Important Announcement
PubHTML5 Scheduled Server Maintenance on (GMT) Sunday, June 26th, 2:00 am - 8:00 am.
PubHTML5 site will be inoperative during the times indicated!

Home Explore BoAML Plan Handbook 17 V2.0

BoAML Plan Handbook 17 V2.0

Published by priya, 2017-07-04 07:28:15

Description: BoAML Plan Handbook 17 V2.0

Keywords: none

Search

Read the Text Version

Retirement. Get on the right road. Your Plan Handbook For members of the Bank of America Merrill Lynch UK Pension Plan and the Merrill Lynch (UK) Defined Contribution Plan (the Plan) 2017

Contents The Plan at a glance You join the Plan and a Member Account is set up in your name Your employer contributes to your Member Account The amount your employer pays depends on your length of service and any grandfathering you may have received from your membership before 1 January 2013. If your earnings are above a certain level, the way in which you receive your core bank contribution will change. See page 10 for more details. You can contribute to your Member Account to increase your savings • If you are an employee member, you can make regular member contributions through Salary Sacrifice on the MyBenefitChoices flexible The Plan at a glance 3 benefit website: – during the MyBenefitChoices Annual Enrolment period each November, and A valuable benefit 4 – at any time during the year; see pages 11 and 36 for more details. • You can also make Additional Voluntary Contributions (AVCs) outside of Salary Sacrifice and MyBenefitChoices at any point during the year. The big picture 5 • We encourage you to review your personal circumstances and tax position before updating your pension contributions. Contributions 10 Retirement 6 You choose how to invest your Member Account Investments 14 planning online The Plan currently offers you two ways of managing your investments and a wide range of funds. See page 14 for more details. Using your savings 28 Joining 8 If you leave the Plan… When you access your savings... If you die… On death 30 and have up to one month’s From the minimum pension age before retirement while still employed membership, you can: (currently age 55), you will have a number by your employer: • Take a refund of any contributions you of options in how you use your savings. A) If you were an active member of the have made (less tax). Find out more on page 28. Merrill Lynch (UK) Pension Plan or Merrill Lynch (UK) Defined Contribution Plan on 31 December 2012, the following will be paid: and have over one month’s membership, You may be entitled to Leaving and absence 32 you can: • A lump sum for your Dependant(s), • Transfer the full value of your Member benefits if you are off work due equal to four times your Plan Salary. State benefits 34 Account to an alternative registered to illness or injury (see page 33). • An annual pension benefit for your Spouse pension arrangement, or of one-third of your Plan Salary at your date of death. Help and information 36 • Leave the full value of your Member Account in the Plan until you retire, or • Annual pension benefits for any eligible children. Jargon buster 40 • Depending on your age and retirement If the total value of these benefits is less plans, you may be able to use your than the value of your Member Account, it Member Account to access benefits. may be used to provide additional benefits. These benefits are payable at the absolute discretion of the Trustee. You can choose to opt out of the Plan B) If you joined the Plan on or after while you are still working for your employer. It is therefore important that you 1 January 2013 or if you are a former Bank of See page 9 for more details. inform the Trustee of your wishes America member, the following will be paid: by completing your Expression of • A lump sum for your Dependant(s), equal Wish details, and keep these details to eight times your Plan Salary. up to date. • The value of your Member Account. The Trustee will take your wishes into account but is not bound by • If you have Dependants, part of this amount may be used to provide annual them. Find out how to inform the pension benefits for your Dependant(s). Trustee on page 31. You can choose a different level of cover through MyBenefitChoices. as a Deferred Member: The Trustee will use the value of your Member Account to provide one or both of the following benefits: • A lump sum payment. • Annual pension benefits payable to a Spouse and eligible children. after you have accessed your savings from the Plan: The benefits will depend on the choices you made at retirement. 2 3

Contents The Plan at a glance You join the Plan and a Member Account is set up in your name Your employer contributes to your Member Account The amount your employer pays depends on your length of service and any grandfathering you may have received from your membership before 1 January 2013. If your earnings are above a certain level, the way in which you receive your core bank contribution will change. See page 10 for more details. You can contribute to your Member Account to increase your savings • If you are an employee member, you can make regular member contributions through Salary Sacrifice on the MyBenefitChoices flexible The Plan at a glance 3 benefit website: – during the MyBenefitChoices Annual Enrolment period each November, and A valuable benefit 4 – at any time during the year; see pages 11 and 36 for more details. • You can also make Additional Voluntary Contributions (AVCs) outside of Salary Sacrifice and MyBenefitChoices at any point during the year. The big picture 5 • We encourage you to review your personal circumstances and tax position before updating your pension contributions. Contributions 10 Retirement 6 You choose how to invest your Member Account Investments 14 planning online The Plan currently offers you two ways of managing your investments and a wide range of funds. See page 14 for more details. Using your savings 28 Joining 8 If you leave the Plan… When you access your savings... If you die… On death 30 and have up to one month’s From the minimum pension age before retirement while still employed membership, you can: (currently age 55), you will have a number by your employer: • Take a refund of any contributions you of options in how you use your savings. A) If you were an active member of the have made (less tax). Find out more on page 28. Merrill Lynch (UK) Pension Plan or Merrill Lynch (UK) Defined Contribution Plan on 31 December 2012, the following will be paid: and have over one month’s membership, You may be entitled to Leaving and absence 32 you can: • A lump sum for your Dependant(s), • Transfer the full value of your Member benefits if you are off work due equal to four times your Plan Salary. State benefits 34 Account to an alternative registered to illness or injury (see page 33). • An annual pension benefit for your Spouse pension arrangement, or of one-third of your Plan Salary at your date of death. Help and information 36 • Leave the full value of your Member Account in the Plan until you retire, or • Annual pension benefits for any eligible children. Jargon buster 40 • Depending on your age and retirement If the total value of these benefits is less plans, you may be able to use your than the value of your Member Account, it Member Account to access benefits. may be used to provide additional benefits. These benefits are payable at the absolute discretion of the Trustee. You can choose to opt out of the Plan B) If you joined the Plan on or after while you are still working for your employer. It is therefore important that you 1 January 2013 or if you are a former Bank of See page 9 for more details. inform the Trustee of your wishes America member, the following will be paid: by completing your Expression of • A lump sum for your Dependant(s), equal Wish details, and keep these details to eight times your Plan Salary. up to date. • The value of your Member Account. The Trustee will take your wishes into account but is not bound by • If you have Dependants, part of this amount may be used to provide annual them. Find out how to inform the pension benefits for your Dependant(s). Trustee on page 31. You can choose a different level of cover through MyBenefitChoices. as a Deferred Member: The Trustee will use the value of your Member Account to provide one or both of the following benefits: • A lump sum payment. • Annual pension benefits payable to a Spouse and eligible children. after you have accessed your savings from the Plan: The benefits will depend on the choices you made at retirement. 2 3

The Plan is a valuable benefit The big picture: know where to start Your employer wants to provide all of its employees with a valuable and flexible benefit Retirement may seem a long way off. But if you do not take steps early enough, the savings package. An important part of this is helping employees provide for life after work and so you have in the future may not be what you expected or need. the Plan helps you save for your future. For more information about the Plan and how to access your savings when you are ready, The Plan is an attractive way to save About this Plan Handbook visit www.baml.com/pensionupdate (see page 6). • It is flexible. You choose how much to save in addition This Plan Handbook explains how the Plan works, its features You need to prepare and regularly check that you are heading in the right direction. The following three simple steps should help to your employer's contributions (and you can change this and other details you need to help you get the most out of you on your way. at any time), how your contributions are invested if you’re your membership and to manage your Member Account. an employee member, and how you want to access your savings. More information about the Plan is set out in the Trust Deed and Rules – these are the legal documents which govern the 1 • It is cost effective. Any contributions you make through Plan. In the event of any discrepancy between the Rules and Set a target Think about the level of savings you will need when you retire. MyBenefitChoices are free from National Insurance, as this Plan Handbook, the Trust Deed and Rules will prevail. • What sort of lifestyle would you like? Setting yourself a target will help you decide these are made through Salary Sacrifice. You also receive tax You can request a copy of the Rules from the Plan how much to contribute to your Member Account, and how to invest it. relief on all contributions (up to certain limits; see page 13 Administrators (see page 36). for details). Your employer meets the Plan’s administration • Many experts say you will need around 50-60% of your salary as an annual income costs and you pay the investment management charges. to live on when you retire. If you do not already know how much you will need, try the • It gives you investment choice. There are two investment Please note: the Plan is a ‘qualifying’ scheme for automatic Budget Planner. approaches to choose from and within each approach there enrolment purposes. This means it meets or exceeds the • Once you have set your target, you need to see if your estimated savings will meet are different options. The different options aim to offer standards required to conform to legislation introduced by your needs. something for everyone. the Government and which has applied to your employer • As a member of the Plan, you will receive an annual benefit statement which will help since 2013. See page 40 for more details. • It gives you peace of mind. The Plan provides you you to see if you are on track. You can also check the value of your Member Account and your Dependant(s) with financial protection through online at any time (see page 6 for more details). Make sure you consider all of your life assurance. savings and sources of income – for example, any previous employers’ schemes, inheritance, any other investments you may have and State benefits. • If your expected total savings fall short of your target, you need to think about how to close that gap. Acting on steps 2 and 3 below can make a big difference. 2 Save as much as It might not cost as much as you think. you can afford • If you are an employee member, you receive tax relief on contributions (up to certain limits; see page 13 for details). • Any regular member contributions you make through MyBenefitChoices are also free from National Insurance, as they are paid through Salary Sacrifice. You can also make Additional Voluntary Contributions (AVCs) outside of MyBenefitChoices and Salary Sacrifice. • In addition to your own contributions to your Member Account, your employer contributes too. See page 10 for more details. 3 Make your money Take control of your investments and make sure you review them regularly. work harder • The way you invest your Member Account directly affects its value when you access your savings, so make sure you are not missing out on potential valuable investment returns. • Your investment choice will depend on your personal circumstances including your attitude to risk. So it is important to understand your options and to make the right decision for you. The Investments section from page 14 will help. Use the investment profiler to help see what approach may be right for you. nd • Around 13 years before your Target Retirement Date (your 62 birthday unless you choose otherwise), you also need to make sure your savings are invested in line with how you plan to use them – see page 28 for more information. Use the Retirement options decision tree to help you consider how you may want to access your savings. 4 5

The Plan is a valuable benefit The big picture: know where to start Your employer wants to provide all of its employees with a valuable and flexible benefit Retirement may seem a long way off. But if you do not take steps early enough, the savings package. An important part of this is helping employees provide for life after work and so you have in the future may not be what you expected or need. the Plan helps you save for your future. For more information about the Plan and how to access your savings when you are ready, The Plan is an attractive way to save About this Plan Handbook visit www.baml.com/pensionupdate (see page 6). • It is flexible. You choose how much to save in addition This Plan Handbook explains how the Plan works, its features You need to prepare and regularly check that you are heading in the right direction. The following three simple steps should help to your employer's contributions (and you can change this and other details you need to help you get the most out of you on your way. at any time), how your contributions are invested if you’re your membership and to manage your Member Account. an employee member, and how you want to access your savings. More information about the Plan is set out in the Trust Deed and Rules – these are the legal documents which govern the 1 • It is cost effective. Any contributions you make through Plan. In the event of any discrepancy between the Rules and Set a target Think about the level of savings you will need when you retire. MyBenefitChoices are free from National Insurance, as this Plan Handbook, the Trust Deed and Rules will prevail. • What sort of lifestyle would you like? Setting yourself a target will help you decide these are made through Salary Sacrifice. You also receive tax You can request a copy of the Rules from the Plan how much to contribute to your Member Account, and how to invest it. relief on all contributions (up to certain limits; see page 13 Administrators (see page 36). for details). Your employer meets the Plan’s administration • Many experts say you will need around 50-60% of your salary as an annual income costs and you pay the investment management charges. to live on when you retire. If you do not already know how much you will need, try the • It gives you investment choice. There are two investment Please note: the Plan is a ‘qualifying’ scheme for automatic Budget Planner. approaches to choose from and within each approach there enrolment purposes. This means it meets or exceeds the • Once you have set your target, you need to see if your estimated savings will meet are different options. The different options aim to offer standards required to conform to legislation introduced by your needs. something for everyone. the Government and which has applied to your employer • As a member of the Plan, you will receive an annual benefit statement which will help since 2013. See page 40 for more details. • It gives you peace of mind. The Plan provides you you to see if you are on track. You can also check the value of your Member Account and your Dependant(s) with financial protection through online at any time (see page 6 for more details). Make sure you consider all of your life assurance. savings and sources of income – for example, any previous employers’ schemes, inheritance, any other investments you may have and State benefits. • If your expected total savings fall short of your target, you need to think about how to close that gap. Acting on steps 2 and 3 below can make a big difference. 2 Save as much as It might not cost as much as you think. you can afford • If you are an employee member, you receive tax relief on contributions (up to certain limits; see page 13 for details). • Any regular member contributions you make through MyBenefitChoices are also free from National Insurance, as they are paid through Salary Sacrifice. You can also make Additional Voluntary Contributions (AVCs) outside of MyBenefitChoices and Salary Sacrifice. • In addition to your own contributions to your Member Account, your employer contributes too. See page 10 for more details. 3 Make your money Take control of your investments and make sure you review them regularly. work harder • The way you invest your Member Account directly affects its value when you access your savings, so make sure you are not missing out on potential valuable investment returns. • Your investment choice will depend on your personal circumstances including your attitude to risk. So it is important to understand your options and to make the right decision for you. The Investments section from page 14 will help. Use the investment profiler to help see what approach may be right for you. nd • Around 13 years before your Target Retirement Date (your 62 birthday unless you choose otherwise), you also need to make sure your savings are invested in line with how you plan to use them – see page 28 for more information. Use the Retirement options decision tree to help you consider how you may want to access your savings. 4 5

Managing your retirement planning online Manage your savings on the Plan Already registered? Plan for your future on the BofAML freedom administration website Logging on from your employer's network? Use Simplified and choice website Reviewing your savings online will give you much greater Sign On (SSO). Visit www.baml.com/pensionupdate to see how you can control and flexibility over your retirement planning. • Use the links on HR Connect > Benefits > Financial > make the most of your savings in the Plan. You can: Bank of America Merrill Lynch UK Pension Plan (or Whether you are mid-career or approaching when you plan to on HR Interchange > HR & Benefits > Your Benefits, access your savings, this website is the key source to help you • See the current balance of your Member Account. Discounts and Pensions if you are an MBNA employee). with your retirement planning. Here you can: • If you are an employee member, view your • Your Standard ID number and password will identify you – • See the tools and resources available to help you in your contribution choices. you will not have to input any additional security details. retirement planning. • Use the Pension Planner to see your estimated Logging on from outside your employer's network? • Find out the latest news from the pensions world and from annuity (regular income in retirement). • Go to www.hartlinkonline.co.uk/boaml. the Plan. • Get up-to-date information on your investments, • Access all Plan information, including recent Updates. including unit prices and your transaction history. • Use your Username, Password and PIN number. • Make changes to your investment choices. Not yet registered? • Update your Expression of Wish details. • Use the links on HR Connect > Benefits > Financial > Bank of America Merrill Lynch UK Pension Plan (or on HR Interchange > HR & Benefits > Your Benefits, Discounts and Pensions if you are an MBNA employee) or go to www.hartlinkonline.co.uk/boaml. • Complete the short registration process. • Keep a note of the Username (which must be different to your Standard ID number) and Password. Your PIN number will be emailed to you. • The next time you log on, you will need the details above if you are outside of your employer's network. From within your employer's network, SSO will be able to identify you without any further security details (see above). If you forget your login details after you register and need to log on from outside your employer's network, use the online reminder options. Alternatively, you can contact the Plan Administrators (see page 36). 6 7

Managing your retirement planning online Manage your savings on the Plan Already registered? Plan for your future on the BofAML freedom administration website Logging on from your employer's network? Use Simplified and choice website Reviewing your savings online will give you much greater Sign On (SSO). Visit www.baml.com/pensionupdate to see how you can control and flexibility over your retirement planning. • Use the links on HR Connect > Benefits > Financial > make the most of your savings in the Plan. You can: Bank of America Merrill Lynch UK Pension Plan (or Whether you are mid-career or approaching when you plan to on HR Interchange > HR & Benefits > Your Benefits, access your savings, this website is the key source to help you • See the current balance of your Member Account. Discounts and Pensions if you are an MBNA employee). with your retirement planning. Here you can: • If you are an employee member, view your • Your Standard ID number and password will identify you – • See the tools and resources available to help you in your contribution choices. you will not have to input any additional security details. retirement planning. • Use the Pension Planner to see your estimated Logging on from outside your employer's network? • Find out the latest news from the pensions world and from annuity (regular income in retirement). • Go to www.hartlinkonline.co.uk/boaml. the Plan. • Get up-to-date information on your investments, • Access all Plan information, including recent Updates. including unit prices and your transaction history. • Use your Username, Password and PIN number. • Make changes to your investment choices. Not yet registered? • Update your Expression of Wish details. • Use the links on HR Connect > Benefits > Financial > Bank of America Merrill Lynch UK Pension Plan (or on HR Interchange > HR & Benefits > Your Benefits, Discounts and Pensions if you are an MBNA employee) or go to www.hartlinkonline.co.uk/boaml. • Complete the short registration process. • Keep a note of the Username (which must be different to your Standard ID number) and Password. Your PIN number will be emailed to you. • The next time you log on, you will need the details above if you are outside of your employer's network. From within your employer's network, SSO will be able to identify you without any further security details (see above). If you forget your login details after you register and need to log on from outside your employer's network, use the online reminder options. Alternatively, you can contact the Plan Administrators (see page 36). 6 7

Joining You are automatically enrolled in the Plan from the first day of the second month of your employment. When you join, a Member Account is set up in your name. You will then need to complete the following five key actions. 1 Transfers in Opting out (for employee members) Explore the Plan’s new joiner guide It sets out what you need to do, when and how, as well as the key benefits of being a Plan member. Read it here. Subject to the approval of the Trustee and your With HMRC Protection Without HMRC Protection employer, you may transfer in savings from a previous employer or a personal pension scheme. Complete the Members with Fixed, Enhanced or Individual Protection will You can opt out of the Plan in other cases by giving at least 2 Transfer-in forms available on the Plan administration be aware of the risk of losing their HM Revenue & Customs 15 working days’ written notice to the Trustee. Register to manage your Plan savings online website (see left for details). (HMRC) Protection if they build up further savings. If this applies to you and you decide not to receive contributions on the Plan administration website If this applies to you, you can opt not to receive contributions from your employer, please note: Then you will need to get a current transfer value from into the Plan but please note: Sign up to the Plan administration website. your previous pension provider. Once completed, please • Your employer will not contribute to any other pension return the Transfer-in forms and your transfer value • Your employer will not contribute to any other pension arrangement on your behalf. You will not receive an adjustment • If you are an employee member, use the links to SSO via HR Connect (or via HR Interchange if you are an quotation to the Plan Administrators; see page 36 arrangement on your behalf. You may receive an adjustment to your salary to reflect the loss of employer contributions. MBNA employee). for details. in your salary to reflect the loss of employer contributions. • You may still be entitled to receive lump sum death benefits • All members can go to www.hartlinkonline.co.uk/boaml. Any transfers into the Plan that take place in the first • You may still be entitled to receive lump sum death benefits if you die in service; see page 30 for details. two years of you becoming a member can remain in the if you die in service; see page 30 for details. • You need to inform the Plan Administrators and your employer. Plan until you retire. This is also the case if you leave • You will be treated for all purposes as not having become 3 your employer's employment within two years. an active member of the Plan if you opt out within 1 month Decide who to nominate to receive any Please note: the Trustee does not accept transfer-ins of joining. Opting out and re-enrolment benefits in the event of your death from previous pension arrangements without the • You need to inform your employer, and provide a copy of If you opt out of the Plan without Protection while you are still Complete the online Expression of Wish form on the Plan appropriate guarantees from the transferring scheme your Fixed, Enhanced or Individual Protection application working for your employer, you will automatically be re-enrolled into the Plan, usually every three years (depending on your administration website. Once you have registered for online that savings have been equalised for men and women. or certificate. circumstances) as required by law. Your employer will write to administration, you can make changes to your nominations Please contact the BofAML Pensions team at you at the time and you will have the option to opt out again. at any time. [email protected] if you wish to opt out of the Death benefits are payable at the absolute discretion of the Transfers out Plan with HMRC Protection. Re-joining Trustee. It is therefore important that you inform the Trustee Review your options, including other helpful information of your wishes by completing your Expression of Wish details, about Protections, on the Government website. If you have opted out of the Plan, you may be able to opt and keep these details up to date. The Trustee will take your If you leave the Plan, you have the option to transfer back in at a later date. Requests must be made in writing wishes into account but, for tax reasons, is not bound by them. your savings to an alternative approved pension to the Plan Administrators; see page 36 for details. arrangement (see page 32 for details). 4 The value of the savings to be transferred will be the Important: keep your personal Select how much to contribute to your Member total value of your Member Account on the day that details up to date your unit holdings are sold. Please note that it is not Account (if you are an employee member) the day you return your completed documentation. Help us to administer the Plan as efficiently When you first join the Plan, you will receive an email to make as possible. If your personal details change – your choice. Once a member, you can review and amend your for example if you have moved house or changed contribution choices on the MyBenefitChoices website at any your marital status – please let us know as soon time during the year – log on via SSO (or here if you are an as possible: MBNA employee). • If you are an employee member you can You can also choose to pay Additional Voluntary Contributions update your details on Workday > Personal (AVCs) – see page 11. Information. Finally, please note that you can choose to opt out of the Plan • If you no longer work for your employer, while you are still working for your employer. you can update your details by logging on to the Plan administration website at www.hartlinkonline.co.uk/boaml 5 or by writing to the Plan Administrators; Choose the best way to invest your see page 36 for contact details. Member Account Complete the online Investment Decision form, available on the Plan administration website. You can make changes at any time. 8 9

