Introducing the Johnson Controls Group Personal Pension Plan

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I’m delighted to welcome you to Royal London.

When we first opened our doors in 1861, we wanted to help people to help themselves. And it’s been our way of thinking ever since.

Proud to be differentWe’re a different kind of financial services company because unlike our main competitors, we’re a mutual. This means we don’t have shareholders. Instead, we’re owned by you and our other members.

This means you can have your say on the future of our business by voting at our Annual General Meeting (AGM) and you’ll share in our success.

What’s so great about mutuality?Having no shareholders means we don’t have dividends to pay. Instead, we use our profits to boost your retirement savings and provide you with better products and services.

I believe this has helped us build a strong reputation for providing an Excellent Service. You can be sure that absolutely everything we do is for the long-term benefit of you and our other members.

This guide tells you more about how your plan works and the benefits it offers. I hope it helps you get the most out of your retirement savings.

Introducing Royal London.

Isobel LangtonCEO, ROyal lOndOn

IntERmEdIaRy

Inside this guide you’ll find:4 Your plan at a glance

5 Making contributions

8 Share our success

9 Investing your retirement savings

12 Clear charges

13 Your plan online

14 Taking your retirement benefits

15 Getting in touch

This is your handy reference guide. Please keep it in a safe place.

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Your plan at a glanceThere are lots of ways you could save for your future. But there’s only one savings method that’s designed specifically for retirement – a pension. Let’s take a look at why a pension is a good way to save.

Saving made easyYou’ll get tax benefits on the amount you save and your retirement savings will grow in a tax efficient way. This depends on individual circumstances and may change in the future, but for now it helps your savings to grow faster.

A helping handJohnson Controls will also help you to save by contributing to your plan. You would lose this benefit if you saved elsewhere.

Share our successWe’ll aim to give your retirement savings an extra boost by adding a share of our profits to your plan each year. So if we do well, so do you. We’ve called this your ProfitShare.

Out of temptation’s wayYour money will be safely locked away. This is a good thing as it means you can’t dip into your savings and leave yourself with less money for your retirement.

Kick start your retirementWhen you retire, you’ll have a number of flexible options to choose from to suit your needs.

It’s portableThe plan will belong to you so if you leave Johnson Controls, you can take it with you.

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Making contributionsEach time you save into your plan, so will Johnson Controls. These extra contributions will help to boost your retirement savings.

You have two contribution options; the elective category or the auto enrolment category. This section tells you about each category and how to join.

The elective categoryJohnson Controls offers you membership of the elective category of the plan with a generous contribution structure.

You can choose the elective category within the first month of your employment with Johnson Controls. You’ll also be given the chance to join each year during the January window.

You must contribute at least 1% of your salary to be eligible for an employer contribution. Johnson Controls will match the contributions you make as shown below.

You contribute Your employer contributes

1.00% 3.00%

2.00% 4.00%

3.00% 5.00%

4.00% 6.00%

5.00% 7.00%

6.00% 8.00%

6.00%+ 8.00%

You should check your terms and conditions of employment before you fill in your Joining form as different contribution rules could apply to you.

Pensionable salaryYour regular contributions are based on your pensionable salary. Pensionable salary is defined as your basic salary.

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Salary exchangeUnless you decide otherwise, your contributions will be made using salary exchange. With salary exchange, it costs you less to save for your future.

How salary exchange worksContributions before salary exchange

Normally when you save into a pension plan, your contributions are taken after tax and National Insurance Contributions (NIC) have been paid.

Each time you save into your plan, so will the taxman. This is called tax relief and depends on individual circumstances. It means that when you contribute £80, £100 goes into your plan, as shown below.

You contribute

£80.00

The taxman contributes

£20.00

Total

£100.00+ =

Contributions using salary exchange

With salary exchange, your contributions are taken before any tax and NIC have been paid. As your salary is reduced, you pay less tax and NIC.

