pension transfer report...pension transfer report including transfer value comparator (tvc) client...

Pension Transfer ReportIncluding Transfer Value Comparator (TVC)

Client Name: Mr Peter WilliamsClient Ref: PW120167 _Adviser Name: John SmithReport Print Date: 05/11/2019

This report has been based on the following information. Please make it known if any part of thisinformation is incorrect as it may affect the results of the analysis.

Personal Information Ref PW120167Title MrForename PeterMiddle InitialsSurname WilliamsGender MaleDate of Birth 29/03/1964Employment Status EmployedMarital Status MarriedPartner's Date of Birth 05/01/1972Partner's Forename RachelPartner's Surname WilliamsPartner's Gender FemaleHealth Status NormalDependants YesDependant NotesAttitude to Risk MediumLifetime Allowance Protection Unable to ConfirmCountry of Residence England, Northern Ireland, Wales or Other

Client Name: Mr Peter Williams Adviser Name: John Smith Case Reference: 164755

Analysis Report

Introduction

The purpose of this analysis is to provide information, regarding the possible transfer of your benefitsprovided by the Group UK Retirement scheme to an alternative pension arrangement.

This analysis does not, on its own, show whether or not transferring your benefits is advisable, as that alsodepends on many other factors, such as your “attitude to risk”, your personal circumstances and yourobjectives. It does, however, give an indication of the likelihood of being able to match or exceed the benefitsprovided by your existing scheme with a transfer to an alternative plan based on a set of assumptions, theseassumptions may change in future years.

This analysis shows the results as:

1. The estimated annual investment return needed, from the proposed plan, to provide an annuity and ifspecified annuity and Pension Commencement Lump Sum (PCLS), at the scheme retirement date (your65th birthday) of equal value to the estimated benefits provided by the existing scheme. This return isknown as the Joint Life Critical Yield.

2. The estimated annual investment return needed, from the proposed plan, to provide an annuity and ifspecified annuity and Pension Commencement Lump Sum (PCLS), at the scheme retirement date (your65th birthday) of equal value to the estimated starting benefits, with no spouse’s pension provided bythe existing scheme. This return is known as the Single Life Critical Yield.

3. The estimated annual investment return needed, from the proposed plan, to provide an annuity and ifspecified annuity and PCLS, at the scheme retirement date (your 65th birthday) of equal value to theestimated starting benefits, with no increases in payment, spouse’s pension or guarantee period,provided by the existing scheme. This return is known as the Hurdle Rate.

4. The estimated annual investment return needed, from the proposed plan, in order to provide benefits, atthe scheme retirement date (your 65th birthday) of equal value to the estimated benefits provided if thePPF takes over the provision of benefits from the existing scheme. This return is also known as theCritical Yield.

5. The estimated income options available from the proposed alternative pension policy.6. The value of the death benefits provided by the existing scheme and the proposed plan at the date of

transfer and then at various intervals.7. The Transfer Value Comparator (TVC) shows a comparison of the Cash Equivalent Transfer Value

(CETV) and the estimated cost of acquiring the same promised income in a Defined Contributionscheme.

8. Where applicable Lifetime Allowance (LTA) charges may affect the estimated benefits from the existingscheme and / or the proposed plan results.


This analysis needs to be read in conjunction with the illustrations provided by the recommended provider andany recommendations made by your adviser. The analysis has been based on your personal information andthe details supplied by the Scheme. The assumptions used are those prescribed by the regulator, theFinancial Conduct Authority (FCA), for future inflation and annuity rates. If future inflation and annuity ratesare different from those assumed by the FCA then it will mean that even if the illustrated investment returnsare achieved the resultant pension fund may not be able to secure an annuity to match the benefits that wouldhave been offered under the Defined Benefit scheme.

We have been informed that the capitalised value of your benefits (transfer value) in the Group UKRetirement scheme is:

The report compares this with the benefits that can be purchased by transferring this value to:

• £848,000.00 and is guaranteed until 05/02/2020.

• Royal London Pension Portfolio


Estimated Benefits at your Proposed Retirement Age 65The pension benefits shown below have been calculated as at 05/11/2019, and are increased to your normalretirement date as detailed in the record of input data. Your benefits are increased to the date of this analysisby applying the historical revaluation factors. From the date of this analysis to your normal retirement date,the benefits are increased in line with the prescribed assumptions. On this basis your pension at age 65 isestimated to be:

An Annual Pension of £34,630

Benefit AmountPost 88 GMP £10,108Post 97 Non GMP £10,790Pre 97 Non GMP £8,676Pre 88 GMP £5,054


Transfer Value Comparator Group UK Retirement - Normal Scheme Retirement Age 65The Transfer Value Comparator (TVC) shows a comparison of the Cash Equivalent Transfer Value (CETV)and the estimated cost of acquiring the same promised income in a Defined Contribution scheme. A CETV isgenerally based on the full value of the expected pension income.

You have been offered a cash equivalent transfer value of £848,000.00 in exchange for you giving up anyfuture claims to a pension from the scheme.

Will I be better or worse off by transferring?• We are required by the Financial Conduct Authority to provide an indication of what it might cost to

replace your scheme benefits.• We have done this by looking at the amount you might need to buy the same benefits from an insurer.

It could cost you £1,243,084.05 to obtain a comparable level of income from an insurer.

This means the same retirement income could cost you £395,084.05 more by transferring.

See 'Notes' on the next page for a detailed explanation of this information.


Notes

1. The estimated replacement cost of your pension income is based on assumptions about the level ofyour scheme income at normal retirement age and the cost of replacing that income (includingspouse’s benefits) for an average healthy person using today’s costs.

2. The estimated replacement value takes into account investment returns after any product charges thatyou might be expected to pay. An investment return of 0.59% and product charge of 0.75% per annumhave been assumed when calculating the figures above.

3. No allowance has been made for taxation or adviser charges prior to benefits commencing.


Analysis Results at your Proposed Retirement Age 65Critical Yield for Annuity Purchase

The critical yield is the estimated annual investment return required from the proposed plan in order topurchase an annuity to provide benefits of equal value to the estimated benefits provided by the existingscheme at retirement.

The fund required is the estimated capital value required to purchase an annuity to provide benefits of equalvalue to the estimated benefits provided by the existing scheme. The fund required is used to calculate thecritical yield.

The table below breaks down the different fund required and annual returns required to purchase the annuityas Joint Life, Single Life and Hurdle Rate. The Single Life and Hurdle rate will both assume no spousespension is payable, in addition the Hurdle rate will also assume no guarantees and increase in payments.

Fund Required Royal London Pension PortfolioJoint LifeAll benefits taken as Pension £1,344,989.37 6.19%

Single LifeAll benefits taken as Pension £1,058,795.82 3.51%

Hurdle RateAll benefits taken as Pension £781,609.20 0.19%

Drawdown Income

Assuming an income of equal value to the estimated benefits provided by the existing scheme, increasing byRPI per annum is taken from a drawdown arrangement, the fund at the medium rate of return will run out atthe following ages.

Royal London Pension PortfolioAll benefits taken as Pension 104

Please note that these results are dependent upon the assumptions used. Please see the Assumptionssection for further details.


Lifetime Allowance

Introduction

The Lifetime Allowance is an overall ceiling on the amount of the tax privileged pension savings that any oneindividual can draw.

As of 6th April 2006 (known as A-Day) every individual will be taxed on the amount by which they exceedtheir allowance. The allowance in the tax year 2019-20 for most individuals is £1,055,000. The allowance willindex annually in line with Consumer Prices Index (CPI). Some individuals may have a higher allowance ifthey have registered for Protection.

Any benefits in excess of your allowance taken as income may be subject to a tax charge of 25%. If benefitsare taken as a lump sum the tax charge may be 55%.

The maximum Pension Commencement Lump Sum (PCLS) from schemes is now based on the 25% rulealthough not all schemes have changed their rules to allow this, a higher value may be available where thePCLS available under the old rules is greater on pre A-Day accrual. Where you are over the LTA, themaximum PCLS available will be 25% of your available Lifetime Allowance.

