1

Internal use only

BMI HealtHcare staff PensIon scHeMe

staff Members’ Booklet

Serious about health. Passionate about care.

2 3

3 Introduction

4 Summaryanddefinitions

5 Welcome

6 Contributions–NICEfficientPensionArrangement

8 Investingcontributions

9 other investment options

10 additional Voluntary contributions (aVcs)

12 Monitor your investment

13 Benefitswhenyouretire

14 Securingyourbenefits

16 Deathbenefits

17 temporary absence and state pensions

18 Managingyourpennsionaccountonline

19 further information

21 Appendix1–NICefficientpensionarrangementFAQs

contents

Pensionsareanimportantpartofeveryone’slife,nomatterhowfaroffretirement.Makingproperpensionprovisionearlyoninlifehelpsensureasaferfinancialfutureforbothyouandyourfamily.

The scheme aims to provide this financial security, both before and after you retire.

ThisbookletsummarisesthebenefitstheSchemeoffersyoutoenableyoutogainthemaximumfromit.

FulldetailsoftheSchemearesetoutintheTrustDeedandRules,whichisthelegaldocumentgoverningtherunningoftheScheme.Theywilloverrulethisbookletshouldanyquestionofinterpretationarise.AcopyoftheTrustDeedandRulesisavailablefrom the Hr administration team or from the Human resources Department on writtenrequest.

IfyouwouldlikefurtherinformationaboutanyaspectoftheScheme,pleasecontactThePensionSchemeAdministratoratthefollowingaddress:

BMI Healthcare

The Watts Buildings

10 Independents Road

Blackheath

SE3 9LF

Schemenumber:F56804

Website:www.friendslife.co.uk/membersite

Jan 2015

Introduction

4 5

Summaryanddefinitions

On retirement:a pension payable forthe rest of your life

Plus:Theoptiontoexchangepartofyourpension foroneormoreofthefollowing:n a tax free cash sumn increases in your pensionn a pension for your spouse or dependants in

the event of your death

On death whilst in pensionable service:

a tax free lump sum

CompanymeansBMIHealthcareoranyotherparticipatingemployerconnectedbybusinesswithBMIHealthcare.

Dependantmeansyourchildand/oranyotherpersonwhotheTrusteesbelievewouldnotbeabletomaintainthestandardoflivingenjoyedpriortoyourdeathwithoutyourfinancialsupport.Forpensionpurposes,childmeansyourchild(includinganystepchildrenoradoptedchildren)undertheageof23(orfortherestofthechild’slifewhereheisunabletomentallyorphysicallysupporthimself ).

Normal retirement datemeansyour65thbirthday.

Pensionable salarymeansyourbasicannualsalary.

Notional salarymeansyourbasicannualsalarybeforesalarysacrificeundertheNICEfficientPensionArrangement.

Pensionable service means the continuous service you completeasamemberoftheScheme,whileyouareemployedbytheCompany.

Personal fund means the value of your fund built up at retirement and/or at date of withdrawalordeathfromcontributionspaidbyyouandtheCompany,plusanyamountstransferredinfrompreviousarrangements,includinganychangestothevalueofyourinvestmentlessanychargesapplicable.

SchememeansBMIHealthcareStaffPensionScheme.

Spousemeansyourhusband,wifeorcivilpartner.

Selected Retirement Agemeanstheageatwhichyouhavechosentoretireat.Thisagemustbebetween55and75andisonlyofimportanceifyouremaininthedefaultinvestmentsolution.

NIC Efficient Pension Arrangementisanarrangementwherebytheemployeeagreestoareductioninsalary.ThesalarysacrificedispaidbytheCompanyintotheemployee’spersonalpensionfund,togetherwiththeCompanycontributions.

Life EventundertheNICEfficientPensionArrangmemnent,aLifeEventis:

nChangeinpersonalstatus–marriage,divorce, separation, house move

nPregnancy

nChangeindependantstatus–birth,adoption,death,fostering

n commencement of extended absence includingmaternityleave,sickleave,leaveof absence, unpaid leave, career break

nChangeinworkinghours(e.g.fulltimeto part time)

n redundacy of a spouse/partner

nReachingStateretirementage

nPromotion.

Welcome to the BMI Healthcare staff Pension scheme

Welcome

YouarenowamemberoftheBMIHealthcareStaffPensionScheme.Havingapensionaccountisavaluableemployeebenefitwhichenablesyoutosaveforyourretirement.It’simportanttotakeanactiveinterrestinyouraccounttomakethe mostofyourpensionsavings.

Thisguidegivesyouinformationaboutcontributionsandhowtomakeyour accountworkforyou.

ThisguidewasproducedinJanuary2015andisaccurateatthatdate.

Previous pension benefits Youcancontinuetocontributetoyourownprivatepensionarrangementwhilst beingamemberoftheScheme.

Ifyouhaveanybenefitsinapreviouspensionschemeorprivatepensionarrangement,you may be able to transfer the cash value into the scheme if the company and Trusteesagree.IfyouwishtoconsiderthisthenyoushouldcontactThePensionSchemeAdministratorattheaddressshownonpage3,inthefirstinstance.