It means that every £100 that goes into your plan only costs you £68, saving you £12. So it costs you less to save for your future, as shown below. These figures assume you pay basic rate tax.

Cost to you

£68.00

Tax and NIC savings

£32.00

Total

£100.00+ =

Johnson Controls also pays less NIC. They’ve decided to put 25% of these savings back into your plan, helping to boost your retirement savings even more.

Things to think aboutYou need to think carefully about whether salary exchange is right for you. Here are some of the things you should consider.

■■ If your salary drops below the national minimum wage as a result of using salary exchange, then you won’t be able to make contributions in this way.

■■ Certain State benefits such as statutory sick pay and maternity pay could be affected as they’re linked to your gross salary, which will reduce after salary exchange.

■■ The amount of basic State pension you receive could also be affected as it’s based on how much NIC you pay, which could reduce after salary exchange.

If you don’t think salary exchange is right for you, you should speak to the Johnson Controls Benefits Team.

The auto enrolment categoryIf you don’t join the elective category, you may be automatically enrolled or given the chance to join the auto enrolment category.

The regular contributions into the plan will increase in phases, as shown below.

Date You contribute Your employer contributes

6 April 2018 – 5 April 2019

3.00% 2.00%

6 April 2019 onwards

5.00% 3.00%

Qualifying earningsYour regular contributions are based on your qualifying earnings. This is your total earnings in a year between £6,032 and £46,350 for 2018/19. These levels are set by the Government and are subject to change.

Salary exchange – the basics■■ Usually it costs you £80 to save

£100 into your plan.

■■ With salary exchange, every £100 that goes into your plan only costs you £68, saving you £12.

■■ With salary exchange, it costs you less to save for your future.

■■ Your employer also pays less NIC and will put 25% of these savings back into your plan.

■■ These figures assume you pay basic rate tax. If you’re an intermediate rate (Scottish taxpayers only), higher rate

or additional rate taxpayer, you could be entitled to claim

more tax relief through a self-assessment tax return

or by contacting your local tax office.

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Reviewing your contributionsYou should review your contributions regularly to make sure you stay on track for the retirement you want. If you can afford it, you should think about increasing your contributions. After all, the more you save now, the better off you could be when you retire.

You should speak to your employer before making any changes to your regular contributions. They’ll tell you what changes you can make and when you can make them.

Single contributionsMaking single contributions to your plan is a great way to boost your retirement savings. So if you receive a bonus from work or find yourself with spare money, you could save it into your plan.

Transfer paymentsIf you have retirement savings built up in other pension plans, you can transfer them into this plan.

Having all your retirement savings in one place could make it easier for you to keep track of them.

Transfer payments from one pension plan to another don’t receive tax relief and are not always in your best interests. You should speak to a financial adviser before you make a decision.

Know your limitsThere’s a limit to the amount you can invest in pension plans every year before you are taxed on your contributions. It’s set by the Government and it’s called the annual allowance.

If you want to make contributions to your plan after you’ve taken all or some of your retirement savings, you may be limited to what you can contribute and receive tax relief on. This is called the money purchase annual allowance. Please note that this is considerably lower than the annual allowance and relates to any pension plan you may have, not just this one.

To find out more about the annual allowance and the money purchase annual allowance, visit yourplan.royallondon.com/johnsoncontrols.

Reviewing contributionsJohnson Controls need to comply with legislation under which it must automatically enrol eligible jobholders into a pension scheme which meets certain quality requirements. The current levels of contributions available to you under this scheme may need to be reviewed in future to ensure that Johnson Controls is meeting its statutory obligations. If, as a result of that review, changes to this scheme are proposed, Johnson Controls intends to consult with all employees who are affected by the proposals.

How to:

Join the elective category

If you want to join the elective category, you need to complete a Joining form within the first month of your employment with Johnson Controls. There is a Joining form in your offer pack. Alternatively, you can get one from the Johnson Controls Benefits Team.