Joining You are automatically enrolled in the Plan from the first day of the second month of your employment. When you join, a Member Account is set up in your name. You will then need to complete the following five key actions. 1 Transfers in Opting out (for employee members) Explore the Plan’s new joiner guide It sets out what you need to do, when and how, as well as the key benefits of being a Plan member. Read it here. Subject to the approval of the Trustee and your With HMRC Protection Without HMRC Protection employer, you may transfer in savings from a previous employer or a personal pension scheme. Complete the Members with Fixed, Enhanced or Individual Protection will You can opt out of the Plan in other cases by giving at least 2 Transfer-in forms available on the Plan administration be aware of the risk of losing their HM Revenue & Customs 15 working days’ written notice to the Trustee. Register to manage your Plan savings online website (see left for details). (HMRC) Protection if they build up further savings. If this applies to you and you decide not to receive contributions on the Plan administration website If this applies to you, you can opt not to receive contributions from your employer, please note: Then you will need to get a current transfer value from into the Plan but please note: Sign up to the Plan administration website. your previous pension provider. Once completed, please • Your employer will not contribute to any other pension return the Transfer-in forms and your transfer value • Your employer will not contribute to any other pension arrangement on your behalf. You will not receive an adjustment • If you are an employee member, use the links to SSO via HR Connect (or via HR Interchange if you are an quotation to the Plan Administrators; see page 36 arrangement on your behalf. You may receive an adjustment to your salary to reflect the loss of employer contributions. MBNA employee). for details. in your salary to reflect the loss of employer contributions. • You may still be entitled to receive lump sum death benefits • All members can go to www.hartlinkonline.co.uk/boaml. Any transfers into the Plan that take place in the first • You may still be entitled to receive lump sum death benefits if you die in service; see page 30 for details. two years of you becoming a member can remain in the if you die in service; see page 30 for details. • You need to inform the Plan Administrators and your employer. Plan until you retire. This is also the case if you leave • You will be treated for all purposes as not having become 3 your employer's employment within two years. an active member of the Plan if you opt out within 1 month Decide who to nominate to receive any Please note: the Trustee does not accept transfer-ins of joining. Opting out and re-enrolment benefits in the event of your death from previous pension arrangements without the • You need to inform your employer, and provide a copy of If you opt out of the Plan without Protection while you are still Complete the online Expression of Wish form on the Plan appropriate guarantees from the transferring scheme your Fixed, Enhanced or Individual Protection application working for your employer, you will automatically be re-enrolled into the Plan, usually every three years (depending on your administration website. Once you have registered for online that savings have been equalised for men and women. or certificate. circumstances) as required by law. Your employer will write to administration, you can make changes to your nominations Please contact the BofAML Pensions team at you at the time and you will have the option to opt out again. at any time. [email protected] if you wish to opt out of the Death benefits are payable at the absolute discretion of the Transfers out Plan with HMRC Protection. Re-joining Trustee. It is therefore important that you inform the Trustee Review your options, including other helpful information of your wishes by completing your Expression of Wish details, about Protections, on the Government website. If you have opted out of the Plan, you may be able to opt and keep these details up to date. The Trustee will take your If you leave the Plan, you have the option to transfer back in at a later date. Requests must be made in writing wishes into account but, for tax reasons, is not bound by them. your savings to an alternative approved pension to the Plan Administrators; see page 36 for details. arrangement (see page 32 for details). 4 The value of the savings to be transferred will be the Important: keep your personal Select how much to contribute to your Member total value of your Member Account on the day that details up to date your unit holdings are sold. Please note that it is not Account (if you are an employee member) the day you return your completed documentation. Help us to administer the Plan as efficiently When you first join the Plan, you will receive an email to make as possible. If your personal details change – your choice. Once a member, you can review and amend your for example if you have moved house or changed contribution choices on the MyBenefitChoices website at any your marital status – please let us know as soon time during the year – log on via SSO (or here if you are an as possible: MBNA employee). • If you are an employee member you can You can also choose to pay Additional Voluntary Contributions update your details on Workday > Personal (AVCs) – see page 11. Information. Finally, please note that you can choose to opt out of the Plan • If you no longer work for your employer, while you are still working for your employer. you can update your details by logging on to the Plan administration website at www.hartlinkonline.co.uk/boaml 5 or by writing to the Plan Administrators; Choose the best way to invest your see page 36 for contact details. Member Account Complete the online Investment Decision form, available on the Plan administration website. You can make changes at any time. 8 9

Contributions Employer contributions Member contributions Your employer contributes Automatic enrolment You can contribute You have the same investment options for your AVCs as the other contributions your Member Account receives. Your employer pays monthly contributions to your Member Your employer must continue to pay contributions for employee If you are an employee member, you can also make contributions Account while you are in service and an employee member Plan members of at least the minimum level required under to the Plan and benefit from tax relief (up to certain limits). However, your Member Account (including any AVCs) must of the Plan. pension automatic enrolment legislation. The level of bank Remember that the more you save and the sooner you start, be invested in one investment approach: either a Lifestyle contributions currently meets or exceeds this minimum level. the bigger your savings are likely to be when you come to retire. option or using Freestyle. You are unable to invest member You will receive these contributions from the beginning of contributions in a Lifestyle option and AVCs in Freestyle, the month in which you join the Plan. Please consider your personal tax circumstances carefully or vice versa; see page 14 and onwards. Grandfathered contributions before updating your choices. See page 13 for details of the Your employer's contributions are based on your Plan Salary. tax-efficient saving limits. Like member contributions through MyBenefitChoices, AVCs Contributions are calculated on 1 April each year and remain If you have been grandfathered, the contributions that your are deducted from your earnings before tax is calculated, fixed until the following 1 April. They are based on the length employer pays may differ to those described here. For more To see the effect that increasing your contributions giving you immediate tax relief at your highest rate (up to of your service with your employer, as set out below. details, please refer to the communications your employer sent has on your Member Account, use the Pension Planner certain limits – see page 13). However, AVCs are not made you in November 2012 or log on to the Plan administration on the Plan administration website. Use the links to If you have less than 10 years’ complete continuous service via Salary Sacrifice. as at the latest 1 April: website through SSO via HR Connect (or via HR Interchange SSO via HR Connect or via HR Interchange if you are if you are an MBNA employee) or at an MBNA employee (see page 6 for details) or go to • Your employer pays 8%* of your Plan Salary into your www.hartlinkonline.co.uk/boaml. www.hartlinkonline.co.uk/boaml. Incentive deferral/special contributions Member Account annually. Important note: To help you decide what level of tax-efficient contributions You may also be able to contribute any incentive deferral If you have 10 years or more of complete continuous service If you were a member of the Bank of America UK Pension is right for you, use the Annual Allowance Estimator on the or special contributions into the Plan and benefit from the as at the latest 1 April: Plan before 31 December 2012 with more than 10 years’ MyBenefitChoices website – log on via SSO (or here if you same tax advantages you receive on other Salary Sacrifice contributions. Details will be provided at the time if this are an MBNA employee). • Your employer increases its contributions to 12%* annually. service, and your grandfathered amount included any option is available to you. matching contributions that were paid by your employer, you Your employer will normally stop making contributions to your had to contribute at least the same monetary amount that Member contributions through Member Account in the month before the date you leave you were paying before 1 January 2013 to continue to receive MyBenefitChoices Savings outside of the Plan the Plan or access your savings. the matching element of grandfathering. This requirement no You can pay into any number of pension arrangements while longer applies since 1 April 2016. Any member contributions you make through MyBenefitChoices being a member of the Plan, such as a personal or stakeholder will be made through Salary Sacrifice. Salary Sacrifice is a * If your earnings are above a certain level (find out more way of making contributions to the Plan that, under current pension plan, although your employer will not contribute to on the MyBenefitChoices website) please note: tax laws, reduces the National Insurance contributions paid by any other arrangement. • Your employer's core pension benefit will be Your employer also meets the costs associated with most members and your employer. You can also make contributions to other tax-efficient saving automatically flexed down to £10,000 a year. providing a certain level of life cover for you, as well You can change how much you contribute to your Member vehicles, for example Individual Savings Accounts (ISAs). • This is so that you do not pay unexpected tax on as the general administration costs of the Plan. Account on the MyBenefitChoices website either: Please note that ISAs or similar alternatives are not included your savings. You would receive a pension cash in the calculation of the Annual Allowance (see page 13 allowance (reduced for employer National Insurance • During the MyBenefitChoices Annual Enrolment period each for details). (NI) contributions) to make up your core pension November, and entitlement. It would also be subject to income tax • At any time during the year; see page 36 for more details. Savings on leaving the Plan and employee NI deductions in the same way as your other salary payments. Log on to MyBenefitChoices via SSO (or here if you are As soon as you leave the Plan, your employer will stop making an MBNA employee). contributions to your Member Account and you will become • You can override this decision at any time. a Deferred Member. See page 32 for more details. • Find out more and use tools to help you make the right decision on the MyBenefitChoices website – log on via Additional Voluntary Contributions SSO (or here if you are an MBNA employee). You can also choose to make Additional Voluntary Contributions (AVCs) at any point during the year to secure additional savings. Please note: If you are interested in paying AVCs, you should complete an • If you are a basic-rate tax payer, every £100 you pay AVC form and return it to the Plan Administrators; see page 36 only costs you £80 (in terms of take-home earnings). for details. • If you are paying a higher tax rate of 40%, There are several reasons why you might consider every £100 costs you just £60 (in terms of making additional contributions via MyBenefitChoices take-home earnings). and/or AVCs. • If you are an additional rate tax payer, every £100 You may: costs £55 (in terms of take-home earnings). • Wish to increase your savings; • Have joined the Plan late in your career; or Reminder: Please consider your personal tax circumstances carefully before making contributions. See page 13 for details • Look forward to retiring early. of the tax-efficient saving limits. 10 11

Contributions Employer contributions Member contributions Your employer contributes Automatic enrolment You can contribute You have the same investment options for your AVCs as the other contributions your Member Account receives. Your employer pays monthly contributions to your Member Your employer must continue to pay contributions for employee If you are an employee member, you can also make contributions Account while you are in service and an employee member Plan members of at least the minimum level required under to the Plan and benefit from tax relief (up to certain limits). However, your Member Account (including any AVCs) must of the Plan. pension automatic enrolment legislation. The level of bank Remember that the more you save and the sooner you start, be invested in one investment approach: either a Lifestyle contributions currently meets or exceeds this minimum level. the bigger your savings are likely to be when you come to retire. option or using Freestyle. You are unable to invest member You will receive these contributions from the beginning of contributions in a Lifestyle option and AVCs in Freestyle, the month in which you join the Plan. Please consider your personal tax circumstances carefully or vice versa; see page 14 and onwards. Grandfathered contributions before updating your choices. See page 13 for details of the Your employer's contributions are based on your Plan Salary. tax-efficient saving limits. Like member contributions through MyBenefitChoices, AVCs Contributions are calculated on 1 April each year and remain If you have been grandfathered, the contributions that your are deducted from your earnings before tax is calculated, fixed until the following 1 April. They are based on the length employer pays may differ to those described here. For more To see the effect that increasing your contributions giving you immediate tax relief at your highest rate (up to of your service with your employer, as set out below. details, please refer to the communications your employer sent has on your Member Account, use the Pension Planner certain limits – see page 13). However, AVCs are not made you in November 2012 or log on to the Plan administration on the Plan administration website. Use the links to If you have less than 10 years’ complete continuous service via Salary Sacrifice. as at the latest 1 April: website through SSO via HR Connect (or via HR Interchange SSO via HR Connect or via HR Interchange if you are if you are an MBNA employee) or at an MBNA employee (see page 6 for details) or go to • Your employer pays 8%* of your Plan Salary into your www.hartlinkonline.co.uk/boaml. www.hartlinkonline.co.uk/boaml. Incentive deferral/special contributions Member Account annually. Important note: To help you decide what level of tax-efficient contributions You may also be able to contribute any incentive deferral If you have 10 years or more of complete continuous service If you were a member of the Bank of America UK Pension is right for you, use the Annual Allowance Estimator on the or special contributions into the Plan and benefit from the as at the latest 1 April: Plan before 31 December 2012 with more than 10 years’ MyBenefitChoices website – log on via SSO (or here if you same tax advantages you receive on other Salary Sacrifice contributions. Details will be provided at the time if this are an MBNA employee). • Your employer increases its contributions to 12%* annually. service, and your grandfathered amount included any option is available to you. matching contributions that were paid by your employer, you Your employer will normally stop making contributions to your had to contribute at least the same monetary amount that Member contributions through Member Account in the month before the date you leave you were paying before 1 January 2013 to continue to receive MyBenefitChoices Savings outside of the Plan the Plan or access your savings. the matching element of grandfathering. This requirement no You can pay into any number of pension arrangements while longer applies since 1 April 2016. Any member contributions you make through MyBenefitChoices being a member of the Plan, such as a personal or stakeholder will be made through Salary Sacrifice. Salary Sacrifice is a * If your earnings are above a certain level (find out more way of making contributions to the Plan that, under current pension plan, although your employer will not contribute to on the MyBenefitChoices website) please note: tax laws, reduces the National Insurance contributions paid by any other arrangement. • Your employer's core pension benefit will be Your employer also meets the costs associated with most members and your employer. You can also make contributions to other tax-efficient saving automatically flexed down to £10,000 a year. providing a certain level of life cover for you, as well You can change how much you contribute to your Member vehicles, for example Individual Savings Accounts (ISAs). • This is so that you do not pay unexpected tax on as the general administration costs of the Plan. Account on the MyBenefitChoices website either: Please note that ISAs or similar alternatives are not included your savings. You would receive a pension cash in the calculation of the Annual Allowance (see page 13 allowance (reduced for employer National Insurance • During the MyBenefitChoices Annual Enrolment period each for details). (NI) contributions) to make up your core pension November, and entitlement. It would also be subject to income tax • At any time during the year; see page 36 for more details. Savings on leaving the Plan and employee NI deductions in the same way as your other salary payments. Log on to MyBenefitChoices via SSO (or here if you are As soon as you leave the Plan, your employer will stop making an MBNA employee). contributions to your Member Account and you will become • You can override this decision at any time. a Deferred Member. See page 32 for more details. • Find out more and use tools to help you make the right decision on the MyBenefitChoices website – log on via Additional Voluntary Contributions SSO (or here if you are an MBNA employee). You can also choose to make Additional Voluntary Contributions (AVCs) at any point during the year to secure additional savings. Please note: If you are interested in paying AVCs, you should complete an • If you are a basic-rate tax payer, every £100 you pay AVC form and return it to the Plan Administrators; see page 36 only costs you £80 (in terms of take-home earnings). for details. • If you are paying a higher tax rate of 40%, There are several reasons why you might consider every £100 costs you just £60 (in terms of making additional contributions via MyBenefitChoices take-home earnings). and/or AVCs. • If you are an additional rate tax payer, every £100 You may: costs £55 (in terms of take-home earnings). • Wish to increase your savings; • Have joined the Plan late in your career; or Reminder: Please consider your personal tax circumstances carefully before making contributions. See page 13 for details • Look forward to retiring early. of the tax-efficient saving limits. 10 11

Sample contribution calculation Tax-efficient saving limits The following examples are based on 2017/18 tax and National Insurance contribution rates. The Annual Allowance Lifetime Allowance The Annual Allowance (AA) is the maximum total contribution The Lifetime Allowance (LTA) is the total value of pension that can be paid into your pension plan(s) in one tax year by savings you can build up tax efficiently during your lifetime. Laura, 24, a basic-rate tax payer, Tom, 45, a higher-rate tax payer, has a Plan Salary of £20,000. has a Plan Salary of £50,000. you and your employer, without incurring a tax charge. If the The ‘test’ of your savings against the LTA starts to be carried She has worked at your employer He has worked at your employer contribution paid to your pension plan(s) is more than the AA, out at the time you begin to use your savings. for three years. for 11 years. you will pay income tax on the excess at your marginal rate. For the 2017/18 tax year, the LTA is £1 million. • The AA is currently £40,000 for individuals with an The LTA takes into account all of your savings from UK-registered 3% 3% adjusted income* up to £150,000. Laura decides to pay 3% of her Plan Salary. Tom decides to pay 3% of his Plan Salary. schemes, including those built up with other employers and in • For those with adjusted income over £150,000, the AA other registered pension schemes. So it is important that you Her gross pay would reduce by £600 a year. His gross pay would reduce by £1,500 a year. will be reduced by £1 for every £2 over this amount. keep track of all the savings you are building up, not just those £600 £1,500 • The AA will reduce to a minimum £10,000 for those in the Plan. Any State pensions are excluded from the LTA. The cost to Laura is just £408 a year (in The cost to Tom is just £870 a year (in with an adjusted income over £210,000. terms of take-home earnings) and with your terms of take-home earnings) and with your If the value of your savings is more than the LTA, you will pay employer's contribution of 8% (£1,600)... employer's contribution of 12% (£6,000)... This is shown below: additional tax on the excess. This is: £1,600 £6,000 ...a total of £2,200 a year would go into ...a total of £7,500 a year would go into 50,000 • 55% if you take the excess as a cash lump sum. Laura’s Member Account. Tom’s Member Account. • 25% if you take the excess as pension (e.g. buying an Annual Allowance (£) 30,000 You may be able to protect your LTA at a level to prevent = £2,200 = £7,500 40,000 annuity or taking income/flexible drawdown). additional tax. 20,000 Please note: Please note: 10,000 Money Purchase Annual Allowance (MPAA) • The contributions your employer makes to Tax rates, tax relief and National Insurance your Member Account are based on your Plan contribution rates may vary in line with 0 If you have started accessing any retirement benefits Salary before any reduction for your additional legislation. The value of tax relief will depend 130,000 150,000 170,000 190,000 210,000 230,000 flexibly, such as through flexible drawdown, and you want to contributions. This also applies for any other on your personal circumstances and when you Adjusted income (£) continue paying contributions to the Plan, your AA will reduce tax-efficient benefit choices you make through make your contributions. to £10,000. This is known as the Money Purchase Annual MyBenefitChoices. Carry forward unused AA Allowance (MPAA), and it includes both your own contributions and any other contributions paid by an employer or third party. • Any contributions you make through Salary Sacrifice are considered as bank contributions. You can also carry forward any unused AA for up to three years. Please note that the MPAA is currently being reviewed by the More information about how this impacts This allows you to have pension savings in excess of the AA Government and may reduce further in future. your options if you leave the Plan is set out in a certain year and pay no tax. The AA for the current tax year on page 32. must be used before any previous years’ AA is carried forward. Please note: • The reduction made to your basic salary through Salary Sacrifice will not affect any other Ultimately, you are responsible for checking your salary-related payments or savings that you AA Estimator savings against the AA and the LTA. If you lose receive from your employer, such as salary To help you decide what level of tax-efficient track of benefits in previous pension schemes, increases, bonuses and overtime, or any of contributions is right for you, use the AA Estimator the free pension tracing service can help you the benefits payable on death or retirement. on the MyBenefitChoices website – log on via SSO trace them; see page 37 for details. (or here if you are an MBNA employee). Remember: you can update your contributions at any Please refer to the tax information at time. In fact, it’s important to review and update your www.baml.com/pensionupdate > Library & tools. contribution levels throughout the year as your AA is based on your earnings in the 2017/18 tax year. So if For more information about the AA and LTA, visit your earnings change during the year, your AA may too. www.pensionsadvisoryservice.org.uk * Adjusted income is your taxable income (from employment plus all other sources) plus pension contributions from your employer(s) and your own contributions (which may be made through Salary Sacrifice on your behalf), less certain reliefs allowable under tax legislation. If you have a ‘threshold income’ below £110,000 you do not have a reduced Annual Allowance. Threshold income is broadly your taxable income in the tax year (from employment plus all other sources) net of certain reliefs allowable under tax legislation but, unlike adjusted income, it excludes the value of pension savings (other than contributions made under salary sacrifice arrangements entered into after 9 July 2015). 12 13