For the purpose of accessing the value of Defined Benefit schemes the pension is multiplied by a factor of 20to provide the benefit value.

Example Calculation

Defined Benefit Income – Existing Scheme

The LTA charge is worked out by taking any LTA excess at retirement and applying the 25% charge to thatamount, to come up with the LTA charge amount, this charge is then converted into annual monetaryreduction. The reduction is calculated by taking the LTA charge and dividing this by an actuarial factor of 20,we will reduce the income by monetary reduction going forward.

Example

Rachel’s benefits within her defined contribution scheme have exceeded her available LTA by £150,000.Rachel has the choice of taking the excess as:

• A LTA lump sum of £67,500 or• £112,500 could be retained in the scheme to provide Rachel with a pension income (which would then besubject to tax under PAYE)


Lifetime Allowance Charge at proposed retirement age of65

Your Lifetime Allowance at your proposed retirement age of 65 is £1,261,200

Existing Defined BenefitScheme

Defined Contribution PlanPension Portfolio

Defined Contribution PlanPension Portfolio

Percentage of LTA of£1,261,200 used at age 65

0% 0% 0%

Benefit Value at age 65 £692,609 £1,294,117 £516,562Benefit Value Above / BelowLTA

£568,590 -£32,917 £744,637

Tax on excess above LTA -Income

£0 £8,229 £0

Tax on excess above LTA -Lump Sum

£0 £18,104 £0

Pension PortfolioThe estimated annuity you may receive from the new plan has been reduced to allow for Lifetime Allowancecharges of £8,229 where your Lifetime Allowance has been exceeded based on 5% growth rate.

The estimated sustainable drawdown income within the income options results will attract a LifetimeAllowance Charge starting from age 75 ending at age 75. The total charge would be £100,392.

The estimated target income within the income modeller results will attract a Lifetime Allowance Chargestarting from age 75 ending at age 75. The total charge would be £114,615.


Income Options Comparison at Retirement Age 65 - FullPensionThe below table shows the income options that could be available if the transfer was to go ahead to theproposed pension plan.

Estimated benefits from the existing scheme, calculated to be £34,630.

In Royal London Pension Portfolio, your fund value at retirement could provide an income of:

Growth Rate Low (2%) Mid (5%) High (8%)Fund £923,485 £1,210,398 £1,574,405Annuity joint life increasing by RPI. £12,615 £24,806 £43,619Age that drawdown fund will run out,assuming same income as an annuity istaken.

120+ 120+ 113

Drawdown amount available to maintainan income increasing by RPI to age 82*

£53,712 £72,811 £96,799

The below graph shows the projected pension benefits for the existing scheme with the income options thatcould be available if the transfer was to go ahead to the proposed pension plan.

GuaranteedIncome

Name Amount Increase Rate Payable from age Payable to age

State Pension State Pension £11,503.32 (Mid) 2.5 67 Guaranteed for Life

The existing scheme pension and annuity from the proposed plan would provide a guaranteed income forlife. The drawdown income from the proposed plan is not guaranteed and will be dependent on futureinvestment returns.


Proposed Plan Annuity & Sustainable Drawdown Year on Year Results

Age Existing Scheme Annuity SustainableDrawdown

GuaranteedIncome

65 £34,630 £24,806 £72,811 £070 £38,539 £28,757 £84,409 £12,67175 £42,965 £33,337 £97,853 £14,33680 £47,976 £38,647 £113,438 £16,22085 £53,650 £44,802 £0 £18,35290 £60,073 £51,938 £0 £20,764

*Target age calculated using ONS National Life Tables, Great Britain (2014-2016)


Income Modelling at Retirement Age 65 - Full PensionThe results below show the fund and income year on year when invested in Royal London Pension Portfolio.This assumes that you withdraw the same level of pension each year from the proposed pensionarrangement that would be available to you if you stayed in the existing scheme. The growth required, alsoknown as the ‘critical yield’ from retirement age, to age 82 is shown to match the scheme pension payablenet of tax from Royal London Pension Portfolio using the fund value at the Mid growth rate.

The pension payable from the existing scheme at age 65 is £34,630 before tax or £30,643 net of tax payable.GuaranteedIncome

Name Amount Increase Rate Payable from age Payable to age

State Pension State Pension £11,503.32 (Mid) 2.5 67 Guaranteed for Life

Full Pension and No PCLS using Uncrystallised Fund Pension Lump Sum (UFPLS)The graph and table below assume the UFPLS option will be used in the Royal London Pension Portfolio.This means 25% of the income withdrawn will be tax free and the remaining income will be taxed at yourmarginal tax rate.

The graph results for both the existing scheme and proposed plan include your 'Other Guaranteed Income'streams.


Net Income Available from Projected Fund ValueAge Existing

SchemeExistingScheme -Guarantees

ProposedPlan (Mid)

ProposedPlan -Guarantees

Low Mid High GrowthRequired

65 £30,643 £0 £32,374 £0 £945,010 £1,266,011 £1,767,188 -4.36%70 £31,542 £12,671 £33,534 £12,671 £838,765 £1,328,233 £2,151,328 -11.59%75 £35,087 £14,336 £37,307 £14,336 £678,785 £1,285,889 £2,336,765 -21%80 £39,092 £16,220 £41,570 £16,220 £485,289 £1,323,166 £3,015,370 -21%82* £40,836 £17,042 £43,426 £17,042 £397,601 £1,332,616 £3,350,57485 £43,616 £18,352 £46,386 £18,352 £253,828 £1,339,393 £3,938,19990 £48,727 £20,764 £51,827 £20,764 Fund Depleted £1,322,709 £5,200,45595 £54,501 £23,492 £57,975 £23,492 Fund Depleted £1,264,807 £6,935,546100 £60,809 £26,579 £64,922 £26,579 Fund Depleted £1,151,638 £9,330,570105 £66,899 £30,072 £72,771 £30,072 Fund Depleted £965,396 £12,648,098110 £73,684 £34,024 £81,079 £34,024 Fund Depleted £682,253 £17,256,807115 £79,520 £38,495 £107,406 £38,495 Fund Depleted £275,555 £23,674,593120 £85,870 £43,554 £0 £43,554 Fund Depleted Fund Depleted £32,629,211



Full Pension and No PCLS using Phased DrawdownThe graph and table below assumes a Phased Drawdown option will be used in the Royal London PensionPortfolio. This means 25% of the Initial Fund is used to provide the income tax free. When 25% of the fund isexhausted then the income will be taxed at your marginal tax rate.

The graph results for both the existing scheme and proposed plan include your 'Other Guaranteed Income'streams.

Net Income Available from Projected Fund ValueAge Existing

SchemeExistingScheme -Guarantees

ProposedPlan (Mid)

ProposedPlan -Guarantees

Low Mid High GrowthRequired

65 £30,643 £0 £34,630 £0 £945,068 £1,266,071 £1,767,254 -4.36%70 £31,542 £12,671 £38,539 £12,671 £838,826 £1,328,304 £2,151,415 -11.59%75 £35,087 £14,336 £35,159 £14,336 £678,849 £1,160,254 £2,058,771 -21%80 £39,092 £16,220 £39,171 £16,220 £485,357 £1,169,493 £2,068,366 -21%82* £40,836 £17,042 £40,918 £17,042 £397,670 £1,165,516 £2,264,61185 £43,616 £18,352 £43,704 £18,352 £253,900 £1,149,190 £2,604,64890 £48,727 £20,764 £48,824 £20,764 Fund Depleted £1,090,640 £3,322,57695 £54,501 £23,492 £54,608 £23,492 Fund Depleted £981,657 £4,291,157100 £60,809 £26,579 £60,927 £26,579 Fund Depleted £806,163 £5,606,797105 £66,899 £30,072 £67,029 £30,072 Fund Depleted £542,744 £7,404,358110 £73,684 £34,024 £95,456 £34,024 Fund Depleted £167,440 £9,872,682115 £79,520 £38,495 £0 £38,495 Fund Depleted Fund Depleted £13,276,423120 £85,870 £43,554 £0 £43,554 Fund Depleted Fund Depleted £17,986,725



Fund ValueType

Name Amount ValuationDate

FundRetained

GrowthRates

EstimatedAnnualCharge

RegularAmountUntil

Indexation

ISA ISA £64,130.14 29/06/2018 2%, 5%, 8% 1% £250 until 60 0%

Death Benefit Analysis of Funds used in the Income Modeller Analysis to Provide the Target Income

The below graph shows the remaining fund values of the existing assets each year after the target incomehas been withdrawn.


