The Open Pension Trust Member Booklet - … · The Open Pension Trust is designed to let you do...

Opt Pensions, 3 Bakehouse Court, 19 High Street, Saffron Walden, Essex, CB10 1AT 01799 581200 www.optpensions.com

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Member Booklet

The Open Pension Trust

Date of Issue: April 2018


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Member Booklet

Contents

1. INTRODUCTION ...................................................................................................................... 4

HOW DO I KNOW HOW MUCH MONEY IS IN MY RETIREMENT POT? .................................................... 4 HOW TO REGISTER ..................................................................................................................... 4 WHEN CAN I TAKE MY BENEFITS? ................................................................................................. 4 WHO GETS MY MONEY? .............................................................................................................. 4

2. ABOUT THE OPEN PENSION TRUST ................................................................................... 5

HOW IS THE OPEN PENSION TRUST OPERATED? .......................................................................... 5 HELPING YOU SAVE FOR YOUR RETIREMENT ................................................................................. 5 MAKING PENSIONS EASIER .......................................................................................................... 5

3. WHY A WORKPLACE PENSION SCHEME ........................................................................... 6

YOUR FUTURE ............................................................................................................................ 6 BEING A MEMBER OF THE SCHEME ............................................................................................... 6 OUR ONLINE SYSTEM – ‘ROOT’ .................................................................................................... 7

4. CONTRIBUTING TO THE SCHEME ....................................................................................... 8

CONTRIBUTING TO YOUR RETIREMENT POT ................................................................................... 8 WHAT DOES THE VALUE OF MY RETIREMENT POT DEPEND ON? ....................................................... 8 CONTRIBUTIONS ......................................................................................................................... 8 CHARGES .................................................................................................................................. 9 GROWTH ................................................................................................................................... 9 TAX RELIEF ................................................................................................................................ 9 HOW ARE MY CONTRIBUTIONS CALCULATED? ................................................................................ 9 HOW ARE MY ADDITIONAL VOLUNTARY CONTRIBUTIONS CALCULATED? ........................................ 10 MINIMUM CONTRIBUTIONS ......................................................................................................... 11 ANNUAL & LIFETIME ALLOWANCE LIMIT ....................................................................................... 11 CAN I MOVE MONEY INTO THE SCHEME FROM ANOTHER PENSION SCHEME? .................................. 12 INVESTMENTS .......................................................................................................................... 12 YOUR INVESTMENT FUNDS ........................................................................................................ 13 WHAT IF A MEMBER DOESN’T WISH TO INVEST IN THE GROWTH FUND? .......................................... 13 WHAT IF A MEMBER DOES NOT WISH TO USE THE LIFESTYLING FACILITY? ...................................... 13 MAKING THE MOST OF YOUR RETIREMENT POT ............................................................................ 14

5. RETIREMENT BENEFITS ..................................................................................................... 15

WHEN CAN I RETIRE OR TAKE MY MONEY OUT OF THE SCHEME? .................................................. 15 UNDERSTANDING YOUR OPTIONS AT RETIREMENT ....................................................................... 15

6. YOUR DEATH BENEFITS ..................................................................................................... 17

WHAT WILL HAPPEN IF I DIE BEFORE TAKING MY MONEY? ............................................................. 17 HOW DO I MAKE SURE THE RIGHT PERSON GETS MY MONEY? ....................................................... 17 WHAT HAPPENS IF I DON’T NOMINATE ANYONE? .......................................................................... 17 IS MY LUMP SUM TAXABLE? ....................................................................................................... 17

7. OPTING OUT ......................................................................................................................... 18

CAN I OPT OUT OF PENSION SAVING? ......................................................................................... 18 OPTING OUT ONLINE ................................................................................................................. 18 OPTING OUT BY POST ............................................................................................................... 18 WHAT HAPPENS IF I CAN’T AFFORD TO CONTRIBUTE TO THE SCHEME? .......................................... 19 WHAT HAPPENS IF I LEAVE MY EMPLOYER’S SERVICE?................................................................. 19


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OTHER DETAILS ABOUT TRANSFERS ........................................................................................... 19

8. FURTHER INFORMATION .................................................................................................... 20