Join the auto enrolment category

Johnson Controls will let you know if you will be automatically enrolled into the plan and when it will happen. You don’t have to wait for the automatic enrolment date; you can opt in early if you want to. If you want to opt into the auto enrolment category, you need to do this online at yourplan.royallondon.com/johnsoncontrols

How to:

Change your contributions

If you want to change your contributions, speak to the Johnson Controls Benefits Team.

Make a single contribution or transfer payment

If you want to make a single contribution or transfer payment into your plan, contact your dedicated Customer Service team.

You’ll find out how to contact us in the Getting in touch section at the end of this guide.

Share our success

Review financial

strength and performance

Decide ifProfitShare

will beawarded

Tell youabout your ProfitShare

award

Your ProfitShare award is invested

ProfitShareaccount

Helps yourmoney grow

Take yourretirementbenefits

How ProfitShare works

We’ll review our financial strength and performance at the end of each year to decide if ProfitShare can be awarded. You’ll qualify for ProfitShare as long as your plan was in force at any time during the year.

We aim to award between 0.15% – 0.25% of the value of your plan on 1 April the following year, as long as your plan is still in force. Over time, this will help to boost your retirement savings. You could get more or less than this and there’s no guarantee that we’ll be able to award ProfitShare every year.

We’ll write to let you know what your ProfitShare award will be and we’ll add it to a separate ProfitShare account within your plan in April. It will be based on the value of your plan at the date of the award and will be invested in the same investment choice as your other retirement savings to help it grow.

You’ll see the value of your ProfitShare account every year in your statement and you can take the value of your ProfitShare account along with the rest of your retirement benefits any time after age 55.

What’s the catch?

There isn’t one. The ProfitShare you’re awarded will belong to you. We’ll never ask for it back.

What if I’m invested in with profits?

If you invest in with profits, we’ll work out your ProfitShare in a different way. You can find out more in A guide to how we manage our with profits fund.

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Investing your retirement savingsWhen deciding how to invest your retirement savings, you have two main options. Your employer has set up a default investment choice for your plan. You can stick with this option or you can choose your own investments.

The plan default investment choiceThe Balanced Tracker Lifestyle Strategy (Annuity) is designed for people who prefer to leave the investment decisions to the experts. It’s a Lifestyle Strategy, which means it will reduce the risk to your savings by automatically moving them from higher to lower risk investments the closer you get to retirement.

Have a look at the table on the next page to see how this works.

It’s designed for people with a balanced attitude to risk. If you’re not sure, you can get an idea of your attitude to risk by using our risk profiler.

You’ll find the risk profiler and more information about the plan default investment choice at yourplan.royallondon.com/johnsoncontrols.

Remember

Regardless of whether you stick with the investment your employer has chosen or you decide to choose your own, investment returns are never guaranteed. This means that you might not get back the value of your original investment.

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The Balanced Tracker Lifestyle Strategy (Annuity)

Portfolio and fund

Years to retirement % of fund invested

15+ 10 5 Retirement

Governed Portfolio 4• Equities • Property • Commodities • Gilts • Index Linked Gilts • Corporate Bonds • Absolute Return Strategies (incl cash)

67.5% 17.5% 5.0% 1.7% 1.7% 1.7% 5.0%

Governed Portfolio 5 (Annuity)• Equities • Property • Commodities • High Yield Bonds • Gilts • Index Linked Gilts • Corporate Bonds • Absolute Return Strategies (incl cash)

55.0% 15.0% 5.0% 2.5% 5.0% 5.0% 5.0% 7.5%

Governed Portfolio 6 (Annuity)• Equities • Property • Commodities • High Yield Bonds • Gilts • Index Linked Gilts • Corporate Bonds • Absolute Return Strategies (incl cash)

32.5% 12.5% 5.0% 2.5% 11.7% 11.7% 11.7% 12.5%

Annuity Retirement

• RLP Annuity Fund 100.00%

Depending on market conditions, the fund manager may adjust the percentages shown in the table within certain limits. You can see the current percentages at yourplan.royallondon.com/johnsoncontrols.

