presentation on the telefónica uk pension scheme

Member Communication Consultant

Charlotte Anthony

Presentation on the

Telefónica UK Pension Scheme

Member Presentation: TemplateNon-Confidential

• Why save into your pension?

• How does your pension work?

• Investments

• Retirement Options

What are we going to cover today?

1

First Step On your way Getting there Arriving


This presentation is designed for general education purposes on the subjects covered. Please remember the presenter is unable to give any financial advice, if you need financial advice you can visit unbiased.co.uk - where you can find a list of financial advisers. Please note that advisers may charge for their services.

This presentation is based on 2020/21 tax year and is subject to change with the HMRC rules and regulations.

Investments will be covered in this presentation however please bear in mind that your investments may go down as well as up and the return on your investments are not guaranteed.

The law, tax rates and any allowances may change in the future. These changes could affect the value of your savings, how much you can pay in, or the age at which you’re able to access your money. How tax works for you will depend on your individual circumstances.

Important information

2


• Future DC savings to go into the Legal & General Worksave Pensions Master Trust (‘L&G Master Trust’).

• Final payment to Standard Life = Dec 2020.

• First payment to L&G = Jan 2021.

• Former DB members under 55 at the date of transfer will not transfer to the L&G Master Trust, as it would affect your right to take DC benefits before age 55.

• Instead, your DC administration and investment choice to move to L&G, but within the existing trust. This will:

• Harmonise (as far as possible) your Plan savings with the L&G Master Trust.

• Retains your right to take your savings from 50 (if certain conditions are met).

• Same investment choice and member charges as the L&G Master Trust.

• Future access to transfer into the L&G Master Trust for greater retirement options.

• There are no changes to your former DB savings.

• DB Additional Voluntary Contributions to remain in the Plan.

Former Defined Benefit (DB) members with Defined Contribution (DC) savings at the date of transfer

Important information about the change

3


What is Mastertrust with Legal and General?

4

legalandgeneral.com/mastertrust

• Authorised and regulated by the Pensions Regulator (TPR)

• The Trustees are independent and act in the interests of Scheme Members

• The Trustees are responsible for ensuring members receive Value of Money

• The Trustees are keen to hear from members and host a Member Forum, look out for further information

First steps

Start of your pension journey


What will you spend your money on at retirement?

6


Picture your futureWhat standard of living could you have?

7

• Pensions and Lifetime Savings Association (PLSA) has put together lifestyle examples to help people visualise the cost of their retirement at 3 different levels.

• Examples demonstrate how much income you’ll need from your pension (as well as other savings) to achieve a minimum, moderate or comfortable standard of living

• Standards based on the cost of a typical range of goods/services most people use

• retirementlivingstandards.org.uk/

https://www.retirementlivingstandards.org.uk/


• £175.20 per week for 2020/21 tax year

• 35 qualifying years National Insurance contributions required for full entitlement

• gov.uk/check-state-pension

What about State Pension?

8

https://www.gov.uk/check-state-pension

On your way

How does your pension work ?


• There are no changes to your pension supplement of 16% of your pensionable pay. You must allocate a minimum of 9% of your supplement into your pension to remain a member of the Plan.

• To make any changes to your contribution levels please visit: www.telefonicarewards.com

Contributions

10

http://www.telefonicarewards.com/


What is Salary Sacrifice?

Idea is simple, you give up part of your salary back to your employer in return for anon-cash benefit.

N.I & Tax

Pay

Pension

Slice

11


• Annual Allowance £40,000

• Tapered Annual Allowance means your annual allowance is reduced – minimum £4,000

• Lifetime Allowance £1,073,100

• MPAA (Money Purchase Annual Allowance) £4,000

• If you need financial advice please visit unbiased.co.uk

2020/21 Tax Year

What are the limits?

12

http://www.unbiased.co.uk/


Where do I find out more?

13

www.legalandgeneral.com/telefonicauk

http://www.legalandgeneral.com/telefonicauk

Getting there

Investments


• Stay in the default Pathways Funds

• Self- select funds www.legalandgeneral.com/telefonicauk

• Select one of the investment options matching your retirement plans

Your investment options are

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Understanding investment types

16


What are Pathway Funds and how do they work?

