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A summary of the proposed changes

Proposed changes to your GSK pension plan

As a GWPP or SBPP member, there are proposals to change the way you save towards retirement.

GWPP and SBPP Plans close to future build up of benefits*

March

312021

Pension earned up until 1 April 2021 will increase to reflect inflation and in line with Plan

rules**

April

012021

Future pension savings with GSK will be in a defined contribution arrangement, the GSK Pension Plan (GSKPP)

GSK Pension Plan (DC)

**An underpin applies to SBPP members in deferment.*The Proposal also includes the closure of the SBSEPP

Your current defined benefit plan – the basics

GSK and members contribute (tax free up to

HMRC limits)

A secure pension income is built up

Scheme rules determine when the pension normally starts

Jan

15

It may be possible to start the pension income before or after this time*

A tax-free cash lump sum is also available

*If you retire before the Normal Retirement Age (NRA) your pension may be subject to an actuarial reduction

What this means for your pension savings

DBSBPP & GWPP

04These increases may be more or less than any future salary increases

GG03 Inflationary increases are intended to ensure

your pension income retains its current value*

01 DB benefits are calculated as if you left GSK on 31 March 2021

02From 1 April 2021, changes to pensionable salary (capped at 2% p.a.) will not affect your DB pension

If the proposed changes go ahead:

*An underpin applies to SBPP members in deferment.

Receiving your DB pension income

• The Normal Retirement Age (NRA) for most members is unchanged at age 65

• Receiving your pension before the NRA can result in a lower starting pension

55age

60age

65age

75age

Receive your pension, but a reduction will

apply

Subject to GSK’s consent, retire at age 60 without an

actuarial reduction*

NRA – no reductions

apply

You must receive your pension by

age 75

The current Company discretionary early retirement policy from active service is not proposed to change as part of this proposal

Therefore, under the current policy (which is subject to change from time to time) and subject to company consent, you may still retire with no reduction to your

pension from age 60 and a lesser reduction between age 55 and 60

*The option to take an unreduced pension at age 60 is discretionary and subject to GSK’s consent and may be removed at any time

Receiving your DB pension income

Flexible retirement – receiving your GSK pension whilst continuing to work at GSK.

Until

31 March 2021Flexibly retire and receive

company consent rules –

actuarial reduction before

age 60

From

1 April 2021

Flexibly retire with a

reduction applied

between 55 and NRA

The ability to take flexible retirement is still available

As part of this proposal, the Company discretionary flexible retirement policy (which is subject to change from time to time) & subject to company consent, would be applied on the following basis:

Note - flexible retirement is at the Company’s discretion and can change at any time.

What the Proposal means for other benefits available to DB members

4 x Pensionable Salary

PLUS• Proceeds of DC account • Members DB

contributions• Spouses pension of 30%

of Pensionable Salary• Children's pension of 20-

30% of Pensionable Salary

Death in Service

Security of benefits continues

Death after leaving GSK

50%

DC account proceeds would provide extra

benefit

Spouses pension of broadly

of DB pension built up prior to closure

PLUS

No change in policy

Death in retirement

No change in policy

50%

Cash lump sum of balance of 5 years of

payments of DB pension if death within

5 years

Spouses pension of broadly

of DB pension built up prior to closure

PLUS

31 March 2021

Applies to your DB pension benefit as at

This is a discretionary policy and can be

withdrawn or amended at any time

No change in policy

Redundancy Ill health

Continues to be available

50%

Under proposal the maximum is

of Pensionable Salary

PLUSPension purchased with the

proceeds of your DC account and your own contributions paid to

your DB plan

Always subject to Company discretion on a case by case

basis

What the Proposal means for other benefits available to DB members

And your DC fund after this date

The GSK Pension Plan (GSKPP)

Proposed Defined Contribution Plans

GSK and employees contribute (tax free*)

Any investment growth is tax-free

You can access your pension from age 55**

Receive up to 25% tax free

Receive a taxable lump sum or generate a taxable income with remaining pot

*subject to HMRC limits **The minimum age for accessing your pension is expected to increase to age 57 in 2028

Contributions are paid via Salary Sacrifice

GSK Pension Plan

Contributions

GSK core contribution

Employee contribution

Your matching contribution

GSK’s matchingcontribution

Total

7% 2% 0% 0% 9%

7% 2% 1% 1% 11%

7% 2% 2% 2% 13%

7% 2% 3% 3% 15%

Why the contributions you make may change

What this could mean in monetary terms

Example of annual contribution costs for a GWPP member with a salary of £40,000.

£40,000 GSKPension

Plan

Cost

2%

3%

4%

5%

default

member contribution

£1,600

£800

£1,200

£2,000

default

£1,088

£544

£816

£1,360

GROSS PERSONAL COST

GSKPP pensionable salary

GWPension

Plan

Cost

0%

1%

2%

3%

default

member contribution

£740

£0

£370

£1,110

default

£503

£0

£252

£755

GROSS PERSONAL COST

£37,000Pensionable

salary

What this could mean in monetary terms

Example of annual contribution costs for a SBPP member with a salary of £40,000.

GSKPension

Plan

Cost

2%

3%

4%

5%

default

member contribution

£1,600

£800

£1,200

£2,000

default

£1,088

£544

£816

£1,360

GROSS PERSONAL COST

GSKPP pensionable salary

£40,000£32,123

£964

member contribution

SBPension

Plan

CostGROSS PERSONAL COST

£655

Pensionable salary

3%

Generating a retirement income

Receiving your GSKPP at retirement

Income drawdown

Cash Lump Sum

Annuity

Taxable Income

Tax Free Cash

DC retirement savings You may have to transfer to an

alternative arrangement to access your chosen pension

income option

Providing feedback on the Proposal

Your Feedback - UK Information & Consultation Forum (UK I&C)

Under the terms of the UK I&C constitution and UK pensions legislation, the proposal has also been shared with the UK I&C with whom GSK is formally consulting regarding the proposal. As your representatives, they can also channel your feedback during the consultation process.

The UK I&CF website provides full details of UK I&CF and local I&CF representatives.

Pension consultation website

Access to the microsite is as follows:• Log into www.totalrewardonline.co.uk using your GSK MUD ID and password• Select ‘Financial Education: Wealth at Work’ from ‘Quick Links’ on the home page • Then choose the ‘Pension Consultation’ tab at the top of the page

Contact WEALTH at work by telephone or email if you have questions related to the consultation.

Further information

Please note that none of the UK Benefits team, the HR Support Centre, the Trustees of the GSK pension arrangements or Willis Towers Watson (the administrators of your GSK DB

Plan) will be able to answer questions about the proposal.

We can answer technical queries that you may have in relation to the consultation but will not be able to give you financial advice.

Helpdesk: gsk@wealthatwork.co.uk

Helpline: 0800 954 0759.