HOW IS THE SCHEME SET UP? ................................................................................................... 20 SCHEME CONTACT DETAILS / QUERIES ...................................................................................... 20 WHAT HAPPENS TO MY RETIREMENT POT IF I GET DIVORCED? ...................................................... 20 COMPLAINTS ............................................................................................................................ 20 PENSIONS OMBUDSMAN ........................................................................................................... 21 THE PENSION ADVISORY SERVICE ............................................................................................. 21 THE PENSIONS REGULATOR ...................................................................................................... 21 PENSION TRACING SERVICE ...................................................................................................... 22 PRIVACY .................................................................................................................................. 22


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1. Introduction

How do I know how much money is in my retirement pot? By logging on to ‘Root’, Opt Pensions’ user friendly online account system, you are able to check what the exact value of your retirement pot is whenever you want. By accessing your account online, you’ll be able to:

• see your up-to-date retirement fund value at a time that suits you;

• check what your employer is contributing;

• make sure we have up-to date details for you;

• tell us whether you want to start, pay more, or stop contributions;

• request investment fund switches;

• inform us of who you want to receive your money if you die.

How to register Once you have been set up as a member of the Scheme, and we have your email address, we will automatically issue you with login details for Root. If you have not automatically received your login details, please email us at: [email protected]

When can I take my benefits? You can choose any date from your 55th birthday to start receiving your retirement benefits. It’s a good idea to let us know when you plan to take your retirement benefits. You can do this by logging into your account on ‘Root’. For more information about taking your retirement benefits please refer to the ‘Retirement Benefits’ section on page 15.

Who gets my money? Your retirement pot is there for you and your loved ones, so it is important that you tell us who you’d like to receive it if you die. This could be your partner or spouse, a family member or a charity. For more information about how you can do this please refer to the ‘Death Benefits’ section on page 17.


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2. About The Open Pension Trust

How is The Open Pension Trust operated? The Open Pension Trust is established as a master trust. There are three professional, independent trustees of the Scheme and The Open Pension Trust is administered on a day to day basis by Opt Pensions (‘Opt’). The trustees are obliged by law to ensure the Scheme is run in the best interest of all members.

Helping you save for your retirement The Open Pension Trust is in place to help you build up a retirement pot. The scheme has been designed to not only meet all the legal requirements but more importantly look after you, your money and your future.

Making Pensions easier We understand that pensions can be confusing. That’s why The Open Pension Trust has been designed to keep things simple and put you in control. We strive to make sure the information about your pension is easy to follow so that you can say with confidence that you understand your retirement benefits and options. Experience tells us that your pension won’t always be a day to day concern, and that you may just want to keep on contributing and let us take care of the rest. The Open Pension Trust is designed to let you do exactly that with a straightforward approach designed to help you plan for retirement.


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3. Why a workplace pension scheme

Your future It’s always been wise to save, but in deciding whether you need a pension scheme you need to ask yourself ‘how am I going to meet my living costs in later life?’ If you plan to rely mainly on the Basic State Pension, it’s worth remembering that this is currently worth £125.95 per week (2018/2019). Although this will give you a foundation for your income in retirement, when you stop working, you may find that without having saved for your retirement this may not be as much money as you would like or need. Between now and your retirement, the cost of things such as food, petrol and holidays is likely to increase. Saving your money in a workplace pension scheme can help it to grow more than the rising cost of living. By saving into your workplace pension you will get extra money from your employer and receive money from the government in the form of tax relief*. All this means that over the years there’ll be more money going into your retirement pot than if you just saved in a bank account. As well as helping to look after your future a pension scheme can offer some long term security for your family and loved ones. * For further information about tax relief please see page 9.

Being a member of the Scheme You’ve become a member of the Scheme for one of two reasons:

• Your employer automatically enrolled you or;

• You asked your employer to enrol you. Individuals are generally eligible to join the Scheme if they are employed by a UK employer that has decided to use the Scheme. In most cases, enrolment into membership of the Scheme will be automatic. The only exceptions will be where you do not meet the statutory conditions for auto enrolment (which are based on your age and earnings). Those aged under 16 and 75 or over will not be eligible to join the Scheme. No other conditions apply unless they have been confirmed to you by your employer. Admission will take place automatically unless you do not meet the conditions for auto-enrolment (in which case you will generally be able to join simply by asking your employer).


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If you opt-out / leave the Scheme but remain with your employer, your employer may be required to automatically enrol you into the Scheme at some point in the future. The same conditions apply to eligibility as described above.