17

To find out more about the Pathway Funds,

take a look at

our short video.

The Pathway Funds

Stage 1:

Higher growth

Stage 2:

Steady growth

Stage 3:

Approaching

retirement

Stage 4:

Retirement

https://videos.lgim.com/secret/62885692/2aaf22ccc86331580f5ca1afd9277ab7


Default Investment Option Charges

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The fund charges will differ depending on the fund you are invested in, to find out more information on the funds and the charges please visit:

fundcentres.lgim.com/uk/workplace-employee/select-product

Annual Management

Charge (AMC)

0.05%

Fund Management

Charge (FMC) – for

the default fund

0.15%

Total Charge

Please be aware that charges

may vary in the future

0.20%+ =

Retirement Options

Arriving


Your Options at Retirement

Pension

Pot25% tax free

usually

Take cash all

in one go

Take cash in

smaller sums

Take a

flexible

income

Buy a

guaranteed

income

pensionsadvisoryservice.org.uk/ask-us/pension-wise

20

https://www.pensionsadvisoryservice.org.uk/ask-us/pension-wise


LV= Retirement Advice Service?

21

legalandgeneral.com/telefonicauk


• MPAA limits the amount of money you can put into your pension pot after you’ve started withdrawing money from any of your Defined Contribution Pension Schemes

• MPAA for the 2020/21 tax year is £4,000 a year including the contributions from your employer

• moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance

Money Purchase Annual Allowance (MPAA)

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https://www.moneyadviceservice.org.uk/en/articles/money-purchase-annual-allowance


Independent advice and guidance

23

pensionwise.gov.uk/en

moneyadviceservice.org.uk/en

unbiased.co.uk/

General guidance Personal advice

yourpension.gov.uk/mid-life-mot/

Midlife MOT

http://www.pensionwise.gov.uk/

https://www.pensionwise.gov.uk/en

http://www.moneyadviceservice.org.uk/

https://www.moneyadviceservice.org.uk/en

https://www.unbiased.co.uk/

http://www.unbiased.co.uk/

https://www.yourpension.gov.uk/mid-life-mot/


Can I transfer my old pension?

24

• Charges

• Benefits or guarantees

• Defined Benefit Scheme

• Visit MYA to request a transfer pack

• unbiased.co.uk

http://www.inbiased.co.uk/


Frequently Asked Questions

25

What happens if I move abroad?

What happens if I opt out of the scheme or leave

Telefónica?

What happens in the event of my death?


Manage Your Account (MYA)

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legalandgeneral.com/mya

http://myukpensions.accenture.com/


What are the next steps?

27

Date Step

November 2020 Final contributions made to Telefónica UK Pension Plan

December 2020 Members join the Telefónica UK Pension Scheme

January 2021 Members will receive membership certificates

January 2021 Members can register for MYA

H1 2021 App made available to members

Individuals with protected rights will have their DC administration and investment choice move to L&G, but

within the existing trust by June 2021. There are no changes to any former DB savings


Thank you for listening.Any Questions?

28

Legal & General (Portfolio Management Services) Limited

Registered in England and Wales No. 2457525

We are authorised and regulated by the Financial Conduct Authority.

Registered office: One Coleman Street, London EC2R 5AA

Legal & General WorkSave Mastertrust and Legal & General WorkSave Mastertrust (RAS) are regulated by The Pensions Regulator.

Administrator: Legal & General Assurance Society Limited. Registered in England and Wales No. 166055

Registered office: One Coleman Street, London EC2R 5AA Authorised by the Prudential Regulation Authority and regulated by the

Financial Conduct Authority and the Prudential Regulation Authority

Q0058972 07/19 SUB194690

Telefónica mailbox: [email protected]

Website: www.legalandgeneral.com/telefonicauk

January 2021 please use;

Manage Your Account: legalandgeneral.com/mya

Legal & General helpline: 0345 672 0100

Call charges will vary. We may record and monitor calls

mailto:[email protected]


http://www.legalandgeneral.com/mya

presentation on the telefónica uk pension scheme

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