Sample contribution calculation Tax-efficient saving limits The following examples are based on 2017/18 tax and National Insurance contribution rates. The Annual Allowance Lifetime Allowance The Annual Allowance (AA) is the maximum total contribution The Lifetime Allowance (LTA) is the total value of pension that can be paid into your pension plan(s) in one tax year by savings you can build up tax efficiently during your lifetime. Laura, 24, a basic-rate tax payer, Tom, 45, a higher-rate tax payer, has a Plan Salary of £20,000. has a Plan Salary of £50,000. you and your employer, without incurring a tax charge. If the The ‘test’ of your savings against the LTA starts to be carried She has worked at your employer He has worked at your employer contribution paid to your pension plan(s) is more than the AA, out at the time you begin to use your savings. for three years. for 11 years. you will pay income tax on the excess at your marginal rate. For the 2017/18 tax year, the LTA is £1 million. • The AA is currently £40,000 for individuals with an The LTA takes into account all of your savings from UK-registered 3% 3% adjusted income* up to £150,000. Laura decides to pay 3% of her Plan Salary. Tom decides to pay 3% of his Plan Salary. schemes, including those built up with other employers and in • For those with adjusted income over £150,000, the AA other registered pension schemes. So it is important that you Her gross pay would reduce by £600 a year. His gross pay would reduce by £1,500 a year. will be reduced by £1 for every £2 over this amount. keep track of all the savings you are building up, not just those £600 £1,500 • The AA will reduce to a minimum £10,000 for those in the Plan. Any State pensions are excluded from the LTA. The cost to Laura is just £408 a year (in The cost to Tom is just £870 a year (in with an adjusted income over £210,000. terms of take-home earnings) and with your terms of take-home earnings) and with your If the value of your savings is more than the LTA, you will pay employer's contribution of 8% (£1,600)... employer's contribution of 12% (£6,000)... This is shown below: additional tax on the excess. This is: £1,600 £6,000 ...a total of £2,200 a year would go into ...a total of £7,500 a year would go into 50,000 • 55% if you take the excess as a cash lump sum. Laura’s Member Account. Tom’s Member Account. • 25% if you take the excess as pension (e.g. buying an Annual Allowance (£) 30,000 You may be able to protect your LTA at a level to prevent = £2,200 = £7,500 40,000 annuity or taking income/flexible drawdown). additional tax. 20,000 Please note: Please note: 10,000 Money Purchase Annual Allowance (MPAA) • The contributions your employer makes to Tax rates, tax relief and National Insurance your Member Account are based on your Plan contribution rates may vary in line with 0 If you have started accessing any retirement benefits Salary before any reduction for your additional legislation. The value of tax relief will depend 130,000 150,000 170,000 190,000 210,000 230,000 flexibly, such as through flexible drawdown, and you want to contributions. This also applies for any other on your personal circumstances and when you Adjusted income (£) continue paying contributions to the Plan, your AA will reduce tax-efficient benefit choices you make through make your contributions. to £10,000. This is known as the Money Purchase Annual MyBenefitChoices. Carry forward unused AA Allowance (MPAA), and it includes both your own contributions and any other contributions paid by an employer or third party. • Any contributions you make through Salary Sacrifice are considered as bank contributions. You can also carry forward any unused AA for up to three years. Please note that the MPAA is currently being reviewed by the More information about how this impacts This allows you to have pension savings in excess of the AA Government and may reduce further in future. your options if you leave the Plan is set out in a certain year and pay no tax. The AA for the current tax year on page 32. must be used before any previous years’ AA is carried forward. Please note: • The reduction made to your basic salary through Salary Sacrifice will not affect any other Ultimately, you are responsible for checking your salary-related payments or savings that you AA Estimator savings against the AA and the LTA. If you lose receive from your employer, such as salary To help you decide what level of tax-efficient track of benefits in previous pension schemes, increases, bonuses and overtime, or any of contributions is right for you, use the AA Estimator the free pension tracing service can help you the benefits payable on death or retirement. on the MyBenefitChoices website – log on via SSO trace them; see page 37 for details. (or here if you are an MBNA employee). Remember: you can update your contributions at any Please refer to the tax information at time. In fact, it’s important to review and update your www.baml.com/pensionupdate > Library & tools. contribution levels throughout the year as your AA is based on your earnings in the 2017/18 tax year. So if For more information about the AA and LTA, visit your earnings change during the year, your AA may too. www.pensionsadvisoryservice.org.uk * Adjusted income is your taxable income (from employment plus all other sources) plus pension contributions from your employer(s) and your own contributions (which may be made through Salary Sacrifice on your behalf), less certain reliefs allowable under tax legislation. If you have a ‘threshold income’ below £110,000 you do not have a reduced Annual Allowance. Threshold income is broadly your taxable income in the tax year (from employment plus all other sources) net of certain reliefs allowable under tax legislation but, unlike adjusted income, it excludes the value of pension savings (other than contributions made under salary sacrifice arrangements entered into after 9 July 2015). 12 13

Investments Your choices The value of your Member Account depends on: Helpful tools Changing your investments Lifestyle 1. the level of contributions paid into your Member • Visit www.baml.com/pensionupdate for information You can change how your Member Account is invested at Account, and The Lifestyle ‘do it for me’ approach is where the about the tools and resources to help with your investments any time on the Plan administration website. Either use the day-to-day investment decisions are made on your behalf. links to SSO via HR Connect or via HR Interchange if you 2. the investment returns achieved on these contributions. and retirement planning. There are three Lifestyle approaches to choose from – are an MBNA employee (see page 6 for details) or go to Therefore, it is essential that you understand your investment Thames, Severn and Tay – which vary in the way they • Find out what sort of investor you are and what options may www.hartlinkonline.co.uk/boaml. options so that you can make the right decision for you and balance potential for growth, and the type and level be right for you at www.baml.com/investmentprofiler. your personal circumstances. of risk they take at different stages. • Discover the effect changing the assumed investment returns Alternatively, you can complete and return an Investment from your invested funds has on your estimated savings Decision form; you can download a copy of the form at the You can either choose one of the three Lifestyle options – Lifestyle members also have a choice of three options for the from the Plan. Use the Pension Planner – available on links above. or one or more of the 19 Freestyle funds. Pre-retirement phase of their Lifestyle – depending on how they plan to access their savings. the Plan administration website. Use the links to SSO via Please note: if you choose the Freestyle approach, you can The following pages set out simple steps to help you choose HR Connect or via HR Interchange if you are an MBNA choose different investment funds for your existing and what’s right for you. The most important thing is that you employee (see page 6 for details) and all members can go future assets. take control and review your choices regularly. to www.hartlinkonline.co.uk/boaml. OR There are two ways you can invest your Member Account: Lifestyle and Freestyle. Your choice may be influenced by your age and your attitude to investment risk, as well as how much Professional advice control you want over your Member Account. Freestyle The Plan Administrators, Trustee and your employer cannot give you financial or investment advice. If you are not sure The Freestyle ‘do it yourself’ approach allows you to what is right for you, we strongly recommend you get professional advice (see page 37 for details). select investment funds yourself. You choose the funds in which your Member Account is invested and when. The Government provides free and impartial guidance to individuals in defined contribution (DC) plans on how they can access their savings from age 55 through its pension guidance service – Pension Wise. The guidance is provided over the phone by The Pensions Advisory Service and in person by the Citizens Advice Bureau. For more information, visit www.pensionwise.gov.uk. 14 15

Investments Your choices The value of your Member Account depends on: Helpful tools Changing your investments Lifestyle 1. the level of contributions paid into your Member • Visit www.baml.com/pensionupdate for information You can change how your Member Account is invested at Account, and The Lifestyle ‘do it for me’ approach is where the about the tools and resources to help with your investments any time on the Plan administration website. Either use the day-to-day investment decisions are made on your behalf. links to SSO via HR Connect or via HR Interchange if you 2. the investment returns achieved on these contributions. and retirement planning. There are three Lifestyle approaches to choose from – are an MBNA employee (see page 6 for details) or go to Therefore, it is essential that you understand your investment Thames, Severn and Tay – which vary in the way they • Find out what sort of investor you are and what options may www.hartlinkonline.co.uk/boaml. options so that you can make the right decision for you and balance potential for growth, and the type and level be right for you at www.baml.com/investmentprofiler. your personal circumstances. of risk they take at different stages. • Discover the effect changing the assumed investment returns Alternatively, you can complete and return an Investment from your invested funds has on your estimated savings Decision form; you can download a copy of the form at the You can either choose one of the three Lifestyle options – Lifestyle members also have a choice of three options for the from the Plan. Use the Pension Planner – available on links above. or one or more of the 19 Freestyle funds. Pre-retirement phase of their Lifestyle – depending on how they plan to access their savings. the Plan administration website. Use the links to SSO via Please note: if you choose the Freestyle approach, you can The following pages set out simple steps to help you choose HR Connect or via HR Interchange if you are an MBNA choose different investment funds for your existing and what’s right for you. The most important thing is that you employee (see page 6 for details) and all members can go future assets. take control and review your choices regularly. to www.hartlinkonline.co.uk/boaml. OR There are two ways you can invest your Member Account: Lifestyle and Freestyle. Your choice may be influenced by your age and your attitude to investment risk, as well as how much Professional advice control you want over your Member Account. Freestyle The Plan Administrators, Trustee and your employer cannot give you financial or investment advice. If you are not sure The Freestyle ‘do it yourself’ approach allows you to what is right for you, we strongly recommend you get professional advice (see page 37 for details). select investment funds yourself. You choose the funds in which your Member Account is invested and when. The Government provides free and impartial guidance to individuals in defined contribution (DC) plans on how they can access their savings from age 55 through its pension guidance service – Pension Wise. The guidance is provided over the phone by The Pensions Advisory Service and in person by the Citizens Advice Bureau. For more information, visit www.pensionwise.gov.uk. 14 15

Factors to consider It is important that you understand your attitude to risk and control when it comes to making your investment decision. These two pages provide a summary of the things you should consider. RISK Missed opportunity risk CONTROL Freestyle The risk that you are too cautious with your investments, The ‘do it yourself’ approach where you have full control. You choose Understand more about the meaning that you do not achieve the investment returns you Assess how actively you and manage a combination of the available funds, depending on different kinds of risk along potentially could if you made different investment choices. can participate in investing how far you are from your Target Retirement Date. the way and make these your Member Account; Features: risks work for you. Inflation risk would you like to be in the • You choose what funds to invest in and how much of your The risk that your investment returns are lower than inflation, driver’s seat or would you Member Account to invest in each fund. What does risk mean to you? meaning that the true value of your Member Account falls. Is it the value of your savings This is important to consider if you are planning on accessing prefer to be driven? • You monitor these investments yourself. falling? Or could it be your savings your savings as cash, or if you invest in lower-risk funds. If you want greater control over • You can change your Freestyle choices when you like. not keeping up with inflation? investing your Member Account, • There are a range of Freestyle funds to choose from. Risk comes in different forms Investment or capital risk you might want to consider the See page 24 for details. and each type of investment has The risk that the value of your investments fall in value. This risk Freestyle approach. Lifestyle the potential to deliver certain can vary by asset class, but the more investment risk an asset If you are more comfortable levels of return, but has certain class presents, the more potential it has for higher returns. This is investing in a pre-determined The ‘do it for me’ approach where the funds in which your Member risks attached. particularly important if you are aiming to grow the value of your investment strategy, then you Account is invested, and the proportions held in each fund, change Member Account. automatically according to how far you are from your Target Here is an overview of the might want to consider one of Retirement Date. different types of risk that • Equities: generate potentially higher returns in the long term, the Lifestyle options. you should consider when but can carry more investment risk because they can be volatile. You cannot split your Member Features: deciding how to invest • Property: has slightly less potential for return than equities, Account by investing, for example, • Automatic, pre-determined investment strategy. your Member Account. can also be volatile in the short term and should be considered • Investments are periodically switched from growth funds with as a long-term investment strategy. half in Freestyle and half in one higher investment risk into those that take less investment risk • Bonds: typically yield a fixed return, or ‘interest’ on your of the Lifestyle options – you can in the years leading up to your Target Retirement Date investment; some returns are linked to inflation. They generally pick only one strategy. (called the Pre-retirement phase). generate lower returns than equities, but are more stable. • Three options for the Pre-retirement phase of Lifestyle – • Money market/cash funds: are recommended for protecting depending on how you plan to access your savings at retirement. the capital value of your Member Account in the short term, but can still go up and down in value. Conversion risk This is the risk that your Member Account, as you approach your Target Retirement Date, is invested differently compared to how you plan to access your savings. For example, if you wish to: • Buy an annuity: your Member Account buys you less annuity in retirement than you expect because of the way in which the prices of annuities change relative to the investments you hold in your Member Account. Investing in bonds and gilts can mitigate this risk. • Take your savings as a cash lump sum: the value of your Member Account you can take as cash lump sum is reduced due to a downturn in the investment market just as you want to cash in your savings. Investing in funds with lower investment risk and higher security and stability can mitigate this risk. • Drawdown income from your savings and leave the rest invested: the level of potential growth over the long term in the funds you hold is not sufficient to provide you with a sustainable income to drawdown for the period of time nor at the level of income you require. Investing part of your Member Account in funds with a higher long-term growth potential can mitigate this risk. 16 17

Factors to consider It is important that you understand your attitude to risk and control when it comes to making your investment decision. These two pages provide a summary of the things you should consider. RISK Missed opportunity risk CONTROL Freestyle The risk that you are too cautious with your investments, The ‘do it yourself’ approach where you have full control. You choose Understand more about the meaning that you do not achieve the investment returns you Assess how actively you and manage a combination of the available funds, depending on different kinds of risk along potentially could if you made different investment choices. can participate in investing how far you are from your Target Retirement Date. the way and make these your Member Account; Features: risks work for you. Inflation risk would you like to be in the • You choose what funds to invest in and how much of your The risk that your investment returns are lower than inflation, driver’s seat or would you Member Account to invest in each fund. What does risk mean to you? meaning that the true value of your Member Account falls. Is it the value of your savings This is important to consider if you are planning on accessing prefer to be driven? • You monitor these investments yourself. falling? Or could it be your savings your savings as cash, or if you invest in lower-risk funds. If you want greater control over • You can change your Freestyle choices when you like. not keeping up with inflation? investing your Member Account, • There are a range of Freestyle funds to choose from. Risk comes in different forms Investment or capital risk you might want to consider the See page 24 for details. and each type of investment has The risk that the value of your investments fall in value. This risk Freestyle approach. Lifestyle the potential to deliver certain can vary by asset class, but the more investment risk an asset If you are more comfortable levels of return, but has certain class presents, the more potential it has for higher returns. This is investing in a pre-determined The ‘do it for me’ approach where the funds in which your Member risks attached. particularly important if you are aiming to grow the value of your investment strategy, then you Account is invested, and the proportions held in each fund, change Member Account. automatically according to how far you are from your Target Here is an overview of the might want to consider one of Retirement Date. different types of risk that • Equities: generate potentially higher returns in the long term, the Lifestyle options. you should consider when but can carry more investment risk because they can be volatile. You cannot split your Member Features: deciding how to invest • Property: has slightly less potential for return than equities, Account by investing, for example, • Automatic, pre-determined investment strategy. your Member Account. can also be volatile in the short term and should be considered • Investments are periodically switched from growth funds with as a long-term investment strategy. half in Freestyle and half in one higher investment risk into those that take less investment risk • Bonds: typically yield a fixed return, or ‘interest’ on your of the Lifestyle options – you can in the years leading up to your Target Retirement Date investment; some returns are linked to inflation. They generally pick only one strategy. (called the Pre-retirement phase). generate lower returns than equities, but are more stable. • Three options for the Pre-retirement phase of Lifestyle – • Money market/cash funds: are recommended for protecting depending on how you plan to access your savings at retirement. the capital value of your Member Account in the short term, but can still go up and down in value. Conversion risk This is the risk that your Member Account, as you approach your Target Retirement Date, is invested differently compared to how you plan to access your savings. For example, if you wish to: • Buy an annuity: your Member Account buys you less annuity in retirement than you expect because of the way in which the prices of annuities change relative to the investments you hold in your Member Account. Investing in bonds and gilts can mitigate this risk. • Take your savings as a cash lump sum: the value of your Member Account you can take as cash lump sum is reduced due to a downturn in the investment market just as you want to cash in your savings. Investing in funds with lower investment risk and higher security and stability can mitigate this risk. • Drawdown income from your savings and leave the rest invested: the level of potential growth over the long term in the funds you hold is not sufficient to provide you with a sustainable income to drawdown for the period of time nor at the level of income you require. Investing part of your Member Account in funds with a higher long-term growth potential can mitigate this risk. 16 17

