pensiontime

pensiontime

CompassPensions

CompassPensions

An insight into your pension plan

Issue 4 – November 2012

Time to go paperless!In this edition of Pension Time we announce the launch of our Compass UK Pensions website www.compass-pensions.co.uk.

Please take time to read pages 2 and 3 to find out more about the website, what’s on it, what our aspirations are for the website and ultimately (on page 3) how we will use that website to communicate with you thereby improving the timeliness of our communications whilst at the same time reducing both our costs and our carbon footprint and making the administration of the Compass Group Pension Plan greener and leaner!

Facts and figuresHighlights from the Annual Report and Accounts for the Plan for the year ended 5 April 2012. Pages 4 & 5

Your Trustee BoardA summary of the changes that have taken place recently, and the new Trustee Board this has established. Page 6

Managing our investments An update on the Plan’s investment portfolio. Page 7

Auto Enrolment and the PlanA guide as to what Auto Enrolment means to our Plan members. Page 8

If you have a question about the Compass Group Pension Plan then the recently launched Compass UK Pensions website www.compass-pensions.co.uk could provide the answer.

The website provides information for current contributing members, current pensioners and for those ‘deferred pensioners’ that hold a benefit in the Plan that has not yet come into payment. It covers areas like how to claim your pension, what benefits exist for your family/dependants, what to consider when transferring your benefits and so on.

This website is up and running now. It is not the finished article and will evolve over time but we intend to use it as a library of useful information both from the past and going forward (see opposite). It includes answers to some frequently asked questions (where you may find that the answers you are looking for already exist) and this will be added to over time. There will be jargon busters, news updates and the facility to directly email questions and comments to the pensions email address.

Information at the touch of a button

2

PensionTime

PensionTime

If you read nothing else, read this

The Compass UK Pensions website www.compass-pensions.co.uk is now live.

The website provides information for current contributing members, pensioners and deferred pensioners.

The website includes answers to frequently asked questions, a document library and the facility to directly email questions and comments.

The way forward

3Issue 4 – November 2012

If you wish to opt out of electronic mailing and wish to continue to receive hard copy newsletters you can do so by writing to:Plan Electronic Mailing Opt Out, Compass Group Pensions Department, 5th Floor, Halford House, 2 Coval Lane, Chelmsford, Essex CM1 1TD

Or email pensions@compass-group.co.uk

Please ensure that you include your name, address and National Insurance number in your communication to us.

It will not have escaped your attention that there is a lot of paperwork involved in pensions. Much of this is driven by statutory regulations that make it a requirement for the Trustees to disclose matters such as the highlights from the Annual Report and Accounts (set out on pages 4 and 5 of this newsletter) and the Summary Funding Statement (which this year we have included as an A5 insert with this newsletter).

The Trustees have been looking at how we can best use resources to remain compliant with what we are required to provide, whilst at the same time reducing our carbon footprint, i.e. to become greener and leaner.

From a cost point of view, the recent hike in postal charges became a catalyst for bringing this to the fore and, as a result, we now have the Compass UK Pensions website which, like the Compass Group Pension Plan itself, is administered totally independently from Compass Group PLC and its subsidiaries.

However, if we are to be serious in reducing both costs and our impact on the planet, then we also need to move away from sending newsletters and other general mailings by post and instead to load them onto the website for you to see at leisure or to print off at home. Once posted to the website they will remain there indefinitely so all past newsletters and other general mailings can be recalled at the touch of a button. We have even posted past newsletters onto the website so you can free up some storage space at home!

If you can let us have your email address we will automatically inform you when new content is added to the website. Your email address will be stored securely and used only for the purpose of alerting you to new content.

We will be phasing out postage of the regular newsletters, with the one due around this time in 2013 being the last regular newsletter that we will post out, and even then, only to those of you for whom we do not already hold an email address.

If you read nothing else, read this

The Trustees have been

reviewing how they communicate with members.

Going forward, newsletters and other general mailings will be

loaded onto the website.

You can register your email address on the website to receive

automatic updates.

Next year’s newsletter will be the last to be printed and posted

(unless you specifically request otherwise).

Newsletters will be posted onto our new website and if you have registered your email address we

will alert you that it is there.

Annual Report and Accounts as at 5 April 2012

The Compass Group Pension Plan and the Compass Pension Scheme merged with effect from 5 April 2011. We therefore set out highlights from the first Annual Report and Accounts for the new merged Plan showing the financial transactions during the year ended 5 April 2012 and the financial position as at that date.