Capital Value of Benefits Payable on Death BeforeRetirementThe figures below assume that the value of the investments in the proposed plan grow at the rate specifiedbefore charges are deducted.

In order to compare the benefits payable on death before retirement from the existing scheme and proposedplan, the table below shows the capital value of providing the spouse’s pension available from the existingscheme.

Date BenefitPayable

ExistingScheme

Royal London Pension Portfolio

Low 2% Mid 5% High 8%Day One Lump Sum £6,518.96 £831,040.00 £831,040.00 £831,040.00

PartnersPension

£11,636.14 £0.00 £0.00 £0.00

Capital Value £688,571.30 £831,040.00 £831,040.00 £831,040.002 Years Lump Sum £6,782.32 £850,037.17 £900,774.68 £952,982.85

PartnersPension

£12,643.56 £0.00 £0.00 £0.00

Capital Value £703,929.79 £850,037.17 £900,774.68 £952,982.854 Years Lump Sum £7,056.33 £869,468.61 £976,360.98 £1,092,819.01

PartnersPension

£13,750.85 £0.00 £0.00 £0.00

Capital Value £719,082.09 £869,468.61 £976,360.98 £1,092,819.018 Years Lump Sum £7,638.00 £909,674.21 £1,147,093.72 £1,437,058.85

PartnersPension

£16,310.53 £0.00 £0.00 £0.00

Capital Value £748,032.79 £909,674.21 £1,147,093.72 £1,437,058.85


Proposed Pension PlanStandard Charges

Royal London Pension PortfolioAnnual Charge 0.35% paLarge Fund Discount; £0-£33,600 0.1%, £33,600-£67,300 0.50%, £67,300-£202,000 0.55%, £202,000-£673,000 0.60%, £673,000+ 0.65%

The value of these standard plan charges may vary depending on the size of the fund or investment, and arebased on an assumed investment fund and the level of remuneration (if any) which will normally be taken. Ifother funds or level of remuneration are selected the results of the analysis would be different.

Fund Name Split % Initial % OngoingCost % *

TransactionFee % **

RLP Property Pen 14.5 0 1 0RLP Long (15yr) Corporate Bond Pen 17 0 1 0RLP Long (15Yr) Index Linked Pen 9.5 0 1 0RLP Global Managed Pen 59 0 1 0Weighted Average 0 1 0Default Fund 0 1Adjustment to charges 0 0 0

* This is the total charge inclusive of annual management charges, additional expenses and negotiateddiscounts where applicable.** This represents the trading cost of the portfolio, for the acquistion and disposal of the investments. This feeincludes both the explicit and implicit costs.


Investment Performance ReportRoyal London Pension Portfolio

Past 12 Months Growth Performance Information

Receiving SchemeFund Name

Oct'18

Nov'18

Dec'18

Jan'19

Feb'19

Mar'19

Apr'19

May'19

Jun'19

Jul'19

Aug'19

Sep'19

RLP Property Pen 0.26 0.67 0.50 0.21 0.02 -0.18 0.07 0.20 0.18 0.12 0.24 -0.05

RLP Long (15yr)Corporate Bond Pen

0.59 -3.51 2.51 3.21 -0.20 4.06 -0.67 2.02 1.83 2.25 5.04 -0.50

RLP Long (15Yr) IndexLinked Pen

2.01 -1.28 1.13 0.51 -0.81 3.82 -1.41 4.66 -0.84 2.18 5.03 -1.06

RLP Global ManagedPen

-6.04 0.09 -6.02 4.87 1.76 2.37 4.02 -3.20 4.37 4.03 -3.30 1.48

Weighted Average forthe Proposed Plan

-3.23 -0.57 -2.95 3.50 0.93 2.43 2.13 -1.07 2.84 2.98 -0.58 0.68


Past 12 Months Cumulative Performance Information

Receiving SchemeFund Name

Oct'18

Nov'18

Dec'18

Jan'19

Feb'19

Mar'19

Apr'19

May'19

Jun'19

Jul'19

Aug'19

Sep'19

RLP Property Pen 0.26 0.93 1.44 1.65 1.67 1.49 1.56 1.76 1.94 2.07 2.31 2.26

RLP Long (15yr)Corporate Bond Pen

0.59 -2.94 -0.50 2.69 2.48 6.64 5.93 8.07 10.05 12.52 18.19 17.60

RLP Long (15Yr) IndexLinked Pen

2.01 0.70 1.84 2.36 1.53 5.41 3.92 8.77 7.85 10.21 15.75 14.52

RLP Global ManagedPen

-6.04 -5.96 -11.62 -7.31 -5.68 -3.45 0.44 -2.78 1.47 5.56 2.08 3.59

Weighted Average forthe Proposed Plan

-3.23 -3.78 -6.62 -3.35 -2.45 -0.08 2.05 0.95 3.82 6.91 6.29 7.02


Standardised Performance: 1 year to the end of September

Fund Name 2015 2016 2017 2018 2019RLP Property Pen 11.83 3.70 4.01 5.79 2.25

RLP Long (15yr) Corporate Bond Pen 4.64 25.74 -2.92 -0.58 17.60

RLP Long (15Yr) Index Linked Pen 5.57 17.93 -3.45 1.10 14.53

RLP Global Managed Pen -0.90 19.66 13.37 9.09 3.58

Weighted Average for the Proposed Plan 2.50 18.22 7.65 6.21 6.81


Cumulative Performance: Year to the end of September

Fund Name 2015 2016 2017 2018 2019RLP Property Pen 11.83 15.97 20.62 27.60 30.47

RLP Long (15yr) Corporate Bond Pen 4.64 31.57 27.73 26.99 49.34

RLP Long (15Yr) Index Linked Pen 5.57 24.50 20.20 21.53 39.18

RLP Global Managed Pen -0.90 18.58 34.44 46.66 51.91

Weighted Average for the Proposed Plan 2.50 21.18 30.45 38.55 47.98

Please note that past performance cannot be a guide to the future and investment returns cannot beguaranteed.

Information produced by Selectapension Ltd in conjunction with data supplied by Morningstar and otherexternal sources.


Report as of 5 Nov 2019

RLP Property Pension Fund

Morningstar® Category Index Fund Benchmark Morningstar Rating™

-

IPD UK All Property Monthly QQQ

Investment Objective

The fund invests in good quality commercial andindustrial property. Investment tends to be in traditionalareas such as industrial estates, office buildings andhigh street retail units. Although, other properties suchas leisure developments, are actively investigated. Thefund makes significant effort to redevelop existingproperty holdings to improve their appeal and togenerate increased rental income. The value of propertyis generally a matter of a valuer's opinion rather thanfact. An investor may not always...

10.0K

11.0

12.0

13.0

14.0

15.0

16.0Growth Of 10000

(GBP)

Fund

Index

Category

2014 2015 2016 2017 2018 10/19 Performance

16.28 9.92 1.67 6.23 4.70 0.84 Fund- - - - - - +/- Index

17.64 1.99 -30.29 3.72 2.20 1.22 +/- Category21 43 25 80 45 39 Percentile Rank

Standardised Performance1 Yr to 1 Yr to 1 Yr to 1 Yr to 1 Yr to

30 Sep 15 30 Sep 16 30 Sep 17 30 Sep 18 30 Sep 1911.83 3.70 4.01 5.79 2.25

12 Months Total Return (bid to bid). Source: Morningstar, net incomereinvested. This table complies with the FCA's regulations to comparedifferent products from different providers.