6 7

Contributions–NICEfficientPensionArrangement

TheSchemeoperatesaNICEfficientPensionArrangement.ThisisanarrangementrecognisedbyHMRevenue&Customs(HMRC)wherebyemployeesagreetoareductioninsalary.InturntheCompanypaysthesalarysacrificedintothePensionSchemealongwiththecompanycontributions.

DuringthefirsttwoyearsofPensionableServicetheCompanywillcontributetotheSchemeatthefollowingrate:

SacrificedSalary 2% of your Pensionable salarycompany contributions 3.5%ofyourPensionableSalary

SacrificedSalary 4.5%ofyourPensionableSalarycompany contributions 4.5%ofyourPensionableSalary

BeforeNICEfficientPensionArrangements

£ per month

AfterNICEfficient PensionArrangements

£ per month

Gross pay 2083.33 notional salary 2083.33your pension contribution (4.5%) 93.75 NICEfficientPension

Arrangement (93.75)

nI – able pay 2,083.33 revised taxable and nI-able pay 1,989.58

taxable pay 1989.58 Yournetpaywouldbe 1,610.19Yournetpaywouldbe 1598.44 Increase in monthly pay 18.75

your pension contribution 93.75 GHG converted contribution 93.75total contribution to pension 187.50 total contribution to pension 187.50

ThetotalcontributionspaidintotheSchemebytheCompanywouldthereforebe5.5%.

Afteryouhavecompletedtwoyears’continuousPensionableServiceyoucanelecttopaythehigherrateofcontributionsshowninthetablebelow:

ThetotalcontributionspaidintotheSchemebytheCompanywouldnowbe9%.

PleasenotethatfromOctober2018onwards,theminimumcontributionlevelwillincreaseto4.5%andthiswillbematchedbythecompanygivingatotalcontributionof 9%

ParticipationintheNICEfficientPensionArrangementisvoluntary,althoughyouwouldhavetooptoutifyoudecidenottoparticipate.Youcanoptoutatanytime.

An example of salary sacrifice payments for an employee with a salary of £25,000 is

shown below:

* based on 14/15 single person’s rates of tax and NICs

8 9

other investment options

Therearefourimportantthingswesuggestyoudonow:

1. Consideration Considercontributionlevelstoseeiftheyarelikelytoprovideyouwithenoughincomeatretirement.TheFriendsLifeevaluatetoolcanhelpyouassessyourcontribution level

2. Understanding understand investments and your attitude to investment risk Please see the ‘ChoosingyourownInvestmentFund’guideformoreinformation.

the friends life efunds tool can help you determine your attitude to investment risk

3. Learning Learnmoreaboutwherecontributionsareinvested.Contributionswillbeinvestedinaninvestmentsolutioncarefullychosenbytheschemetrusteestosuitthemajorityofemployees.Furtherdetailscanbefoundinthe‘Howcontributionsareinvested’guide.

4. Assessment Considerotherinvestmentoptionsavailabletoyou.Ifyouwouldliketomakeyourowninvestmentchoiceorfeelthattheinvestmentsolutionisnotrightforyou,youcanchooseyourowninvestmentsonceyourfirstcontributionhasbeeninvested. Youcanfindoutmoreinformationabouthowtodothisonthefollowingpage.

Youshouldregularlyreviewcontributionstoyourpensionaccountandyourinvestment choice to ensure that you remain on track to provide the income you expectatretirement.

Investingcontributions

you don’t have to make any investment decisions and can remain in the investmentsolutionchosenforyou.this solution has been deemed appropriate for most employees by the trustees of the BMI Healthcare StaffPensionScheme.

The‘Howcontributionsareinvested’guidegivesdetailedinformationaboutthe investment solution and the funds in it.Pleasereadthisguidetoensurethatitisrightforyou.Ifafterreadingtheguideyou decide the investment solution isn’t appropriate,oryouwouldliketochoosewherefuturecontributionsareinvested,pleasereadthe‘Choosingyourowninvestmentfunds’guide.

Thisguideshowsalltheinvestmentoptionsavailabletoyou.Itgivesyoudetailed information about each fund, such as its description, the risks associated withitandthechargesthatwillapply.

The‘Choosingyourowninvestment funds’guidecanbefoundonlineat www.friendslife.co.uk/doclib/aepen67c.pdf and on the BMI Healthcare collaborationsite.

Ifyouarenotconfidentinmakinginvestment decIsions you should contactyourfinancialadviser.Youmaybechargedforthisadvice.Ifyoudon’thaveafinancialadviser,youcanfindone at www.unbiased.co.uk

the value of an investment is not guaranteedandcangoupanddowndependingonperformance.Youcouldgetbacklessthantheamountpaidin.

10 11

additional voluntary contributions (aVcs)

TheSchemeallowsyoutoboostyourbenefitsbypayingAdditionalVoluntaryContributions(AVCs).AVCsallowyoutoinvestforretirementandtheyhaveanumberoffeaturesthatmakethemattractivewhencomparedwithotherforms ofsavings:

nYourcontributionsqualifyforfulltaxrelief.

nTherearetaxadvantagesoninterestandinvestmentearningsonyourcontributions.

nYoucantransferyourAVCsoutoftheSchemeifyouleave,alongwithyourmainSchemebenefits.