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Choosing your own investmentsIf you don’t want to invest in the plan default investment choice, you can choose your own investments.

A helping handYou can choose one of our ‘off-the-shelf’ options from our Governed Range. This consists of Lifestyle Strategies and Governed Portfolios.

■■ Our Lifestyle Strategies are designed to reduce the risk to your savings the closer you get to retirement. They will automatically move you from higher to lower risk investments and are designed to suit different attitudes to risk.

■■ Our Governed Portfolios are made up of a mix of different investments. They take into account the time until you retire and the amount of risk you’re willing to take.

Manage your own investmentsIf you want control over your investments, we offer a carefully selected range of funds for you to choose from. You’ll have access to our in-house funds, managed by our asset management division, Royal London Asset Management (RLAM) as well as some of the world’s leading investment companies.

Finding out moreYou can find out more about the full range of investment options available to you in our Pension investment options guide. You can download a copy from yourplan.royallondon.com/johnsoncontrols. Or you can contact your dedicated Customer Service team.

If you need help deciding on a suitable investment option, speak to a financial adviser. You may be charged for this service.

If you decide to choose your own investments and don’t use the plan default investment, there may be an additional charge.

Reviewing your investmentsOur investment experts regularly review all our investment options to make sure they’re meeting their overall objectives. This ongoing governance comes at no extra cost to you.

You should also regularly review your investment choice to make sure it’s still suitable for you, especially if your circumstances change.

How to:

Change your investments

If you want to change your investments, speak to your dedicated Customer Service team. They’ll tell you how to go about this, but they won’t be able to give you any advice.

You’ll find out how to contact us in the Getting in touch section at the end of this guide.

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Clear chargesThere are charges for setting up and managing your plan. But don’t worry, you won’t have to pay any extra on top of your regular contributions.

Annual management chargeThe charge for managing your plan is known as the annual management charge. This is taken from the retirement savings you’ve built up.

New legislation came into force in April 2015 capping the maximum charges on workplace pensions used for auto enrolment. This means you’ll pay no more than 0.75% of your fund value in charges if you’re invested in the default investment or any of the Royal London funds.

The annual management charge for your plan is 0.44%. So if you have £1,000 built up in retirement savings, the annual management charge would be £4.40.

You should also remember that some investment options carry an additional management charge.

Your illustration will show you the charges that apply to your plan, when they will be taken and the effect on your retirement savings.

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Your plan onlineWhether you want to find out more about the plan or keep track of your retirement savings, you’ll find your pension website easy to use.

Your pension websiteYou’ll find your dedicated website at yourplan.royallondon.com/johnsoncontrols.

Here you can find out more about the plan and the options you have. You can also use our planning tools to help you make decisions and log in to our online service to see how your plan is doing.

For example, you can:

■■ check the value of your plan

■■ track the performance of your investments

■■ view fund prices

■■ make changes to your personal details

■■ view all contributions into your plan

■■ switch your investments

■■ print a Plan summary.

Accessing the online service■■ If you’re new to the plan, we’ll send you an access code to get you started.

■■ If you’re already a member, you can register for our online service in a few easy steps:

■■ Go to yourplan.royallondon.com/johnsoncontrols

■■ Select ‘Register’

■■ Follow the instructions on screen.

■■ If you’re already registered you can log in easily:

■■ Go to yourplan.royallondon.com/johnsoncontrols

■■ Select ‘Sign in’

■■ Follow the instructions on screen.

Planning tools

Lifestyle planner

Helps you to see how you could save more into your plan by cutting back on life’s little luxuries.

Risk profiler

Helps you get an idea of your attitude to risk.

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Taking your retirement benefitsWhen it’s time to take your retirement benefits, you’ll find that your plan has a number of flexible options.