Trailing Returns

(4 Nov 2019)

Return % +/-Idx +/-Cat

3 Months6 Months1 Year3 Years Annualised5 Years Annualised

0.220.722.014.235.17

-----

-0.43-7.06-1.8518.6416.54

Quarterly Returns 1st qtr 2nd qtr 3rd qtr 4th qtr

2019 0.05 0.44 0.30 -2018 1.29 0.97 0.92 1.432017 1.20 0.95 1.46 2.492016 1.40 1.21 -1.27 0.352015 1.97 2.63 2.62 2.36

Portfolio 30 Sep 2019

Risk Profile

Asset Allocation % Port.

UK/Euro Equity 0.00NA Equity 0.00Other Equity 0.00Bonds 0.00Cash 0.12Property 99.88Other 0.00

Morningstar Style Box™

Equity Style Fixed Income Style

StyleValue Blend Growth

Small

Mid

LargeSize

Interest Rate SensitivityLtd Mod Ext

LowM

edHighCredit Q

uality

Risk Measures

3-Yr Alpha -3-Yr Beta -R-Squared -Information Ratio -Tracking Error -

3-Yr Sharpe Ratio 3.123-Yr Std Dev 1.153-Yr Risk Low5-Yr Risk Low10-Yr Risk Low

Top 10 Holdings Sector % Port.

Rlp Property - 99.88 Total Stock Holdings 0Total Bond Holdings 0Assets in Top 10 Holdings % 99.88

Sector Weightings % Equity

h Cyclical 0.00

r Basic Materials -t Consumer Cyclical -y Financial Services -u Real Estate - j Sensitive 0.00

i Communication Services -o Energy -p Industrials -a Technology - k Defensive 0.00

s Consumer Defensive -d Healthcare -f Utilities -

No Data Available

Operations

Insurance Company Royal LondonPhone -Website -Inception Date 29 Feb 1984Fund Manager GarethDickinsonManager Start Date 1 Jan 2009NAV (4 Nov 2019) 1,134.20 British Pence

Domicile United KingdomCurrency Pound SterlingABI Sector UK Direct Property (Pen)

ISIN GB0007833121Minimum Additional Purchase -

© 2019 Morningstar. All Rights Reserved. The information, data, analyses and opinions (“Information”) contained herein: (1) include the proprietary information of Morningstar and Morningstar’s third party licensors; (2)may not be copied or redistributed except as specifically authorised;(3) do not constitute investment advice;(4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and(6) may be drawn from fund data published on various dates. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information beforeusing it and don’t make any investment decision except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go downas well as up.

ß®


RLP Long (15 Year) Corporate Bond Pension Fund


Bloomberg Barclays Sterling Aggregate TR GBPUsed throughout report

Markit iBoxx GBP NonGilts A 15+ TR QQQ


"The fund invests in long dated, high quality fixedinterest investments from companies around the world.The time aspect allows investors to build a pensionspecific to their attitude to risk and their length of timeto retirement."

10.0K11.012.013.014.015.016.017.0

Growth Of 10000

(GBP)

Fund

Index

Category

2014 2015 2016 2017 2018 10/19 Performance

18.26 -1.35 17.68 6.46 -4.21 16.63 Fund4.39 -1.82 6.88 3.82 -4.07 6.98 +/- Index7.47 -1.57 8.66 3.37 -2.71 8.57 +/- Category

68 84 62 3 82 11 Percentile Rank


30 Sep 15 30 Sep 16 30 Sep 17 30 Sep 18 30 Sep 194.64 25.74 -2.92 -0.58 17.60


Trailing Returns

(4 Nov 2019)



1.069.20

15.476.107.76

0.772.655.632.532.47

0.634.417.442.683.31


2019 7.18 3.19 6.87 -2018 -1.74 -0.66 -1.37 -0.502017 1.81 1.48 -0.21 3.262016 3.70 7.23 12.39 -5.842015 4.85 -6.82 0.36 0.61



UK/Euro Equity 0.00NA Equity 0.00Other Equity 0.00Bonds 99.86Cash -0.18Property 0.00Other 0.32

Morningstar Fixed Income Style Box™


LowM

edHighCredit Q

uality

Effective Duration(Y)

-

Effective Maturity(Y)

-

Avg Credit Quality -

Credit Quality

Top 10 Holdings % Port.

United Kingdom of Great Britain and... 2.85Electricite de France SA 6% 2.37United Kingdom of Great Britain and... 2.17ENEL Finance International N.V.... 1.91Lloyds Bank plc 6.5%2040-09-17 1.37 The Wellcome Trust Limited 2.52% 1.22Electricite de France SA 5.5%2041-10-17 1.11Oxford University 2.54% 1.11GlaxoSmithKline Capital plc... 1.09Transport For London 3.88%2042-07-23 1.01 Total Stock Holdings 0Total Bond Holdings 228Assets in Top 10 Holdings % 16.20

Maturity Range %

1 to 3 0.003 to 5 0.005 to 7 0.007 to 10 1.2610 to 15 10.5715 to 20 20.6920 to 30 40.40Over 30 27.08

Coupon Range %

0 0.000 to 4 33.364 to 6 45.356 to 8 20.528 to 10 0.4510 to 12 0.32Over 12 0.00

Operations

Insurance Company Royal LondonPhone -Website -Inception Date 22 Sep 2004Fund Manager JonathanPlattManager Start Date 1 Jan 2009NAV (4 Nov 2019) 275.40 British Pence

Domicile United KingdomCurrency Pound SterlingABI Sector Sterling Long Bond (Pen)

ISIN GB00B02LC718Minimum Additional Purchase -


ß®


RLP Long (15 Year) Index Linked Pension Fund


FTSE Actuaries UK Conventional Gilts All Stocks TR GBPUsed throughout report

FTSE Act UK Cnvt Gilts Over 15 Yr TR GBP QQ


"The fund invests in long dated, index linked bondsissued by the UK government (also know as index linkedgilts). An index linked bond is a loan made to a companyor government agency for a defined period where theinterest rate and repayment value are protected againstinflation. The time aspect allows investors to build apension specific to their attitude to risk and their lengthof time to retirement."

10.0K

11.0

12.0

13.0

14.0

15.0

16.0Growth Of 10000

(GBP)

Fund

Index

Category

2014 2015 2016 2017 2018 10/19 Performance

14.42 -2.99 16.69 2.11 0.60 6.60 Fund0.57 -3.55 6.60 0.28 0.03 -2.61 +/- Index

-0.21 -3.11 6.29 0.53 0.53 -2.43 +/- Category96 97 96 50 7 52 Percentile Rank


30 Sep 15 30 Sep 16 30 Sep 17 30 Sep 18 30 Sep 195.57 17.93 -3.45 1.10 14.53


Trailing Returns

(4 Nov 2019)



-3.044.277.742.905.33

-3.34-2.38-1.85-0.390.22

-3.52-2.48-2.23-0.450.27


2019 3.51 2.32 6.19 -2018 -1.25 0.57 -0.52 1.832017 1.14 -1.09 -0.26 2.342016 4.31 6.94 8.10 -3.242015 1.49 -3.19 0.96 -2.21



UK/Euro Equity 0.00NA Equity 0.00Other Equity 0.00Bonds 98.73Cash 1.27Property 0.00Other 0.00

Morningstar Fixed Income Style Box™


LowM

edHighCredit Q

uality

Effective Duration(Y)

-

Effective Maturity(Y)

-

Avg Credit Quality -

Credit Quality

Top 10 Holdings % Port.

