Welcome to our 2022 Newsletter which includes key updates on your pension plan over the past year together with information and articles that we hope you find useful and interesting.
Trustee Board changes
Following a successful selection process for Member Nominated Directors (MND) towards the end of last year, we are pleased to report that Sharon Love, George Amabile, Ashley Munden and Paul Smith were all reappointed as MNDs for a second term of office. Thanks to those of you who expressed an interest in this role.
Modernisation of your investment choices
Earlier this year the Trustee modernised the investment options available to you under the Plan.
As a reminder, the changes to the investment options are set out below:
- A new default investment strategy was introduced – the “Drawdown lifestyle”.
It is designed for members who expect to transfer to an income drawdown provider at retirement.
- The previous Annuity lifestyle (which was also the previous default investment strategy), was closed and replaced with an updated design incorporating Environmental, Social and Governance (ESG) factors.
- The previous Lump Sum lifestyle was closed and replaced with an updated design incorporating Environmental, Social and Governance (ESG) factors.
- A new Global Equity fund, the EUKPP Global Equity Fund, was introduced.
This fund is used in all three of the lifestyle strategies, plus it was added to the self-select fund range. This fund takes into account Environmental, Social and Governance (ESG) factors.
- A new EUKPP Shariah Global Equity Fund was added to the self-select fund range.
Changes to the investment options were made following a detailed review by the Trustee in conjunction with their investment advisers. The Trustee believes the investment options now better suit members’ needs and likely decisions at retirement. In addition, the Trustee is committed to helping members invest in more sustainable investment options.
The Trustee will continue to monitor the investment options and make changes as and when appropriate, to ensure that you continue receive good value and have an appropriate range of investment options to meet your needs.
Please note that the new lifestyle strategies still target age 65 as your expected target retirement age. It is important that you log on to your account and check that this is still appropriate in light of your plans. Remember, your State Pension is likely to come into payment after age 65.
Announcing a new retirement option from the Emerson UK Pension Plan.
The Trustee has been reviewing the options available to Plan members at retirement and was concerned about the breadth of drawdown arrangements available. The FCA (Financial Conduct Authority) has recently highlighted that some members who move to drawdown arrangements could receive much more income each year by shopping around for a better value arrangement, and that the costs and charges are often confusing and opaque. The Trustee has therefore decided to facilitate access to a drawdown arrangement called LifeSight. It is important to note that this won’t be the most appropriate arrangement for everyone and is not a recommendation. It is, however, a simple, transparent, self-service arrangement which the Trustee feels offers good value to many members who wish to access drawdown.
LifeSight is a master trust arrangement governed by Independent Trustees and administered by Willis Towers Watson. Just like the Emerson UK Pension Plan, LifeSight is run by a Trustee Company, who is responsible for managing your money in your best interests. Unlike the Emerson UK Pension Plan, LifeSight is available to individuals from a range of companies and pension schemes. The Trustee of LifeSight is bound by the same trust legislation as the Emerson UK Pension Plan’s Trustees, but are also subject to further regulations that cover master trusts, meaning an even higher level of oversight is required for a master trust. LifeSight has members who are still building up their accounts, but the members of the Emerson Plan are just being offered access to the drawdown element of LifeSight i.e. the spending phase!
LifeSight is a simple, self-service drawdown arrangement which is free to join and free to withdraw your money from. Members just pay an annual charge covering the administration and investment management of the scheme, making it simple and transparent. LifeSight provides access to 5 different ready built investment options with specific aims and 30 individual investment funds allowing you to choose how much control you want over your investments. The online tools help you understand how long your savings may last and how you can use your overall retirement savings to fund your lifestyle.
More information on LifeSight can be found here: https://experience200.ehr.com/lifesightdrawdown
For more information on the retirement options available to you, please visit the Retirement Guide.
We are aware that you might be concerned about reports of investment market turbulence as a result of the Russia-Ukraine conflict, and how this might affect the value of your pension savings. We want to assure you that the Trustee is monitoring the situation to try to limit any adverse effects on the Plan or its members as a result of the conflict.
The Pensions Regulator has highlighted the potential risk of increased scam activity as fraudsters look to prey on people’s concerns, as a result of the conflict. You can find out how to spot a pensions scam as well as where to get more information in the Pension scams section.
You may also have some concerns around the rise in inflation, causing an increase in the cost of living. This is front of mind for the Trustee who is considering the impact of this on our members. The government recently announced the launch of an Energy Bills Support Plan, providing people with £400 off energy bills. Also, if you’re at State Pension age or older and receive a winter fuel payment you’ll receive an extra £300 on top of your annual payment. For more information on these government initiatives, please visit the MoneyHelper website.
As communicated previously, Buck assumed the role of our new DB Plan administrator in September 2021. You can find more information about who Buck are as a Company and some of the new tools you’ll have access to in the Take control of your pension section.
It’s important to make sure the details we hold for you are correct and we encourage you to log on to your secure Member Portal, where we have added new functionality so you can update not only your email address, physical address but also your Expression of Wish online.
We hope you enjoy this digital newsletter and like the new format. As always, we welcome your feedback, so please get in touch with us using the information in the contact details section. If you have any comments or suggestions on topics to be covered in future editions.
I wish you and your families well for the rest of the year.
David Meade
Chair of the Trustee
Emerson Pension Plan