Your optionsThe notional retirement age for your plan has been set at 65. However, you can remain an active member beyond the age of 65 if you are still employed by Johnson Controls and you wish to continue contributing to your plan. If that’s what you choose to do, Johnson Controls will also continue to contribute.

You also have the option to start taking your retirement benefits any time after age 55 – even if you’re still working.

If you decide to change your retirement age let us know. If you are invested in a Lifestyle Strategy, we’ll make sure your money is invested in the right part of the strategy.

The money you build up in your plan belongs to you. When you retire, you’ll have a number of flexible options to choose from to suit your needs, as shown below.

Cash lump sum(s)25% tax-free

Tax-free cash sumup to 25% tax-free

Purchaseannuity

Transfer toanother plan

Your retirementsavings

Guaranteed regularincome for life

Any time fromage 55

You can take some or all of your plan as a cash lump sum. Up to 25% of each lump sum will be tax-free. The rest will be taxed as earned income.

Alternatively, you can take up to 25% of your plan as a tax-free cash sum. The rest of your plan or all of it if you don’t take a tax-free cash sum can be used to provide you with a guaranteed income for life by buying an annuity. You don’t have to take your income from us. You’re free to shop around other providers to get the best rates. There’s no charge if you do this.

You also have the option to move to another plan that gives you the flexibility to take the regular income you want, when you need it.

Unlike an annuity, income payments are not guaranteed for the rest of your life. Both the income payments and the value of your plan may go down.

Regardless of which option you choose, it’s important that you speak to a financial adviser before you make a decision.

Making your decisionDon’t worry if you haven’t made up your mind yet about how you want to take your retirement benefits. We’ll write to you when you’re close to your chosen retirement date with more information about your options.

Know your limitsThere’s a limit to the amount you can have in this or any pension plan when you start taking your retirement benefits. It’s set by the Government and it’s called the lifetime allowance. If you want to find out more visit yourplan.royallondon.com/johnsoncontrols

Did you know?

If you die before you take any or all of your retirement benefits, your savings could be paid to one or more beneficiaries of your choice.

Just fill in the Payment of benefits on death form and return it to the Johnson Controls Benefits Team.

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Getting in touchYour plan has a dedicated servicing team who will look after your plan from start to finish and make sure everything runs smoothly for you.

Your dedicated servicing teamIf you have a question about your plan then you can contact your dedicated Customer Service team. They can provide you with any information you need about your plan but won’t be able to give you financial advice.

We can access your details quicker if you can quote your plan number.

Phone:

0345 600 0822

Fax:

0131 524 8873

Email:

memberhelpline@royallondon.com

Address:

Royal London, Po Box 413, Royal London House, Wilmslow SK9 0EN

Website:

yourplan.royallondon.com/johnsoncontrols

Contact a financial adviserIf you’re not sure that this pension plan is right for you then you should speak to a financial adviser.

If you don’t have a financial adviser then you can find one in your area at www.unbiased.co.uk/find-an-adviser.

Remember that you may be charged for the services provided by a financial adviser.

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All literature about products that carry the Royal London brand is available in large print format on request to the Marketing Department at

Royal London, 1 Thistle Street, Edinburgh EH2 1DG. All of our printed products are produced on stock which is from FSC® certified forests.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL. Royal London Marketing Limited is authorised and regulated by the Financial Conduct Authority and introduces Royal London’s customers to other insurance companies. The firm is on the Financial Services Register, registration number 302391. Registered in England and Wales number 4414137. Registered office:

55 Gracechurch Street, London, EC3V 0RL. Royal London Corporate Pension Services Limited is authorised and regulated by the Financial Conduct Authority and provides pension services. The firm is on the Financial Services Register, registration number 460304. Registered in England and

Wales number 5817049. Registered office: 55 Gracechurch Street, London, EC3V 0RL.

April 2018 14BG13/10 Johnson Controls11

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