There are two ways to pay AVCs:

neitherthroughtheNICEfficientPensionArrangement–regularAVCsofupto20%ofsalarycanbepaidthroughthearrangementmeaningthatyouwillbenefitfromboththetaxreliefandtheNationalInsurance(NIC)saving.YoucanincreaseyourAVCsatanytime.

norasalumpsum–thelumpsumwillbeoutsidetheNICEfficientPensionArrangementandconsequentlyyouwillnotmakeanyNICsaving,however,thisdoesenableyoutomakecontributionsasandwhenyoucanaffordtodosoandyoustillreceivetaxrelief.

Important information AnycontributionsyoumakeoutsidetheNICEfficientPensionArrangementmustnotexceed100%ofyourannualtaxableearnings,subjecttoamaximumlimitsetbyHMRC.Ifthisisexceededthenataxchargeatthehighestmarginalratewillbeapplied.Thislimithas been set at £40,000 for the 2015/16 tax year and also applies to the contributions paidbytheCompanyonyourbehalf.

ThelimitismeasuredagainsttheSchemeyeari.e.1Aprilto31Marchandyourannualbenefitstatementwilladviseyouofyourtotalcontributions/inputfortheyear.IfyouexceedthelimityoumustadviseHMRCviatheself-assessmentmethod.

IfyouparticipateintheNICEfficientPensionArrangement,thenyourpost-sacrificedsalarymustnotfallbelowtheNationalMinimumWage.Furthermore,ifyourpostsacrificedsalaryfallsbelowtheLowerEarningsLimit(LEL)of£5,824for2015/16,thenyoumayreceivereducedStatebenefits.TheHRAdministrationTeamwillbeabletoadviseyouifyouareunsurewhetherthiswouldapplytoyou.

12 13

Monitor your account and investments

It’simportanttoreviewyouraccountatleastonceayeartoensurethefunds youareinvestinginandtheamountyouarecontributingstillmeetyourneeds. Youareabletoswitchfromonefundtoanotherorredirectfuturecontributions intodifferentfundsafteryourfirstcontributionhasbeeninvested.

Youcanreviewandmakechangestoyouraccountinthefollowingways:

Membersite Youareabletoviewyourcurrentfundvalueonlineat www.friendslife.co.uk/membersite.

Youcanalsoupdateyourdetailsandmakechangestoyourinvestments.

Yearly statements FriendsLifeprovideastatementonceayear.Itshowsyourcurrentfund valueandgivesaprojectionofwhatyourretirementpotmightbeworth atretirement.

Additionalstatementsareavailableonrequest.

Benefitswhenyouretire

When you retire, the Personal fund thatyouhavebuiltupwillbeusedtobuypensionbenefits.

Pension benefits at normal retirement date Theamountofpensionyoureceiveatretirementwilldependonanumberoffactors,asfollows:

nTheamountofcontributionsmadetotheScheme.

nTheinvestmentreturnachieved.

nThecostofbuyingapensionatyourretirementdate.

nThelengthoftimethecontributionsareinvestedinthefund.

nTheformofbenefitstakeni.e.thecostofprovidingadditionalbenefitswithyourfundforyourfamily.

Tax free lump sum at retirement you have the option to take part of your personal fund as a tax free lumpsum.TheamountofyourfundthatcanbetakenasataxfreelumpsumislimitedbyHMRCto25%ofthevalueofyourpersonalfund.

Additional benefits Aswellasapensionforlifeandataxfreelumpsum,youmayuseyourfundtoprovideoneormoreofthefollowing:

nApensionforyourspouseand/ordependant(s).

nApensionthatincreaseseachyear.

nAguaranteethat,ifyoudiewithinfiveyearsafterstartingtodrawyourpension,yourpensionwillcontinuetobepaidtoyourspouseordependantatthelevelpayablebeforeyourdeath,orpaidasalumpsum.

14 15

Youcanchoosetoretirewithapensionatanytimefromage55iftheTrusteesandtheCompanyagree.

Ifyoudiebeforestartingtodrawyourpension,yourPersonalFundwillbepaidasalumpsumtoyourbeneficiaries.

Transferring the value of your personal fund you may transfer the full value of your Personal fund to another company pensionarrangementortoapersonalpensionpolicyorStakeholderScheme.DetailsofthisoptionwillbeprovidedbyFriendsLifewhenyouleave.

PleasenotethatwhilstparticipatingintheNICEfficientPensionArrangment,youarenotpayingcontributions.Insteadthecompany pays contributions on your behalf equivalenttothesalarysacrificed.AnyoneparticipatingintheSchemesince1stJanuary2009 does not have the option of a refund ofcontributionsonleavingtheCompany.

Opting out of the scheme you can opt out of the scheme at any timebynotifyingFriendsLife.

