The BT Retirement Saving Scheme (BTRSS) Helping you save for a more flexible retirement Group...
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Transcript of The BT Retirement Saving Scheme (BTRSS) Helping you save for a more flexible retirement Group...
The BT Retirement Saving Scheme (BTRSS)
Helping you save for a more flexible retirement
Group Flexible Retirement Plan©2011 Standard Life (Images reproduced under licence)
This presentation will provide you with information only, to help you make an informed decision about your pension options.
Please consider the content of this presentation very carefully as BT’s group pension is a valuable element of your benefits.
If you are unsure as to the suitability of the plan, or any aspect of it, you should obtain financial advice. There may be a cost associated with this.
An important message
The BTRSS and you,saving for yourfuture
Important issues
Contents
A quick guide to investing
How much are the payments
SMART PensionsJoining basis
How do I join?What will the BTRSS give me?
How does the BTRSS work?
The sooner you start saving, the more likely you will be to reach your retirement goals
The BTRSS and you
Helping you save for a more flexible retirement
Online access to the BTRSS, so you can keep an eye on your plan
A wide range of investment options including the BT Share Fund
A tax-efficient way to save for retirement
What will the BTRSS give me?
Generous payments from BT which go towards your pension savings
Tax and legislation are likely to change. The information given here is based on Standard Life’s understanding of law and HM
Revenue & Customs practice at the date of presentation.
A few days later, we will send you a Username and Password to allow you to access your own webpage on the scheme website where you can change payment levels and investment choices
How do I join?
Please read the important sections of the BTRSS website, the scheme booklet, Direct Offer letter, Key Features Document, Key Features Illustration and Your Pension Investment Choices
You will then be asked to sign a BT Confirmation Form indicating your wish to become a member of the BTRSS during your consultation with BT
Joining basis
Payments invested in the BTRSS Lifestyle profile
BT pay 8%
You pay 5% of pensionable salary
You make payments through SMART Pensions
What is the salary sacrifice arrangement known as SMART
Pensions?
This is an arrangement where BT will make your payments into the scheme, reducing your gross salary accordingly
- National Insurance savings- this will be a change to your terms and conditions of employment - it can affect state benefits, borrowings and other transactions based on salary
Please read the scheme booklet or visit the BTRSS website for full details and examples of this arrangement.
How does the BTRSS work?
+/-
What BT pays (including your payment through SMART Pensions)
Tax relief & NI Savings
Any potential investment return
Charges-
Tax relief may be altered and its value to you depends upon your financial circumstances.
Your pension income - taxed as earned income
Your tax-free lump sum - upto 25% of fund
How much are the payments?
Payments - % of pensionable salaryPayments - % of pensionable salary
What you payWhat you pay What BT will payWhat BT will pay
5% 8%
6% 8.5%
7% 9%
8% and over 9%
The information in the table above has been provided by BT who set the payment levels. Please read the scheme booklet or visit the BTRSS website for full details.
How much are the payments?
The information in the table above has been provided by BT who set the payment levels. Please read the scheme booklet or visit the BTRSS website for full details.
If you pay at least 5% of your Pensionable Salary into the BTRSS, BT guarantees a minimum employer payment of £1,500 each year. This minimum payment will be applied pro-rata for part-time employees or people who leave during the year.
A quick guide to investing (1)BTRSS Lifestyle profile - Picked by BT and their adviser
10 Years + BlackRock Aquila HP (50:50) Global Equity Pension One Fund
Within 10 Years Standard Life Pension Protection One Fund
Within 2 Years Standard Life Pension Managed Cash One Fund
The value of an investment in any of the funds can go down as well as up. You may not get back as much as you invest. We strongly recommend you speak to a financial adviser before
choosing funds.
A quick guide to investing (2)Number of years from Selected Retirement Age
Fund10
Years or more
9 8 7 6 5 4 3 2 1 3 Months
Effective AMC*
Growth Funds
BlackRock Aquila HP (50:50) Global Equity Pension One Fund
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0.28%
Consolidation Funds
Standard Life Pension Protection One Fund
0% 10% 20% 30% 40% 50% 60% 70% 72% 74% 75% 0.28%
Standard Life Pension Managed Cash One Fund
0% 0% 0% 0% 0% 0% 0% 0% 8% 16% 25% 0.25%
Total Allocation 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
* We charge for managing your plan and investments and take this charge from the fund value, this is 1% each year on the above funds. BT has negotiated special, preferential terms on your behalf which means Standard Life will rebate part of the AMC by adding extra units to your fund each month. This effectively reduces the AMC on each fund. The rebate varies depending on the funds you invest in and is either 0.72% or 0.75% each year on the above funds. These charges apply whilst members remain employees of BT. The annual charges for the BTRSS will be increased by 0.3% one year after leaving BT. Charges and rebates are not guaranteed, they are regularly reviewed and may be changed in line with developments in the relevant markets.
BTRSS Lifestyle profile
A quick guide to investing (3)
Core Fund RangePicked by BT and their adviser
Full RangeMore than 150 funds, BT Share Fund
Self InvestmentOwn portfolio (terms, conditions & charges apply - obtain financial advice)
To help you understand your fund choices please refer to the investment section of the BTRSS website or the online booklets. For all investments, the value can fall as well as rise.
We charge for managing your plan and investments and take this charge from the fund value. Please read the “Your Pension Investment Choices” booklet on the BTRSS website or the scheme booklet for details of the funds and associated charges
Important issues
It is important that you read the full pack contents on the BTRSS website, in particular the Key Features Document. This details the risks and commitments involved.
Tax and legislation are likely to change. The information given here is based on Standard Life’s understanding of law and HM Revenue & Customs practice at the date of presentation.
More information
Online information pack including scheme booklet and key features document
BTRSS website: www.btretirementsavingscheme.com
BTRSS Helpline: 0800 066 5432
More information
BTRSS website: www.btretirementsavingscheme.com