Page 5 - BoAML Plan Handbook 17 V2.0

The Plan is a valuable benefit The big picture: know where to start

Your employer wants to provide all of its employees with a valuable and flexible benefit Retirement may seem a long way off. But if you do not take steps early enough, the savings
package. An important part of this is helping employees provide for life after work and so you have in the future may not be what you expected or need.
the Plan helps you save for your future.
For more information about the Plan and how to access your savings when you are ready,
The Plan is an attractive way to save About this Plan Handbook visit www.baml.com/pensionupdate (see page 6).

• It is flexible. You choose how much to save in addition This Plan Handbook explains how the Plan works, its features You need to prepare and regularly check that you are heading in the right direction. The following three simple steps should help
to your employer's contributions (and you can change this and other details you need to help you get the most out of you on your way.
at any time), how your contributions are invested if you’re your membership and to manage your Member Account.
an employee member, and how you want to access
your savings. More information about the Plan is set out in the Trust Deed
and Rules – these are the legal documents which govern the 1
• It is cost effective. Any contributions you make through Plan. In the event of any discrepancy between the Rules and Set a target Think about the level of savings you will need when you retire.
MyBenefitChoices are free from National Insurance, as this Plan Handbook, the Trust Deed and Rules will prevail. • What sort of lifestyle would you like? Setting yourself a target will help you decide
these are made through Salary Sacrifice. You also receive tax You can request a copy of the Rules from the Plan how much to contribute to your Member Account, and how to invest it.
relief on all contributions (up to certain limits; see page 13 Administrators (see page 36).
for details). Your employer meets the Plan’s administration • Many experts say you will need around 50-60% of your salary as an annual income
costs and you pay the investment management charges. to live on when you retire. If you do not already know how much you will need, try the
• It gives you investment choice. There are two investment Please note: the Plan is a ‘qualifying’ scheme for automatic Budget Planner.
approaches to choose from and within each approach there enrolment purposes. This means it meets or exceeds the • Once you have set your target, you need to see if your estimated savings will meet
are different options. The different options aim to offer standards required to conform to legislation introduced by your needs.
something for everyone. the Government and which has applied to your employer • As a member of the Plan, you will receive an annual benefit statement which will help
since 2013. See page 40 for more details.
• It gives you peace of mind. The Plan provides you you to see if you are on track. You can also check the value of your Member Account
and your Dependant(s) with financial protection through online at any time (see page 6 for more details). Make sure you consider all of your
life assurance. savings and sources of income – for example, any previous employers’ schemes,
inheritance, any other investments you may have and State benefits.
• If your expected total savings fall short of your target, you need to think about how
to close that gap. Acting on steps 2 and 3 below can make a big difference.
2 Save as much as It might not cost as much as you think.
you can afford
• If you are an employee member, you receive tax relief on contributions (up to certain
limits; see page 13 for details).
• Any regular member contributions you make through MyBenefitChoices are also free from
National Insurance, as they are paid through Salary Sacrifice. You can also make Additional
Voluntary Contributions (AVCs) outside of MyBenefitChoices and Salary Sacrifice.
• In addition to your own contributions to your Member Account, your employer contributes
too. See page 10 for more details.
3 Make your money Take control of your investments and make sure you review them regularly.
work harder
• The way you invest your Member Account directly affects its value when you
access your savings, so make sure you are not missing out on potential valuable
investment returns.
• Your investment choice will depend on your personal circumstances including
your attitude to risk. So it is important to understand your options and to make
the right decision for you. The Investments section from page 14 will help.
Use the investment profiler to help see what approach may be right for you.
nd
• Around 13 years before your Target Retirement Date (your 62 birthday unless
you choose otherwise), you also need to make sure your savings are invested in
line with how you plan to use them – see page 28 for more information. Use the
Retirement options decision tree to help you consider how you may want to
access your savings.

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