Page 41 - BoAML Plan Handbook 17 V2.0

Jargon buster

You will come across certain words and terms in this Plan Handbook which you may not
be familiar with. These are outlined below.

Annuity: An amount of money regularly paid during your Deferred Member: Someone who is no longer in service MyBenefitChoices: Your employer's flexible benefits package Salary Sacrifice: You forgo part of your salary equivalent to
retirement. This is also known as a pension. with the employer providing the Plan or has chosen to leave that gives you the freedom to choose benefits that suit you and the value of your pension contribution, and this is paid directly
the Plan, but who has left their savings in the Plan and for your personal circumstances. into your Member Account in exactly the same way as a regular
Annual Allowance: The maximum amount you can pay, whom contributions have stopped. bank contribution. This has two benefits:
every year, tax efficiently into any number of pension plans. Plan Salary: A fixed amount of your basic salary at 1 April
See page 13 for details. Dependant(s): A Dependant includes: each year plus any eligible cash bonuses you may have • The value of the contributions is deducted from your salary
If (after the minimum pension age) you choose to access • Your legal Spouse or Civil Partner, received, if applicable, in the previous year to 31 March. and is not subject to the usual income tax or National
Insurance deductions, and
your savings as taxed cash or keep them invested, accessing • A child (up to age 18, or 23 if in full-time education Your Plan Salary is subject to certain restrictions:
them in a number of stages over the long-term, any future or training), and • For former members of the MBNA Europe Bank Limited • Your employer will pay less in National Insurance contributions.
contributions you make to your savings may be subject to Pension Plan who joined the Bank of America UK Pension
a lower Annual Allowance of £10,000. • Someone who, in the opinion of the Trustee, was, at Plan before 1 January 2007, your Plan Salary is restricted Spouse: Your husband or wife, or Civil Partner when you die.
the time of your death, financially dependent on you, State Second Pension (S2P): The additional State Pension
Automatic enrolment: The Government’s automatic or in a mutually dependent financial relationship with to the greater of 150% of your basic salary and the Bank
‘auto’ enrolment initiative aims to help more people save you, and whose standard of living would be affected Earnings Cap. which replaced the State Earnings Related Pension Scheme
for retirement. It means that employees: by the loss of that person’s contribution or support. • For former Bank of America employees who joined the (SERPS) in April 2002.
• Aged under 75, Bank of America UK Pension Plan before 1 January 2001, Target Retirement Date (TRD): The date at which you expect
Expression of Wish form: Also known as a Nomination your Plan Salary is restricted to the greater of 150% of to access the savings from your Member Account. It can be
• Who work or usually work in the UK earning at least the form, this informs the Trustee of who you wish to nominate your basic salary and the Bank Earnings Cap. any date from the minimum pension age – currently 55. If you
qualifying level of earnings (£5,876 for the 2017/18 tax to receive your benefits in the event of your death. The Trustee choose to invest your Member Account in a Lifestyle approach,
year), and will take your wishes into account but, for tax reasons, is not • For members who joined the Merrill Lynch (UK) Pension this date will determine when your investments move from the
• Who are not already in a workplace pension scheme, have bound by them. Plan before 1 June 1989, your Plan Salary is restricted to Growth to the Pre-retirement phase. The Normal Retirement
the right to be enrolled into a ‘qualifying’ pension scheme the greater of 150% of your basic salary and the Bank Age under the Plan Rules for most members is normally 62.
(one that meets the Government’s standards) even if they Income Drawdown: A method of providing income in Earnings Cap. This may be different to your chosen TRD.
have previously opted out. retirement, whereby you leave your savings invested and • For members who joined the Merrill Lynch (UK) Defined
choose to draw down money, as and when you need. Contribution Plan before 1 June 1989, your Plan Salary Rules: The deed made between your employer and the Trustee
The Bank of America Merrill Lynch UK Pension Plan is a is restricted to the greater of 150% of your basic salary of the Plan under which the Plan operates. It is amended from
qualifying scheme. Lifetime Allowance: The maximum amount you can time to time, and is a legally binding document. Full details
accumulate tax efficiently, by retirement, in all your pension and the Bank Earnings Cap.
Bank Earnings Cap: The specified limit on the earnings that plans, including final salary pension plans. The Lifetime • For all other members, your Plan Salary is restricted of the Plan are contained in the Rules and in the event of any
can be used for calculating savings from, and contributions Allowance for 2017/18 is £1 million. to the Bank Earnings Cap. discrepancy between this Plan Handbook and the Rules, the
to, approved pension and life assurance arrangements. This is latter will prevail.
reviewed each year, and is £154,800 for the 2017/18 tax year. Member Account: Your individual account in the Plan Qualifying Life Event: A significant life event that allows Trustee: The body responsible for the management of the
into which contributions are paid. you to change some of your MyBenefitChoices. It includes a
Cash Lump Sum: An amount of money you can choose Plan on behalf of its members.
to take when you retire. Some or all of this amount may Member Contributions: The contributions you choose to change in marital status (e.g. marriage or divorce/dissolution),
be tax free. make. You can make normal member contributions through a change in number of Dependants (e.g. the birth of a child)
Salary Sacrifice, on the MyBenefitChoices website: and going on or returning from extended leave (e.g. maternity
Civil Partner: A person who is in a civil partnership with a leave). Also covered are changes in contractual working hours,
member or pensioner under the Civil Partnership Act 2004. • During the MyBenefitChoices Annual Enrolment period each extended leave for illness plus expatriate assignments when
November, and remaining on your employer's UK payroll. Please refer to the
Deferred Benefits: Benefits held in the Plan for members • At any time during the year; see page 36 for more details. MyBenefitChoices website or contact the MyBenefitChoices
who are no longer employed by your employer or have chosen helpline to find out which life events qualify and which
to leave the Plan. Alternatively, you can make Additional Voluntary Contributions benefits you are entitled to change.
(AVCs) outside of Salary Sacrifice at any point during the year.

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