Our online system – ‘Root’ Opt Pensions provides a user friendly online platform called ‘Root’ which allows you to view your pension details from your own computer. By accessing your account online you’ll be able to:

• tell us whether you want to start, pay more, or stop contributions;

• check that your and your employer’s contributions have been paid to the Scheme;

• see the up-to-date value of your retirement fund pot at a time that suits you;

• inform us of who you want to receive your money if you die or update these details as your circumstances change;

• make sure we have up-to-date details for you; and

• tell us what age you plan to take your benefits. You will also have access to the Scheme’s Document Library which includes The Open Pension Trust’s Deed and Rules.


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4. Contributing to the scheme

Contributing to your retirement pot A great way to build up your retirement pot is to start contributing as soon as you have the chance to and then keep contributing. It’s never too late to start! Whether you’ve been automatically enrolled or have asked to be enrolled into the Scheme, there’s a minimum contribution level that must be added to your retirement pot. Setting money aside for your retirement may be easier than you thought. Give it a go! Your employer will pay some or all of this and the rest will come from you and the government via tax relief. The contributions payable by you and your employer are calculated by reference to the standards set out in legislation - and any increase above and beyond that selected by your employer (and notified to you).

What does the value of my retirement pot depend on? The value of your retirement pot depends on:

• Contributions

• Charges

• Growth. Other factors will also be relevant including any cost associated with exercising any right to transfer the benefits, the age at which you access your benefits and the cost of converting the benefits into an annuity (should you wish to do this).

Contributions Contributions can come from:

• Your employer Your employer will make regular contributions.

• You As well as making regular contributions at a rate set by your employer, regular or one-off Additional Voluntary Contributions (AVCs) are also allowed. Any AVCs paid into your pension will also benefit from tax relief. Should you wish to pay AVCs you can do this by logging on to your Root account.

• The government through tax relief At the moment the basic rate of tax relief is 20%; higher tax rate payers will be entitled to tax relief at their nominal rate.


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Charges As a workplace pension scheme, the costs of setting up the Scheme are paid for by your employer. However, Opt Pensions will take a small percentage of the value of your retirement pot over the year to cover the costs of managing your retirement pot. The Scheme may also make a small charge, depending on the amount of your contributions. These charges fall within the Government’s default fund charge cap of 0.75% per annum of your fund value, as outlined in the Department for Work & Pensions’ recommendations for better workplace pensions. For details of our charges, please visit:

http://www.optpensions.co.uk/documents/resources/Member-Charging-Structure.pdf

Growth The growth of your retirement pot will depend on the performance of the funds your contributions are invested in. The funds chosen are meant to generate growth over the long term. However, this is not guaranteed as fund prices can go up and down in line with investment markets.

Tax relief When paying into a pension scheme, members receive tax relief on contributions they make. This means that money that would have gone to the government as tax goes into an individual’s pension instead. Your pension contribution is deducted from your pay before tax is calculated (but not National Insurance contributions). You then only pay tax on what’s left. As such regardless whether you are a basic, higher or additional tax rate payer you’ll get full tax relief straight away. With this scheme your employer will deduct your contributions from your gross pay. This means as a Basic Rate Taxpayer, that for every £10 contributed the effect on your net pay is only £8. If your earnings are below the starting rate for income tax you would not benefit from the tax relief a taxpayer would receive. However, this doesn’t affect the amount that is paid into your pension and you’ll continue to benefit from the money that your employer pays in.

How are my contributions calculated? One way of calculating workplace pension contributions is to base them on qualifying or banded earnings. This means the money earned between £6,032 and £46,350 per annum (These figures apply to the 2018/2019 tax year and will be reviewed every year by the government).

http://www.optpensions.co.uk/documents/resources/Member-Charging-Structure.pdf


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There are other ways that your employer can choose to calculate minimum contributions using different definitions of earnings and percentages. For more information about which method applies to you please contact your employer or alternatively contact a member of our Client Services Team by email at [email protected] or by calling 01799 581200.

Example 1 If pensionable salary is defined as qualifying or banded earnings and you earn £20,000 a year, your employer will base your contributions on £13,968, as that’s the amount you earned between £6,032 and £46,350 (£20,000 - £6,032 = £13,968). Based on the current total minimum contribution of 5%, £698.40 (£13,968 × 5%) would be added to your retirement pot. Your employer would contribute at least 40% of this or £279.36 and the rest would come from your wages and any tax relief you are entitled to.