Your risk profile You now need to consider how much investment risk you are comfortable taking. The graphics below show some circumstances that might indicate whether you have a Generally, the more investment risk you are able to take, the greater the potential higher, medium or lower ability to take investment risk. These are broad categorisations to grow your savings over the longer term. but will get you thinking about how much investment risk you are in a position to take. Factors that will affect your ability to take investment risk include: You may have a higher ability to take You may have a medium ability to You may have a lower ability to take Your age. Generally, the younger you are and the further investment risk if some or all of these take investment risk if some or all of investment risk if some or all of these you are from retirement, the more investment risk you can points apply these points apply points apply afford to take. This is because if the value of your Member Account falls in the short term, you should still have sufficient time to reconsider your level of contributions and/or your investment risk profile, or for markets to recover and offset any loss. Depending on how you plan to use your savings (see below), the closer you are to Ability to take investment risk Ability to take investment risk Ability to take investment risk retirement, the more you may want to consider protecting Savings: You have significant savings or income Savings: You have significant savings or income Savings: You are relying on your Member Account the value of your Member Account and so may find from other sources and expect your Member from other sources but expect your Member as your main source of your total savings when investments that take less investment risk more suitable. Account to make up only a small part of your Account to make up a reasonable part of your you retire. The importance of your savings in the Plan. If you total savings when you retire. total savings when you retire. Earnings: You expect your earnings to increase expect your savings from the Plan to make up only a small Earnings: You are a high earner, or expect your Earnings: You expect your earnings to fluctuate steadily over your career. part of your retirement income, you may be able to take earnings to rise quickly. (for example, rising quickly when you are younger more investment risk with how you invest your Member before levelling out, or fluctuating because of the Contributions: You expect to contribute steadily Account. Conversely, if you expect to rely on your Member Contributions: You expect to make significant nature of your job or because of a career break). to your Member Account and would find it difficult Account from the Plan for a large part of your total contributions to your savings in the plan or have to top up your Member Account if it falls in value. savings, you may prefer to take less investment risk. other savings, so could afford to top up your Contributions: You expect to contribute more to Retirement flexibility: You have little or no Member Account if it falls in value. your savings early on and would find it easier to top Your earnings and disposable income. If your savings up your Member Account when you are younger. flexibility to delay taking your savings from the Plan in the Plan fall in value, you need to think about how Retirement flexibility: You have flexibility to and would not be willing to work for longer if your easy it would be for you to top them up. The more delay taking your savings from the Plan or would Retirement flexibility: You have some flexibility Member Account falls in value as you approach your disposable income you have, the easier it should be be willing to work for a little longer if your to delay taking your savings from the Plan and Target Retirement Date. to make up any shortfalls. Member Account falls in value as you approach would be able to work for a little longer if your your Target Retirement Date. Member Account falls in value as you approach Your contributions. How much you can afford to your Target Retirement Date. contribute to the Plan is important. Just as important is when you are able to contribute, as the longer your contributions are invested, the more you should benefit Attitude to investment risk Attitude to investment risk Attitude to investment risk from investment growth and potential interest. You are a risk-taker by nature; you are You are willing to take some investment risk You are cautious by nature and are willing How much flexibility you have about when you use comfortable investing in funds that take the with your money but prefer to spread this risk. to trade the potential for higher growth your savings. The more flexibility you have about when most investment risk and are prepared for You accept this could mean losing out on the in return for much more stability. you receive your savings, the more investment risk you your savings to go up and down in value, potential for higher growth, but you are willing may be able to take. This is because if your Member sometimes quite sharply. You accept this to trade this in return for more stability. Account falls in value, you might be able to work for could mean losing out, but it could also longer or delay receiving your savings, hopefully giving mean achieving higher potential growth. your investments time to recover. Your attitude to investment risk. Your attitude to Not sure where to start? taking investment risk will also influence your decision, although the type and level of risk you are comfortable Use the online investment profiler at taking may not be the same as the risk you are able to www.baml.com/investmentprofiler. take; you may have to rein in your adventurous spirit, Answer eight short questions. The results will give or step outside of your comfort zone to try and achieve you an indication of your attitude to risk and control. the results you want. This will help you consider an investment option that may be right for you. 18 19

Your risk profile You now need to consider how much investment risk you are comfortable taking. The graphics below show some circumstances that might indicate whether you have a Generally, the more investment risk you are able to take, the greater the potential higher, medium or lower ability to take investment risk. These are broad categorisations to grow your savings over the longer term. but will get you thinking about how much investment risk you are in a position to take. Factors that will affect your ability to take investment risk include: You may have a higher ability to take You may have a medium ability to You may have a lower ability to take Your age. Generally, the younger you are and the further investment risk if some or all of these take investment risk if some or all of investment risk if some or all of these you are from retirement, the more investment risk you can points apply these points apply points apply afford to take. This is because if the value of your Member Account falls in the short term, you should still have sufficient time to reconsider your level of contributions and/or your investment risk profile, or for markets to recover and offset any loss. Depending on how you plan to use your savings (see below), the closer you are to Ability to take investment risk Ability to take investment risk Ability to take investment risk retirement, the more you may want to consider protecting Savings: You have significant savings or income Savings: You have significant savings or income Savings: You are relying on your Member Account the value of your Member Account and so may find from other sources and expect your Member from other sources but expect your Member as your main source of your total savings when investments that take less investment risk more suitable. Account to make up only a small part of your Account to make up a reasonable part of your you retire. The importance of your savings in the Plan. If you total savings when you retire. total savings when you retire. Earnings: You expect your earnings to increase expect your savings from the Plan to make up only a small Earnings: You are a high earner, or expect your Earnings: You expect your earnings to fluctuate steadily over your career. part of your retirement income, you may be able to take earnings to rise quickly. (for example, rising quickly when you are younger more investment risk with how you invest your Member before levelling out, or fluctuating because of the Contributions: You expect to contribute steadily Account. Conversely, if you expect to rely on your Member Contributions: You expect to make significant nature of your job or because of a career break). to your Member Account and would find it difficult Account from the Plan for a large part of your total contributions to your savings in the plan or have to top up your Member Account if it falls in value. savings, you may prefer to take less investment risk. other savings, so could afford to top up your Contributions: You expect to contribute more to Retirement flexibility: You have little or no Member Account if it falls in value. your savings early on and would find it easier to top Your earnings and disposable income. If your savings up your Member Account when you are younger. flexibility to delay taking your savings from the Plan in the Plan fall in value, you need to think about how Retirement flexibility: You have flexibility to and would not be willing to work for longer if your easy it would be for you to top them up. The more delay taking your savings from the Plan or would Retirement flexibility: You have some flexibility Member Account falls in value as you approach your disposable income you have, the easier it should be be willing to work for a little longer if your to delay taking your savings from the Plan and Target Retirement Date. to make up any shortfalls. Member Account falls in value as you approach would be able to work for a little longer if your your Target Retirement Date. Member Account falls in value as you approach Your contributions. How much you can afford to your Target Retirement Date. contribute to the Plan is important. Just as important is when you are able to contribute, as the longer your contributions are invested, the more you should benefit Attitude to investment risk Attitude to investment risk Attitude to investment risk from investment growth and potential interest. You are a risk-taker by nature; you are You are willing to take some investment risk You are cautious by nature and are willing How much flexibility you have about when you use comfortable investing in funds that take the with your money but prefer to spread this risk. to trade the potential for higher growth your savings. The more flexibility you have about when most investment risk and are prepared for You accept this could mean losing out on the in return for much more stability. you receive your savings, the more investment risk you your savings to go up and down in value, potential for higher growth, but you are willing may be able to take. This is because if your Member sometimes quite sharply. You accept this to trade this in return for more stability. Account falls in value, you might be able to work for could mean losing out, but it could also longer or delay receiving your savings, hopefully giving mean achieving higher potential growth. your investments time to recover. Your attitude to investment risk. Your attitude to Not sure where to start? taking investment risk will also influence your decision, although the type and level of risk you are comfortable Use the online investment profiler at taking may not be the same as the risk you are able to www.baml.com/investmentprofiler. take; you may have to rein in your adventurous spirit, Answer eight short questions. The results will give or step outside of your comfort zone to try and achieve you an indication of your attitude to risk and control. the results you want. This will help you consider an investment option that may be right for you. 18 19

Control Lifestyle Now you understand more about risk and have considered where you are on the risk The three Lifestyle options – Thames, Severn and Tay – are summarised over the next few pages. ‘spectrum’, you need to consider how actively involved you want to be in investing your Just as these rivers have different characteristics, the three Lifestyle options vary in the way they balance potential for growth Member Account. The approach you take will depend on how much control you want, and the type and level of risk they take at different stages. how much time you are prepared to spend managing your investments, and how confident you are about making investment decisions. Growth phase: Lifestyle aims to grow your Member Target Retirement Date (TRD): This is the date you Account during this phase by investing in funds that have decide you want the Lifestyle option to complete. This should the potential for good return and aim to grow your Member be the date at which you expect to access your savings from Account when you are far from retirement, gradually moving to your Member Account. It can be any date from the age of 55. Lifestyle Why it might be good for you more diversified assets to provide some protection to the value As this date will determine when your investments begin of your savings as you approach the second Lifestyle phase. switching between the Growth and Pre-retirement phases, A ‘do it for me’ approach • You do not need to be as involved in the management of your Member Pre-retirement phase: During this phase, Lifestyle it is important that you review your TRD regularly to ensure it is in keeping with your retirement plans. To change your TRD, Account as you do with the Freestyle option. This is because the where the funds in investment switching happens automatically as you approach your aims to align your Member Account with how you plan to please email the Plan Administrators or go to the Plan which your Member Target Retirement Date. use your savings at your Target Retirement Date. administration website. Account is invested, • There are three Lifestyle strategies to choose from. Each option varies and the proportion held in the way it balances potential for growth and the type and level Lifestyle funds in each fund, changes of risk it takes at different stages. The Lifestyle options are made up of a combination of the underlying funds below. These funds are also part of the range automatically according to • In the ‘Pre-retirement phase’ of each Lifestyle strategy, you have available through Freestyle, see page 24 for more information. how far you are from your three options – depending on how you plan to access your savings. Fund It currently invests in Aims to… AMCs%* TERs%* See page 21 for more details. Target Retirement Date Equity Lifestyle Fund** and how you plan to use Why it might not be good for you • 10% Emerging Markets Equity Shares of companies Achieve long-term your savings. – Active capital growth • Lifestyle invests in a limited range of funds according to the Lifestyle option you choose. If you prefer to take more control over how your • 45% Global Equity – Active 0.578 0.683 Member Account is invested and the types of funds that you invest in, • 45% UK Equity – Active the Freestyle approach may be more suitable for you. Diversified Lifestyle Fund • 100% Diversified Growth A range of asset classes 0.635 0.683 including equities, bonds, property, commodities, hedge Freestyle Why it might be good for you funds, derivatives and cash/ currencies around the world A ‘do it yourself’ approach Freestyle puts you in control by letting you choose the funds you believe Corporate Bond Lifestyle Fund are right for you, and change them as and when it suits you. where you choose and • 100% UK Corporate Bond – Active Investment grade corporate Achieve long-term capital 0.305 0.312 manage a combination Why it might not be good for you bonds denominated in Sterling growth by investing in of the available funds. of all durations actively-managed It takes more active involvement and decision making than the Lifestyle underlying funds options, because you need to: Index-Linked Gilt Lifestyle Fund • Think about how you want to invest your Member Account from the start. • 100% Index-Linked Gilt Index-linked UK government 0.085 0.089 bonds (70% with a maturity • Check regularly on how your Member Account is invested to ensure period of five years or longer, that it is growing to meet the target you have set for your Target 30% with a maturity period Retirement Date. of up to five years) • Ensure you move your Member Account into funds that align with how Pre-Retirement Lifestyle Fund you plan to access your savings. • 100% Pre-Retirement UK government and Provide positive returns in 0.178 0.178 corporate bonds all market conditions, over the medium to long term Money Market Lifestyle Fund • 100% Money Market Sterling denominated cash, Provide capital stability by 0.150 0.150 deposits and money investing in actively-managed market instruments underlying funds The percentage shown is split equally between the underlying managers within each fund. Actual distribution between funds and therefore the AMCs/TERs for the active equity and diversified funds will fluctuate slightly with changes in the mix of the underlying funds, within limits set by the Trustee. *The AMCs and TERs are correct as at 31 December 2016 and are subject to change. See page 24 for details of the Freestyle fund investment charges. ** This Lifestyle fund is constructed from underlying funds that make up the three funds stated here, with 15% of assets in each of the three active UK and three active global equity funds and 7.5% of the assets in each of the two active emerging market funds. The percentages shown are therefore approximations only. 20 21

Control Lifestyle Now you understand more about risk and have considered where you are on the risk The three Lifestyle options – Thames, Severn and Tay – are summarised over the next few pages. ‘spectrum’, you need to consider how actively involved you want to be in investing your Just as these rivers have different characteristics, the three Lifestyle options vary in the way they balance potential for growth Member Account. The approach you take will depend on how much control you want, and the type and level of risk they take at different stages. how much time you are prepared to spend managing your investments, and how confident you are about making investment decisions. Growth phase: Lifestyle aims to grow your Member Target Retirement Date (TRD): This is the date you Account during this phase by investing in funds that have decide you want the Lifestyle option to complete. This should the potential for good return and aim to grow your Member be the date at which you expect to access your savings from Account when you are far from retirement, gradually moving to your Member Account. It can be any date from the age of 55. Lifestyle Why it might be good for you more diversified assets to provide some protection to the value As this date will determine when your investments begin of your savings as you approach the second Lifestyle phase. switching between the Growth and Pre-retirement phases, A ‘do it for me’ approach • You do not need to be as involved in the management of your Member Pre-retirement phase: During this phase, Lifestyle it is important that you review your TRD regularly to ensure it is in keeping with your retirement plans. To change your TRD, Account as you do with the Freestyle option. This is because the where the funds in investment switching happens automatically as you approach your aims to align your Member Account with how you plan to please email the Plan Administrators or go to the Plan which your Member Target Retirement Date. use your savings at your Target Retirement Date. administration website. Account is invested, • There are three Lifestyle strategies to choose from. Each option varies and the proportion held in the way it balances potential for growth and the type and level Lifestyle funds in each fund, changes of risk it takes at different stages. The Lifestyle options are made up of a combination of the underlying funds below. These funds are also part of the range automatically according to • In the ‘Pre-retirement phase’ of each Lifestyle strategy, you have available through Freestyle, see page 24 for more information. how far you are from your three options – depending on how you plan to access your savings. Fund It currently invests in Aims to… AMCs%* TERs%* See page 21 for more details. Target Retirement Date Equity Lifestyle Fund** and how you plan to use Why it might not be good for you • 10% Emerging Markets Equity Shares of companies Achieve long-term your savings. – Active capital growth • Lifestyle invests in a limited range of funds according to the Lifestyle option you choose. If you prefer to take more control over how your • 45% Global Equity – Active 0.578 0.683 Member Account is invested and the types of funds that you invest in, • 45% UK Equity – Active the Freestyle approach may be more suitable for you. Diversified Lifestyle Fund • 100% Diversified Growth A range of asset classes 0.635 0.683 including equities, bonds, property, commodities, hedge Freestyle Why it might be good for you funds, derivatives and cash/ currencies around the world A ‘do it yourself’ approach Freestyle puts you in control by letting you choose the funds you believe Corporate Bond Lifestyle Fund are right for you, and change them as and when it suits you. where you choose and • 100% UK Corporate Bond – Active Investment grade corporate Achieve long-term capital 0.305 0.312 manage a combination Why it might not be good for you bonds denominated in Sterling growth by investing in of the available funds. of all durations actively-managed It takes more active involvement and decision making than the Lifestyle underlying funds options, because you need to: Index-Linked Gilt Lifestyle Fund • Think about how you want to invest your Member Account from the start. • 100% Index-Linked Gilt Index-linked UK government 0.085 0.089 bonds (70% with a maturity • Check regularly on how your Member Account is invested to ensure period of five years or longer, that it is growing to meet the target you have set for your Target 30% with a maturity period Retirement Date. of up to five years) • Ensure you move your Member Account into funds that align with how Pre-Retirement Lifestyle Fund you plan to access your savings. • 100% Pre-Retirement UK government and Provide positive returns in 0.178 0.178 corporate bonds all market conditions, over the medium to long term Money Market Lifestyle Fund • 100% Money Market Sterling denominated cash, Provide capital stability by 0.150 0.150 deposits and money investing in actively-managed market instruments underlying funds The percentage shown is split equally between the underlying managers within each fund. Actual distribution between funds and therefore the AMCs/TERs for the active equity and diversified funds will fluctuate slightly with changes in the mix of the underlying funds, within limits set by the Trustee. *The AMCs and TERs are correct as at 31 December 2016 and are subject to change. See page 24 for details of the Freestyle fund investment charges. ** This Lifestyle fund is constructed from underlying funds that make up the three funds stated here, with 15% of assets in each of the three active UK and three active global equity funds and 7.5% of the assets in each of the two active emerging market funds. The percentages shown are therefore approximations only. 20 21

More than 13 years from using your savings consider… Within 13 years of using your savings consider… Phase 1 (Growth phase) Phase 1 (Growth) to Phase 2 (Pre-retirement phase) The Lifestyle choice you make will depend on your attitude to risk. You can change your investment choice at any time (see page 15). The Pre-retirement choice you make will depend on how you plan to access your savings. See page 21 for more information about your choices. You can select your Pre-retirement choice at any time (see page 15). Lifestyle Aims to Choose this option if you… How your Member Account moves between Lifestyle Flexible Annuity Cash option funds during the Growth phase option Achieve growth through …are happy to take a higher investing fully in equities level of investment risk in until 20 years before TRD. order to achieve a potentially Growth Growth Growth Growth Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement This equity investment is higher level of growth up until 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% then gradually moved into 20 years before your TRD. 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% diversified investments still 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% Thames potential growth, but with the 60% 60% 60% 60% 60% Thames 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% with the objective of achieving 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% additional aim of reducing 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% the volatility of being fully invested in equities. 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% From 13 years before TRD the 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% funds you go into will depend 30+ 29 28 27 26 25 24 23 22 21 20 30+ 29 18 28 17 30+ 29 27 25 14 27 25 23 25 23 21 23 21 19 21 19 17 9 18 16 14 6 16 14 4 14 3 2 13 1 0 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 97 5 86 4 5 9 643 8 532 7 421 6 310 5 20 4 1 3 0 2 1 0 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 97 5 86 4 5 9 643 8 532 7 421 6 310 5 20 4 1 3 0 2 1 0 13 12 16 26 28 815 20 18 16 5 15 13 7 17 15 13 22 20 18 13 26 24 22 15 28 26 24 13 12 11 10 19 17 24 22 20 19 30+ 29 27 Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD on your choice of outcome Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD (see Phase 2). Achieve growth through …are happy to take a higher investing fully in equities level of investment risk in GrowthPre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement GrowthPre-retirement until 10 years before TRD. exchange for the greater Growth Growth Growth Growth Growth Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement The equity investment is potential for growth offered 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 90% 90% 90% 90% then gradually moved into by equities until 10 years 80% 80% 80% 80% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% diversified investments, still from your TRD. 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% Severn potential growth, but with the 60% 60% 60% 60% 60% Severn 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% with the objective of achieving 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% additional aim of reducing 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% the volatility of being fully 20% 20% 20% 20% invested in equities. 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% From seven years before 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% TRD the funds you go into will 30+ 29 28 27 26 25 24 23 22 21 20 30+ 19 30+ 2929 18 28 1730+2827 1629 2726 1528 2625 1427 2524 1326 2423 25 2322 24 2221 23 2120 13 12 11 10 19 1719 21 1918 20 1817 9 18 1616 815 7 17 1514 6 16 1413 5 15 13 3 2 13 1 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 9 7 5 8 6 4 5 9 6 43 8 5 32 7 4 21 6 3 10 5 2 0 4 1 3 0 2 1 13 12 13 1211 10 13 12 11 1011 109 8 9 0 22 20 4 14 0 Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD depend on your choice Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD of outcome (see Phase 2). Achieve growth through …are less comfortable with exclusively diversified short-term volatility often investments until 15 years associated with equity Growth Growth Growth Growth Growth Pre-retirement Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Pre-retirement Growth Pre-retirementPre-retirement Growth Pre-retirementPre-retirement Growth before TRD. It provides investments, and prefer the 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% potential growth over the long lower volatility of diversified 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% term while reducing volatility investments. You accept 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% when compared to fully that this may reduce the 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% Tay investing in equities. overall potential for growth, 50% 50% 50% 50% 50% Tay 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% compared to what equities could provide. 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 13 12 11 10 8 1629 27 25 7 17 15 13 23 21 19 8 53 1 9 9 7 9 1427 25 23 25 23 21 13 12 11 1078 6 8 53 1 19 30+ 29 27 9 21 19 17 13 12 11 1078 6 9 1817 15 22 0 13 12 13 12 0 30+ 29 28 27 26 25 24 23 22 21 20 30+ 29 18 28 1730+28 26 1528 26 24 1326 24 22 24 22 20 13 12 11 10 1920 18 20 18 16 8 16 14 6 16 14 4 1413 3 2 13 1 13 12 11 10 13 12 11 1011 10 8 9 7 97 5 86 4 5 3 9 64 2 7 42 0 6 31 5 20 4 1 3 0 2 1 13 12 11 10 13 12 11 1011 10 8 9 7 97 5 86 4 5 3 9 64 2 7 42 0 6 31 5 20 4 1 3 0 2 1 0 13 12 11 10 13 12 11 10 8 6 97 5 86 4 75 3 64 2 53 1 4 5 15 Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD The Flexible option might be suitable if: The Annuity option might be suitable The Cash option might be suitable if The Lifestyle default approach Key • you are planning not to use your if you are planning on buying a regular you are looking to access your savings savings at your TRD and access income in retirement. in the Plan as cash. If you do not make an active decision as to how to invest your Member Account, Equity Lifestyle Fund them in a number of stages it will automatically be invested in the Lifestyle – Thames approach, following the Diversified Lifestyle Fund (income drawdown is currently only Flexible option during the Pre-retirement phase. Corporate Bond Lifestyle Fund available if you transfer your Member Account out of the Plan) OR You need to carefully consider if this is the right choice for you. Index-Linked Gilt Lifestyle Fund Pre-Retirement Lifestyle Fund • you are not sure how you would like to access your savings or are Money Market Lifestyle Fund considering a combination of options. Level of risk 22 23