The following is a summary. If you would like a copy of the full Annual Report and Accounts for the Plan please write to Compass Group Pensions Department at the address shown on page 8. However, a full copy will be posted onto the new pensions website.

4

PensionTime

PensionTime

509(617)

Actives

Pensioners12,394(11,984)

Deferred pensioners

21,548(22,252)

Fund at 5 April 2011 £1,461.890m*

Increase in market value of investments £148.603m

Total income £31.289m

Investment income (including income from annuities)

£0.181m

Member contributions £0.543m

Company contributions £30.477m

Other income £0.076m

Transfers received £0.012m

Total outgoings £54.939m

Pension and other benefits £45.439m

Investment management fees £3.657m

Individual transfers out £5.833m

Administrative expenses £0.010m**

Fund at 5 April 2012 £1,586.843m

* Includes net assets of the Compass Pension Scheme transferred to the Plan on merger.

** The bulk of administrative costs are now met directly by the Principal Employer and not from the assets of the Plan.

+

+

–

=

Financial positionMembershipMembership figures as at 5 April 2012 (figures in brackets are of the combined Plan and Scheme as at 5 April 2011).

Annual Report and Accounts as at 5 April 2012

AssetsThe net assets of the Plan at 5 April 2012

were made up as follows:

Invested assets £1,572.951m

Net current assets £2.191m

Members’ AVC

accounts£6.022m

Members’ money

purchase accounts£5.679m

Net assets £1,586.843m

5Issue 4 – November 2012

Money purchase and Additional Voluntary ContributionsWithin the invested assets of £1,572.951m shown opposite there is a total of £2.733m relating to Additional Voluntary Contributions (AVCs) held on behalf of specific members (split £2.053m within the Scottish Widows Unitised With Profits Fund and £0.680m with Russell Investments Limited).

AVCs relate to extra contributions, above the required Plan contributions, that some members elected to pay in order to boost their retirement benefit. The members’ AVC accounts of £6.022m shown opposite are held in member designated accounts split between AXA Sun Life, Equitable Life Assurance Society, Standard Life, Aviva, London Life, Zurich Assurance, Legal & General, Prudential, Scottish Equitable and Scottish Widows. Together with the AVC assets held by Scottish Widows and Russell Investments Limited, the total of all AVC assets is £8.755m. All new AVCs are only invested with AXA Sun Life.

Members’ money purchase accounts of £5.679m shown opposite comprise £1.292m held in a Scottish Widows Unitised With Profits Fund, £1.521m held in a pooled investment vehicle with Russell Investments Limited and £2.866m held with Prudential.

Russell Investments Limited £1.521m

Scottish Widows Unitised With Profits Fund

£1.292m

Prudential £2.866m

6

Sally Mason, David Mortimer and Peter O’Meara had all stood down following the end of their tenure as MNTDs and all three were re-elected for the three vacant MNTD positions.

Having steered the Scheme through the merger with the Plan, and then overseen the MNTD process, David Bishop resigned as a Trustee Director on 30 September 2011.

Finally, Jim Roberts, who had served as a Trustee Director since 5 May 1992 and had been Compass’ Group Pensions Manager from 28 March 1988 to 31 October 2000, resigned as a Trustee Director. We would like to take this opportunity on behalf of the Company, the Trustees and yourselves as members, of thanking Jim for his dedication to his role within Compass pensions in the UK over the past 24 years.

To replace Jim, the Company asked Philip Whittome to become a Trustee Director. You will recall from Issue 3 of Pension Time that Philip had previously been appointed as Chairman of the Pension Plan’s Investment Committee. Philip will continue in this role as well as joining the full Trustee Board as an independent.

Philip is appointed as a representative of the professional independent trustee company, Capital Cranfield Pension Trustees Limited (‘Capital Cranfield’). Founded in 1992, Capital Cranfield is one of the oldest and largest firms of independent trustees in the country, currently employing over 30 Client Directors like Philip who work with around 250 ongoing pension schemes facing a range of different issues from a variety of industries.

Your Trustee Board is therefore (from left to right):

Sally Mason | Justin Besley | David Mortimer | Jim Roberts (now resigned) | Peter O’Meara | Mark White | Paul Lambert (Secretary to the Trustee) | Peter Morriss (Chairman)* | Philip Whittome*†

* Peter and Philip are both independent trustees. They have no connection with Compass Group PLC or any of its subsidiaries, other than as a

Trustee Director of the Compass Group Pension Plan.