United Kingdom of Great Britain and... 17.94United Kingdom of Great Britain and... 13.70United Kingdom of Great Britain and... 9.18United Kingdom of Great Britain and... 6.00United Kingdom of Great Britain and... 5.54 United Kingdom of Great Britain and... 4.82United Kingdom of Great Britain and... 4.71United Kingdom of Great Britain and... 4.05United Kingdom of Great Britain and... 3.33France (Republic Of) 0.1%2029-03-01 3.07 Total Stock Holdings 0Total Bond Holdings 34Assets in Top 10 Holdings % 72.34

Maturity Range %

1 to 3 0.003 to 5 1.605 to 7 6.087 to 10 35.3310 to 15 29.0015 to 20 3.6320 to 30 8.60Over 30 15.77

Coupon Range %

0 0.000 to 4 95.124 to 6 4.886 to 8 0.008 to 10 0.0010 to 12 0.00Over 12 0.00

Operations

Insurance Company Royal LondonPhone -Website -Inception Date 30 Sep 2004Fund Manager PaulRaynerManager Start Date 1 Jan 2009NAV (4 Nov 2019) 249.10 British Pence

Domicile United KingdomCurrency Pound SterlingABI Sector UK Index-Linked Gilts (Pen)

ISIN GB00B02LCC68Minimum Additional Purchase -


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RLP Global Managed Pension Fund


MSCI ACWI Growth NR USDUsed throughout report

45% FTSE World Ex UK TR GBP, 55% FTSE AllSh TR GBP QQQ


"The fund invests in units of other unit-linked funds. Theasset allocation process is a disciplined and regularreview of all the factors likely to influence markets. Afull and formal review of forecasts and policy takesplace quarterly, and the weekly review provides a forumin which to monitor strategy."

10.0K

12.5

15.0

17.5

20.0

22.5Growth Of 10000

(GBP)

Fund

Index

Category

2014 2015 2016 2017 2018 10/19 Performance

5.30 3.24 18.47 12.54 -8.06 15.39 Fund-6.69 -4.19 -4.71 -6.21 -5.64 -6.95 +/- Index-3.56 -2.88 -1.89 -4.48 -3.31 -3.60 +/- Category

67 61 81 57 68 60 Percentile Rank


30 Sep 15 30 Sep 16 30 Sep 17 30 Sep 18 30 Sep 19-0.90 19.66 13.37 9.09 3.58


Trailing Returns

(4 Nov 2019)



-0.613.419.188.858.67

0.30-3.71-8.09-5.55-5.91

2.29-1.57-4.49-3.00-3.45


2019 9.24 5.08 2.09 -2018 -5.93 8.22 2.20 -11.622017 4.59 1.29 1.30 4.862016 -0.07 2.96 9.01 5.632015 7.03 -3.46 -6.34 6.69


Risk Profile


UK/Euro Equity 56.88NA Equity 30.54Other Equity 12.69Bonds 6.28Cash -11.83Property 0.03Other 5.41

Morningstar Equity Style Box™ % Equity

StyleValue Blend Growth

Small

Mid

LargeSize Giant 46.48

Large 29.37Medium 18.32Small 4.91Micro 0.92 Avg Mkt Cap 32838 GBP

Risk Measures

3-Yr Alpha -1.833-Yr Beta 0.91R-Squared 88.60Information Ratio -0.82Tracking Error 3.42

3-Yr Sharpe Ratio 0.683-Yr Std Dev 9.763-Yr Risk bel avg5-Yr Risk Low10-Yr Risk bel avg

Calculations use MSCI ACWI Growth NR USD (where applicable)

Top 10 Holdings Sector % Port.

RLP UK Equity Pen - 37.12RLP American Pen - 23.48FTSE 100 Index Future... - 14.06Royal London Global Equity... - 9.24RLP European Pen - 6.18 RLP Pacific Pen - 6.14United Kingdom of Great... - 4.51Royal London New Mydas - 4.28Royal London EM ESG Ldrs Eq... - 3.97Royal London Cash Plus R Acc - 2.71 Total Stock Holdings 0Total Bond Holdings 1Assets in Top 10 Holdings % 111.69

Sector Weightings % Equity

h Cyclical 39.95

r Basic Materials 7.08t Consumer Cyclical 13.07y Financial Services 17.25u Real Estate 2.55 j Sensitive 34.04

i Communication Services 2.95o Energy 9.02p Industrials 10.42a Technology 11.64 k Defensive 26.01

s Consumer Defensive 11.79d Healthcare 11.21f Utilities 3.01

World Regions % Equity

Americas 31.53

United States 30.78Canada 0.30Latin America 0.44

Greater Europe 58.14

United Kingdom 47.06Eurozone 7.13Europe - ex Euro 3.15Europe - Emerging 0.34Middle East / Africa 0.47

Greater Asia 10.33

Japan 4.24Australasia 1.09Asia - Developed 2.63Asia - Emerging 2.37

Operations

Insurance Company Royal LondonPhone -Website -Inception Date 29 Feb 1984Fund Manager RobertTalbutManager Start Date 1 Jan 2009NAV (4 Nov 2019) 1,341.80 British Pence

Domicile United KingdomCurrency Pound SterlingABI Sector Global Equities (Pen)

ISIN GB0007832826Minimum Additional Purchase -


ß®


Morningstar® Portfolio X-Ray

Asset Allocation % Country Exposure %AssetAllocation

Port Bmark

Stocks 59.07 96.86 Bonds 30.06 0.03 Cash -6.87 0.02 Other 17.75 3.10 Not classified 0.00 0.00

Country Port Bmark

United Kingdom 29.01 89.18United States 18.98 3.72Japan 2.61 0.16France 1.68 0.08

Country Port Bmark

Switzerland 1.45 1.50Germany 1.31 0.59China 0.76 0.23Taiwan 0.72 0.06Australia 0.63 0.04

World Regions %

<25 25-50 50-75 >75

Port BmarkNot Classified 38.36 3.21

Port BmarkGreater Europe 35.84 92.07

United Kingdom 29.01 89.18Western Europe -Euro

4.39 0.93

Western Europe -Non Euro

1.94 1.58

Emerging Europe 0.21 0.21Middle East /Africa

0.29 0.18

Port BmarkAmericas 19.43 3.86

United States 18.98 3.72Canada 0.19 0.03Central & LatinAmerica

0.27 0.11

Port BmarkGreater Asia 6.37 0.85

Japan 2.61 0.16Australasia 0.67 0.04Emerging 4 Tigers 1.62 0.20Emerging Asia - Ex4 Tigers

1.46 0.45

Stock Sectors %

Sensitive

Defensive

Cyclical

BenchmarkPortfolio

Port BmarkhCyclical 24.62 37.60

rBasic Materials 4.36 8.66tConsumerCyclical

8.06 8.23

y FinancialServices

10.64 18.09

uReal Estate 1.57 2.63

Port BmarkjSensitive 20.98 32.37

iCommunicationServices

1.82 7.35

oEnergy 5.56 13.05p Industrials 6.43 10.15aTechnology 7.18 1.81

Port BmarkkDefensive 16.03 26.78

sConsumerDefensive

7.27 13.95

dHealthcare 6.91 9.91fUtilities 1.86 2.91

Investment Style

29 24 23

5 7 6

1 2 3

<10 10-25 25-50 >50

Value Blend GrowthStyle

LargeM

idSm

allSize Equity Style Port Bmark

Price/Book Ratio 1.76 1.36Price/EarningsRatio

14.79 13.22

Price/CashflowRatio

7.52 6.36

0 0 0

0 0 0

0 0 0

<10 10-25 25-50 >50

Ltd Mod ExtInterest Rate Sensitivity

HighM

edLow

Credit Quality

Fixed-IncomeStyle

Port Bmark

Effective Duration - -Effective Maturity(Y)

- -

Average CreditQuality

- -

Top 10 Underlying HoldingsAssets % Name Type Sector Country

21.90 RLP UK Equity Pen Mutual Fund - Unspecified Not Classified United Kingdom14.48 Rlp Property AssetType_PP Not Classified United Kingdom13.85 RLP American Pen Mutual Fund - Unspecified Not Classified United Kingdom

8.30 FTSE 100 Index Future Dec19 Equity Index - Future Not Classified United Kingdom5.45 Royal London Global Equity Divers R Acc Fund Not Classified United Kingdom

3.64 RLP European Pen Mutual Fund - Unspecified Not Classified United Kingdom3.62 RLP Pacific Pen Mutual Fund - Unspecified Not Classified United Kingdom2.66 United Kingdom of Great Britain and Northern Ireland 4.75% Bond - Gov't/Treasury Not Classified United Kingdom2.52 Royal London New Mydas Mutual Fund - Unspecified Not Classified United Kingdom2.34 Royal London EM ESG Ldrs Eq Trkr R £ Acc Fund Not Classified United Kingdom

Morningstar UK Limited. All Rights Reserved. Legal Information: The information, data, analyses and opinions contained herein (1) include the confidential and proprietary information of Morningstar UK Limited (2) may not be copiedor redistributed, (3) do not constitute investment advice offered by Morningstar UK Limited, (4) are provided solely for informational purposes (5) are not warranted to be correct, complete, accurate or timely and the date of datapublished may vary from fund to fund . Morningstar UK Limited shall not be responsible for any trading decisions, damages or other losses resulting from, or related to, this information, data, analyses or opinions or their use andthat the information must not be relied upon by you the user without appropriate verification. Morningstar UK Limited informs you as follows: (i) no investment decision should be made in relation to any of the information providedother than on the advice of a professional financial advisor; (ii) past performance is no guarantee of future results; and (iii) the value and income derived from investments can go down as well as up.