More than 13 years from using your savings consider… Within 13 years of using your savings consider… Phase 1 (Growth phase) Phase 1 (Growth) to Phase 2 (Pre-retirement phase) The Lifestyle choice you make will depend on your attitude to risk. You can change your investment choice at any time (see page 15). The Pre-retirement choice you make will depend on how you plan to access your savings. See page 21 for more information about your choices. You can select your Pre-retirement choice at any time (see page 15). Lifestyle Aims to Choose this option if you… How your Member Account moves between Lifestyle Flexible Annuity Cash option funds during the Growth phase option Achieve growth through …are happy to take a higher investing fully in equities level of investment risk in Pre-retirement until 20 years before TRD. order to achieve a potentially Growth Growth Growth Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Pre-retirement Growth Pre-retirement Pre-retirement Pre-retirement Pre-retirement This equity investment is higher level of growth up until 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% then gradually moved into 20 years before your TRD. 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% diversified investments still 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% Thames potential growth, but with the 60% 60% 60% 60% 60% Thames 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% with the objective of achieving 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% additional aim of reducing 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% the volatility of being fully invested in equities. 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% From 13 years before TRD the 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% funds you go into will depend 30+ 29 28 27 26 25 24 23 22 21 20 30+ 29 18 28 17 30+ 29 27 25 14 27 25 23 25 23 21 23 21 19 21 19 17 9 18 16 14 6 16 14 4 14 3 2 13 1 0 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 97 5 86 4 5 9 643 8 532 7 421 6 310 5 20 4 1 3 0 2 1 0 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 97 5 86 4 5 9 643 8 532 7 421 6 310 5 20 4 1 3 0 2 1 0 13 12 13 1211 10 13 12 11 1011 109 8 9 7 28 16 26 15 28 26 24 13 26 24 22 24 22 20 20 18 16 815 7 17 15 13 13 12 11 10 19 17 22 20 18 5 15 13 19 30+ 29 27 on your choice of outcome Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD (see Phase 2). Achieve growth through …are happy to take a higher investing fully in equities level of investment risk in Pre-retirement Pre-retirement GrowthPre-retirement GrowthPre-retirement Pre-retirement Pre-retirement until 10 years before TRD. exchange for the greater Growth Growth Growth Growth Growth Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement The equity investment is potential for growth offered 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 90% 90% 90% 90% then gradually moved into by equities until 10 years 80% 80% 80% 80% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% diversified investments, still from your TRD. 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% Severn potential growth, but with the 60% 60% 60% 60% 60% Severn 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% with the objective of achieving 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% additional aim of reducing 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% the volatility of being fully 20% invested in equities. 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% From seven years before 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0 22 20 TRD the funds you go into will 30+ 29 28 27 26 25 24 23 22 21 20 30+ 19 30+ 2929 18 28 1730+2827 1629 2726 1528 2625 1427 2524 1326 2423 25 2322 24 2221 23 2120 13 12 11 10 19 1719 21 1918 20 1817 9 18 1616 815 7 17 1514 6 16 1413 5 15 13 3 2 13 1 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 9 7 5 8 6 4 5 9 6 43 8 5 32 7 4 21 6 3 10 5 2 0 4 1 3 0 2 1 13 12 13 1211 10 13 12 11 1011 109 8 9 13 12 11 10787 6 9 7 5 8 6 4 5 9 6 0 4 14 Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD depend on your choice Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD of outcome (see Phase 2). Achieve growth through …are less comfortable with exclusively diversified short-term volatility often investments until 15 years associated with equity Growth Growth Growth Growth Growth Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Growth Pre-retirement Pre-retirement Growth Growth Pre-retirement Growth Pre-retirementPre-retirement Growth Pre-retirement Growth Pre-retirementPre-retirement Pre-retirement before TRD. It provides investments, and prefer the 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% potential growth over the long lower volatility of diversified 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% term while reducing volatility investments. You accept 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% when compared to fully that this may reduce the 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 70% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% 60% Tay investing in equities. overall potential for growth, 50% 50% 50% 50% 50% Tay 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% compared to what equities could provide. 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 40% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 13 12 11 10 8 9 7 9 19 30+ 29 27 7 17 15 13 9 9 64 2 13 12 11 1078 6 9 1817 15 1427 25 23 1629 27 25 25 23 21 21 19 17 23 21 19 13 12 11 1078 6 9 9 64 2 5 15 13 12 0 6 31 13 12 22 6 31 30+ 29 28 27 26 25 24 23 22 21 20 30+ 29 18 28 1730+28 26 1528 26 24 1326 24 22 24 22 20 13 12 11 10 1920 18 20 18 16 8 16 14 6 16 14 4 1413 3 2 13 1 13 12 11 10 13 12 11 1011 10 8 9 7 97 5 86 4 5 3 8 53 1 7 42 0 5 20 4 1 3 0 2 1 13 12 11 10 13 12 11 1011 10 8 9 7 97 5 86 4 5 3 8 53 1 7 42 0 5 20 4 1 3 0 2 1 0 13 12 11 10 13 12 11 10 8 6 97 5 86 4 75 3 64 2 53 1 42 0 31 20 1 0 0 Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD Years to TRD The Flexible option might be suitable if: The Annuity option might be suitable The Cash option might be suitable if The Lifestyle default approach Key • you are planning not to use your if you are planning on buying a regular you are looking to access your savings savings at your TRD and access income in retirement. in the Plan as cash. If you do not make an active decision as to how to invest your Member Account, Equity Lifestyle Fund them in a number of stages it will automatically be invested in the Lifestyle – Thames approach, following the Diversified Lifestyle Fund (income drawdown is currently only Flexible option during the Pre-retirement phase. Corporate Bond Lifestyle Fund available if you transfer your Member Account out of the Plan) OR You need to carefully consider if this is the right choice for you. Index-Linked Gilt Lifestyle Fund Pre-Retirement Lifestyle Fund • you are not sure how you would like to access your savings or are Money Market Lifestyle Fund considering a combination of options. Level of risk 22 23

Freestyle The Freestyle funds are summarised below. The name of each fund describes the asset class in which it invests, or the principles on which it is based. It means that the Trustee * ** can monitor and manage the funds, and make any necessary changes (if the Trustee considers that changes are appropriate) quickly Fund name It currently invests in Aims to… AMC TER and efficiently. See page 26 to read more about the different asset classes. Other types of investment (%) (%) UK Property Property or property-related securities, Achieve long-term capital 0.485 0.525 Fund name It currently invests in Aims to… AMC * TER ** although may also hold an allocation to growth by investing Equities (active) (%) (%) cash in order to pay redemptions and in actively-managed build up money for new investments underlying funds Emerging Markets Equity Shares of companies in countries, Achieve long-term capital 0.835 0.970 Shariah Shares of companies from around the Provide returns broadly 0.035 0.335 designated as emerging markets growth by investing world which meet the Islamic investment in line with the fund Global Equity Shares of companies around the world in actively-managed 0.622 0.699 principles of the underlying fund benchmark by investing UK Equity Shares of companies in the UK underlying funds 0.477 0.603 in one or more passively- managed underlying fund(s) Diversified assets (%) (%) Money Market Sterling denominated cash, deposits Provide capital stability 0.150 0.150 A range of asset classes including equities, Achieve long-term capital 0.635 0.683 and money market instruments by investing in actively- bonds, property, commodities, hedge growth by investing managed underlying funds Diversified Growth funds, derivatives and cash/currencies in actively-managed around the world underlying funds What is the difference between active These potential price changes mean that the day-to-day Equities (passive) (%) (%) value of any units may vary, so when you redeem units and passive funds? Asia Pacific (ex-Japan) Equity Shares of companies in the Asia Pacific 0.085 0.099 you should bear in mind that the value is subject to these region excluding Japan Some of the funds set out above are described as ‘active’, potential fluctuations. others as ‘passive’. Ethical Global Equity Shares of companies that are selected 0.335 0.335 based on the socially responsible investing Active funds aim to outperform a market benchmark by New charge cap for ‘default’ (SRI) criteria of the underlying funds Provide positive returns in investing in a selection of investments that the investment investment options European (ex-UK) Equity Shares of companies in Europe (ex-UK) all market conditions, over 0.085 0.100 manager believes will perform better than the market. • Since 6 April 2015, a cap of 0.75% of a member’s fund the medium to long term The investment manager decides which assets to buy or Japanese Equity Shares of companies in Japan 0.085 0.096 sell. As returns depend partly on the active involvement (75p per £100) a year has applied to the Total Expense North American Equity Shares of companies in North America 0.085 0.093 and skill of the manager, typically these funds have higher Ratio (TER) of ‘default’ investment options within defined investment charges. However, active funds can also be contribution (DC) pension schemes. The TER of a fund is UK Equity Shares of companies in the UK 0.085 0.089 the Annual Management Charge (AMC) plus any additional more volatile than passive funds. World (ex-UK) Equity Shares of companies around the world (ex-UK) 0.085 0.095 expenses incurred. Passive funds try to replicate a particular benchmark or Bonds and gilts (%) (%) index, aiming to achieve the same return. Passive funds • This legislation was introduced to protect employees usually have lower investment charges than active funds. who join DC schemes, and who do not make a specific Gilts UK government bonds with a maturity 0.085 0.089 choice of which funds they wish to invest in, from paying period of 15 years or longer Please note: The value of all investment funds can go down charges above this level. Index-Linked Gilts Index-linked UK government bonds with 0.085 0.089 as well as up. • Unless they choose otherwise, new joiners are invested a maturity period of five years or longer in the ‘default’ investment option which is Lifestyle – UK Corporate Bond – Active Investment grade corporate bonds Provide positive returns in 0.305 0.315 Fund factsheets for the Freestyle funds are available Thames for the Plan. The Trustee can confirm that the denominated in Sterling of all durations – all market conditions, over on the Plan administration website (see page 6). TER throughout the various phases of Lifestyle – actively managed the medium to long term Thames is lower than 0.75% a year. UK Corporate Bond – Investment grade corporate bonds 0.085 0.100 • The Trustee can also confirm that, while the cap does Passive (previously known denominated in Sterling of all durations – What are single-priced funds? not apply to all funds and options, the TER throughout as UK Corporate Bond) passively managed the various phases of the other two Lifestyle options All funds available to you in the Plan are priced on what is (Lifestyle – Severn and Lifestyle – Tay) is also lower Pre-Retirement UK government and corporate bonds 0.178 0.178 known as a ‘single-priced’ basis. This means that the price than 0.75% a year. you pay for units in a fund is the same as the price you • The TER for the different Freestyle funds depends on the * Annual Management Charge (AMC) is the annual fee charged by the investment manager. The AMCs shown above are correct as at would receive if you sold units in the same fund on that day. underlying funds in which they invest and the investment 31 December 2016 and are subject to change. AMCs for the active equity and diversified funds will fluctuate slightly with changes approach the investment managers take. As a result, in the mix of the underlying funds. Single-priced funds absorb the transaction costs that fund managers incur when they buy or sell units on your behalf. some of the higher-charged, actively-managed funds ** Total Expense Ratio (TER) is the total cost of investing in the fund. It is automatically deducted from the price of the funds in which have a TER of more than 0.75% a year. As members are you are invested. The TER includes the AMC and any other additional fund expenses such as trading fees, legal fees, auditor fees and This can affect the unit price depending on the amount other operational expenses. The TERs shown above are correct as at 31 December 2016 and are subject to change. of units bought and sold each day. required to actively choose these funds, the Freestyle funds are not subject to the charge cap. The price at which units in a fund are bought and sold may change considerably from one day to the next, depending on Please note that the Trustee regularly reviews the charges the activity of other investors, and the scale of this change that apply to all of your investment options to ensure that will be dependent on the liquidity of the funds. they remain competitive and deliver value for money for members in relation to the charges levied. 24 25

Freestyle The Freestyle funds are summarised below. The name of each fund describes the asset class in which it invests, or the principles on which it is based. It means that the Trustee * ** can monitor and manage the funds, and make any necessary changes (if the Trustee considers that changes are appropriate) quickly Fund name It currently invests in Aims to… AMC TER and efficiently. See page 26 to read more about the different asset classes. Other types of investment (%) (%) UK Property Property or property-related securities, Achieve long-term capital 0.485 0.525 Fund name It currently invests in Aims to… AMC * TER ** although may also hold an allocation to growth by investing Equities (active) (%) (%) cash in order to pay redemptions and in actively-managed build up money for new investments underlying funds Emerging Markets Equity Shares of companies in countries, Achieve long-term capital 0.835 0.970 Shariah Shares of companies from around the Provide returns broadly 0.035 0.335 designated as emerging markets growth by investing world which meet the Islamic investment in line with the fund Global Equity Shares of companies around the world in actively-managed 0.622 0.699 principles of the underlying fund benchmark by investing UK Equity Shares of companies in the UK underlying funds 0.477 0.603 in one or more passively- managed underlying fund(s) Diversified assets (%) (%) Money Market Sterling denominated cash, deposits Provide capital stability 0.150 0.150 A range of asset classes including equities, Achieve long-term capital 0.635 0.683 and money market instruments by investing in actively- bonds, property, commodities, hedge growth by investing managed underlying funds Diversified Growth funds, derivatives and cash/currencies in actively-managed around the world underlying funds What is the difference between active These potential price changes mean that the day-to-day Equities (passive) (%) (%) value of any units may vary, so when you redeem units and passive funds? Asia Pacific (ex-Japan) Equity Shares of companies in the Asia Pacific 0.085 0.099 you should bear in mind that the value is subject to these region excluding Japan Some of the funds set out above are described as ‘active’, potential fluctuations. others as ‘passive’. Ethical Global Equity Shares of companies that are selected 0.335 0.335 based on the socially responsible investing Active funds aim to outperform a market benchmark by New charge cap for ‘default’ (SRI) criteria of the underlying funds Provide positive returns in investing in a selection of investments that the investment investment options European (ex-UK) Equity Shares of companies in Europe (ex-UK) all market conditions, over 0.085 0.100 manager believes will perform better than the market. • Since 6 April 2015, a cap of 0.75% of a member’s fund the medium to long term The investment manager decides which assets to buy or Japanese Equity Shares of companies in Japan 0.085 0.096 sell. As returns depend partly on the active involvement (75p per £100) a year has applied to the Total Expense North American Equity Shares of companies in North America 0.085 0.093 and skill of the manager, typically these funds have higher Ratio (TER) of ‘default’ investment options within defined investment charges. However, active funds can also be contribution (DC) pension schemes. The TER of a fund is UK Equity Shares of companies in the UK 0.085 0.089 the Annual Management Charge (AMC) plus any additional more volatile than passive funds. World (ex-UK) Equity Shares of companies around the world (ex-UK) 0.085 0.095 expenses incurred. Passive funds try to replicate a particular benchmark or Bonds and gilts (%) (%) index, aiming to achieve the same return. Passive funds • This legislation was introduced to protect employees usually have lower investment charges than active funds. who join DC schemes, and who do not make a specific Gilts UK government bonds with a maturity 0.085 0.089 choice of which funds they wish to invest in, from paying period of 15 years or longer Please note: The value of all investment funds can go down charges above this level. Index-Linked Gilts Index-linked UK government bonds with 0.085 0.089 as well as up. • Unless they choose otherwise, new joiners are invested a maturity period of five years or longer in the ‘default’ investment option which is Lifestyle – UK Corporate Bond – Active Investment grade corporate bonds Provide positive returns in 0.305 0.315 Fund factsheets for the Freestyle funds are available Thames for the Plan. The Trustee can confirm that the denominated in Sterling of all durations – all market conditions, over on the Plan administration website (see page 6). TER throughout the various phases of Lifestyle – actively managed the medium to long term Thames is lower than 0.75% a year. UK Corporate Bond – Investment grade corporate bonds 0.085 0.100 • The Trustee can also confirm that, while the cap does Passive (previously known denominated in Sterling of all durations – What are single-priced funds? not apply to all funds and options, the TER throughout as UK Corporate Bond) passively managed the various phases of the other two Lifestyle options All funds available to you in the Plan are priced on what is (Lifestyle – Severn and Lifestyle – Tay) is also lower Pre-Retirement UK government and corporate bonds 0.178 0.178 known as a ‘single-priced’ basis. This means that the price than 0.75% a year. you pay for units in a fund is the same as the price you • The TER for the different Freestyle funds depends on the * Annual Management Charge (AMC) is the annual fee charged by the investment manager. The AMCs shown above are correct as at would receive if you sold units in the same fund on that day. underlying funds in which they invest and the investment 31 December 2016 and are subject to change. AMCs for the active equity and diversified funds will fluctuate slightly with changes approach the investment managers take. As a result, in the mix of the underlying funds. Single-priced funds absorb the transaction costs that fund managers incur when they buy or sell units on your behalf. some of the higher-charged, actively-managed funds ** Total Expense Ratio (TER) is the total cost of investing in the fund. It is automatically deducted from the price of the funds in which have a TER of more than 0.75% a year. As members are you are invested. The TER includes the AMC and any other additional fund expenses such as trading fees, legal fees, auditor fees and This can affect the unit price depending on the amount other operational expenses. The TERs shown above are correct as at 31 December 2016 and are subject to change. of units bought and sold each day. required to actively choose these funds, the Freestyle funds are not subject to the charge cap. The price at which units in a fund are bought and sold may change considerably from one day to the next, depending on Please note that the Trustee regularly reviews the charges the activity of other investors, and the scale of this change that apply to all of your investment options to ensure that will be dependent on the liquidity of the funds. they remain competitive and deliver value for money for members in relation to the charges levied. 24 25

Different types of investment The table below gives an overview of the different asset classes. It sets out how, typically, Investment aims Investment diversification these assets are expected to achieve one of two aims and are associated to certain types of risk. While everyone wants their savings to grow, it is not always Investing in different types of investment funds or asset The higher the star rating, the more effective the asset class may be in achieving the as simple as that. To grow your Member Account in a less classes helps to diversify or ‘spread’ investment risk. conservative way, you do need to be prepared for the value This diversification means that you are less dependent respective aim. The maximum star rating is five. of your savings to fall in the short term. Generally, the more on the performance of any one asset class by spreading investment risk you are able to take, the more potential there the investment risk and reducing the impact if one or more Aims to is for your Member Account to grow. asset classes suffer(s) from poor performance. Deliver long-term Provide security Depending on your circumstances and attitude, you may not You can diversify your investments by choosing from the various Asset class growth and stability be in a position to potentially take as much investment risk asset classes available to you through the Freestyle funds. and may decide that protecting your Member Account is more Equities or shares are stocks in UK and overseas companies. Equities are expected to important than growing its value. The Freestyle funds also include a single fund which provides generate higher rates of return in the longer term than bonds or cash, but carry higher investment diversification: the Diversified Growth fund. This fund investment risk because they are more volatile. You also need to remember that how you invest your Member invests in a wide range of asset classes including equities, Account should align with how you plan to use your savings bonds, real estate, commodities, hedge funds, derivatives and They are generally considered a good way to invest your money in the long term, since from the Plan. This will ensure that you get the best value cash/currencies around the world. Investing in the Diversified you have time to weather the ups and downs of the stock market. for money when you come to retire. Read more on page 28. Growth fund therefore offers you the opportunity to diversify the investment of your Member Account through one fund. Property investments mainly invest in commercial property. Investing in property can have risks related to the nature of buying and selling property, including the risk that their value can go up or down and that it may not be possible to sell properties quickly, so there can be times when there is a delay in processing requests to switch out of the fund. Returns from property are generally higher than bonds but lower than equities and, like equities, are subject to short-term volatility. Investing in property should best be considered as part of a long-term investment strategy. Bonds are loans to a company or governments; UK Government bonds are called gilts. You typically receive a fixed return on your investment, or ‘interest’ on the loan, except for index-linked gilts which pay a return that increases with inflation. Bonds typically give lower returns over a longer period than equities, but they are generally more secure and predictable. Money market/cash refers to a range of money market instruments and cash. They are considered better at protecting the capital value of your Member Account in the short term than other types of investments such as equities. However, money market funds typically provide lower rates of return in the long term and there is still a risk that they can go down in value from time to time. 26 27