Ifyoudooptout,youwillbeautomatically re-enrolled into the schemeinthreeyearstime.

Securingyourbenefits

YourpensionmaybesetupwithFriendsLife.However,youmayopttouseyourPersonalFundtopurchaseapensionwithanotherauthorisedproviderofyourchoice.

IfyoudecidetopurchaseapensiontheTrusteeswillbeabletoprovideyouwithaccesstotheAonAnnuityFinder;thisfacilitywillsearchthemarketforacompetitivepensionquotation.PleasecontacttheHumanResourcesdepartmenttoarrangeaccess.

Youmaywishtotakeindependentfinancialadvicebeforemakingsuchadecision. Alistofindependentfinancialadviserscanbefoundatwww.unbiased.co.uk.

YourpensionwillnormallybepaidtoyoueachmonthandwillbetaxedunderPAYE,asperyourearningsfromemployment.Undercurrentpensionslaw,youmaydrawyourbenefitsevenifyoucontinuetoworkfortheCompany.

Early retirement Youcanretirewithapensionatanytimefromage60.Inaddition,withtheTrustees’andtheCompany’sconsentyoumayretirefromage55.YouareabletodrawyourSchemebenefitsearlyandcontinuetoworkfortheCompany.

Ifyouhavetostopworkingonapermanentbasisduetoillhealth,thentheTrusteescanagreetopayyourpensionbeforeage55oncesatisfactorymedicalevidencehasbeenprovided.YouwillhavethesamebenefitoptionsasatNormalRetirementDate.

Late retirement Yourpensionmustbetakenbyyour75thbirthdayatthelatest.

Limits on benefits

When you take your pension, if the total of all your pension funds is more than a certain amount,theLifetimeAllowance,thentheexcesswillbesubjecttoataxcharge.ALifetimeAllowancechargeof25%willbemadeonfundsabovetheallowanceiftheyaretakenasapension.Thischargewillriseto55%wherefundsinexcessoftheallowancearetakenasacashlumpsum.

TheLifetimeAllowanceiscurrently£1.25m(2015/16).IfyouthinkthatyouarelikelytobeaffectedbytheLifetimeAllowanceyoushouldtakeindependentfinancialadvice.

Leaving Service Benefits Optionsonleavingservice:IfyouleavetheCompanybeforeretirement,oropttoleavetheSchemewhileremaininginemployment,youwillhavetheoptionto:

nLeaveyourfundinvestedtoprovidebenefitsonretirement;or

nTransfertheaccumulatedvalueofyourfundtoanothersuitablepensionarrangement.

Leaving your personal fund invested in the scheme YourPersonalFundwillremaininvestedintheScheme,whereitwillbeusedtoprovidebenefitsforyouatretirement.YourbenefitoptionswillbethesameasatNormalRetirementDate.

16 17

temporary absence and state pensions

Statutory leave, i.e. maternity, adoption and ordinary/additional paternity leave YouwillcontinuetobeamemberoftheSchemewhileyouareonpaidstatutoryleaveandyourentitlementtopensionbenefitscontinuesasifyouwereworkingnormally.TheCompanywillcontinuetomakefullpensioncontributions,evenwhenyouareonstatutorypaymentsonly,thiswillincludetheamountyouwouldhavenormallysacrificed.

Foranyunpaidperiodofstatutoryleave,contributionswillusuallycease.Onyourreturntowork,salarysacrificewillrecommenceandyourservicewillbetreatedascontinous.

TheCompanywillalsocontinuetocoveryouforthelumpsumlifeassurancebenefit(calculatedwithreferencetoyourfullnotionalbasicsalary)whilstyouremainemployedby the company for a maximum period of three years (unless your absences are due to illnessinwhichcaseitwillcontinuetobecovereduptoyourNormalRetirementDate).

Sickness absence MostabsencesfromworkareforashortperiodoftimeandwillnotaffectyourmembershipoftheScheme.Aslongasyoucontinuetobepaid,contributionswillbemadeonyourbehalfandyouwillbeabletocontinuetoparticipateintheNICEfficientPensionArrangement.

IfyoubecomeentitledtoStatutorySickPayonly(SSP),theCompanywillmakefullcontributionsontheamountofSSPandnosalarysacrificewillbeapplied.Forperiodsofunpaidsickness,contributionswillusuallycease.Ifyoureturntoworksalarysacrificewillrecommenceandyourservicewillbetreatedascontinous.

TheCompanywillalsocontinuetocoveryouforthelumpsumlifeassurancebenefit(calculatedwithreferencetoyourfullnotionalbasicsalary)foranyperiodsofsickleave,uptoyourNormalRetirementDate.

State pensions TheStateprovidesaretirementpensionintwoparts:

nAflatrate,BasicStatePensionthatispaidtoeveryonewhohaspaidsufficientNationalInsuranceContributionsduringtheirworkinglifetime.

n an additional pension paid from the state second Pension (s2P), based on a percentageofyourearningsthatqualifyforNationalInsuranceContributions.

