properly. This may include sensitive data, such as the provision of information about your health or death benefit nominations. You can ask to see a copy of your data by contacting NOW: Pensions at the above address. All the relevant information is held on systems run and managed in the EU and subject to the relevant regulations and guidance of the Information Commissioner.

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About this guideThis guide provides an overview of the Plan and is based on UK laws and HMRC regulations in force at the time of writing. Your Plan membership and the way in which your contributions and benefits are worked out are subject to any changes in UK law and HMRC regulations. Full details of the Plan are set out in a document called the Trust Deed and Rules. The Trust Deed and Rules will take priority if there is any discrepancy between them and the information in this guide.

Changes to the PlanAlthough ITV intends currently to continue making contributions to the Plan, it can discontinue or amend the Plan at any time. It may also need to make changes to the Plan to reflect new laws and requirements.

If the Plan is closed or wound-up, ITV will let you know about the alternative arrangements that will be made for your funds. By law, ITV must automatically enrol colleagues who meet certain conditions into a scheme that meets a minimum set of standards.

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December 2013