Example 2 If pensionable salary is defined as qualifying or banded earnings and you earn £50,000 a year, your employer will base your contributions on £40,318, as that’s the amount you earned between £6,032 and £46,350 (£46,350 - £6,032 = £40,318). Based on the current total minimum contribution of 5%, £2,015.90 (£40,318 × 5%) would be added to your retirement pot. Your employer would contribute at least 40% of this or £806.36 and the rest would come from your wages and any tax relief you are entitled to.

How are my Additional Voluntary Contributions calculated? AVCs can either be paid as a fixed monetary amount per pay period (e.g. £10 per week / fortnight / month) or as a percentage of your defined pensionable salary (e.g. qualifying or banded earnings or total earnings) per pay period (e.g. 5% on earnings per week / fortnight / month). What this means is, if you decided to pay an AVC of 5% based on total earnings and a £20,000 annual salary you would contribute an additional £1,000 per annum (£20,000 x 5%) to your retirement pot. Just like your regular contributions, your employer will take your AVC contributions from your pay before your tax is worked out, so you’ll get full tax relief (normally at your highest rate) straight away. You qualify for tax relief on all your pension contributions up to 100% of your taxable earnings, including regular and AVC contributions.

mailto:[email protected]


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Minimum contributions The graph below shows how minimum contribution rates, based on qualifying earnings, will change over the next few years. As you can see the minimum rates will increase slowly from 2% to 8% by 5th April 2019.

Annual & Lifetime allowance limit You can save as much as you like towards your pension each year, but there's a limit on the amount of tax relief. The maximum amount of pension savings that benefit from tax relief each year is called the annual allowance. The annual allowance is £40,000 as of April 2018 and may change over time. Please note that for high earners this amount may be lower. For further information regarding the annual allowance please visit the HMRC website at www.gov.uk/tax-on-your-private-pension/annual-allowance


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The Lifetime Allowance is a limit on the amount of pension benefit that can be drawn from pension schemes – whether lump sums or retirement income – and can be paid without triggering an extra tax charge. As of April 2018 the Lifetime allowance is £1,030,000. This may change over time. For further information regarding the annual allowance please visit the HMRC website at www.gov.uk/tax-on-your-private-pension/lifetime-allowance

Can I move money into the Scheme from another pension scheme? Yes, subject to the rules of the Scheme and rules of the previous pension scheme. This will generally include statutory transfers from other registered pension schemes.

IMPORTANT In deciding whether to transfer your money to the Scheme from another pension provider’s scheme, we highly recommend that you seek advice from an independent financial adviser. For information on how an independent financial adviser can be found, please visit www.unbiased.co.uk. In some circumstances, you must receive advice before transferring.

Investments When you first join, your money will be placed in a default investment option*. The default option is based on how close you are to retirement. Unless you tell us differently (which you can do on Root), we’ll assume you’ll take your money out of your retirement pot when you reach your State Pension Age (To find out what yours is visit: www.gov.uk/state-pension-age). The default option has a strategy which is managed depending on your stated retirement age. What this means is that when you’re younger your pension pot will tend to be smaller, because you have received fewer contributions into it and had less time for the investments to grow. At this stage, conventional investment thinking suggests that you would wish to embrace a higher level of investment risk than later in your working lifetime. As such, your pension pot can withstand short-term stock market fluctuations as your retirement date is far enough in the future for the fund to be able to recover.

When you’re older, however, and in the approach to retirement, it is likely that your retirement savings will be a larger amount, and you are more likely to wish to protect a larger fund. To compound this, as you are older the time before you will need to call on those savings is less, meaning you are likely to wish to take less investment risk with your retirement savings. In summary, you are likely to wish to assume a higher attitude to investment risk – as defined by exposure to stock markets - when you’re younger, and more likely to wish


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to reduce that exposure as you approach retirement. Knowing when to do this, or remembering to do this, is difficult, most pension providers offer a process called “Lifestyling” designed specifically to address this problem for you automatically. *For more information about your default investment option please see the ‘Statement of Investment Principles’ document within the Scheme Documents sections on Root.