StatePensionAgeshavebeenunderongoingreviewbytheGovernment,andyourownStatePensionAgedependsonbothyoursexanddateofbirth.YoucanusetheStatePensionagecalculatorontheDirectgovwebsite(http://www.directgov.uk/en/Diol1/DoItOnline/DG_4017967)tofindyourStatePensionage,basedontherulescurrentlyinforce.

TofindoutmoreaboutStatepensionsingeneral,youcanvisitDirectgovat: http://www.direct.gov.uk/en/Pensionsand retirement planning/StatePension/

Basicstatepension/DG_10014671,or speak to an adviser on 0845 300 0168.

Death benefits

Death whilst in pensionable service If you die in company service as a member of the scheme before you retire then normallyalumpsumdeathbenefitofthevalueofyourPersonalFundatdateofdeathwillbepaid.

Life assurance benefits Inadditiontotheabovebenefit,theCompanywillprovideaseparatelumpsumbasedonyournotionalbasicsalaryatdateofdeath,ifyoudiewhilstinCompanyService.ThisbenefitwillbeprovidedfromadifferentschemewithseparateTrustees.Toqualifyforthislumpsumbenefit,youmusthavebeencontinuouslyemployedbytheCompanyfortwoyearsunlessyouareadvisedotherwise.

Limits on death benefits Ifyourdeathbenefits(togetherwithanyotherpensionfundsandanyemployersponsoredlifeassurancebenefitthatarebeingpaidatthattime,orhavebeenpaidpreviously)exceedtheLifetimeAllowance,thentheexcesswillbesubjecttotaxat55%.Thisisnotpayableiftheexcesssumisusedtoprovideadependant’spension.

Death after leaving service but before retirement If you die after you have left service but before you retire (and you have not opted to transferyourbenefitstoanotherpensionarrangement),thennormallyalumpsumdeathbenefitofthevalueofyourPersonalFundatdateofdeathwillbepaid.

Discretion over who receives the lump sum benefit lies with the Trustees, who will

naturally take your wishes into consideration but will not be bound by them. By arranging

payment in this way the benefit can usually be paid free of Inheritance Tax. To help the

Trustees decide to whom the lump sum should be paid, please complete an ‘Expression

of Wish’ Form and return it to the HR Administration Team. It is important that

you keep this form up to date if there is any change in your personal circumstances.

Death after retirement Thebenefitsthatarepayableifyoudieafterretirement,mayincludeaspouse’sordependant’spension.Theactualbenefitspayableonyourdeathwilldependupon thetypeofbenefitsthatyoupurchasedwithyourPersonalFundatretirement.Forfurtherdetailsoftheoptionsavailabletoyouonretirementpleaserefertopage13.

18 19

further information

How the Scheme is run

TheSchemeissetupandrunaccordingtotheTrustDeedandRules.TheassetsareheldentirelyseparatefromthoseoftheCompanyandcanonlybeusedtoprovidebenefitsforSchememembersandtheirfamilies,asdetailedintheRulesandsummarisedinthisbooklet.YoucaninspecttheTrustDeedandRulesbyapplyingtotheHumanResourcesDepartment.

Tax approved Scheme TheSchemeisregisteredwithHMRC.ThismeansthatcontributionstotheSchemeandearningsfromitsinvestmentsareexemptedfromtaxsolongascontributionsdonotexceedthresholdssetbyHMRC.

Trustees TheCompanyappointstheScheme’sTrustees.Inaddition,theTrusteeBoardmustalsoincludeanumberofMemberNominatedTrustees.DetailsoftheTrusteeBoardareavailableonrequest.TheTrusteesareresponsiblefortheScheme’sadministrationand for the investment of the money in the fund and it is their duty to ensure that yourinterestsareprotected.

Changing or closing the Scheme WhilsttheCompanyintendstomaintaintheSchemeindefinitelyandaimstoensureyourbenefitsaresecure,theremustbeprovisionsintheScheme’slegaldocumentsforamendingorclosingit.IftheSchemeclosed,itsassetswouldbeusedtoprovidebenefitsforyouandyourfamily.IntheunlikelyeventthattheassetsoftheSchemeonclosingwereinsufficienttomeetitsliabilitiestheCompanyisobligedtomakeuptheshortfalltotheextentrequiredbylaw.

Pension Tracing Service TheSchemehasbeenregisteredwiththePensionTracingServicewhichmaybeofusetoyouifyouneedtogetintouchwiththetrusteesofapreviousemployer’spensionscheme.Theaddresstowritetois:Pension Tracing Service, The Pension

Service, Whitley Road, Newcastle upon Tyne NE98 1BA

Formal disputes resolution procedure IfyouhaveaqueryabouttheScheme,yourRegionalHRAdministratorwillalwaystrytoprovideapromptandaccurateresponse.Ifthematterisnotresolvedtoyoursatisfaction,theSchemehasaFormalDisputesResolutionProcedure. Asummaryoftheprocedureisgivenbelow,however,acopyoftheproceduremaybeobtainedviayourRegionalHRAdministratorortheHumanResourcesDepartment.