ß®


Morningstar® Performance X-Ray

BenchmarkFTSE AllSh TR GBP

Performance Date31 Oct 2019

PerformanceGrowth Of 10000 EUR Portfolio Benchmark

5k

10

15

20

25

Quarterly Performance Relative To Benchmark

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Trailing Returns % Port Bmark

3 Months -1.51 -2.116 Months 3.15 0.411 Year 8.75 6.793 Years Annualised 6.22 6.065 Years Annualised 7.83 6.64YTD 12.72 12.81

Time Period Return % Best Worst

3 Months 10.84 (May 16-Aug 16) -6.88 (Jun 11-Sep 11)6 Months 14.44 (Feb 16-Aug 16) -6.18 (Mar 15-Sep 15)1 Year 20.04 (Feb 16-Feb 17) -4.61 (Dec 17-Dec 18)3 Years Annualised 13.20 (May 12-May 15) 6.20 (Mar 15-Mar 18)5 Years Annualised 11.52 (May 12-May 17) 6.60 (Dec 13-Dec 18)

Return Analysis Correlation MatrixUnderlying Holdings Portfolio Benchmark 3 Yr Mean

3-Yr Standard Deviation

-4.00 -2.00 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.000.00

2.00

4.00

6.00

8.00

10.00

1

2

3

4

1.00

0.13 1.00

-0.06 -0.01 1.00

-0.09 0.77 0.01 1.00

1

2

3

4

1 2 3 4

1.00 To 0.60 0.60 To 0.20 0.20 To -0.20 -0.20 To -0.60 -0.60 To -1.00

Top 10 Portfolio Holdings StatisticsName Weight (%) Mean Std Dev

1 RLP Global Managed Pen 59.00 7.15 9.76

2 RLP Long (15yr) Corporate Bond Pen 17.00 6.35 7.38

3 RLP Property Pen 14.50 4.18 1.15

4 RLP Long (15Yr) Index Linked Pen 9.50 2.98 7.28

Risk And Return Statistics 3 Years 5 Years

Standard Deviation 6.14 6.64Arithmetic Mean 6.23 7.78Sharpe Ratio 0.93 1.10MPT Statistics 3 Years 5 Years

Alpha 2.49 3.50Beta 0.55 0.59R-Squared 0.81 0.76Information Ratio 0.03 0.23Tracking Error 5.27 5.20


ß®


Holding Overlap

Holding OverlapThe portfolio date is the most recent available for full holdings disclosure in the database. It could be that two funds have a different portfolio date. Please see disclosure pages fordetails.

Weight inPortfolio (%)

Name ISIN Weight inHolding (%)

Sector Portfolio Date

Portfolio Holdings

Portfolio HoldingsName Type Holding

Portfolio DateMorningstarRating™

1 Year 3 YearsAnnualised

5 YearsAnnualised

Weight(%)

RLP Global Managed Pen Fund 30 Sep 2019 QQQ 8.54 6.89 8.32 59.00RLP Long (15yr) Corporate Bond Pen Fund 30 Sep 2019 QQQ 15.37 6.26 8.17 17.00RLP Property Pen Fund 30 Sep 2019 QQQ 2.02 4.25 5.20 14.50RLP Long (15Yr) Index Linked Pen Fund 30 Sep 2019 QQ 6.42 2.76 5.40 9.50


ß®

Early Transfer AnalysisThis table shows the estimated transfer value away from the proposed pension product, Royal London -Pension Portfolio, at yearly intervals across the required term.

The colour of each cell provides a quartile indication of how it compares to the other analysed products:

(1) 1st Quartile (Best) (2) 2nd Quartile (3) 3rd Quartile (4) 4th Quartile(Worst)

Year 2% 5% 8%1 £840,484 (3) £865,205 (3) £889,925 (3)2 £850,037 (3) £900,774 (3) £952,982 (3)3 £859,697 (3) £937,806 (3) £1,020,508 (3)4 £869,468 (3) £976,360 (3) £1,092,819 (3)5 £879,350 (3) £1,016,500 (3) £1,170,253 (3)6 £889,344 (3) £1,058,289 (3) £1,253,174 (3)7 £899,451 (3) £1,101,797 (3) £1,341,970 (3)8 £909,674 (3) £1,147,093 (3) £1,437,058 (3)9 £920,012 (3) £1,194,252 (3) £1,538,884 (3)


Results SummaryProjected Fund Value at proposed retirement age 65

Provider Plan 2% 5% 8% RIYScottish Widows Retirement Account £927,807 £1,221,956 £1,592,356 1%Aviva Pension Portfolio (Core) £929,911 £1,219,862 £1,587,825 1%Royal London Pension Portfolio £923,485 £1,210,398 £1,574,405 1.1%Standard Life Active Money Personal

Pension [0.8-2% AMCFunds]

£907,246 £1,189,115 £1,546,722 1.3%

Standard Life Active Money SIPP [0.8-2%AMC Funds]

£907,246 £1,189,115 £1,546,722 1.3%


Results Excluding Adviser Remuneration At Age 65Critical Yield for Annuity Purchase

The critical yield is the estimated annual investment return required from the proposed plan in order topurchase an annuity to provide benefits of equal value to the estimated benefits provided by the existingscheme at retirement.

The fund required is the estimated capital value required to purchase an annuity to provide benefits of equalvalue to the estimated benefits provided by the existing scheme. The fund required is used to calculate thecritical yield.

The table below breaks down the different fund required and annual returns required to purchase the annuityas Joint Life, Single Life and Hurdle Rate. The Single Life and Hurdle rate will both assume no spousespension is payable, in addition the Hurdle rate will also assume no guarantees and increase in payments.

Fund Required Royal London Pension PortfolioJoint LifeAll benefits taken as Pension £1,344,989.37 5.43%

Single LifeAll benefits taken as Pension £781,609.20 2.77%

Hurdle RateAll benefits taken as Pension £781,609.20 -0.52%

Drawdown Income

Assuming an income of equal value to the estimated benefits provided by the existing scheme, increasing byRPI per annum is taken from a drawdown arrangement, the fund at the medium rate of return will run out atthe following ages.

Royal London Pension PortfolioAll benefits taken as Pension 114

Please note that these results are dependent upon the assumptions used. Please see the Assumptionssection for further details.


Projected Fund Value at proposed retirement age 65, assuming no Adviser remunerationhas been taken.

Provider Plan 2% 5% 8% RIYScottish Widows Retirement Account £991,980 £1,307,672 £1,703,345 0.3%Aviva Pension Portfolio (Core) £994,525 £1,304,568 £1,698,023 0.3%Royal London Pension Portfolio £987,359 £1,294,117 £1,683,301 0.4%Standard Life Active Money Personal

Pension [0.8-2% AMCFunds]

£969,997 £1,271,362 £1,653,703 0.6%


£969,997 £1,271,362 £1,653,703 0.6%


Adviser RemunerationAdviser Remuneration (as input)

Initial OngoingSingle Premium/Transfer 2% 0.5%Single Premium/Transfer Monetary £0 £0

Remuneration at proposed age 65

Provider Plan Fund (5%) Initial(Single)

Fund-Based Total

Scottish Widows Retirement Account £1,221,956.32

£16,960.00 £47,365.02 £64,325.02

Aviva Pension Portfolio(Core)

£1,219,862.66

£16,960.00 £47,366.91 £64,326.91

Royal London Pension Portfolio £1,210,398.56

£16,960.00 £47,178.86 £64,138.86

Standard Life Active MoneyPersonal Pension [0.8-2% AMC Funds]

£1,189,115.53

£16,960.00 £46,733.22 £63,693.22

Standard Life Active Money SIPP[0.8-2% AMC Funds]

£1,189,115.53

£16,960.00 £46,733.22 £63,693.22


Existing Scheme AssumptionsIn order to make the above comparisons it has been necessary to make the following assumptions, asprescribed by the Financial Conduct Authority (FCA). Where actual historical figures are available these havebeen used instead.