Your investment funds The idea of “Lifestyling” is that it will reduce exposure to stock markets in the run-up to retirement and avoid stock market falls having too great an impact upon a member’s retirement fund as they approach the time when they are going to need it. It does however target an investment that is 100% invested into low risk investments - such as cash - at retirement, and is ideal for somebody seeking to purchase an annuity to provide their retirement income. Annuities are not the only way of providing an income in retirement however, and we strongly recommend that members seek professional financial advice regarding their options at retirement.

What if a member doesn’t wish to invest in the growth fund? In the growth phase each member’s contributions will be placed into the growth fund, as this is deemed to be a suitable investment strategy for a medium risk investor with more than 10 years before retirement.

If you wish to actively select a lower risk investment prior to the 10 year date, you can instruct Opt Pensions to allocate between the growth and the cautious funds. Once you have elected to invest your pension into your chosen split between the growth and the cautious funds, you will no longer benefit from the automatic lifestyling. Opt Pensions will need to be instructed of any further switches between the growth and the cautious funds that you require. In the absence of any such instructions, your pension will remain statically split in the proportions instructed by you thereafter.

What if a member does not wish to use the lifestyling facility? If you do not wish to target an investment fully in cash at retirement – perhaps because you wish to use alternative means of providing income in retirement such as “Drawdown” - Then Opt Pensions should be instructed of this ideally at least 10 years before your retirement date. Opt Pensions will write to you before the tenth year prior to retiring to remind you of these options, but it is very important to plan such events.


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Making the most of your retirement pot • Keep at it – The most straightforward and reliable way to build your retirement

pot is to keep making contributions. • Put more in – By contributing more than the minimum amount that the employer

has asked you to pay, your retirement pot may grow faster. • Leave it in longer – By leaving your money in longer, you will have more time to

contribute which will allow your retirement pot to grow.


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5. Retirement benefits

When can I retire or take my money out of the Scheme? Your money in the Scheme takes the form of a retirement savings pot calculated by reference to such things as contributions paid, investment growth and any charges deducted. There is no guarantee as to the amount of your retirement pot. You can retire or take your money out of the Scheme from age 55. It’s a good idea to tell us when you plan to take your money out so that we can make sure your retirement pot is ready for that date. If you don’t tell us what date you want to retire we will assume you’ll take your money out on reaching State Pension Age. State Pension Age is changing over the next few years. To find out what yours is visit: www.gov.uk/state-pension-age

In special circumstances, such as ill health, you may be able to take your money out before your 55th birthday.

Important: There is no penalty applied to your fund for taking your benefits before your normal retirement age if you joined The Open Pension Scheme after 01 October 2017. However, if you joined the Scheme before 01 October 2017, we reserve the right to apply an early exit charge of up to 1% of your fund value on early retirement.

Understanding your options at retirement On reaching your retirement age, there are a number of things you can do with your retirement pot. Your options will depend mainly on how much is in your pot. We will help you understand the options available and offer information to support your decision-making process but we cannot give advice on what to do. Some of the options that may be available to you on reaching your retirement age are detailed below:

• Option 1 – Take all your retirement pot as cash If your retirement pot is worth £10,000 (2018/2019) or less you can take it all as cash from age 55. 25% will be tax free and the reminder will be taxed as earned income.

• Option 2 - Regular Retirement Income If you would like a regular income in retirement, you have a few options, in the main you can either:


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• Buy something called an annuity from an insurance company, and this gives you a guaranteed income for a fixed term or life; or

• Make regular withdrawals from your savings while it remains invested and continues to grow. This is known as a drawdown. Unlike an annuity the income in not guaranteed for life.

At the point of purchasing your regular retirement income you will be provided with various options. For example, you can choose to buy a fixed income annuity, one which increases annually in line with inflation or which increases at a rate above inflation. Other options include a pension for your spouse or partner following death.

Currently you cannot purchase a regular income or drawdown through The Open Pension Trust and would need to transfer to another scheme to do this.

