ETHIKA AUTO ENROLMENT PENSION SCHEME - SIMPLE, RESPONSIBLE, PROFITABLE - SBM Staffing
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NEW MEMBER INFORMATION ETHIKA AUTO ENROLMENT PENSION SCHEME SIMPLE, RESPONSIBLE, PROFITABLE The Ethika Auto Enrolment Pension Scheme is registered with HMRC as an occupational pension scheme PSTR 00807504RK and regulated by The Pensions Regulator ref 12009065
CONTENTS SAVING FOR RETIREMENT IS IMPORTANT 3 THE SOLUTION 5 YOUR WORKPLACE PENSION QUESTIONS ANSWERED 6 WHO IS INVOLVED? 8 GENERAL ENQUIRIES: Email: ae@warwickeaton.co.uk 2
SAVING FOR RETIREMENT IS IMPORTANT. The Ethika Auto Enrolment Pension Scheme (Ethika) has CAN YOU TAKE YOUR MONEY OUT EARLY? been designed to make it easy for you and your employer. There are very few circumstances where you can take out your money before you reach 55. You can transfer AUTOMATIC ENROLMENT your savings because you’ve changed employer. Every employer in the country is required by law to If you’re suffering from serious ill health or are unable automatically enroll eligible employees into a pension to work any more you may be able to take your money scheme. Each employer has been allocated a date that earlier. To do this you’ll need to have your medical they must do this, its called the “staging date” condition confirmed by your doctor or registered You’re a member of Ethika for one of two reasons: medical practitioner. • your employer automatically enrolled you Be very cautious if you’re offered early access to your • you asked your employer to enrol you retirement pot for any other reason. These offers are usually scams that could end with you losing some WHEN CAN YOU TAKE YOUR MONEY OUT OF ETHIKA? or all of your retirement savings. Find out more at You can choose any date from your 55th birthday. pensionwise.gov.uk/scams It’s really important to let us know when you plan to take your money out of so we can try to manage your PUTTING MONEY AWAY FOR THE FUTURE money accordingly. You can also transfer your pension There are many different ways save for your savings to another pension scheme should you change retirement. Some people choose to do it through employer, your new employer or scheme will tell you a savings account or by putting cash into an ISA. how to do that. However, at the moment bank accounts don’t offer If you don’t tell us the date you want to take your high rates of interest. When you come to retire you money out of Ethika we’ll assume you’ll take your may find that the money you’ve saved is worth less money out at age 68. There are no penalties for than you expected because of the increased cost of members who wish to take their retirement benefits living. Ethika aims to grow your money more than if from 55 onwards. you put it in a bank account and built up interest. The State Pension age is changing over the next YOUR PENSION SAVINGS STAY WITH YOU EVEN IF few years. You can find out what yours is at gov.uk/ YOUR CIRCUMSTANCES CHANGE calculate-state-pension. Being a member of Ethika, you can keep the same In some circumstances, such as ill health, you may be retirement pot and contribute to it even if your able to take your money out earlier. circumstances change. For example, you can still contribute if you change jobs, become self-employed or stop working. Even if your next employer doesn’t offer Ethika you can still contribute directly to your savings yourself. You’ll need to contribute at least £10 each time. 3
YOU CAN HAVE ALL YOUR PENSION SAVINGS ETHIKA CHARGES IN ONE PLACE Ethika is an occupational pension scheme run in The Ethika scheme is happy to accept pension members’ interests. The scheme does not make a transfers from other schemes that you may have set profit from looking after your money. However, we up over the years enabling you to have your pension need to cover the costs of setting up the scheme and savings in one place. It may be appropriate for you to managing your retirement pot. obtain advice from a Financial Advisor before making a decision on a pension transfer. Members are urged to Unlike some schemes, Ethika does not charge consider that option. you for making contributions. The scheme charges 0.75% annual management charges to the funds it holds under management and that fee is divided proportionately to each member. CREATIVE AUTO ETHIKA NOW: PENSIONS NEST ENROLMENT Qualifying Earnings (say) £15,000 £15,000 £15,000 £15,000 Employer Contributions Year 1 150 150 150 150 Employee Contributions Year 1 150 150 150 150 Total Contributions Year 1 300 300 300 300 Contribution Charge N/A £1.50 / Month £2.00 / Month 1.80% Annual Management Charge 0.75% 0.30% 0.40% 0.30% Annual Contibution Charge 0 £18.00 £24.00 £5.40 Annual Management Charge £2.25 £0.90 £1.20 £0.90 Total Charge £2.25 £18.90 £25.20 £6.30 Charge as a % of Year 1 Funds 0.75% 6.30% 8.40% 2.10% Compared 1st February 2016. 4
THE SOLUTION – ETHIKA AUTO ENROLMENT PENSION SCHEME. The Ethika Auto Enrolment Pension Scheme has been In order to ensure attractive financial returns, Ethika specifically designed to meet the challenges of Auto further assesses potential investments based on a Enrolment offering unrivalled flexibility to its members. careful analysis of: The Scheme is made up of a carefully selected blend of Profitability: Ethika aims to provide the highest possible Equity and Debt Investments whose profile is consistent returns for investors in the fund and only invests in with a sustainable, responsible and positive impact companies with high and sustainable profitability. investment mandate conceived to deliver strong and secure returns. Management and Company Track Record: Well managed socially and environmentally responsible The investments are managed by Westbury Private companies are particularly well placed to enjoy Clients and Altarius Asset Management. Together they competitive