Stage 1: YoushouldaddressyourwrittencomplainttotheAdjudicatorattheaddressgivenonpage1.TheTrusteeshaveappointedLindsayPeake(SecretarytotheTrustees)astheAdjudicator.Yourlettershouldincludeyourname,dateofbirth,NationalInsurancenumberandadetailedstatementaboutthenatureofyourcomplaint.

Awrittenresponsewillbesenttoyouwithintwomonthsofreceiptofyourcomplaint.

Your benefits are not assignable YouarenotallowedtoassignyourbenefitsundertheScheme,astheydonotlegallybelongtoyou,norcanyouusethemassecurityforaloan.

Pleasenote,however,thatshouldyoudivorce, or on the dissolution of a civil PartnershiptheCourthascertainpowersto allocate a proportion of your fund to providebenefitsforourex–spouse/partner.

Manageyourpensionaccountonline

Theeasiestwaytomanageyourpensionaccountisonline.

TheFriendsLifeMembersiteallowsyoutoreviewandmakechangestoitwitha fewclicksofabutton.

When using the Friends Life online service you are able to:

n check and update your personal details

nUnderstandwhichfundscontributionsareinvestedinandchangethemifyouwish

nMonitorwhatcontributionshavebeenpaid

n check the value of your retirement pot

nChangeinvestmentprogrammechoicesifthesearemoresuitableforyou

nPlanforyourfuturewiththeFriendsLifeetools

Visit www.friendslife.co.uk/membersite.

Online tools FriendsLifehavedevelopedinteractiveonlinetools,knownasetools,tohelpyoumakesenseofyourpensionplanning,TheycanbeaccessedthroughtheFriends LifeMembersite.

It’simportanttodetermineyourretirementgoals.Evaluatecanhelpyoutodothisandshowsyouhowmuchyoumayneedtosavetoreachthem.

Todeterminewhichinvestmentoptionssuityoubest,youfirstneedtoworkoutyourattitudetoinvestmentrisk.efundstakesyouthroughanumberofquestionstogiveyouanindicationofthelevelofinvestmentriskyouarewillingtotake.

Soyoucanmanageyourpersonalfinancesonline,efinancegivesyouaccessto:

nFinancialToolboxwhichisabudgetplanner,and

nFinancialPortfoliowhichallowsyoutomonitorandtrackotherinvestmentfundsyoumaybeinvestedin.

Finally,elearnhelpsyoulearnmoreaboutyourpersonalfinancesYoucanreadaboutfinancialplanningandrequestthe‘LearnAboutMoney’workbookfromtheLifeAcademy,acharitableorganisationdedicatedtohelpingpeopleunderstandtheirfinancesandpensionsYoucanorderthe‘LearnAboutMoney’workbookbyvisitingwww.life-academy.co.uk.

20 21

Appendix1–NICEfficient PensionArrangementFAQs

Q. How does the NIC Efficient Pension Arrangement work?

A. Underthearrangement,youagreetosacrificepartofyoursalaryequivalenttothecontributionsthatyouwouldhaveotherwisepaidtotheScheme.TheCompanypaysthesalaryyousacrificedanditsowncontributiontotheSchemeonyourbehalf.BydoingthisbothyouandtheCompanymakeasavinginthelevelofNationalInsurance(NI)contributionsthatyoupay.Page6providesanexampleofhowitworks.

Q. Can I include my Additional Voluntary Contributions (AVCs) within the NIC

Efficient Pension Arrangement?

A. Pleaserefertopage10ofthisbooklet.

Q. Once I’m included in the new arrangement, will I be able to increase or decrease

my NI efficient pension arrangements?

A. Pleaserefertopage10ofthisbooklet.

Q. Can I change to the higher tier after two years Pensionable Service immediately? A. ThiswillbetreatedasaLifeEventandthereforeyouwillbeabletomovetothehighertierafteryouhavecompletedandreturnedthenecessaryformavailablefromyourRegionalHRAdministrator.

Q. Can I include my annual bonus within the NIC Efficient Pension Arrangements? A. Inordertoincreasethepotentialbenefit,employeeswhoareeligibleforanannualbonuswillbeabletoincludetheirbonuswithintheNICEfficientPensionArrangements.Inaddition,BMIHealthcarewillpassontheentireemployer’sNICsavings,which,basedoncurrentrates,wouldbe13.8%oftheannualbonus,intheformofanadditionalpensioncontribution.

Q. Will my State Pension be affected if I participate

in the NIC Efficient Pension Arrangement? A. TherearetwopartstotheStatePension.TheBasicStatePensionandtheadditionalStatePensioncalledtheStateSecondPension(S2P).ProvidedyourreducedsalaryisoveranamountknownastheLowerEarningsLimit(£5,824p.a.for2015/2016)participatingintheNICEfficientPensionArrangementwillnotimpactyourBasicStatePension.IfyourreducedsalaryfallsbelowthislevelthenyourentitlementtoaBasicStatePensionmaybereduced.

SomememberswhoparticipateintheNICEfficientPensionArrangementmayhaveasmallreductionintheirS2P.Thesememberswilltypicallybethosewhosereducedsalaryfallsbetween£14,700andtheUpperEarningsLimit(£41,380p.a.for2015/2016)andthosewhosereducedsalaryfallsbelowtheLEL.

