Welcome! [mykcpension.equiniti.com] · Equity Index overseas company shares provide growth over the...
Transcript of Welcome! [mykcpension.equiniti.com] · Equity Index overseas company shares provide growth over the...
Welcome!
Defined Contribution Section
KIMBERLY-CL ARK
INVESTING IN YOUR FUTURE
DC Scheme
DB Scheme
Combined
KIMBERLY-CL ARK
INVESTING IN YOUR FUTURE
KIMBERLY-CL ARK
INVESTING IN YOUR FUTURE
We’re delighted that you have decided to join Kimberly-Clark and we hope you have a long and happy working life with us. And, when you decide it’s time to stop working, we want you to also have a long and happy ‘non-working’ life, too.
This leaflet introduces to you to our pension
scheme. It’s a good one, with generous Company
contributions to help you save for your future,
and valuable death-in-service benefits for peace
of mind.
You’ll need to consider a few things before you
make any choices, like:
• how much you’ll need to live on in retirement
• what you can afford to put away now for the
future, and
• how you want to invest your money in the meantime.
This leaflet should help you figure out some of these important decisions and how our pension scheme can help. So please read it carefully to understand just what our pension scheme offers you.
Whatever you pay,
Kimberly-Clark pays more
Tax relief means that
every £1 you pay into the pension wil l only cost
you 80p (or less)
You can choose to pay (% of eligible earnings)
K-C pays (% of eligible earnings)
Total going into your pension (% of eligible earnings)
3 4 7
3.5 5 8.5
4 6 10
4.5 7 11.5
5 8 13
5.5 9 14.5
6 10 16
6.5 11 17.5
7 12 19
You choose how much you want to contribute to your pension and Kimberly-Clark will more than match this amount, up to 12% of eligible earnings. The table below shows your choices, and what Kimberly-Clark will also pay:
Contributions
SMART Pension For most members, contributions (including Additional Contributions) are automatically paid through
SMART Pension. This is a way of paying your pension contributions that means you end up paying less
National Insurance, which helps your money go even further. SMART Pension is a ‘salary sacrifice’
arrangement run by the Company.
By using SMART Pension, you don’t pay contributions. Instead, you agree to give up part of your basic
salary. In return, the Company will pay an amount equal to your pension contributions into the Scheme,
as well as its own contributions. By paying contributions in this way, both you and the Company pay less
National Insurance, and your take-home pay will be higher.
You can opt out of SMART Pension if you want. We will automatically take you out of SMART Pension if it
takes your eligible earnings below the Lower Earnings Limit (currently £5,824 a year), which means you
could potentially be worse off.
To find out more about SMART Pension, take a look at the member booklet:
http://kc.xpmemberservices.com/Scheme-Info/Scheme-Guide.aspx
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Additional Contributions You can pay more than 7% of your eligible earnings
into your pension. These Additional Contributions
won’t be matched by the Company but they still
benefit from tax relief.
InvestmentsContributions to the Scheme are paid into an individual pension account set up for you, and the money is invested, with aim of making your pension savings grow more quickly.
A great thing about the Scheme is that you can choose how to invest your contributions. The pension
savings you have available when you retire will depend on how much your account grows over the years,
based on the performance of your investments.
A range of investment funds is available so you can choose how to invest your account. There are two
different approaches, depending on whether you prefer to make your own investment decisions (Self-
select) or whether you prefer a more ‘hands-off’ approach (Lifecycle). First, decide which strategy you
think suits you. You can choose either Self-select or Lifecycle, not a mix. But you can change your
investments choices at any time during your working life.
LifecycleLifecycle provides a ready-made mix of funds, which automatically changes as you near retirement
(normally age 65). It is pre-programmed to reduce your investment in more volatile funds (such as equities)
in favour of less volatile funds (such as bonds and cash) to help protect the value of your account in the
years leading up to your retirement.
Self-selectWith Self-select, you take control. You decide which of the nine funds to invest in, how much of your account to invest in each fund and when to change how your account is invested. The important thing is that you need to review your account regularly – for instance, you should consider less risky funds as you get near to retirement. Choosing the Self-select option is not a one-off decision.
On the next 2 pages, we have provided a quick overview of the funds that are available to you. If you would like to know more about the investment funds, then please contact Rochelle Baker (contact details on the last page).
Equity LifecycleHigher risk & volatility; higher potential growth
Equity Lifecycle invests wholly in equities
until you are 10 years from your Target
Retirement Age, with the aim of long-term
growth, although the returns may vary
along the way.