Different types of investment The table below gives an overview of the different asset classes. It sets out how, typically, Investment aims Investment diversification these assets are expected to achieve one of two aims and are associated to certain types of risk. While everyone wants their savings to grow, it is not always Investing in different types of investment funds or asset The higher the star rating, the more effective the asset class may be in achieving the as simple as that. To grow your Member Account in a less classes helps to diversify or ‘spread’ investment risk. conservative way, you do need to be prepared for the value This diversification means that you are less dependent respective aim. The maximum star rating is five. of your savings to fall in the short term. Generally, the more on the performance of any one asset class by spreading investment risk you are able to take, the more potential there the investment risk and reducing the impact if one or more Aims to is for your Member Account to grow. asset classes suffer(s) from poor performance. Deliver long-term Provide security Depending on your circumstances and attitude, you may not You can diversify your investments by choosing from the various Asset class growth and stability be in a position to potentially take as much investment risk asset classes available to you through the Freestyle funds. and may decide that protecting your Member Account is more Equities or shares are stocks in UK and overseas companies. Equities are expected to important than growing its value. The Freestyle funds also include a single fund which provides generate higher rates of return in the longer term than bonds or cash, but carry higher investment diversification: the Diversified Growth fund. This fund investment risk because they are more volatile. You also need to remember that how you invest your Member invests in a wide range of asset classes including equities, Account should align with how you plan to use your savings bonds, real estate, commodities, hedge funds, derivatives and They are generally considered a good way to invest your money in the long term, since from the Plan. This will ensure that you get the best value cash/currencies around the world. Investing in the Diversified you have time to weather the ups and downs of the stock market. for money when you come to retire. Read more on page 28. Growth fund therefore offers you the opportunity to diversify the investment of your Member Account through one fund. Property investments mainly invest in commercial property. Investing in property can have risks related to the nature of buying and selling property, including the risk that their value can go up or down and that it may not be possible to sell properties quickly, so there can be times when there is a delay in processing requests to switch out of the fund. Returns from property are generally higher than bonds but lower than equities and, like equities, are subject to short-term volatility. Investing in property should best be considered as part of a long-term investment strategy. Bonds are loans to a company or governments; UK Government bonds are called gilts. You typically receive a fixed return on your investment, or ‘interest’ on the loan, except for index-linked gilts which pay a return that increases with inflation. Bonds typically give lower returns over a longer period than equities, but they are generally more secure and predictable. Money market/cash refers to a range of money market instruments and cash. They are considered better at protecting the capital value of your Member Account in the short term than other types of investments such as equities. However, money market funds typically provide lower rates of return in the long term and there is still a risk that they can go down in value from time to time. 26 27

Using your savings Your Member Account is used to provide you with savings during your retirement. Guidance guarantee – Pension Wise Information from your employer Choosing how to access your savings is an important decision and the right option Before you make any decisions about how you will access You receive annual online benefit statements from the Plan for you will depend on your personal circumstances. your savings, it is important you take impartial professional Trustee. These set out the value of your Member Account advice. As the Trustee, Plan Administrators, and your employer and the estimated value of your savings at your Target cannot give you advice, we recommend that you speak to a Retirement Date. 1 2 3 professional advisor if you are not sure what is right for you. See page 37 for details. You can also see the value of your Member Account online Annuity Cash Income drawdown at any time on the Plan administration website. The Government provides free and impartial guidance to individuals in defined contribution (DC) plans on how they • If you are an employee member, use the links to SSO via can access their savings from age 55 through its pension HR Connect or via HR Interchange if you are an MBNA employee (see page 6 for details) Option to access up to 25%* Option to access your savings in Option to access up to 25%* guidance service – Pension Wise. The guidance is provided of your savings tax free one or multiple lump sums of which of your savings tax free, and over the phone by The Pensions Advisory Service and in • If you are signing in from outside your employer's network 25%* of each lump sum is tax free. person by the Citizens Advice Bureau. go to www.hartlinkonline.co.uk/boaml You will receive more information as you approach retirement. If you are a member of the Plan with Final Salary benefits, In the meantime, find out more on the Pension Wise website you will also receive these benefits when you retire. at www.pensionwise.gov.uk. Unless your employer confirms otherwise, you must access then buy an annuity The number of cash lump sums access your savings in a (regular income in retirement) you can take from the Plan depends number of stages (income drawdown) your benefits from the Final Salary section and the defined from the open market. on whether or not you are an employee over a longer-term period. You would When you can access your benefits contribution section at the same time. For more details, member when you access your savings need to transfer your Member Account The earliest age at which you can access some or all of your please contact the Plan Administrators – see page 36 and/or the discretion of your employer out of the Plan to use this option. savings in retirement is currently from the age of 55. for contact details. and the Trustee. From 2028, this is set to increase to age 57 and then always be 10 years below the State Pension Age. * The amount will depend upon your personal circumstances but will be at least 25%. You may also be able to access part or all of your benefits while you are still working for your employer. Please contact the Plan You may be able to choose a combination of these options Administrators for more information – see page 36 for details. Find out more about the different options available at www.pensionupdate-boaml.com/AccessYourSavings. There are factsheets for each option including details of where you can find further information. We encourage you to seek impartial professional advice before you decide what option is right for you (see page 37 for details). You need to consider your choices carefully from around 13 years before your Target Retirement Date as you need to ensure that you are invested in the right way to get the best value for money. 28 29

Using your savings Your Member Account is used to provide you with savings during your retirement. Guidance guarantee – Pension Wise Information from your employer Choosing how to access your savings is an important decision and the right option Before you make any decisions about how you will access You receive annual online benefit statements from the Plan for you will depend on your personal circumstances. your savings, it is important you take impartial professional Trustee. These set out the value of your Member Account advice. As the Trustee, Plan Administrators, and your employer and the estimated value of your savings at your Target cannot give you advice, we recommend that you speak to a Retirement Date. 1 2 3 professional advisor if you are not sure what is right for you. See page 37 for details. You can also see the value of your Member Account online Annuity Cash Income drawdown at any time on the Plan administration website. The Government provides free and impartial guidance to individuals in defined contribution (DC) plans on how they • If you are an employee member, use the links to SSO via can access their savings from age 55 through its pension HR Connect or via HR Interchange if you are an MBNA employee (see page 6 for details) Option to access up to 25%* Option to access your savings in Option to access up to 25%* guidance service – Pension Wise. The guidance is provided of your savings tax free one or multiple lump sums of which of your savings tax free, and over the phone by The Pensions Advisory Service and in • If you are signing in from outside your employer's network 25%* of each lump sum is tax free. person by the Citizens Advice Bureau. go to www.hartlinkonline.co.uk/boaml You will receive more information as you approach retirement. If you are a member of the Plan with Final Salary benefits, In the meantime, find out more on the Pension Wise website you will also receive these benefits when you retire. at www.pensionwise.gov.uk. Unless your employer confirms otherwise, you must access then buy an annuity The number of cash lump sums access your savings in a (regular income in retirement) you can take from the Plan depends number of stages (income drawdown) your benefits from the Final Salary section and the defined from the open market. on whether or not you are an employee over a longer-term period. You would When you can access your benefits contribution section at the same time. For more details, member when you access your savings need to transfer your Member Account The earliest age at which you can access some or all of your please contact the Plan Administrators – see page 36 and/or the discretion of your employer out of the Plan to use this option. savings in retirement is currently from the age of 55. for contact details. and the Trustee. From 2028, this is set to increase to age 57 and then always be 10 years below the State Pension Age. * The amount will depend upon your personal circumstances but will be at least 25%. You may also be able to access part or all of your benefits while you are still working for your employer. Please contact the Plan You may be able to choose a combination of these options Administrators for more information – see page 36 for details. Find out more about the different options available at www.pensionupdate-boaml.com/AccessYourSavings. There are factsheets for each option including details of where you can find further information. We encourage you to seek impartial professional advice before you decide what option is right for you (see page 37 for details). You need to consider your choices carefully from around 13 years before your Target Retirement Date as you need to ensure that you are invested in the right way to get the best value for money. 28 29

On death If you... ...die whilst in service with this employer ...die having opted out of the Plan ...die while in retirement If you joined the Plan on or after 1 January 2013 or if you Spouse/Dependant(s) If you were employed and a member of the Merrill Lynch The benefits provided will depend on the options selected are a former Bank of America UK Pension Plan member, • A pension for your Spouse/Dependant(s). This will be (UK) Pension Plan or Merrill Lynch (UK) Defined Contribution at retirement. See page 28 for more details. the following will be provided: one-third of your Plan Salary at your date of death Plan on 31 December 2012, this will be an amount equal to (reduced by 2.5% for each year in excess of 10 that four times your Plan Salary (unless you chose a different level ...die after leaving this employer as a • A lump sum equal to eight times your Plan Salary of lump sum through MyBenefitChoices). Pension benefits (unless you chose a different multiple through your Spouse/Dependant is younger than you). may also be payable to your Spouse/Dependant/Children as Deferred Member MyBenefitChoices), plus The Trustee, at its discretion, may offer the option of providing described on page 30. The value of your Member Account would be used to provide • The value of your Member Account at the date of your death. this benefit as a lump sum payment rather than a pension. If you are a former Bank of America UK Pension Plan death benefits to your UK Dependant(s). • The total value of the above benefits would be used member or joined your employer on or after 1 January 2013, to provide a cash lump sum and/or income for your Children this will be an amount equal to eight times your Plan Salary Dependant(s), depending on your circumstances. • A pension for each eligible child. This will be 5% of your (unless you choose a different level of lump sum through Expression of Wish details and the Plan Salary at your date of death for each eligible child, up MyBenefitChoices). The lump sum is currently paid free of tax. Please note that to a maximum of five children. discretion of the Trustee payment of this benefit is subject to the insurer’s terms and conditions, and any restrictions to cover that they may impose. Pension benefits for children are payable until age 18, or So that any lump sums payable can be paid free of 23 if they are in full-time education or training, on Trustee inheritance tax (under current legislation), the Trustee If you were an active member of the Merrill Lynch (UK) approval. If no pension benefits for a Spouse or Dependant(s) must, by law, decide whom to pay benefits to on your death. When reaching its decision, the Trustee will Pension Plan or Merrill Lynch (UK) Defined Contribution are payable, pension benefits for children will be doubled. consider your wishes but is not legally bound by them. Plan on 31 December 2012, the following will be provided: The Trustee, at its discretion, may offer the option of providing It is therefore important that you ensure that this benefit as a lump sum payment rather than a pension. your Expression of Wish details are up to date, • A lump sum equal to four times your Plan Salary (unless you chose a different multiple through MyBenefitChoices). If the total value of these benefits is less than the value of your especially following a Qualifying Life Event, so that the Trustee can take these into account. • The value of any additional contributions made via Member Account, your Member Account will be used to provide MyBenefitChoices, together with any AVCs you have benefits in addition to those described here. When you join the Plan, you need to complete your paid, will be used to provide benefits in addition to those Expression of Wish details. You can change these described here. nominations at any time after this on the Plan administration website. Either use the links to SSO The lump sum is currently paid free of tax. However, if the Life assurance cover via HR Connect or via HR Interchange if you are total value exceeds the Lifetime Allowance, the excess will be an MBNA employee (see page 6 for details) or go to taxed (see page 13). Please note that payment of this benefit Your employer is no longer able to obtain www.hartlinkonline.co.uk/boaml. Alternatively, you is subject to the insurer’s terms and conditions, and any the same level of life assurance cover as was can complete and return an Expression of Wish form; restrictions to cover that they may impose. previously available in the event of a single catastrophic event. In such an event, if the download a copy at the link above. level of cover is not enough to cover all Increasing your death benefit death-in-service claims arising out of the one event, lump sum death-in-service benefits Each year during the MyBenefitChoices Annual Enrolment may be cut back accordingly. period, you can increase your death in service benefit (within limits) up to 20 times your Plan Salary, or decrease it to two times your Plan Salary and use the cost of the benefit given up to either provide additional salary and/or buy other benefits. It is important that you consider your personal circumstances carefully before making changes. You may also be able to change this level of cover if you experience a Qualifying Life Event (see page 41). 30 31

On death If you... ...die whilst in service with this employer ...die having opted out of the Plan ...die while in retirement If you joined the Plan on or after 1 January 2013 or if you Spouse/Dependant(s) If you were employed and a member of the Merrill Lynch The benefits provided will depend on the options selected are a former Bank of America UK Pension Plan member, • A pension for your Spouse/Dependant(s). This will be (UK) Pension Plan or Merrill Lynch (UK) Defined Contribution at retirement. See page 28 for more details. the following will be provided: one-third of your Plan Salary at your date of death Plan on 31 December 2012, this will be an amount equal to (reduced by 2.5% for each year in excess of 10 that four times your Plan Salary (unless you chose a different level ...die after leaving this employer as a • A lump sum equal to eight times your Plan Salary of lump sum through MyBenefitChoices). Pension benefits (unless you chose a different multiple through your Spouse/Dependant is younger than you). may also be payable to your Spouse/Dependant/Children as Deferred Member MyBenefitChoices), plus The Trustee, at its discretion, may offer the option of providing described on page 30. The value of your Member Account would be used to provide • The value of your Member Account at the date of your death. this benefit as a lump sum payment rather than a pension. If you are a former Bank of America UK Pension Plan death benefits to your UK Dependant(s). • The total value of the above benefits would be used member or joined your employer on or after 1 January 2013, to provide a cash lump sum and/or income for your Children this will be an amount equal to eight times your Plan Salary Dependant(s), depending on your circumstances. • A pension for each eligible child. This will be 5% of your (unless you choose a different level of lump sum through Expression of Wish details and the Plan Salary at your date of death for each eligible child, up MyBenefitChoices). The lump sum is currently paid free of tax. Please note that to a maximum of five children. discretion of the Trustee payment of this benefit is subject to the insurer’s terms and conditions, and any restrictions to cover that they may impose. Pension benefits for children are payable until age 18, or So that any lump sums payable can be paid free of 23 if they are in full-time education or training, on Trustee inheritance tax (under current legislation), the Trustee If you were an active member of the Merrill Lynch (UK) approval. If no pension benefits for a Spouse or Dependant(s) must, by law, decide whom to pay benefits to on your death. When reaching its decision, the Trustee will Pension Plan or Merrill Lynch (UK) Defined Contribution are payable, pension benefits for children will be doubled. consider your wishes but is not legally bound by them. Plan on 31 December 2012, the following will be provided: The Trustee, at its discretion, may offer the option of providing It is therefore important that you ensure that this benefit as a lump sum payment rather than a pension. your Expression of Wish details are up to date, • A lump sum equal to four times your Plan Salary (unless you chose a different multiple through MyBenefitChoices). If the total value of these benefits is less than the value of your especially following a Qualifying Life Event, so that the Trustee can take these into account. • The value of any additional contributions made via Member Account, your Member Account will be used to provide MyBenefitChoices, together with any AVCs you have benefits in addition to those described here. When you join the Plan, you need to complete your paid, will be used to provide benefits in addition to those Expression of Wish details. You can change these described here. nominations at any time after this on the Plan administration website. Either use the links to SSO The lump sum is currently paid free of tax. However, if the Life assurance cover via HR Connect or via HR Interchange if you are total value exceeds the Lifetime Allowance, the excess will be an MBNA employee (see page 6 for details) or go to taxed (see page 13). Please note that payment of this benefit Your employer is no longer able to obtain www.hartlinkonline.co.uk/boaml. Alternatively, you is subject to the insurer’s terms and conditions, and any the same level of life assurance cover as was can complete and return an Expression of Wish form; restrictions to cover that they may impose. previously available in the event of a single catastrophic event. In such an event, if the download a copy at the link above. level of cover is not enough to cover all Increasing your death benefit death-in-service claims arising out of the one event, lump sum death-in-service benefits Each year during the MyBenefitChoices Annual Enrolment may be cut back accordingly. period, you can increase your death in service benefit (within limits) up to 20 times your Plan Salary, or decrease it to two times your Plan Salary and use the cost of the benefit given up to either provide additional salary and/or buy other benefits. It is important that you consider your personal circumstances carefully before making changes. You may also be able to change this level of cover if you experience a Qualifying Life Event (see page 41). 30 31

Leaving the Plan On absence If you leave your employer before accessing your savings from the Plan, your options will depend on how long you have been a member. Ill-health benefits Your employer provides ill-health benefits to employees Less than one month Over one month through a separate Group Income Protection policy. If you are absent because of ill-health or injury, your regular contributions and those from your employer would continue When you leave you can take a refund of any contributions You will be entitled to 100% of the value of your to be paid to the Plan in the usual way. Full details of you have made (less tax). Member Account. the Group Income Protection policy can be found on the MyBenefitChoices website. Please note: if you have transferred in savings from a previous When you leave you can either: arrangement, your qualifying service in respect of these savings will also be considered. • Transfer the full value of your Member Account to another Maternity or primary carer leave registered pension arrangement, or Your employer will continue to make contributions to your • Leave the full value of your Member Account in the Plan Member Account at the usual rate against pre-maternity or Notification of options on leaving until you retire, or primary carer leave salary through ordinary maternity leave and • Depending on your age and retirement plans, you may be additional maternity leave. Member contributions will continue The Plan Administrators will send details of your savings and options to your home address, using the details it able to use your Member Account to access your savings. (unless requested otherwise) to be the same value of their holds about you at that date. Please note: pre-maternity or primary carer leave salary for the duration of the paid and unpaid maternity or primary carer leave. As the latest address the Plan Administrators hold on • If you die before you access your savings, your Member their records will be used for any future correspondence Account will be used to provide benefits for your family regarding your benefits held under the Plan, it is and Dependant(s), subject to Trustee discretion. Paternity or secondary carer leave important that you keep your personal details up to Your employer will continue to make contributions to your date after leaving service. • If you leave your savings in the Plan, your Member Account Member Account at the usual rate against pre-paternity or will continue to be invested in accordance with your Once you have left the Plan, you can update your details chosen investment selection. secondary carer leave salary. Member contributions will on the Plan administration website, by logging on to • If you joined the Plan before 1 October 2015, your continue (unless requested otherwise) to be the same value your Member Account at leaving options are different if you have less than of their pre-paternity or secondary carer leave salary for the www.hartlinkonline.co.uk/boaml or by writing to the 2 years’ membership. duration of the paternity or secondary carer leave. Plan Administrators; see page 36 for contact details. Unpaid leave from your employer If your personal circumstances change, please ensure you update your Expression of Wish details regularly. You can opt out of the Plan at any time; see page 9 for Please refer to the relevant absence policy on HR Connect You can update your details by logging on to your more details. > Money > Retirement plans > Bank of America Merrill Member Account as above. Lynch UK Pension Plan. If you are an MBNA employee, please refer to HR Interchange Transfer payment > HR & Benefits > Holiday, absences, overtime & leave. If you choose to transfer the value of your Member Please note: Your employer reserves the right at any time Account to your new employer’s pension scheme or to wholly or partly to modify, suspend, substitute or discontinue another registered pension arrangement, you would give MyBenefitChoices, or specific MyBenefitChoices benefits up all entitlement to savings under the Plan. (including the value given to a benefit for the purposes Please note, the transfer does not have to be made as of MyBenefitChoices) and any other benefits, plans, soon as you leave the Plan. programmes or policies provided by your employer at any time. Your employer's interpretation of these terms is final. 32 33

