Smarter. Simpler. Better. 1 An introduction to your new workplace pension Name | Position 13 August 2014

Smarter. Simpler. Better. 2 What’s today about? What is auto enrolment? Why is this happening? How does this affect me? When will I be auto enrolled? How much will it cost me? When and how can I take the benefits? What if I don’t want to join the pension scheme? Who is NOW: Pensions? Questions

Smarter. Simpler. Better. 3 New government legislation relating to workplace pensions Requires all employers to automatically enrol specific groups of their workers into a workplace pension scheme For (insert employer name), the implementation date for auto enrolment is (insert staging date) What is auto enrolment?

Smarter. Simpler. Better. 4 The full basic state pension is £ per week for a single person This is payable from State Pension Age, currently 65 for men The government’s aim is to get more people to have another income, on top of the State Pension, when they come to retire Employers will enrol their workers automatically into a workplace pension scheme to make it easier for people to start saving Why is this happening?

Smarter. Simpler. Better. 5 (insert employer name) are required, by law, to automatically enrol you into a workplace pension scheme if you: are aged 22 or over are under State Pension age earn more than £10,000 a year (£833 per month) and work or usually work in the UK This makes you an ELIGIBLE employee How does this affect me?

Smarter. Simpler. Better. 6 Will receive a personal communication explaining what you need to do if you wish to opt-in. You could be: NON ELIGIBLE ENTITLED Be invited to join the scheme if you wish (opt-in) Receive a personal communication explaining what you need to do if you wish to opt-in What if I’m not ELIGIBLE?

Smarter. Simpler. Better. 7 (insert employer name) will implement your workplace pension scheme with effect from (insert staging date) Workers will be auto enrolled, and pension contributions deducted, with effect from (insert end of postponement period, if using postponement) When will I be auto enrolled?

Smarter. Simpler. Better. 8 Contributions will be taken directly from your pay at every payroll run. A percentage of your pay will be deducted and transferred into your pension pot. In addition, (insert employer name) will pay a percentage of your salary on top, and into your pot. How much will it cost me? 1 September 2014 to 31 st Oct 2017 Nov 1 st 2017 to 31 st Oct 2018 Nov 1 st 2018 and onwards Employer contribution 1% Employee contribution 1% Employer contribution 2% Employee contribution 3% Employer contribution 3% Employee contribution 5%

Smarter. Simpler. Better. 9 Contributions will be deducted from your earnings before you pay tax. For example, at a tax rate of 20%, every £10 of contributions only costs you £8. The extra £2 is tax relief from the government. Your employer’s contributions are also paid on top. It may cost you less if you pay tax at a higher rate. The more you put in, the more you save. How much will it cost me? Your monthly pay

Smarter. Simpler. Better. 10 You can currently retire from the age of 55 Your options are: 1.Use your total pension fund to purchase an annuity (guaranteed income for life) 2.Take 25% of your fund as a tax-free cash lump sum and use the remainder to purchase an annuity 3.Take 25% of your fund as a tax-free cash lump sum and take the remainder as a lump sum less tax (only available from 6 April 2015) When and how can I take the benefits?

Smarter. Simpler. Better. 11 You will receive a personal communication explaining what you need to do if you wish to opt-out BUT….consider this carefully Every £20 going into your pot has only cost you £8! What if I don’t want to join?

Smarter. Simpler. Better. 12 Who is NOW: Pensions?

Smarter. Simpler. Better. 13 NOW: Pensions is a UK multi-employer Trust Member focused Their mission to give everyone in the UK the possibility of a better retirement Supported by ATP, Denmark’s leading pension provider Low cost High quality Full transparency Who is NOW: Pensions?

Smarter. Simpler. Better. 14 Wholly independent with a depth of experience to provide rigorous governance. Trustee Board – Master Trust Governance Nigel Waterson Chair and former Shadow Pensions Minister Christopher Daykin The Former Government Actuary Lord Monks Member of House of Lords and Former General Secretary of ETUC and TUC Win Robbins Former Head of European Fixed Income, Barclays Global Investors and Credit Suisse Asset Management Jocelyn Blackwell Founder of Dunnet Shaw and Raising Standards in Pensions Administration

Smarter. Simpler. Better. 15 We align our interest to yours All NOW: Pensions employees are in the same pension as you!

Smarter. Simpler. Better. 16 Contributions paid in Member returns Cost and charges Transition into retirement Key drivers to a good pension outcome

Smarter. Simpler. Better. 17 Important Notes From 1 st January 2012 to 31 st December 2012, NOW: Pensions Investment ran a model portfolio. This entailed making daily decisions concerning implementation of investment strategy as if the assets had been physically held. Whilst returns are not real, all investors in the NOW: Diversified Growth Fund during this period received this return Member returns for the Diversified Growth Fund during Q4 2013, Q1 and Q included extraordinary returns in respect of assets sold by the NOW: Pensions Trust during Member returns to 31 st December 2014 NOW: Pensions Diversified Growth Fund Cumulative member returns 1 st January 2012 to 31 st December % 32.11% 10.86% NOW: Pensions Diversified Growth Fund 60% Equity / 40% Bond Portfolio Cash + 3% NOW: Pensions Diversified Growth Fund Average annual member returns 1 st January 2012 to 31 st December % 9.45% 3.5% NOW: Pensions Diversified Growth Fund 60% Equity / 40% Bond Portfolio Cash + 3%

Smarter. Simpler. Better. 18 Administration charge: £1.50 per member per month Annual Product Investment Management charge: 0.3% of Assets Under Management + No minimum contributions – huge fairness and cost advantage over time for members Reduced administration charges apply, until 31 st Oct 2018, for those earning less than £18,000 per year £0.30 from now until 31 st Oct 2017 and £1 from 1 st Nov 2017 to 31 st Oct 2018 If you leave, your deferred member charge is capped so it never exceeds 0.5% The lower the charges, the more you save

Smarter. Simpler. Better. 19 Managed Diversified Growth Fund Return Target: Cash +3% Retirement Countdown Fund Return Target: Cash Glidepath into retirement

Smarter. Simpler. Better. 20 What happens next?

Smarter. Simpler. Better. 21 Postponement letter

Smarter. Simpler. Better. 22 On joining/when enrolled Welcome pack with log-on to secure on-line account Contact information via and helpdesk Joiner pack Welcome Login

Smarter. Simpler. Better. 23 High quality investment solution Simple and transparent pension Supported transition to retirement Your own member website and helpline Low and transparent costs We live and work by our set of principles, never forgetting that it’s your money and your future we go to work to grow and protect. So, here’s our promise to our members. We promise to… Stay simple Stay transparent Stay responsible In summary – What do we get?

Smarter. Simpler. Better. 24 About NOW: Pensions About auto enrolment How we invest your funds And much more Want to know more?

Smarter. Simpler. Better. 25 NOW: is the time for a better pension

Smarter. Simpler. Better. 26 Any questions? MM /3

Smarter. Simpler. Better. 27 Any questions? nowpensions.com NOW: Pensions Limited, Registered in England and Wales. Registered office 3rd Floor, 164 Bishopsgate, London, EC2M 4LX. Company number: , VAT number: NOW: Pensions is a UK occupational pension plan. Membership is only available through an employer, following satisfactory credit checks on the employer. This is written as a general guide only. It should not be relied upon as a substitute for specific professional advice. Please note past performance is not a guarantee of future returns. MM /4