IfyouhaveanyqueriesregardinghowthiswouldaffectyouthenyoushouldcontactLindsayPeakeinthefirstinstance,attheaddressonpage1.

Stage 2: Ifthematterisnotresolvedtoyoursatisfaction,thenyoushouldwritetotheTrusteesaskingthemtoreconsiderthecase.YoumustdothiswithinsixmonthsofthedecisionunderStage1.Yourlettershouldincludeyourname,dateofbirth,NationalInsurancenumber,acopyofthedecisiongivenatStage1andadetailedstatementaboutwhyyoudisagreewiththedecisionmade.

Awrittenresponsewillbesenttoyouwithintwomonthsofreceiptofyourcomplaint.

Ifyouremainunsatisfiedwiththedecision,youmayreferyourcomplainttoThePensionsAdvisoryService(TPAS).TPASwillnormallyonlydealwithacomplaintifyouhavefailedtoresolvethematterwiththeTrustees.However,youareabletoappealtoTPAStoconsideryourcomplaintatanystageofthedispute.TPASisanindependent,GovernmentfundedbodyandwillallocateaprofessionaladvisertoliaisewiththeSchemeonyourbehalf.

Asalastresort,youcanaskthePensionsOmbudsmantoarbitrateonamatterinvolvingyourmembershipoftheScheme.ThePensionsOmbudsmanhasthepowertoinvestigateanddetermineacomplaintordisputeoffactorlawinrelationtopensionschemes.

BothTPASandthePensionsOmbudsmancanbecontactedbywritingto: 11 Belgrave Road, London SW1V 1RB www.pensionsadvisoryservice.org.uk

The Pensions Regulator ThePensionsRegulator’sroleistoprotecttheinterestsofpensionschememembersandtoenforcethelawasitappliestooccupationalschemes.Itisabletointerveneintherunningofschemeswheretrustees,employersoradvisershavefailedintheirduties.

ThePensionsRegulatorcanbecontactedatthefollowingaddress: The Pensions Regulator, Napier House, Trafalgar Place, Brighton BN1 4DW

Data Protection Act 1998 TheTrusteesareregisteredwiththeDataProtectionCommissionerforthepurposesofadministeringtheScheme.Theyarethe“DataController”forthepurposesoftheDataProtectionAct1998.Asaresultofregistration,theSchemecomplieswiththe“PrinciplesofDataProtection”laiddownbytheAct.

WhiletheCompanyandtheTrusteeswilltreatallinformationconcerningstaffandtheirdependantsasconfidential,theActallowsittobeusedforbothemploymentandSchemeadministrationpurposes.ThepersonstowhomthedatamaybedisclosedwillincludeanyinsurancecompanyorotherorganisationconcernedonlywherethisisessentialinconnectionwiththeadministrationoftheScheme.Thereisaprocedureinplaceformemberstoobtaincopiesofthedataheldonthemandachargemaybemadeifyouwishtoobtaincopiesofthisdata.IfyouwishtorequestcopiesofthedataheldonyoubytheTrustees,pleasecontacttheTrusteesatthecontactaddressgivenonpage1.

Divorce/dissolution of a civil partnership Please note that should you divorce or on the dissolution of a civil Partnership, the valueofyourpensionbenefitsmaybeconsideredbytheCourtindeterminingafairfinancialsettlement.

futher information continued

Further information further information, such as a copy of the trust Deed and rules or the scheme’s annual audited trustees’ report and Accountsareavailableforyourinspection.YourrequestshouldbemadeinwritingandaddressedtoyourRegionalHRadministrator or the Human resources Departmentatthefollowingaddress:

BMI Healthcare, The Watts Buildings,

10 Independents Road, Blackheath,

London SE3 9LF

22 23

Q. If I decide not to opt for NIC Efficient Pension Arrangement

can I still be a member of the BMI Healthcare Staff Pension Scheme?

A. YesyoucanstillparticipateintheScheme,however,youwillnotbenefitfromanyNIsaving.

Q. What if I don’t have to pay National Insurance

Contributions because I am over the State Pension Age?

A. Therewillbenoimpactonyour‘takehomepay’,howeverifyouparticipateinNICEfficientPensionArrangement,theCompanywillstillsaveitsNationalInsurancecost.Reachingstateretirementageisakey‘LifeEvent’soyouhavetheoptiontooptoutwhenyoureachStatePensionAgeifyoucontinueworking.

Q. What if I die whilst being an active member of the Pension Scheme? A. Therewillbenochangetoyour“DeathinService”benefitasaresultofyouparticipatinginNICEfficientPensionArrangement.ItwillcontinuetobebasedonyourNotionalSalary.