Leaving the Plan On absence If you leave your employer before accessing your savings from the Plan, your options will depend on how long you have been a member. Ill-health benefits Your employer provides ill-health benefits to employees Less than one month Over one month through a separate Group Income Protection policy. If you are absent because of ill-health or injury, your regular contributions and those from your employer would continue When you leave you can take a refund of any contributions You will be entitled to 100% of the value of your to be paid to the Plan in the usual way. Full details of you have made (less tax). Member Account. the Group Income Protection policy can be found on the MyBenefitChoices website. Please note: if you have transferred in savings from a previous When you leave you can either: arrangement, your qualifying service in respect of these savings will also be considered. • Transfer the full value of your Member Account to another Maternity or primary carer leave registered pension arrangement, or Your employer will continue to make contributions to your • Leave the full value of your Member Account in the Plan Member Account at the usual rate against pre-maternity or Notification of options on leaving until you retire, or primary carer leave salary through ordinary maternity leave and • Depending on your age and retirement plans, you may be additional maternity leave. Member contributions will continue The Plan Administrators will send details of your savings and options to your home address, using the details it able to use your Member Account to access your savings. (unless requested otherwise) to be the same value of their holds about you at that date. Please note: pre-maternity or primary carer leave salary for the duration of the paid and unpaid maternity or primary carer leave. As the latest address the Plan Administrators hold on • If you die before you access your savings, your Member their records will be used for any future correspondence Account will be used to provide benefits for your family regarding your benefits held under the Plan, it is and Dependant(s), subject to Trustee discretion. Paternity or secondary carer leave important that you keep your personal details up to Your employer will continue to make contributions to your date after leaving service. • If you leave your savings in the Plan, your Member Account Member Account at the usual rate against pre-paternity or will continue to be invested in accordance with your Once you have left the Plan, you can update your details chosen investment selection. secondary carer leave salary. Member contributions will on the Plan administration website, by logging on to • If you joined the Plan before 1 October 2015, your continue (unless requested otherwise) to be the same value your Member Account at leaving options are different if you have less than of their pre-paternity or secondary carer leave salary for the www.hartlinkonline.co.uk/boaml or by writing to the 2 years’ membership. duration of the paternity or secondary carer leave. Plan Administrators; see page 36 for contact details. Unpaid leave from your employer If your personal circumstances change, please ensure you update your Expression of Wish details regularly. You can opt out of the Plan at any time; see page 9 for Please refer to the relevant absence policy on HR Connect You can update your details by logging on to your more details. > Money > Retirement plans > Bank of America Merrill Member Account as above. Lynch UK Pension Plan. If you are an MBNA employee, please refer to HR Interchange Transfer payment > HR & Benefits > Holiday, absences, overtime & leave. If you choose to transfer the value of your Member Please note: Your employer reserves the right at any time Account to your new employer’s pension scheme or to wholly or partly to modify, suspend, substitute or discontinue another registered pension arrangement, you would give MyBenefitChoices, or specific MyBenefitChoices benefits up all entitlement to savings under the Plan. (including the value given to a benefit for the purposes Please note, the transfer does not have to be made as of MyBenefitChoices) and any other benefits, plans, soon as you leave the Plan. programmes or policies provided by your employer at any time. Your employer's interpretation of these terms is final. 32 33

State benefits In addition to the savings you will receive from the Plan and any other private pension arrangements you have, the State also provides pension benefits. The State Pension State Pension Age A single-tier State Pension was introduced in April 2016 to Contracting out of the S2P The State Pension Age for both men and women begins replace the Basic State Pension and State Second Pension to rise above 65 from December 2018. (S2P). The full rate of single-tier State Pension for someone • If you were contracted out for a substantial time, the amount with 35 years of National Insurance qualifying service, of single-tier pension you will have built up is likely to be • By 6 October 2020, it will reach age 66 for everyone retiring after April 2016, is £155.65 a week (£8,093.80 a year). closer to the amount of the current Basic State Pension. and more increases are planned. The amount of new State Pension you can receive will depend on • If you were not contracted out, the amount of single-tier • Visit the Government website at www.gov.uk/state-pension-age to see what your the number of qualifying years you have built up, and whether or pension you have built up to date is likely to be closer State Pension Age will be. not you have been contracted out of the S2P before April 2016 to the single-tier pension amount. (see below). This may mean your State Pension is lower than the Find out more on the Government website at headline figure above. www.gov.uk/changes-state-pension. • If you have less than 35 ‘qualifying years’, you receive a proportion of the single-tier pension based on the number of years you have paid them. For example, with 20 years of contributions, you would receive 20/35 . ths • No single-tier pension is payable if you have less than 10 qualifying years. • You can pay additional National Insurance contributions to increase the number of qualifying years you have. 34 35

State benefits In addition to the savings you will receive from the Plan and any other private pension arrangements you have, the State also provides pension benefits. The State Pension State Pension Age A single-tier State Pension was introduced in April 2016 to Contracting out of the S2P The State Pension Age for both men and women begins replace the Basic State Pension and State Second Pension to rise above 65 from December 2018. (S2P). The full rate of single-tier State Pension for someone • If you were contracted out for a substantial time, the amount with 35 years of National Insurance qualifying service, of single-tier pension you will have built up is likely to be • By 6 October 2020, it will reach age 66 for everyone retiring after April 2016, is £155.65 a week (£8,093.80 a year). closer to the amount of the current Basic State Pension. and more increases are planned. The amount of new State Pension you can receive will depend on • If you were not contracted out, the amount of single-tier • Visit the Government website at www.gov.uk/state-pension-age to see what your the number of qualifying years you have built up, and whether or pension you have built up to date is likely to be closer State Pension Age will be. not you have been contracted out of the S2P before April 2016 to the single-tier pension amount. (see below). This may mean your State Pension is lower than the Find out more on the Government website at headline figure above. www.gov.uk/changes-state-pension. • If you have less than 35 ‘qualifying years’, you receive a proportion of the single-tier pension based on the number of years you have paid them. For example, with 20 years of contributions, you would receive 20/35 . ths • No single-tier pension is payable if you have less than 10 qualifying years. • You can pay additional National Insurance contributions to increase the number of qualifying years you have. 34 35

Help and more information The Plan Pensions in general www.baml.com/pensionupdate Budget Planner Comments or queries? Pensions Regulator To find out how you can make the most of your savings in the To help you understand how much you will need for your If you have a comment, concern or complaint, please follow The regulatory body for work-based pension schemes in the Plan and to access the tools and resources available to you, retirement, try the Budget Planner at the process set out below so that those who need to give you UK, providing support and advice to trustees, administrators, visit www.baml.com/pensionupdate. www.moneyadviceservice.org.uk/en/tools/budget-planner. a response will be able to provide it more quickly. employers and members. It aims to reduce the risk of schemes having to draw on the Pension Protection Fund, and promote Your comment, concern or complaint first needs to be referred good administration of pension schemes. Where necessary HR Connect/HR Interchange to Capita, the Plan Administrators. the Pensions Regulator is able to intervene in the running For general information about the Plan if you are an employee If Capita are unable to resolve the query/complaint, the Trustee of pension schemes where a party has failed in its duties. member go to HR Connect > Benefits > Financial > has established an Internal Disputes Resolution Procedure Phone: 0345 600 0707 Bank of America Merrill Lynch UK Pension Plan. (IDRP). To request a copy of the procedure and details of how If you are an MBNA employee, go to HR Interchange > to lodge a complaint, email [email protected]. Email: [email protected] HR & Benefits > Your Benefits, Discounts and Pensions. Web: www.thepensionsregulator.gov.uk Any submissions should be made in writing to: Post: Napier House, Trafalgar Place, Brighton BN1 4DW Investment profiler The UK Pensions Manager Bank of America Merrill Lynch UK Pension Plan The Pensions Advisory Service (TPAS) Find out what sort of investor you are by using the investment Hartshead House, 2 Cutlers Gate, Sheffield S4 7TL profiler at www.baml.com/investmentprofiler. This is an independent and voluntary organisation which If the issue has not been satisfactorily resolved using this process, then members can contact the following official bodies: provides free help and advice to members and their MyBenefitChoices beneficiaries with questions and/or issues they have about The Plan administration website • The Pensions Advisory Service (TPAS); see right for further their pension plan. To manage your Member Account online: You can start contributing or change how much you contribute details. It is not necessary to have completed the IDRP You can contact a local TPAS adviser through your Citizens to your Member Account during the MyBenefitChoices annual before contacting TPAS. • Use the links to SSO via HR Connect (or HR Interchange benefit enrolment period or at any time. Log on by using Advice Bureau or at: if you are an MBNA employee). See page 6 for details. SSO or at www.mybenefitchoices-uk.com. • The Pensions Ombudsman (see right) can investigate and Phone: 0300 123 1047 determine any complaint of maladministration or dispute • Go to www.hartlinkonline.co.uk/boaml. If you are an MBNA employee, log on via SSO or at of fact or law in relation to an occupational pension Web: www.pensionsadvisoryservice.org.uk www.mbnamybenefitchoices.co.uk. scheme if it has not been resolved under the IDRP Email: [email protected] and if TPAS has not been able to resolve the issue. Post: 11 Belgrave Road, London SW1V 1RB Pension Planner Pensions registry and tracing service If TPAS fails to resolve your issue, you can contact the Pensions This is an interactive tool which will help you see how changing Ombudsman. The Ombudsman can help investigate complaints the level of contributions, as well as the assumed investment If you lose contact with former pension schemes, you may not or disputes of fact or law connected with pension schemes. return from the funds in which your Member Account is invested, be able to claim your savings when you retire. The Ombudsman can be contacted at the same address as TPAS affects your estimated total savings. To access the Pension but has a different phone number, email address and website. Planner, visit the Plan administration website (see above). It is especially easy to lose touch when you change jobs, or if former employers change names. Phone: 020 7630 2200 Retirement option decision tree A free tracing service, run by the Department for Work and Email: [email protected] Pensions, may be of help if you need to contact the Trustee Web: www.pensions-ombudsman.org.uk To help you consider how you may want to access your of a previous employer’s pension scheme and cannot trace savings at your Target Retirement Date and how you them yourself. The service can be contacted at: Please note: As part of the March 2016 Budget, the should be invested from around 15 years before your Phone: 0345 600 2537 Government is restructuring guidance organisations to The Plan Administrators Target Retirement Date, use the decision tree at Web: www.gov.uk/find-lost-pension simplify the way that you access information about your www.pensionupdate-boaml.com/ If you have a specific question or query about your RetirementOptionsDecisionTree/index.html. Post: Unbiased Finance Limited, 131 Church Street, pension. A new body will take on and extend the services membership or savings, contact the Plan Administrators. Stoke on Trent, Staffordshire ST4 1DB currently provided by Pension Wise and the Pensions Advisory Service as well as the MAS pension services. We will External web link: www.hartlinkonline.co.uk/boaml update you with more information as it becomes available. Email: [email protected] Pension Wise Phone: 0800 917 6071 The Government provides free and impartial guidance to The Citizens Advice Bureau (CAB) Post: Bank of America Merrill Lynch UK individuals in defined contribution (DC) plans on how they The Citizens Advice Bureau provides free, confidential advice Pension Plan can access their savings from age 55 through its pension on issues around buying goods or services. Hartshead House guidance service – Pension Wise. The guidance is provided 2 Cutlers Gate over the phone by The Pensions Advisory Service and in It is monitored by the Financial Conduct Authority. Sheffield person by the Citizens Advice Bureau. Website: www.citizensadvice.org.uk S4 7TL You will receive more information as you approach retirement. Tel England: 03444 111 444 In the meantime, find out more on the Pension Wise website Tel Wales: 03444 77 20 20 at www.pensionwise.gov.uk. Text Relay: 03444 111 445 36 37

Help and more information The Plan Pensions in general www.baml.com/pensionupdate Budget Planner Comments or queries? Pensions Regulator To find out how you can make the most of your savings in the To help you understand how much you will need for your If you have a comment, concern or complaint, please follow The regulatory body for work-based pension schemes in the Plan and to access the tools and resources available to you, retirement, try the Budget Planner at the process set out below so that those who need to give you UK, providing support and advice to trustees, administrators, visit www.baml.com/pensionupdate. www.moneyadviceservice.org.uk/en/tools/budget-planner. a response will be able to provide it more quickly. employers and members. It aims to reduce the risk of schemes having to draw on the Pension Protection Fund, and promote Your comment, concern or complaint first needs to be referred good administration of pension schemes. Where necessary HR Connect/HR Interchange to Capita, the Plan Administrators. the Pensions Regulator is able to intervene in the running For general information about the Plan if you are an employee If Capita are unable to resolve the query/complaint, the Trustee of pension schemes where a party has failed in its duties. member go to HR Connect > Benefits > Financial > has established an Internal Disputes Resolution Procedure Phone: 0345 600 0707 Bank of America Merrill Lynch UK Pension Plan. (IDRP). To request a copy of the procedure and details of how If you are an MBNA employee, go to HR Interchange > to lodge a complaint, email [email protected]. Email: [email protected] HR & Benefits > Your Benefits, Discounts and Pensions. Web: www.thepensionsregulator.gov.uk Any submissions should be made in writing to: Post: Napier House, Trafalgar Place, Brighton BN1 4DW Investment profiler The UK Pensions Manager Bank of America Merrill Lynch UK Pension Plan The Pensions Advisory Service (TPAS) Find out what sort of investor you are by using the investment Hartshead House, 2 Cutlers Gate, Sheffield S4 7TL profiler at www.baml.com/investmentprofiler. This is an independent and voluntary organisation which If the issue has not been satisfactorily resolved using this process, then members can contact the following official bodies: provides free help and advice to members and their MyBenefitChoices beneficiaries with questions and/or issues they have about The Plan administration website • The Pensions Advisory Service (TPAS); see right for further their pension plan. To manage your Member Account online: You can start contributing or change how much you contribute details. It is not necessary to have completed the IDRP You can contact a local TPAS adviser through your Citizens to your Member Account during the MyBenefitChoices annual before contacting TPAS. • Use the links to SSO via HR Connect (or HR Interchange benefit enrolment period or at any time. Log on by using Advice Bureau or at: if you are an MBNA employee). See page 6 for details. SSO or at www.mybenefitchoices-uk.com. • The Pensions Ombudsman (see right) can investigate and Phone: 0300 123 1047 determine any complaint of maladministration or dispute • Go to www.hartlinkonline.co.uk/boaml. If you are an MBNA employee, log on via SSO or at of fact or law in relation to an occupational pension Web: www.pensionsadvisoryservice.org.uk www.mbnamybenefitchoices.co.uk. scheme if it has not been resolved under the IDRP Email: [email protected] and if TPAS has not been able to resolve the issue. Post: 11 Belgrave Road, London SW1V 1RB Pension Planner Pensions registry and tracing service If TPAS fails to resolve your issue, you can contact the Pensions This is an interactive tool which will help you see how changing Ombudsman. The Ombudsman can help investigate complaints the level of contributions, as well as the assumed investment If you lose contact with former pension schemes, you may not or disputes of fact or law connected with pension schemes. return from the funds in which your Member Account is invested, be able to claim your savings when you retire. The Ombudsman can be contacted at the same address as TPAS affects your estimated total savings. To access the Pension but has a different phone number, email address and website. Planner, visit the Plan administration website (see above). It is especially easy to lose touch when you change jobs, or if former employers change names. Phone: 020 7630 2200 Retirement option decision tree A free tracing service, run by the Department for Work and Email: [email protected] Pensions, may be of help if you need to contact the Trustee Web: www.pensions-ombudsman.org.uk To help you consider how you may want to access your of a previous employer’s pension scheme and cannot trace savings at your Target Retirement Date and how you them yourself. The service can be contacted at: Please note: As part of the March 2016 Budget, the should be invested from around 15 years before your Phone: 0345 600 2537 Government is restructuring guidance organisations to The Plan Administrators Target Retirement Date, use the decision tree at Web: www.gov.uk/find-lost-pension simplify the way that you access information about your www.pensionupdate-boaml.com/ If you have a specific question or query about your RetirementOptionsDecisionTree/index.html. Post: Unbiased Finance Limited, 131 Church Street, pension. A new body will take on and extend the services membership or savings, contact the Plan Administrators. Stoke on Trent, Staffordshire ST4 1DB currently provided by Pension Wise and the Pensions Advisory Service as well as the MAS pension services. We will External web link: www.hartlinkonline.co.uk/boaml update you with more information as it becomes available. Email: [email protected] Pension Wise Phone: 0800 917 6071 The Government provides free and impartial guidance to The Citizens Advice Bureau (CAB) Post: Bank of America Merrill Lynch UK individuals in defined contribution (DC) plans on how they The Citizens Advice Bureau provides free, confidential advice Pension Plan can access their savings from age 55 through its pension on issues around buying goods or services. Hartshead House guidance service – Pension Wise. The guidance is provided 2 Cutlers Gate over the phone by The Pensions Advisory Service and in It is monitored by the Financial Conduct Authority. Sheffield person by the Citizens Advice Bureau. Website: www.citizensadvice.org.uk S4 7TL You will receive more information as you approach retirement. Tel England: 03444 111 444 In the meantime, find out more on the Pension Wise website Tel Wales: 03444 77 20 20 at www.pensionwise.gov.uk. Text Relay: 03444 111 445 36 37

