An introduction to your new workplace pension Name | Position 13 August 2014

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

What is auto enrolment? 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) Introduced 2012.

Why is this happening? The full basic state pension is £113.10 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 The age at which you can claim State Pension is changing. It is currently 65 for men. State Pension age for women is gradually increasing from 60 and will reach 65 by November 2018. State Pension age for both men and women will then increase to 66 by October 2020 and after that to at least 68.

How does this affect me? (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

What if I’m not ELIGIBLE? 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 Non eligible – your employer will pay too.

When will I be auto enrolled? (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) Your employer is using Postponement

How much will it cost me? 5% 3% 3% 2% 1% 1% 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. 1 September 2014 to 31st Oct 2017 Nov 1st 2017 to 31st Oct 2018 Nov 1st 2018 and onwards 5% 3% Employer contribution 3% Employer contribution 2% Employer contribution 1% Employee contribution 1% Employee contribution Employee contribution

How much will it cost me? 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. Your monthly pay

When and how can I take the benefits? You can currently retire from the age of 55 Your options are: Use your total pension fund to purchase an annuity (guaranteed income for life) Take 25% of your fund as a tax-free cash lump sum and use the remainder to purchase an annuity 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)

What if I don’t want to join? 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!

Who is NOW: Pensions?

Who is NOW: Pensions? Low cost High quality Full transparency 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 ATP – PADA – gap in market for cost efficient, simple pensions with investment funds that perform …

Trustee Board – Master Trust Governance Nigel Waterson Chair and former Shadow Pensions Minister Jocelyn Blackwell Founder of Dunnet Shaw and Raising Standards in Pensions Administration 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 Wholly independent with a depth of experience to provide rigorous governance.

We align our interest to yours All NOW: Pensions employees are in the same pension as you!

Key drivers to a good pension outcome Contributions paid in Member returns Cost and charges Transition into retirement

Member returns to 30th September 2014 Important Notes From 1st January 2012 to 31st 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 Q2 2014 included extraordinary returns in respect of assets sold by the NOW: Pensions Trust during 2013.

0.3% of Assets Under Management The lower the charges, the more you save 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 31st Oct 2018, for those earning less than £18,000 per year £0.30 from now until 31st Oct 2017 and £1 from 1st Nov 2017 to 31st Oct 2018 If you leave, your deferred member charge is capped so it never exceeds 0.5%

Glidepath into retirement Managed Diversified Growth Fund Return Target: Cash +3% Retirement Countdown Fund Return Target: Cash

What happens next?

Postponement letter Issued by email to you

Welcome Joiner pack Login On joining/when enrolled Welcome pack with log-on to secure on-line account Contact information via email and helpdesk Welcome Login Issued by email

In summary – What do we get? Simple and transparent pension High quality investment solution 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 State of the art managed, diversified growth fund Retirement protection Protecting your future retirement income (life cycling with annuity hedge) Affordable life assurance Protecting you from the impact of retiring in bad times Your money is being invested with prudent risk giving long term stable returns Transfer in/out Life insurance Tax efficient? affordable life assurance if you want Easy for employers Easy compliance with auto enrolment Easy technical integration with payrolls Easy fit with your remuneration and HR strategy Flexible branding Branding to fit your communications strategy Simple communication Simple, easy to understand communications Easy for employees Online and straight through processing with paper where needed The only decisions you need to make are how much you contribute and when you plan to retire Full online member services and call center Future proofing additional workplace savings products One charging structure One transparent charging structure for all Your contributions are not being eaten by unnecessary costs

Want to know more? www.nowpensions.com About NOW: Pensions About auto enrolment How we invest your funds And much more

NOW: is the time for a better pension

Any questions? MM00039.0814/3