Q. Does NIC Efficient Pension Arrangement fully comply with the legislation? A. ThereisnospecificlegislationthatdealswitharrangementslikeNICEfficientPensionArrangement.BMIHealthcarehastakenacautiousapproachtoNICEfficientPensionArrangementHowever,HMRChaveproducedguidanceforemployeesandthiscanbefoundontheirwebsite www.hmrc.gov.uk/manuals/eimanual/eim42774.htm

Q. Will BMI Healthcare withdraw the NIC Efficient Pension

Arrangement at some point in the future? A. TheCompanyplanstocontinuetheNICEfficientPensionArrangementindefinitely.However,theremaybesomesituationsinwhichitwouldbeforcedtowithdrawthearrangement,e.g.achangeinlegislation.Ifthishappens,theCompanywillletyouknow.Overall,though,theCompanyreservestherighttowithdrawtheschemeatanytime.Ifitiswithdrawn,youwillnotbenefitfromemployee’sNIsavings,andtherewillbenocompensationprovidedbyBMIHealthcareforlossofthesesavings.

Q. Overall, is the NIC Efficient Pension Arrangement right for me?

A. BMIHealthcarehasdesignedtheNICEfficientPensionArrangementsothatthevastmajorityofpeoplewillsavemoney.However,theremaybepeoplewithafewexceptionalcircumstancesforwhomthechangeisn’tbeneficial.TheseincludepeoplewhoearnclosetotheLowerEarningsLimit(LEL),NationalMinimumWage(MNW)oranyoneclosetotheStatepensionage,forthereasonsoutlinedabove.ThesepeoplemaywishtooptoutoftheNICEfficientPensionArrangement.Howevertheycanstillcontinuetoparticipateinthepensionschemeandwillthereforecontinuetopaymembercontributions. TheCompanywillalsocontinuetopaycontributionsontheirbehalf.

Q. Who can I talk to if I have any questions? A. Asafirstpointofcall,pleasecontactTheHRAdministrationTeam.

ThisFAQisintendedtoprovidememberswithinformationregardingtheNICEfficientPensionArrangement.Thetrustees are not able to advise you whetherornottoparticipateinthearrangement.Ifyouareinanydoubtastowhetherornotyoumaybeaffected,youshouldseekindependentfinancialadvice.

Q. What is the impact on State benefits? A.OtherthantheStateSecondPension(S2P),moststatebenefitsonlyrequireyouhaveNIableearningsofatleasttheLowerEarningsLimit(£5,824for2015/2016) toqualify.JobSeeker’sallowanceisonesuchexample,othersbeingEmploymentandSupportAllowance,BereavementParent’sAllowanceandWidowedParentsAllowance.IfyourpayisclosetoorbelowtheLowerEarningsLimityoumaybeaffectedbyparticipatingandyoumaywishtooptout.Ifyouareinanydoubtastowhetherornotyoumaybeaffected,youshouldseekindependentfinancialadvice.

Q. Can I participate if I earn close to the National Minimum Wage (NMW)? A. the nMW is set by Government each year, and employers must pay at a rate at leastequivalenttothat.ThereisnoscopeforemployeestowaivetheirrighttotheNMW,orforemployerstopayataratelowerthanthestatutoryamount.Therefore,ifparticipationwouldtakeyourreducedsalarybelowtheNMWthenyouwillnotbeabletoparticipate.

Q. What happens about Statutory Sick Pay (SSP), Statutory Maternity Pay (SMP),

Statutory Adoption Pay (SAP) and Ordinary (OSPP)/Additional Paternity Pay (ASPP)?

A. Eligibilitytotheabovepaymentsisbasedonyouraverageearnings,beingonorabovetheLowerEarningsLevel(LEL).

BytakingpartintheNICEfficientPensionArrangements,youraverageearningswillreduceslightly,sosomestatutorypaymentsnotbasedonaflatratewillbeslightlyreduced.

WherethishappenstheCompanywillmakesurethatitprovidesyouwithadditionalnonstatutorypayments(basedonyourunreducedaverageearnings–yourNotionalpay)toensureyoureceivethesamelevelofpaymentsregardlessofwhetherornotyouparticipateinthisscheme.

Inthecaseofpaidmaternity,adoption,paternity,youwillnotbeabletosalarysacrificeonceonstatutorypaymentsonly,sothecompanywillcontinuetomakefullpensioncontributionsincludingtheamountyouwouldhavenormallysacrificed.Yourpensionfundingwillthereforenotbeadverselyaffected.

Forsickness,youwillcontinuetoparticipateasnormalduringperiodsofpaidsickness.IfyoubecomeinreceiptofSSPonly,theCompanywillmakefullcontributionsbasedontheamountofSSPbeingpaid.

Q How much money am I likely to save? A.Itdependsonyourlevelofsalary.Currently,ifyouearnlessthan£42,385,youwillsave12%onthemoneyconvertedintotheCompaniescontributions.Ifyouearnabove£42,385youwillsave2%onthemoneyconverted.

Q. If I join the NIC Efficient Pension Arrangement now,

will I be able to opt out at a later date if my circumstances change?

A. MemberswillbeabletooptoutoftheNICEfficientPensionArrangementatanytime.

appendix 1 – continued

24 cDs09320

bmihealthcare.co.uk

BMI Healthcare BMIHealthcareHouse,3ParisGarden,Southwark,LondonSE18ND