• Option 3 - Cash Lump Sum and Regular Retirement Income You can opt to take some of your retirement (up to 25%) as a tax-free lump sum and use the rest to purchase a regular retirement income in the form of an annuity or drawdown. As with option 2 you’ll have various choices when it comes to buying a retirement income. Again, you cannot currently purchase a regular income through The Open Pension Trust. For information about how you can turn your pension savings into a retirement income, you can contact ‘Pension Wise’ the Government’s free, impartial retirement guidance service. You can email Pension Wise at: [email protected] For further information on the service provided by Pension Wise please visit their website at https://www.pensionwise.gov.uk/

• Option 4 - Leave your pension pot untouched for now and take the money later

It’s up to you when you take your money; you might have reached normal retirement age and even retired from work but it doesn’t mean you must take your money right away. Under The Open Pension Trust you have the option to leave your retirement pot in the scheme until you are ready to take your benefits.

mailto:[email protected]

https://www.pensionwise.gov.uk/


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6. Your death benefits

What will happen if I die before taking my money? The value of your retirement pot will be used, as the Trustees decide, for the benefit of your nominated beneficiaries or paid to your estate. The Trustees will normally consider paying a cash lump sum to your nominated beneficiaries. However, if any of your nominated beneficiaries are financially dependent on you the Trustees could decide to provide them with a retirement income with their share instead of a lump sum.

How do I make sure the right person gets my money? The Trustees ultimately have the final say in how any death benefit is paid according to the Scheme’s rules and the law. However, you can make your wishes known to the Trustees and specify to whom you want the benefit paid by completing the ‘Nominations for Death Benefits’ in the Personal Details section on Root via your online access. Alternatively, you can complete a Nomination of Beneficiary Form, which can be obtained by calling the Opt Pensions Client Services Team on 01799 581200, and returned to the Trustees in a sealed envelope. It is important to keep your nominations up to date. If you change your mind about who should get your pot, you’ll need to tell us. Otherwise, the Trustees will be guided by your most recent instruction.

What happens if I don’t nominate anyone? If you didn’t nominate anyone, they’ve already died or the Trustees are unable to find the person you’ve nominated, the Trustees will normally arrange for the value of your retirement pot to be paid to your estate. The estate will then be distributed in accordance to your will, or in the event you don’t leave a will, in line with the laws of intestacy.

Is my lump sum taxable? In most cases the lump sum death benefit will be paid as a tax free lump sum. However, in the following cases a tax charge of 45% will be applicable: • If you die before age 75 and the lump sum is not paid within two years of the reported death • If you die after age 75 and you’ve not taken your pension benefits.


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7. Opting out

Can I opt out of pension saving? Following auto enrolment, you will be given a window of opportunity to request a refund of your contribution if you decide you don’t want to be a member of the Scheme. This is normally a one month period starting from the date your employer enrols you. If you opt-out within the opt-out window, any money you’ve contributed will be refunded. Please think carefully before you opt out. By opting out you would have chosen to lose out on your employer’s contribution and tax relief that would have gone into your retirement pot. After the opt-out window has ended, you can still choose to stop making contributions and leave the Scheme (even if you stay with your employer). However, you will not get a refund of any contributions already made. Instead your contributions will stay in the Scheme until you either reach an age where you can take the money out (as per Section 5 above) or transfer it to another pension arrangement. If you decide to opt out / leave the Scheme you can do it in the following ways • Online • Post.

For further information on how to opt-out and the date which the opt-out window expires please refer to the letter sent to you confirming your enrolment into The Open Pension Trust.

Opting out online By visiting www.optpensions.com and selecting “Login to Root” on the main menu, you will be able to log in using your log on details. Once logged in, select Opt-out and follow the instructions on screen.

Opting out by post If you don’t have online access, you can contact us directly, and request an opt-out form. Once completed, please return the form to us at Opt Pensions using the contact address on the back page. On receipt of the completed opt-out form we will notify your employer.


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What happens if I can’t afford to contribute to the scheme? If having been enrolled into The Open Pension Trust, you decide that you cannot

afford the statutory minimum contributions you can:

• Choose to stop making contributions and leave the scheme. However, you will

only receive a refund of your contributions if you ‘opted-out’ within your opt-out

window. Or

• Subject to your employer providing Opt Pensions with written consent you may

be able to contribute at a rate below the statutory minimum.

If you would like to know whether you can contribute below the minimum levels

please contact a member of our Client Services Team by calling 01799 581200 or by

emailing [email protected].

What happens if I leave my employer’s service? If you leave the service of your employer, you will no longer be an active member of the Scheme. Your options on leaving your employer’s service are:

• Keep your retirement pot in the Scheme Your retirement pot remains invested in the Scheme. Each year you will receive a statement confirming the current value of your pot or you can check online via Root at any time.