† Representing Capital Cranfield Pension Trustees Limited.

PensionTime

PensionTime

Your Trustee BoardDuring the year there were a number of changes to the Trustee Board. Richard Getting resigned from the Board on 31 August 2011 at the end of the period of his tenure as a Member Nominated Trustee Director (MNTD). He did not stand for re-election.

Further changes to the investment portfolio of the Plan have been made since those reported in Issue 3.

The trustees appointed M&G Investment Management Limited (‘M&G’) in March 2012 to manage the Plan’s corporate bond portfolio. This followed a review of the Plan’s investments and resulted in lower investment management fees. It continues to be managed actively.

Also, during the year, there was a move away from shorter-dated index-linked gilts to longer-dated index-linked gilts. This was to better reflect the liabilities of the Plan.

The Statement of Funding Principles This explains how we will manage the Plan with the aim of

being able to meet the statutory funding objective, which is to have sufficient and appropriate assets to cover the liabilities, as calculated as part of an actuarial valuation and referred to as the Plan’s ‘technical provisions’.

The Statement of Investment Principles This explains how the trustees invest the money paid into

the Plan.

The Schedule of Contributions This shows how much money is being paid into the

Plan by the Company and the contributing members, and includes a certificate from the Actuary showing that the schedule of contributions is sufficient to meet the requirements set out by law.

The Actuarial Report as at 5 April 2012 This contains the details of the Actuary’s check of the Plan’s

financial position following the merger as at 5 April 2012.

The Annual Report and Accounts of the Compass Group Pension Plan for the year ended 5 April 2012

This shows the Plan’s income and expenditure during the year to 5 April 2012 and the value of the Fund as at 5 April 2012.

The Formal Actuarial Valuation Reports as at 5 April 2010

These contain the details of the Actuary’s check of the pre-merger Plan/Scheme’s financial position as at 5 April 2010.

The Compass Group Pension Plan Explanatory Booklet

This is the members’ handbook for the Plan. You should have been given a copy when you joined the Plan, but we can let you have another copy.

7

Report from the Investment CommitteeIn Issue 3 of Pension Time we introduced you to Philip Whittome who

had been appointed as Chairman of the Investment Committee of the Compass Group Pension Plan. As mentioned opposite,

Philip is now also a trustee director.

You will also be able to find all of these documents on-line at www.compass-pensions.co.uk

Issue 4 – November 2012

Cash and other 1.2% (Legal & General Assurance (Pension Management) Limited)

Global Equities 31.4% (Russell Investments Limited)

Index-Linked Gilts 49.2% (Legal & General Assurance (Pension Management) Limited)

Corporate Bonds 16.2% (M&G Investment Management Ltd)

Property 2% (Russell

Investments Limited)

The following documents are available to all members on request. The trustees reserve the right to make a charge to cover photocopying and postage.

At the time of writing, the investment profile is as follows:

PensionTime

PensionTime8

Any Questions?If you have any questions regarding this newsletter, or any other queries, please contact the Compass Group Pensions Department at:

Compass Group Pensions Department, 5th Floor, Halford House, 2 Coval Lane, Chelmsford, Essex CM1 1TD

Telephone: 01245 295550 Fax: 01245 295575

Email: pensions@compass-group.co.uk

Pension Auto Enrolment and the Compass Group Pension Plan (the ‘Plan’)Members of the Plan who are current employees of Compass Group in the UK will have seen recent announcements from the Company with regard to pension Auto Enrolment and the Company’s statutory obligation to automatically enter eligible individuals into a pension scheme from 2 January 2013 that meets certain criteria.

If you are currently contributing to the Plan then you should be advised that it fully meets the minimum requirements under the relevant legislation. Consequently, Compass Group will be registering the Plan as a qualifying scheme under the pension Auto Enrolment regulations. As a result your membership of the Plan will continue unaffected by this legislation and you will not be impacted by pension Auto Enrolment whilst you continue as a contributing member of the Plan.

You should be aware, however, that if at some future point in time you wish to terminate your contributions to the Plan whilst still being a Compass Group employee, you will then become subject to the Auto Enrolment regulations and will, at the next relevant date, be auto enrolled into the National Employment Savings Trust, more commonly referred to as ‘NEST’.