© Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered in England No Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU. Making Your Choices Presentation Title Date

2 Mercer Employee Benefits Limited What I/we will cover today Reminder of the changes Deciding how much to contribute What do you need to consider about investments The investment funds The next steps Questions and answers

3 Mercer Employee Benefits Limited A brief summary of the changes Pension benefits build up through Investor Plan from 01/01/2008 on enhanced basis Pensions benefits built up before 01/01/2008 are protected and will increase The Company will pay off the deficits From 01/01/2008 you will no longer build up a pension from the Defined Benefit section of the Siemens Benefit Scheme Death in service and ill health benefits protected at minimum of current amount for next 5 years

4 Mercer Employee Benefits Limited How does defined contribution work?

5 Mercer Employee Benefits Limited Contributions

6 Mercer Employee Benefits Limited Contribution type Company match Tax reliefNI savingFlexibility to change The types of contribution Matched AVC × × × × × EDC

7 Mercer Employee Benefits Limited What can you afford to pay? Maximising the Company match The earliest you can access your savings is age 50 (55 from 6th April 2010) What are your other assets? When do you want to retire? Deciding how much to contribute

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12 Mercer Employee Benefits Limited Basics Investment

13 Mercer Employee Benefits Limited Savings Risk Volatility Risk Inflation Risk Investment risk is the chance that your investment will be lower than you expect Investment risk

14 Mercer Employee Benefits Limited Cash investments offer the most security but may not grow fast enough to keep pace with inflation Also known as ‘gilts’ when issued by the UK Government, bonds represent loans to companies or governments that are repaid with interest to investors over time Also known as ‘stocks and shares’, equities represent part ownership of a company, including its earnings and assets Equities, bonds and cash are the building blocks of most investments Equities Bonds Cash Investment choices

15 Mercer Employee Benefits Limited Please note: Any statement of past performance of any particular fund is not a guide to future performance. Also investments/funds denominated in a foreign currency will fluctuate with the value of the currency and any income from foreign investments will fluctuate in value. Cash High Return Equity Bonds Low Return High Risk Low Risk Investment choices

16 Mercer Employee Benefits Limited Projections are based on Market Interest Rate Expectations. Source – Bank of England, CPI Fan Chart - May 2007 Inflation risk

17 Mercer Employee Benefits Limited Consider how long you have until retirement… This graphic is not intended to recommend a specific course of action for you. Each person would have to consider their own attitude to risk in the context of their overall retirement and private financial planning. The road to retirement

18 Mercer Employee Benefits Limited Passive (Index-tracker) Aims to track the performance of the market (even when it falls) Reduces risk of performing less well than a market Investment management fees are lower Active-management: Aims to outperform the market Potentially better returns than Index Tracker but risk that could do worse Investment management fees are higher Passive or Active

19 Mercer Employee Benefits Limited The equity funds

20 Mercer Employee Benefits Limited Property, bonds and cash

21 Mercer Employee Benefits Limited Specialist funds

22 Mercer Employee Benefits Limited Lifestyle Strategy Private Fund Fixed Annuity Target Cash

23 Mercer Employee Benefits Limited Sign and return ‘Employment Contract Amendment’ forms and return by 24 th October 2007 My choice enrolment process (details sent out in last week of October): Decide how much to pay Choosing where to invest (‘Lifestyle’ or ‘Freestyle’) If select ‘Freestyle’, additional form issued in first week of December The next steps

© Copyright Mercer Employee Benefits Limited 2007 Mercer Employee Benefits Limited is authorised and regulated by the Financial Services Authority. Registered in England No Registered Office: 1 Tower Place West, Tower Place, London EC3R 5BU.

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27 Mercer Employee Benefits Limited Remember, if you select the same contribution rate your take-home pay will go down

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30 Mercer Employee Benefits Limited Helpdesk: external tel: ; internal tel: x5555 – option 6 Calculators and modellers Pensions modeller: Contributions calculator: IFA Advice: First £200 reimbursed, claim form returned by 30 th November 2007 Additional Support Available?

31 Mercer Employee Benefits Limited Your questions