About the Plan Management of the Plan Detailed information about the Plan Data Protection Security of assets The Plan is set up under trust and is managed by a corporate If you would like more detailed information about the Plan, The Trustee uses your personal information to run the Plan The investment options available to members of the Plan are trustee, Bank of America Merrill Lynch UK Pension Plan there are a number of documents that are available from the and calculate and administer the savings payable under it. offered through an insurance policy with FIL Life Insurance Trustees Limited (the ‘Trustee’). As a result, the Plan’s assets Plan Administrators. To fulfil these activities, the Trustee may pass your Limited (‘Fidelity’). That means the Trustee does not invest are held quite separately from your employer. The Trustee The Statement of Investment Principles explains the Trustee’s information to professional advisors involved in the Plan. directly with the fund managers, but Fidelity does. Using is responsible for running the Plan in line with its Rules and strategy for investing the money that is paid into the Plan, In addition, in administering the Plan, the Trustee may transfer insurance policy funds helps the Trustee manage the Plan pensions law. more effectively than if Plan funds were directly invested and the arrangements that are in place for making sure it is your personal information to members of the Bank of America with the underlying managers because it: implemented effectively. Merrill Lynch Group, Lloyds Banking Group or to third parties Rules who may provide services and/or products to the Trustee in • Creates greater efficiency when administering the Plan’s relation to the Plan. These third party services and products investment options e.g. if changes to funds are needed, The provisions of the Bank of America Merrill Lynch UK Tax approval of the Plan may, for example, range from administrative and actuarial Pension Plan are set out in detail in the Rules, and the Plan services to insurance for the Plan. Where your information is • Reduces risk and potential costs to members when is run by the Trustee strictly according to that document. All statements regarding tax are based on the current disclosed to the Trustee’s advisors or other third parties as switching investments between funds within the Fidelity If there are any discrepancies between this Plan Handbook understanding of the legal position. From April 2006, the Plan described above, the Trustee will ensure that such recipients insurance policy, and and the Rules, the latter will prevail. The Rules are available has been registered under the Finance Act 2004. Prior to this, treat the information transferred to them as confidential and • Improves the investment fund reporting – making on request from the Plan Administrators; see page 36 the Plan was exempt approved under Chapter I, Part XIV of the will only be permitted to use or disclose this information for information consistent between funds helps Trustee for details. Income and Corporation Taxes Act 1988. This status currently limited purposes. and members with decision making. brings the following tax advantages: Professional advice • You receive full income tax relief on both your member It is possible that the Trustee may transfer some of your The Trustee’s policy with Fidelity is covered by the Financial Services Compensation Scheme (FSCS). The FSCS is the personal information to countries outside the European contributions through MyBenefitChoices and AVCs. The Plan Administrators, Trustee and your employer cannot Economic Area (EEA), which may not have data protection compensation fund of last resort for customers of financial give you financial or investment advice. If you are not sure what • The lump sums payable on retirement or death are free of tax. laws as comprehensive as those in the EEA. The Trustee services firms. In the unlikely event that Fidelity is declared is right for you, we strongly recommend you get professional • The Plan savings form some tax advantages in respect takes the obligation to keep your personal information secure in default by the FSCS, then up to 100% of the value of the advice. For details on how to contact a professional adviser in of its investment income. very seriously, so where information is transferred outside policy in liquidation can be recovered from the FSCS by the your local area, visit www.moneyadviceservice.org.uk/en/ the EEA, the Trustee will ensure that this is done under Trustee, with no upper limit. categories/financial-help-and-advice. In return for these valuable tax concessions, HM Revenue & obligations of confidentiality. The investments options offered through Fidelity are run by Customs impose overall limits on savings and contributions that can be paid. This means that, in certain circumstances, savings You have the right to request more information relating to fund managers and other organisations external of Fidelity. Amendment or Discontinuance and contributions under the Plan may have to be restricted. how your personal information is used as well as a copy of In the unlikely event of these fund managers or other the personal information held about you in the Plan records. organisations being declared in default, Fidelity would make Your employer reserves the right to amend or discontinue Tax is a complicated subject. If you are unsure of your tax To request more details relating to how your personal a claim against the fund manager or other organisation in (with the agreement of the Trustee) the Plan at any time. position or whether you are affected by the Annual Allowance information is used or a copy of your information, an attempt recover the money. However, a risk remains that If the Plan were to be terminated, your savings would be and Lifetime Allowance, you should consider contacting please contact the Plan Administrators. some or all of your investments would be unrecoverable. secured out of the Plan’s assets in accordance with the Rules. a professional adviser. The assets invested with fund managers are entrusted for safekeeping to a custodian that must be duly authorised and Annual Report and Financial Statements Benefit statements must act solely in the interests of the parties whose assets they A formal Annual Report and Financial Statements for the Members of the Plan are regularly informed about its hold. Fidelity and the fund managers are also subject to strict Plan are produced each year, and copies are available on performance and will receive an individual online benefit financial regulation to ensure the security of investors’ assets. the Plan administration website, in the Plan Library. statement once a year. If you hold additional voluntary contribution (AVC) investments with Aviva, Equitable Life or BlackRock, (which are held under • If you are an employee member, use the links to SSO via HR Connect (or via HR Interchange if you are an separate policies to the Fidelity policy) then depending on the MBNA employee). See page 6 for details. legal structure of the underlying investment vehicle, in the event of any of these providers being declared in default by • Go to www.hartlinkonline.co.uk/boaml. the FSCS up to 100% of the value of these policies may be recovered from the FSCS by the Trustee. The Trustee believes the current arrangements are in line with the industry standard and will continue to monitor security of your investments and the protections in place. 38 39

About the Plan Management of the Plan Detailed information about the Plan Data Protection Security of assets The Plan is set up under trust and is managed by a corporate If you would like more detailed information about the Plan, The Trustee uses your personal information to run the Plan The investment options available to members of the Plan are trustee, Bank of America Merrill Lynch UK Pension Plan there are a number of documents that are available from the and calculate and administer the savings payable under it. offered through an insurance policy with FIL Life Insurance Trustees Limited (the ‘Trustee’). As a result, the Plan’s assets Plan Administrators. To fulfil these activities, the Trustee may pass your Limited (‘Fidelity’). That means the Trustee does not invest are held quite separately from your employer. The Trustee The Statement of Investment Principles explains the Trustee’s information to professional advisors involved in the Plan. directly with the fund managers, but Fidelity does. Using is responsible for running the Plan in line with its Rules and strategy for investing the money that is paid into the Plan, In addition, in administering the Plan, the Trustee may transfer insurance policy funds helps the Trustee manage the Plan pensions law. more effectively than if Plan funds were directly invested and the arrangements that are in place for making sure it is your personal information to members of the Bank of America with the underlying managers because it: implemented effectively. Merrill Lynch Group, Lloyds Banking Group or to third parties Rules who may provide services and/or products to the Trustee in • Creates greater efficiency when administering the Plan’s relation to the Plan. These third party services and products investment options e.g. if changes to funds are needed, The provisions of the Bank of America Merrill Lynch UK Tax approval of the Plan may, for example, range from administrative and actuarial Pension Plan are set out in detail in the Rules, and the Plan services to insurance for the Plan. Where your information is • Reduces risk and potential costs to members when is run by the Trustee strictly according to that document. All statements regarding tax are based on the current disclosed to the Trustee’s advisors or other third parties as switching investments between funds within the Fidelity If there are any discrepancies between this Plan Handbook understanding of the legal position. From April 2006, the Plan described above, the Trustee will ensure that such recipients insurance policy, and and the Rules, the latter will prevail. The Rules are available has been registered under the Finance Act 2004. Prior to this, treat the information transferred to them as confidential and • Improves the investment fund reporting – making on request from the Plan Administrators; see page 36 the Plan was exempt approved under Chapter I, Part XIV of the will only be permitted to use or disclose this information for information consistent between funds helps Trustee for details. Income and Corporation Taxes Act 1988. This status currently limited purposes. and members with decision making. brings the following tax advantages: Professional advice • You receive full income tax relief on both your member It is possible that the Trustee may transfer some of your The Trustee’s policy with Fidelity is covered by the Financial Services Compensation Scheme (FSCS). The FSCS is the personal information to countries outside the European contributions through MyBenefitChoices and AVCs. The Plan Administrators, Trustee and your employer cannot Economic Area (EEA), which may not have data protection compensation fund of last resort for customers of financial give you financial or investment advice. If you are not sure what • The lump sums payable on retirement or death are free of tax. laws as comprehensive as those in the EEA. The Trustee services firms. In the unlikely event that Fidelity is declared is right for you, we strongly recommend you get professional • The Plan savings form some tax advantages in respect takes the obligation to keep your personal information secure in default by the FSCS, then up to 100% of the value of the advice. For details on how to contact a professional adviser in of its investment income. very seriously, so where information is transferred outside policy in liquidation can be recovered from the FSCS by the your local area, visit www.moneyadviceservice.org.uk/en/ the EEA, the Trustee will ensure that this is done under Trustee, with no upper limit. categories/financial-help-and-advice. In return for these valuable tax concessions, HM Revenue & obligations of confidentiality. The investments options offered through Fidelity are run by Customs impose overall limits on savings and contributions that can be paid. This means that, in certain circumstances, savings You have the right to request more information relating to fund managers and other organisations external of Fidelity. Amendment or Discontinuance and contributions under the Plan may have to be restricted. how your personal information is used as well as a copy of In the unlikely event of these fund managers or other the personal information held about you in the Plan records. organisations being declared in default, Fidelity would make Your employer reserves the right to amend or discontinue Tax is a complicated subject. If you are unsure of your tax To request more details relating to how your personal a claim against the fund manager or other organisation in (with the agreement of the Trustee) the Plan at any time. position or whether you are affected by the Annual Allowance information is used or a copy of your information, an attempt recover the money. However, a risk remains that If the Plan were to be terminated, your savings would be and Lifetime Allowance, you should consider contacting please contact the Plan Administrators. some or all of your investments would be unrecoverable. secured out of the Plan’s assets in accordance with the Rules. a professional adviser. The assets invested with fund managers are entrusted for safekeeping to a custodian that must be duly authorised and Annual Report and Financial Statements Benefit statements must act solely in the interests of the parties whose assets they A formal Annual Report and Financial Statements for the Members of the Plan are regularly informed about its hold. Fidelity and the fund managers are also subject to strict Plan are produced each year, and copies are available on performance and will receive an individual online benefit financial regulation to ensure the security of investors’ assets. the Plan administration website, in the Plan Library. statement once a year. If you hold additional voluntary contribution (AVC) investments with Aviva, Equitable Life or BlackRock, (which are held under • If you are an employee member, use the links to SSO via HR Connect (or via HR Interchange if you are an separate policies to the Fidelity policy) then depending on the MBNA employee). See page 6 for details. legal structure of the underlying investment vehicle, in the event of any of these providers being declared in default by • Go to www.hartlinkonline.co.uk/boaml. the FSCS up to 100% of the value of these policies may be recovered from the FSCS by the Trustee. The Trustee believes the current arrangements are in line with the industry standard and will continue to monitor security of your investments and the protections in place. 38 39

Jargon buster You will come across certain words and terms in this Plan Handbook which you may not be familiar with. These are outlined below. Annuity: An amount of money regularly paid during your Deferred Member: Someone who is no longer in service MyBenefitChoices: Your employer's flexible benefits package Salary Sacrifice: You forgo part of your salary equivalent to retirement. This is also known as a pension. with the employer providing the Plan or has chosen to leave that gives you the freedom to choose benefits that suit you and the value of your pension contribution, and this is paid directly the Plan, but who has left their savings in the Plan and for your personal circumstances. into your Member Account in exactly the same way as a regular Annual Allowance: The maximum amount you can pay, whom contributions have stopped. bank contribution. This has two benefits: every year, tax efficiently into any number of pension plans. Plan Salary: A fixed amount of your basic salary at 1 April See page 13 for details. Dependant(s): A Dependant includes: each year plus any eligible cash bonuses you may have • The value of the contributions is deducted from your salary If (after the minimum pension age) you choose to access • Your legal Spouse or Civil Partner, received, if applicable, in the previous year to 31 March. and is not subject to the usual income tax or National Insurance deductions, and your savings as taxed cash or keep them invested, accessing • A child (up to age 18, or 23 if in full-time education Your Plan Salary is subject to certain restrictions: them in a number of stages over the long-term, any future or training), and • For former members of the MBNA Europe Bank Limited • Your employer will pay less in National Insurance contributions. contributions you make to your savings may be subject to Pension Plan who joined the Bank of America UK Pension a lower Annual Allowance of £10,000. • Someone who, in the opinion of the Trustee, was, at Plan before 1 January 2007, your Plan Salary is restricted Spouse: Your husband or wife, or Civil Partner when you die. the time of your death, financially dependent on you, State Second Pension (S2P): The additional State Pension Automatic enrolment: The Government’s automatic or in a mutually dependent financial relationship with to the greater of 150% of your basic salary and the Bank ‘auto’ enrolment initiative aims to help more people save you, and whose standard of living would be affected Earnings Cap. which replaced the State Earnings Related Pension Scheme for retirement. It means that employees: by the loss of that person’s contribution or support. • For former Bank of America employees who joined the (SERPS) in April 2002. • Aged under 75, Bank of America UK Pension Plan before 1 January 2001, Target Retirement Date (TRD): The date at which you expect Expression of Wish form: Also known as a Nomination your Plan Salary is restricted to the greater of 150% of to access the savings from your Member Account. It can be • Who work or usually work in the UK earning at least the form, this informs the Trustee of who you wish to nominate your basic salary and the Bank Earnings Cap. any date from the minimum pension age – currently 55. If you qualifying level of earnings (£5,876 for the 2017/18 tax to receive your benefits in the event of your death. The Trustee choose to invest your Member Account in a Lifestyle approach, year), and will take your wishes into account but, for tax reasons, is not • For members who joined the Merrill Lynch (UK) Pension this date will determine when your investments move from the • Who are not already in a workplace pension scheme, have bound by them. Plan before 1 June 1989, your Plan Salary is restricted to Growth to the Pre-retirement phase. The Normal Retirement the right to be enrolled into a ‘qualifying’ pension scheme the greater of 150% of your basic salary and the Bank Age under the Plan Rules for most members is normally 62. (one that meets the Government’s standards) even if they Income Drawdown: A method of providing income in Earnings Cap. This may be different to your chosen TRD. have previously opted out. retirement, whereby you leave your savings invested and • For members who joined the Merrill Lynch (UK) Defined choose to draw down money, as and when you need. Contribution Plan before 1 June 1989, your Plan Salary Rules: The deed made between your employer and the Trustee The Bank of America Merrill Lynch UK Pension Plan is a is restricted to the greater of 150% of your basic salary of the Plan under which the Plan operates. It is amended from qualifying scheme. Lifetime Allowance: The maximum amount you can time to time, and is a legally binding document. Full details accumulate tax efficiently, by retirement, in all your pension and the Bank Earnings Cap. Bank Earnings Cap: The specified limit on the earnings that plans, including final salary pension plans. The Lifetime • For all other members, your Plan Salary is restricted of the Plan are contained in the Rules and in the event of any can be used for calculating savings from, and contributions Allowance for 2017/18 is £1 million. to the Bank Earnings Cap. discrepancy between this Plan Handbook and the Rules, the to, approved pension and life assurance arrangements. This is latter will prevail. reviewed each year, and is £154,800 for the 2017/18 tax year. Member Account: Your individual account in the Plan Qualifying Life Event: A significant life event that allows Trustee: The body responsible for the management of the into which contributions are paid. you to change some of your MyBenefitChoices. It includes a Cash Lump Sum: An amount of money you can choose Plan on behalf of its members. to take when you retire. Some or all of this amount may Member Contributions: The contributions you choose to change in marital status (e.g. marriage or divorce/dissolution), be tax free. make. You can make normal member contributions through a change in number of Dependants (e.g. the birth of a child) Salary Sacrifice, on the MyBenefitChoices website: and going on or returning from extended leave (e.g. maternity Civil Partner: A person who is in a civil partnership with a leave). Also covered are changes in contractual working hours, member or pensioner under the Civil Partnership Act 2004. • During the MyBenefitChoices Annual Enrolment period each extended leave for illness plus expatriate assignments when November, and remaining on your employer's UK payroll. Please refer to the Deferred Benefits: Benefits held in the Plan for members • At any time during the year; see page 36 for more details. MyBenefitChoices website or contact the MyBenefitChoices who are no longer employed by your employer or have chosen helpline to find out which life events qualify and which to leave the Plan. Alternatively, you can make Additional Voluntary Contributions benefits you are entitled to change. (AVCs) outside of Salary Sacrifice at any point during the year. 40 41

Jargon buster You will come across certain words and terms in this Plan Handbook which you may not be familiar with. These are outlined below. Annuity: An amount of money regularly paid during your Deferred Member: Someone who is no longer in service MyBenefitChoices: Your employer's flexible benefits package Salary Sacrifice: You forgo part of your salary equivalent to retirement. This is also known as a pension. with the employer providing the Plan or has chosen to leave that gives you the freedom to choose benefits that suit you and the value of your pension contribution, and this is paid directly the Plan, but who has left their savings in the Plan and for your personal circumstances. into your Member Account in exactly the same way as a regular Annual Allowance: The maximum amount you can pay, whom contributions have stopped. bank contribution. This has two benefits: every year, tax efficiently into any number of pension plans. Plan Salary: A fixed amount of your basic salary at 1 April See page 13 for details. Dependant(s): A Dependant includes: each year plus any eligible cash bonuses you may have • The value of the contributions is deducted from your salary If (after the minimum pension age) you choose to access • Your legal Spouse or Civil Partner, received, if applicable, in the previous year to 31 March. and is not subject to the usual income tax or National Insurance deductions, and your savings as taxed cash or keep them invested, accessing • A child (up to age 18, or 23 if in full-time education Your Plan Salary is subject to certain restrictions: them in a number of stages over the long-term, any future or training), and • For former members of the MBNA Europe Bank Limited • Your employer will pay less in National Insurance contributions. contributions you make to your savings may be subject to Pension Plan who joined the Bank of America UK Pension a lower Annual Allowance of £10,000. • Someone who, in the opinion of the Trustee, was, at Plan before 1 January 2007, your Plan Salary is restricted Spouse: Your husband or wife, or Civil Partner when you die. the time of your death, financially dependent on you, State Second Pension (S2P): The additional State Pension Automatic enrolment: The Government’s automatic or in a mutually dependent financial relationship with to the greater of 150% of your basic salary and the Bank ‘auto’ enrolment initiative aims to help more people save you, and whose standard of living would be affected Earnings Cap. which replaced the State Earnings Related Pension Scheme for retirement. It means that employees: by the loss of that person’s contribution or support. • For former Bank of America employees who joined the (SERPS) in April 2002. • Aged under 75, Bank of America UK Pension Plan before 1 January 2001, Target Retirement Date (TRD): The date at which you expect Expression of Wish form: Also known as a Nomination your Plan Salary is restricted to the greater of 150% of to access the savings from your Member Account. It can be • Who work or usually work in the UK earning at least the form, this informs the Trustee of who you wish to nominate your basic salary and the Bank Earnings Cap. any date from the minimum pension age – currently 55. If you qualifying level of earnings (£5,876 for the 2017/18 tax to receive your benefits in the event of your death. The Trustee choose to invest your Member Account in a Lifestyle approach, year), and will take your wishes into account but, for tax reasons, is not • For members who joined the Merrill Lynch (UK) Pension this date will determine when your investments move from the • Who are not already in a workplace pension scheme, have bound by them. Plan before 1 June 1989, your Plan Salary is restricted to Growth to the Pre-retirement phase. The Normal Retirement the right to be enrolled into a ‘qualifying’ pension scheme the greater of 150% of your basic salary and the Bank Age under the Plan Rules for most members is normally 62. (one that meets the Government’s standards) even if they Income Drawdown: A method of providing income in Earnings Cap. This may be different to your chosen TRD. have previously opted out. retirement, whereby you leave your savings invested and • For members who joined the Merrill Lynch (UK) Defined choose to draw down money, as and when you need. Contribution Plan before 1 June 1989, your Plan Salary Rules: The deed made between your employer and the Trustee The Bank of America Merrill Lynch UK Pension Plan is a is restricted to the greater of 150% of your basic salary of the Plan under which the Plan operates. It is amended from qualifying scheme. Lifetime Allowance: The maximum amount you can time to time, and is a legally binding document. Full details accumulate tax efficiently, by retirement, in all your pension and the Bank Earnings Cap. Bank Earnings Cap: The specified limit on the earnings that plans, including final salary pension plans. The Lifetime • For all other members, your Plan Salary is restricted of the Plan are contained in the Rules and in the event of any can be used for calculating savings from, and contributions Allowance for 2017/18 is £1 million. to the Bank Earnings Cap. discrepancy between this Plan Handbook and the Rules, the to, approved pension and life assurance arrangements. This is latter will prevail. reviewed each year, and is £154,800 for the 2017/18 tax year. Member Account: Your individual account in the Plan Qualifying Life Event: A significant life event that allows Trustee: The body responsible for the management of the into which contributions are paid. you to change some of your MyBenefitChoices. It includes a Cash Lump Sum: An amount of money you can choose Plan on behalf of its members. to take when you retire. Some or all of this amount may Member Contributions: The contributions you choose to change in marital status (e.g. marriage or divorce/dissolution), be tax free. make. You can make normal member contributions through a change in number of Dependants (e.g. the birth of a child) Salary Sacrifice, on the MyBenefitChoices website: and going on or returning from extended leave (e.g. maternity Civil Partner: A person who is in a civil partnership with a leave). Also covered are changes in contractual working hours, member or pensioner under the Civil Partnership Act 2004. • During the MyBenefitChoices Annual Enrolment period each extended leave for illness plus expatriate assignments when November, and remaining on your employer's UK payroll. Please refer to the Deferred Benefits: Benefits held in the Plan for members • At any time during the year; see page 36 for more details. MyBenefitChoices website or contact the MyBenefitChoices who are no longer employed by your employer or have chosen helpline to find out which life events qualify and which to leave the Plan. Alternatively, you can make Additional Voluntary Contributions benefits you are entitled to change. (AVCs) outside of Salary Sacrifice at any point during the year. 40 41

2017


Like this book? You can publish your book online for free in a few minutes!
Create your own flipbook