• Transfer it to another scheme You may transfer your retirement pot into another pension arrangement.

Other details about transfers Once you have ceased active membership you will generally have a statutory right to transfer your retirement pot to another pension scheme registered with HMRC. There is no penalty applied to your fund for transferring it to an alternative pension provider if you joined The Open Pension Scheme after 01 October 2017. However, if you joined the Scheme before 01 October 2017, we reserve the right to apply an early exit charge of up to 1% of your fund value on exit.


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8. Further information

How is the Scheme set up? The Scheme has been established as a mastertrust and is governed by a Trust Deed and Rules. If there is anything in this booklet that conflicts with the Trust Deed and Rules, the Trust Deed and Rules will prevail. A copy of the Trust Deed and Rules is available on Root. The Scheme is registered with Her Majesty’s Revenue & Customs (HMRC) as a registered pension scheme under Chapter 2 of Part 4 of the Finance Act 2004.

Scheme Contact Details / Queries Should you have any queries you can find answers to frequently asked questions at: www.optpensions.com or on Root. If this does not resolve your issue, please contact us by one of the following methods: • Going online through Root • Emailing us at [email protected] • Call us on 01799 581200 • Write to us at: The Trustees of the Open Pension Trust C/O Opt Pensions 3 Bakehouse Court 19 High Street Saffron Walden Essex, CB10 1AT NOTE: The Scheme's annual report will be available on request.

What happens to my retirement pot if I get divorced? Your retirement pot is considered part of the matrimonial assets in any divorce, just like a family home. If you need a transfer value for a pending divorce, you can contact us as per the details above.

Complaints The Scheme has an internal procedure for resolving any disputes which may arise. The procedure is intended to ensure that any dispute is properly investigated and, where possible, resolved to the satisfaction of the parties. If you require a copy of the procedure, you can contact us as per the details above. If you’re still not satisfied after your complaint has been taken through our internal dispute resolution procedure and been raised with The Pension Advisory Service, you can take your case to the Pensions Ombudsman.


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Pensions Ombudsman The Pensions Ombudsman may investigate and determine disputes in relations to an occupational pension schemes. You can contact the Pensions Ombudsman at:

The Office of the Pensions Ombudsman 11 Belgrave Road London SW1V 1RB Tel: 020 7630 2200 Web: pensions-ombudsman.org.uk

The Pension Advisory Service The Pension Advisory Service (TPAS) is available to help members and beneficiaries with any;

• pensions query they may have

• difficulty they’ve had in resolving a complaint. You can contact them at:

The Pension Advisory Service 11 Belgrave Road London SW1V 1RB Pensions Helpline: 0300 123 1047 Website: pensionsadvisoryservice.org.uk

The Pensions Regulator The Pensions Regulator (TPR) is the UK regulator of work-based pension schemes. It works with trustees, employers, pension specialists and advisers to protect member benefits and encourages high standards in running pension schemes. TPR can intervene in the running of schemes where trustees, employers or professional advisers have failed in their duties. You can contact TPR at: The Pensions Regulator Napier House Trafalgar Place Brighton East Sussex BN1 4DW Tel: 0845 600 0707 Web: thepensionsregulator.gov.uk


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Pension Tracing Service The Pension Tracing Service acts as a central tracing agency to help individuals keep track of the benefits they have in previous pension arrangements and can be contacted at the following address: Pension Tracing Service The Pension Service Tyneview Park Whitley Road Newcastle upon Tyne NE98 1BA Tel: 0845 600 2537 Web: www.thepensionservice.gov.uk

Privacy In line with the Data Protection Act 1998 we will treat all information concerning you and your dependants in the strictest confidence. We may use your information for the purposes of administration, underwriting, claims handling and for research or statistical purposes, and may also share this information with reinsurers and regulators, as required by law or regulation.

The Trustees of the Open Pension Trust C/O Opt Pensions 3 Bakehouse Court Saffron Walden, Essex CB10 1AT Phone: 01799 581200 Email: [email protected] Web: www.optpensions.com

Date of Issue: April 2017

http://www.optpensions.com/

The Open Pension Trust Member Booklet - … · The Open Pension Trust is designed to let you do...

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