Mixed LifecycleLower risk & volatility; lower potential growth
The Mixed Lifecycle invests mainly in
equities but also in Government bonds to
give a steadier return and so switching
begins later, when you are 7½ years away
from your Target Retirement Age.
Choose your Target Retirement AgeWith Lifecycle, you can choose a Target Retirement Age (the trigger for when your account starts switching
gradually out of equity funds into bonds and cash funds). It can be any age from 55, and you can change
it when you like. If you do not choose a Target Retirement Age, it will automatically be set at your State
Pension Age (SPA).
You can choose from two Lifecycles:
OR
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InvestmentsSelf-select funds
Fund name Invests in Aims to... Maybe suitable when you are...
Level of investment risk and volatility
AMC* % a year
Equities (Shares)
UK Equity Index UK company shares provide growth over the long term, in line with the returns of UK shares
early to mid career, some way from retirement, or closer to retirement if you plan to choose to ‘draw down’ income from your savings
High 0.10
World (ex-UK) Equity Index
overseas company shares
provide growth over the long term, in line with the returns of overseas shares
0.10
Currency Hedged Global Equity index (50% UK: 50% overseas)
shares of UK and overseas companies (overseas currencies hedged back to Sterling)
provide growth over the long term, in line with the returns of the chosen index
0.12
Emerging Markets Equity Index
shares of companies based in emerging market countries
provide growth over the long term, in line with the return of emerging market company shares
0.35
HSBC Amanah Global Equity Index Fund
shares of companies that meet Islamic investment principles
provide growth over the long term, in line with the returns of the Dow Jones Islamic Titans index
0.30
Bonds
Over 15 years Corporate Bond Index
bonds issued by companies
provide returns that match those of Sterling company-issued loans (corporate bonds)
approaching retirement and you expect to buy an annuity, or are prepared to give up some long-term return for smoother year-on-year performance
Medium 0.125
Over 15 years UK Gilt Index
government bonds issued with a long-term repayment period
provide returns that match those of government loans
0.10
Over 5 years Index Linked Gilt Index
provide returns to protect against inflation
0.10
Fund name Invests in Aims to... Maybe suitable when you are...
Level of investment risk and volatility
AMC* % a year
Cash
Cash – active cash investments which provide regular interest
help protect the capital value of your money, although not guaranteed to retain its value or increase in value
close to retirement (or drawing all or some of your benefits as cash)
Low 0.125
Mixed investments
Schroders Diversified Growth - active
a wide variety of investments including shares, bonds, private equity, property, currency and commodities
provide growth, comparable with equities, but is expected to provide smoother year-on-year returns than equities through different types of investment
early to mid career, some way from retirement
Medium to high
0.65
* The Annual Management Charge (AMC) is charged by the investment fund manager as a percentage of your fund value.
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InvestmentsSelf-select funds (continued)
Any questions?Pensions Department The Pensions Department is also available to help with questions about the Scheme.
Email: [email protected]
Phone: 01732 594516
Address: Kimberly-Clark Limited, 1 Tower View, Kings Hill, West Malling, Kent ME19 4HA
HR Portal
Equiniti Pension Solutions You can also contact the Scheme’s administrators with questions about the investment funds on offer:
Phone: 01293 604085
Email: [email protected]
What if I need advice about my pension?
By law, the Trustees, the Company and the
Scheme’s administrators cannot give you
individual advice, and nothing in this leaflet
constitutes advice.
If you do need specific guidance, you should
speak to an Independent Financial Adviser (IFA).
Find an IFA by visiting www.unbiased.co.uk
What you need to do• Read this leaflet, then contact Rochelle Baker if you have any questions about joining the Scheme
and your choices.
• Decide on your contribution rate.
• Choose your investment approach.
• Fill in and sign the Application Form which can be downloaded from the HR Portal (see link
below). You should also complete a Nomination of Beneficiary Form.
• Return your completed forms to the Payroll department. You will see changes in your payslip
once your application has been processed.
Remember to review your account regularly to make sure your choices remain suitable. The pensions
website is provided by the Scheme’s administrators, Equiniti Pension Solutions, and can give you the
latest value of your account and how it is invested: https://mykcpension.equiniti.com/
There’s more information about the Scheme, its benefits, and your contributions and investment
choices on the website.
If you do nothing You will be automatically enrolled into the Scheme with a contribution rate of 3% and be invested in the
Equity Lifecycle with a Target Retirement Age of your State Pension Age.
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