1. Annuity Interest Rate 0.9% p.a.

An annuity rate is needed to calculate the capital (lump sum) value of the pension benefits at retirement,provided by the existing scheme.The Annuity Interest Rate is the assumed interest rate on which the annuity rates are based. If a higher ratehad been assumed then the required investment return (Critical Yield) would have been lower andconversely if a lower rate applied then the required investment return (Critical Yield) would have been higher.

2. Retail Price Index 3% p.a.

Some or all of your pension benefits provided by the existing scheme may increase before and/or afterretirement in line with the increase in the Retail Price Index. If a higher increase had been assumed then therequired investment return (Critical Yield) would have been higher and if a lower rate of increase had beenassumed then the required investment return (Critical Yield) would have been lower.Where some benefits increase in line with the Retail Price Index (up to a maximum), the assumptions thatapply are as follows:

RPI increase limited to PreRetirement

PostRetirement

2.50% 2.50% 2.50%3.00% 3.00% 3.00%5.00% 3.00% 3.59% p.a.

3. Consumer Price Index 2% p.a.

Some or all of your pension benefits provided by the existing scheme may increase before and/or afterretirement in line with the increase in the Consumer Price Index. If a higher increase had been assumed thenthe required investment return (Critical Yield) would have been higher and if a lower rate of increase hadbeen assumed then the required investment return (Critical Yield) would have been lower.Where some benefits increase in line with the Consumer Price Index, the assumptions that apply are asfollows:

CPI increase limited to PreRetirement

PostRetirement

2.00% 2.54% p.a.


4. Section 148 Orders (National Average Earnings Index) 3.5% p.a.Guaranteed Minimum Pensions, provided by some schemes, increase before retirement in line with Section148 orders (broadly in line with the increase in the National Average Earnings Index). This assumption willonly affect a small number of Defined Benefit schemes.As for the Retail Price Index assumption above, if a higher increase had been assumed then the requiredinvestment return (Critical Yield) would have been higher and if a lower rate of increase had been assumedthen the required investment return (Critical Yield) would have been lower.


Pension Protection FundThe Pension Protection Fund(PPF) is a compulsory compensation scheme. Private Sector Defined Benefitschemes are required to pay a levy each year and in return the PPF provides a “safety net” for pensionschemes when the sponsoring employer becomes insolvent and the scheme has insufficient funds to pay thepromised benefits in full. The PPF provides compensation to scheme members but at a lower level than thefull benefits promised by the existing scheme, which is not guaranteed. The PPF has the right to amend thelevel of compensation payable and will only pay the compensation benefits if it has sufficient funds. It is notunderwritten by the Government.

A further comparison has been made of the estimated benefits that may be provided by a transfer with thelikely compensation benefits that would be provided if the scheme was taken over by the PPF.

You would need to obtain an estimated annual investment return (Critical Yield), as shown below, from yourPersonal Pension or Buy-out policy, in order to provide benefits of equal value to the estimated compensationprovided by the PPF on retirement on your 65th birthday / 29/03/2029.

Please note that these results are very dependent upon the assumptions used. Assumptions, relatingspecifically to the PPF, are as follows:-

Proposed Retirement Date – 29/03/2029

An Annual Pension of £25,198.12 p.aorA Pension Commencement Lump Sum of £129,152.88 and a reduced Annual Pension of £19,350.56 p.a.

Royal London Pension PortfolioCritical YieldAll benefits taken as Pension 0.27%


Pension Protection Fund Assumptions

The usual explanation of benefits provided by the PPF, namely that scheme members, over retirement age,will receive 100% of their existing entitlement and that scheme members who have not reached retirementage will receive 90% of their existing entitlement, is not only simplistic, it is also misleading. The benefits thatthe PPF provides are summarised below:

1. Rate for Commuting Pension for a Pension Commencement Lump Sum

This assumption only affects the required investment return (Critical Yield) if the Pension CommencementLump Sum option is chosen. The rate varies between pre and post 97 benefits, age at retirement andwhether a spouse's pension is included.It has been assumed that current rates will still apply at your retirement age 65.

2. Scheme Members Entitled to 100% Compensation

The following scheme members will receive compensation equal to the level of pension being received fromtheir pension scheme. No limits apply to the amount of compensation payable.• Members who are over the scheme retirement age, on the day before the Assessment Date.• Members who are younger than the scheme retirement age, but are in receipt of an ill health pension.• Individuals in receipt of a survivor’s pension.The Assessment Date is the date on which the pension scheme first becomes eligible to join the PPF. Thisis normally the date on which the sponsoring employer becomes insolvent.

3. Scheme Members Entitled to 90% Compensation

All other scheme members will only receive compensation equal to 90% of the level of pension beingreceived from their pension scheme. This compensation may be further reduced by the application of overalllimits (Compensation Cap). The Cap is laid down in legislation for retirement (when payment ofcompensation commences) at age 65. Actuarial adjustments are made for other ages. After the reduction to90%, the limits are currently as follows, and are reviewed annually in line with the National Average Earningsindex:Retirement Age Limit of Compensation65 £36,01860 £30,85755 £27,062

For members who had retired early, before the Assessment Date, the above limit is calculated according totheir age at the date of assessment. If the member has previously taken a Pension Commencement LumpSum then the compensation limit is applied to the total of the pension payable and the pension equivalent ofthe Pension Commencement Lump Sum taken.

From 6 April 2017, the Long Service Cap came into effect for members who have 21 or more years' servicein their scheme. For these members, the cap is increased by three per cent for each full year of pensionableservice above 20 years, up to a maximum of double the standard cap.


4. Increases to Benefits Before Retirement (Revaluation)

All pension benefits will increase until retirement in line with the increase in the Consumer Price Index, up toa maximum of 5% in any year.(This is similar to the increases provided for most Non-Guaranteed Minimum Pensions and is indeed higherthan for some members who left their scheme before 1st January 1991. However, this is significantly lowerthan the rate of revaluation applying to most Guaranteed Minimum Pensions). Therefore the level ofcompensation actually paid to most members with Guaranteed Minimum Pensions will be significantly lowerthan 90% of their existing scheme benefits).

5. Increases to Benefits After Retirement (Escalation)

All pension benefits in respect of service after 5th April 1997, will increase in payment in line with theincrease in the Consumer Price Index, up to a maximum of 2.5% in any year. Pension benefits, in respect ofservice before 6th April 1997, will NOT increase in payment.(This is less than the minimum level of increase that schemes are required to give in respect of service from6th April 1997 to 5th April 2005). It is also lower than the minimum level of increase that schemes arerequired to give to Guaranteed Minimum Pensions in respect of service after 5th April 1988).

6. Maximum Pension Commencement Lump Sum

Once the scheme has been accepted by the PPF the maximum Pension Commencement Lump Sum will be25% of the value of the PPF benefits. This is the case irrespective of the limits imposed by the originalscheme rules, even if the member was not entitled to a Pension Commencement Lump Sum previously.The amount of pension given up to provide the Pension Commencement Lump Sum will be assessed usingthe PPF’s actuarial factors, which are usually far less penal than those applied by most Defined Benefitschemes.

7. Ill Health Pensions

No new ill health early retirement pensions will be granted under the PPF.

