1. Auto Enrolment
for NAECI operatives
and
Welplan Pensions
March 2013

2. Auto Enrolment
Government requirement
• Recent letter sent by Alstom to NAECI operatives
• Statutory requirement for all employers
• Every employer from Company Staging Date
• Alstom Staging Date 1 May 2013
• Scheme will be Welplan Pensions
• Administered by Welplan - also provides welfare benefits for NAECI
operatives

3. What is Auto Enrolment?
• Alstom will arrange to automatically enrol all eligible jobholders into the
Scheme without you needing to do anything
• You will then have a right to opt-out within 1 month after auto enrolment.
• Alstom will make employer contributions into the Scheme
• You will be required to make employee contributions

4. Contributions
Date Employer Contributions Employee Contributions
1/5/13 to 2% of Basic Pay 1% of Basic Pay
30/9/17
1/10/17 to 3% of Basic Pay 3% of Basic Pay
30/9/18
1/10/18 4% of Basic Pay 5% of Basic Pay
onwards
• Employee contributions will be deducted from pay
• Employee contributions qualify for tax relief

5. Who will be Auto Enrolled?
• You will be auto enrolled if you are
– not already in a workplace pension scheme
– aged 22 or over and under State Pension Age
– earning over £9440 p.a. (from April 2013)
– you work or ordinarily work in the UK
You will be auto enrolled on 1 May 2013

6. Who will not be Auto Enrolled?
• You will not be auto enrolled if you are
– already in a workplace pension scheme
– not aged 22 or over and under State Pension Age
– not earning over £9440 p.a.
– you do not work or ordinarily work in the UK
But you can request to join the scheme

7. Opt-out
• Opt-out
– you will have the right to opt-out of the scheme and receive a refund
of your contributions
– if you do so within the opt-out window
– the opt-out window is 1 month from the date of your auto enrolment
– if you decide to opt-out you will need to be re-enrolled every 3 years
Welplan Pensions will confirm the process for opting-out after you have
been auto enrolled.

8. How will I know if I am to be
Auto Enrolled?
• Alstom will write to you shortly after 1 May 2013 to let you know whether
or not you have been auto-enrolled
• If you have been auto-enrolled then you will be told:
– the contributions payable by the Company and Yourself
– How to opt-out if you do not wish to be a member of Welplan
pensions
• If you have not been auto-enrolled then you will be told about your right to
opt-in to Welplan pensions

9. How will I know if I have been
Auto Enrolled?
Welplan Pensions will write to you when you have been auto enrolled to
– confirm that you have been auto enrolled by Alstom
– notify you of the date you were auto enrolled
– provide key features of the Scheme
– confirm the dates of your opt-out window
– explain the process for members who choose to opt-out
– confirm your investment options
– confirm where to find out further information about the Scheme

10. Communication
• All communication to you will be sent to the residential address that
you last provided to Alstom

11. Welplan Pensions
• Industry-wide occupational pension scheme
• Preferred pension provider for the Engineering Construction Industry
• Fund provides lump sum and/or income in retirement – member choice
• ‘Defined Contribution’ - fund at retirement depends on
• contribution levels defined - employer and employee
• investment performance
• length of time over which contributions are made

12. Pension ‘Pots’ and Contributions
All members have their own pension ‘pot’
• All contributions, both employer and employee, are credited to members’
own pension ‘pots’
• Employee contributions - qualify for income tax relief at employee’s
highest rate.
• Employees can make Additional Voluntary Contributions (AVC’s) which
will also qualify for income tax relief.
• The only charge made is the annual management charge of 0.6% p.a.
(default lifestyle arrangement) - charged across the fund as a whole.
• Contributions are invested into funds currently managed by Legal and
General. Funds are allocated to the members’ individual pension ‘pots’
• Contributions initially invested in the Lifestyle (default ) option unless you
decide to opt for the Free- style option

13. Investment of Contributions
Investment Options
• Lifestyle Investment Option (default)
– Funds initially invested into Growth Fund
– Pre retirement phase, 10 years before retirement gradual shift into
funds which protect against market volatility
• Freestyle Investment Option
– You choose funds and allocation between funds
– There is a choice of funds to choose from.
– Further details can be obtained from Welplan Pensions

14. Retirement Benefits
May take benefits from any age after age 55
Choices at retirement
• use whole fund to provide an annuity (pension income) - free,
independent service provided to assist using open-market facility
• take part of fund as tax-free cash (TFC) and use remaining fund to
provide a reduced annuity
• take the whole fund as a lump sum. This option is available only for small
funds

15. What happens if I die before retiring?
• Value of the fund paid to beneficiaries
• Fund paid to dependant (s) at discretion of Trustees (Welplan Ltd) – tax free
• Expression of Wish form to guide Trustees

16. What happens if I leave before retiring?
• If you leave and become employed with another employer who uses Welplan
Pensions then contributions payable by you and your new employer will be
credited to your individual pension ‘pot’. The required contributions will be
communicated to you by your new employer
• If you leave and don’t join another employer who uses Welplan Pensions then
your fund can remain invested with Welplan Pensions until you retire or die; or
• Your fund can usually be transferred to another registered pension arrangement
• Subject to the requirements of other scheme providers and HMRC regulations,
funds can be transferred to or from Welplan Pensions. Welplan Pensions makes
no charge for such transfers.

17. Why join Welplan Pensions?
• To supplement other retirement provision
• To benefit from Employer Contribution
• Employee contribution - Income Tax relief
• Flexible and Secure - fund belongs to member
• No hidden charges
• Pensions helpline, free open market option service at retirement

18. Questions