advantages from cost reductions, quality target blended returns of 6-8% whilst maintaining high improvements, profitability enhancements and access to levels of liquidity to cater for the often transient nature of expanding and new growth markets. occupational scheme members. Elements of Government Subsidies: Ethika looks to benefit The Fund Managers apply an uncompromising set of from the opportunity associated with funding incentives assessment criteria to identify these opportunities. This and seeks to invest in companies in which government rigorous selection process has been conceived to seek subsidies represent a minimum of 50% of turnover. out companies that, among other things; Viability: In order to maintain secure and stable • Make positive contributions toward actively returns, a careful analysis of the short, mid and long promoting a healthier global future, including term viability is performed on potential investments. companies that produce renewable energy products This is particularly important for companies within the and/or offer effective solutions for existing social Renewable Energy sector. and environmental problems Strength of Technology (particularly related to • Demonstrate commitment to enhancing the renewables): The Fund’s investment evaluation process environmental and social good by having a direct is complimented by the incorporation of both qualitative impact in fostering development of services to and quantitative analyses of environmental, social and underprivileged sectors of the community or corporate governance (ESG) criteria, performance, advancing environmental sustainability practices and impacts. • Openly disclose their policies and performance on critical social and environmental criteria • Uphold their responsibility to shareholders and investors 5
YOUR WORKPLACE PENSION QUESTIONS ANSWERED WHY HAVE I BEEN PUT INTO A PENSION SCHEME? • Saving now will reduce reliance on the state system. • All employers now have to put their workers into a It is the clear intention of government to reduce state pension scheme if they earn over £10,000 per year, retirement costs with later retirement and diminishing are aged 22 or over and are under state pension age. state support This is the law, because the government wants to get WHY SAVE WITH THE ETHIKA AUTO ENROLMENT more people to have another income in addition to PENSION SCHEME? the state pension when they retire • The pension scheme has been specifically designed WHAT IS THE PENSION SCHEME THAT I HAVE to meet the challenges of Automatic Enrolment BEEN ENROLED INTO? • The scheme’s default investment is a blend of equity • The pension scheme that your employer has joined is and debt investments whose profile is consistent with a the Ethika Auto Enrolment Pension Scheme sustainable, responsible and positive impact investment • The pension scheme is administered by Warwick & conceived to deliver strong and secure returns Eaton Administrators Limited who’s postal address is • The fund’s managers apply an uncompromising set of Suite 6, 275 Deansgate, Manchester M3 4EL, telephone assessment criteria to identify opportunities 0161 979 0366 and email ae@warwickeaton.co.uk • Proven track record of Westbury Private Client and • The scheme is registered with HMRC and regulated Altarius Asset Management by the Pensions Regulator • No contribution charges imposed on members • The pension scheme invests around 40% of funds in • Retirement options from 55 years of age the equity markets and around 60% in bonds, cash/ cash equivalent and collective investment schemes WHAT ARE ETHIKA AUTO ENROLMENT PENSION • The management charge for auto enrolment pension SCHEME’S KEY FEATURES? schemes at 0.75% of the fund value • Designed for the challenges of Automatic Enrolment • The scheme allows members to transfer in other • Statutory minimum contributions as a default pension savings and to transfer out their savings to • Employees and Employers can make additional another pension scheme provider, so they so wish contributions • Allows members to transfer in other pension savings FIVE REASONS TO SAVE FOR RETIREMENT USING AN AUTOMATIC ENROLMENT PENSION SCHEME • Allows transfers out of the scheme • Saving for retirement via your employer has, • HMRC registered occupational pension scheme effectively 3 contributors. You, your employer and the • Regulated by the Pension Regulator government through tax relief • Retirement from age 55 with no penalties • Once in a pension fund, pension savings get a • Annual management charge limited to 0.75% of special tax treatment that helps your savings grow fund value • When you retire you will be entitled to receive up to • Investment managers – Westbury Private Client, 25% of your savings as a tax free lump sum Altarius Asset Management, Ethika Fund SICAV • Saving for retirement helps give pensioners independence in retirement. The state pension is far below what most people say that they hope to retire on 6
SHOULD I CONSOLIDATE MY PENSION SAVINGS INTO WHAT IF I ASK TO LEAVE THE SCHEME BUT THEN THE ETHIKA AUTO ENROLMENT PENSION SCHEME? CHANGE MY MIND IN THE FUTURE? • The Ethika Auto Enrolment Pension Scheme • You can ask to rejoin the scheme by contacting your allows members to take advantage of the schemes employer in writing by sending a letter which has to be strategies by transferring their other pension savings signed by you. Or if you send it electronically, it has to into the scheme contain the phrase, ‘I confirm I personally submitted this • One administration fee at just 0.75% of the fund notice to join a workplace pension scheme.’ value per annum so no high charges • If you earn more than £112 a week (£486 a month) your • All pension savings in one scheme, know where your employer will pay into the pension scheme as well savings are • You can only re-join once in any 12 month period • Facilitates easier retirement planning IF I ASK TO LEAVE THE SCHEME, WHAT HAPPENS • No exit penalties with the scheme AFTER THAT? • Retirement available from age 55 with no penalties • Anyone who asks to leave, or stops paying into, the scheme will be put back into it at a later date (usually WHAT IF I DON’T WANT TO JOIN THE SCHEME? every three years if they meet certain criteria). This is • If you don’t want to join the scheme, you need to ask because your circumstances may have changed and to leave it. You can choose to leave the scheme in the it may be the right time for you to start saving. Your one month period starting on either the date of your employer will contact you when this happens and you automatic enrolment letter or the date you were put in, can ask to leave the scheme whichever is the latest. You do this by completing the form available from Warwick & Eaton Administrators, IF I WANT TO STAY IN THE SCHEME DO I HAVE TO by emailing ae@warwickeaton.co.uk or by telephone PAY IN? 0161 979 0366 and following their instructions • You will pay in 1% of your earnings each pay period. • You will need to sign the form, or if you send it This will be taken directly from your pay and may electronically it will need to include confirmation that include tax relief from the government. Your employer you are submitting it personally will also pay in 1% of your earnings each pay period. • The pension provider will also be able to tell you Therefore, the total amount put into your pension pot when the one month period started, if you aren’t sure will be 2% of your earnings • If you leave the scheme during this period any money you have already paid into your pension will be WILL THIS AMOUNT CHANGE? refunded and you won’t have become a member of • As the money you pay in is a percentage of your the scheme on this occasion pay, the amounts will automatically go up or down if your earnings do. Also, there will be an increase the • If you want to stop paying into your pension anytime percentage being paid into your pension over the after the end of this one month period you can. The next few years in line with the government’s minimum money you have already put in will not be refunded. The standards. From *6 April 2018 you will pay 3% of your Scheme will invest the money until your retirement date, earnings each pay period and your employer will pay you rejoin the Scheme or transfer out your savings 2%. And then from *6 April 2019, you will pay 5% and your employer will pay 3%. * These proposed dates are subject to Parliament approval. 7
WHO IS INVOLVED? ADMINISTRATORS including ongoing reporting to the friendly and approachable and they take a relevant authorities in key jurisdictions. great deal of pride in providing a personal, partner-led service to their clients. FUND MANAGER PENSION SCHEME SOLICITORS Warwick & Eaton Administrators Limited are third-party professional pension administration specialists, who deliver high quality and first class services to all Westbury Private Clients is a London of their clients. Since the business was Based, Discretionary Wealth Management Turner Parkinson LLP - Established in established they have succeeded to grow business regulated by the Financial Manchester 1995, Turner Parkinson is in all aspects of their business. Conduct Authority (FCA). They are value- a business law firm with market leading driven investors focussing on long-term strength in offering commercial advice TRUSTEES wealth preservation aiming to take full to businesses. advantage of opportunities for their clients during periods of market dislocation. PENSION SCHEME ACCOUNTANTS FUND ADMINISTRATORS Barclay Cavendish Trustees Limited provide Trusteeship for occupational pension schemes, using the rules Bennett Verby Accountants - With over set out in the Trustee Act (an Act of 120 years experience they offer clients Parliament that contains standard Apex are one of the world’s largest the highest level of expert accountancy, sets of rules to cover most occasions). independent fund administration tax planning and business advice coupled Pension trusts also have some companies with over $45 billion of assets with a hands on personal approach. Their additional regulations imposed on them under administration, 34 offices and 600 dynamic partnership approach ensures a by HMRC which a pension trust must employees across the globe. APEX is forward thinking and innovative corporate comply with if a pension trust is to obtain located alongside its clients providing the culture where client service is at the heart. and keep its tax approved status. highest levels of services and is unique in its ability to reach globally, service locally PENSION SCHEME BANKERS FUND MANAGER and provide cross-jurisdictional solutions and best practice. PENSION SCHEME AUDITORS Barclays Bank PLC Altarius Asset Management was founded in 2008 in Malta to provide its clients with the sustainable solutions needed to deal GENERAL ENQUIRIES: with an increasingly complex corporate Mercer & Hole is a modern firm with Email: info@ethikapension.com and investment regulatory environment. roots established in 1905 by the founding partner, William Mercer. Mercer & Hole MEMBER ENQUIRIES: Today, Altarius provides a wide range has three offices (London, St Albans and Email: ae@warwickeaton.co.uk of corporate and administrative support services, fulfilled in a highly professional Milton Keynes) and 18 partners who each Tel: 0161 979 0366 manner, thus complying with all work very closely with their clients on a international regulatory requirements day-to-day basis.They are known for being The Ethika Auto Enrolment Pension Scheme is registered with HMRC as an occupational pension scheme PSTR 00807504RK and regulated by The Pensions Regulator ref 12009065 8
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