8. Survivor’s Pensions (Widow’s Pensions)

Pensions payable on death of a member after retirement will be 50% of the pension being paid to themember.(This is therefore 50% of the reduced pension AFTER any Pension Commencement Lump Sum has beentaken. Most schemes provide 50% of the pension BEFORE any Pension Commencement Lump Sum hasbeen taken. A number of schemes provide survivor’s pensions of more than 50%. This is therefore a furthersignificant reduction in the level of benefits provided by the PPF).

9. Children’s Pensions

In the event of death of a member, the PPF will provide Children’s pensions up to age 18, or age 23 if in fulltime education or vocational training. This is the case even if the original scheme rules did not provide thisbenefit.


Summary

The PPF provides very valuable benefits, and in some cases, Pension Commencement Lump Sums andChildren’s Pensions, that will frequently provide better benefits than the scheme. However, the number of“small print” terms where the benefits are noticeably worse than the original scheme will mean that memberswill receive benefits of a much lower value than the headline 90% or 100% would suggest.

10. Recent Scheme Improvements

The PPF will normally reverse any scheme improvements made in the previous 3 years.Example 1: A member who had retired as a result of a lowering of the retirement age but had not reachedthe previous Normal Retirement Age by the Assessment Date, would have their pension stopped and wouldbecome a deferred member or treated as an early retiree with a reduced pension.Example 2: A member who had taken ill health early retirement as a result of a widening of the ill healthprovisions would have their pension stopped and would become a deferred member or would be treated asan early retiree with a reduced pension.Example 3: An unmarried partner of a deceased member who was receiving a dependant’s pension as aresult of a widening of the dependant’s pension provisions, would have their pension stopped.

11. Accidental Overpayments

The PPF is required to reclaim, with interest, any overpayments of benefits made to scheme members.


Types of SchemeA simple comparison of the benefits is not possible because the benefits provided by the existing scheme anda proposed plan are very different. The existing scheme is a “Defined Benefit” scheme and the proposed planwill provide benefits on a “Money Purchase” basis. In order to understand the results of this analysis it isessential that you first understand the differences between the benefits provided by a Defined Benefit schemeand the Money Purchase benefits provided by the proposed plan.

Defined Benefit

Defined Benefit schemes accrue benefit based on your length of service; typically you would accrue 1/60th or1/80th of your pensionable salary for each year of pensionable service. Dependent on scheme rules the finalbenefit could be calculated based on your Final Salary or Career Average Salary.

On leaving the scheme the preserved pension is usually increased to retirement to offset the effect ofinflation. Therefore, to make an estimate of the benefits payable at retirement, a reasonable assumption ofthese future increases must be made.

It is very important to understand that the benefits provided by a Defined Benefit scheme are not guaranteed.The scheme only promises to pay the benefits, subject to there being sufficient assets in the fund. As recentlegislation has made the sponsoring employer legally bound to make good any shortfall in funding, this isusually only a problem when the scheme has insufficient assets and the company becomes insolvent.

In recognition of this problem the Government set up the PPF to provide a safety net for schemes withinsolvent sponsoring employers. The aim of the PPF is to provide compensation so that a high proportion ofeach member’s pension is still payable in most circumstances. The PPF is funded by a levy on all DefinedBenefit schemes but can, only promise to provide benefits only if it has sufficient assets. It is not therefore acast-iron guarantee.

Money Purchase

Money Purchase pension policies (also known as “Defined Contribution”) provide a fund of money atretirement, which is then used to purchase a pension and normally a Pension Commencement Lump Sum(PCLS). The amount of the fund at retirement is dependent upon the level of contributions paid, theinvestment return on the contributions once invested, and the charges under the policy. At retirement the fundis used to provide a pension by purchasing an annuity in the open market (guaranteed income) or by enteringdrawdown. The income from a drawdown contract is not guaranteed and will depend on future investmentreturns and levels of withdrawals.


Record of Input Data Client DetailsRef PW120167Title MrForename PeterMiddle InitialsSurname WilliamsGender MaleDate of Birth 29/03/1964Employment Status EmployedMarital Status MarriedPartner's Date of Birth 05/01/1972Partner's Forename RachelPartner's Surname WilliamsPartner's Gender FemaleHealth Status NormalDependants YesDependant NotesAttitude to Risk MediumLifetime Allowance Protection Unable to ConfirmCountry of Residence England, Northern Ireland, Wales or OtherNotes

Scheme DetailsCalculation Date 05/11/2019Scheme Name Group UK RetirementDate of Joining Scheme (dd/mm/yyyy) 05/08/1980Date of Leaving Scheme (dd/mm/yyyy) 30/12/2001Scheme Retirement Age 65Desired Retirement Age 65Scheme Status Fully in ForceBasis of calculating revaluation of excess pensionbenefits

Whole Years

Pre-State Supplementary Pension Included No


Scheme FundingScheme Funding Status DeficitOverall Funding Position 88%Scheme Funding Status as at 30/06/2015The estimated shortfall is larger than the shortfall assessed for the 30 June 2014 valuation. The main reasonfor the increase in the shortfall is the reduction in government bond and swap yields that occurred over theyear, which caused a significant increase in the value of the Scheme’s liabilities. The effect of this on thevalue of the liabilities was, however, offset by an increase in themarket value of the Scheme’s assets.

Transfer Value InformationTransfer Total Value £848,000.00Money Purchase / AVC (Included in Transfer Value) £0.00Assumed Rebate to be received in relation to LimitedRevaluation Premium

£0.00

Transfer Value Guaranteed until Is guaranteed until 05/02/2020.GMP Cash Equivalent / Pre 97 Protected RightsTransfer Value

£25,069.79

Post 97 S9(2b) / Protected Rights Transfer Value £52,162.34

Primary GroupBenefit Type Amount As At Revaluation Escalation Spouse %

DARG'tee Yrs

Post 88GMP**

£2,090.04 perannum

30/12/2001 6.25% to age65*

CPI, max 3%p.a.

50% 5

Post 97 NonGMP

£4,965.32 perannum

30/12/2001 LPI to age 65 CPI, max2.5% p.a.

50% 5

Pre 97 NonGMP

£3,992.47 perannum

30/12/2001 LPI to age 65 CPI, max2.5% p.a.

50% 5

Pre 88 GMP £1,045.00 perannum

30/12/2001 6.25% to age65

0% 50% 5

* GMP is revalued up until GMP age 65 using the revaluation as above, increases in payment begin onceyou reach GMP age.

** As the scheme has been “contracted out” of the State Second Pension (S2P), it must provide a minimumlevel of pension, which is broadly equivalent to the amount of State pension given up. This pension is calledthe Guaranteed Minimum Pension.


Discretionary Increases(a) The scheme administrators have stated that the scheme has not made any discretionary increases inaddition to the normal scheme increases.(b) We have assumed that the scheme will not pay any discretionary increases in the future.

Death in Deferment BenefitsPrimary GroupBenefit Type Amount As At Revaluation EscalationPost 88 GMP** £1,045.02 per

annum30/12/2001 6.25% to age 65* CPI, max 3% p.a.

Post 97 Non GMP £2,482.66 perannum

30/12/2001 LPI to age 65 CPI, max 2.5% p.a.

Pre 97 Non GMP £1,996.24 perannum

30/12/2001 LPI to age 65 CPI, max 2.5% p.a.

Pre 88 GMP £522.50 per annum 30/12/2001 6.25% to age 65 0%Return ofContributions

£4,563.36 30/12/2001 CPI N/A

* GMP is revalued up until GMP age 65 using the revaluation as above, increases in payment begin onceyou reach GMP age.

** As the scheme has been “contracted out” of the State Second Pension (S2P), it must provide a minimumlevel of pension, which is broadly equivalent to the amount of State pension given up. This pension is calledthe Guaranteed Minimum Pension.

Existing Scheme Details - Additional Plan DetailsDependants Pension (Other than spouse)Children's pension may also be payable in the event of your death. For the Scheme's definition of 'child'please look in your Scheme booklet.


Plans Selected For ComparisonProvider Selection SelectedAviva Pension Portfolio (Core) YESRoyal London Pension Portfolio YESScottish Widows Retirement Account YESStandard Life Active Money PersonalPension [0.8-2% AMC Funds]

YES


YES


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