Chemfeed Plan

Overview

All members of the Veolia Plan whose benefits were transferred to the Chemfeed Plan with effect from 30 November 2004 are entitled to benefits under the Chemfeed Plan. However, no pensionable service has been built up in the Chemfeed Plan since 30 November 2004.

 

If you were a member of the Veolia Plan on 30 November 2004, you became eligible to join the Investor Plan on 1 December 2004.

 

All benefits provided by the Chemfeed Plan are subject to the Siemens Benefits Scheme’s maximum limits and any impact of the Lifetime Allowance.

 

When you come to draw your benefits, you will have the option of giving up part of your own pension to provide an additional pension for your spouse payable on your death. 

In the Chemfeed Plan, your benefits are based on 1/60th of your final pensionable salary for each year of pensionable service under the Veolia Plan, subject to maximum limits.

 

You can give up some of your pension and take it as a tax-free cash sum, broadly up to 25% of the value of your benefits, up to your available Lifetime Allowance. This will reduce your pension, so you should consider taking independent financial advice first. Your pension will be paid monthly and will be paid on the next available payroll date after your retirement. Your first payment will include any arrears due.

 

Retirement means different things to different people. Some may want to retire early, while others may choose to work past age 65 and continue to build up benefits. Or you may want to make more of a transition into retirement. Whatever you want to do, the Plan gives you a range of options.

 

When you retire, your benefits will be calculated as set out above, based on your final pensionable salary when you left the Chemfeed Plan.

 

Between your date of leaving the Chemfeed Plan and drawing benefits, your deferred benefits are indexed. The indexes are governed by law and are described as Statutory Revaluation. This helps to preserve the value of your benefits. Different rates apply to any Guaranteed Minimum Pension (GMP).

 

As a deferred member you have the following options at retirement:  

 

  • Early Retirement – You can retire from age 55 (increasing to 57 in 2028). Your benefits under the Chemfeed Plan will be reduced because they are being paid early. However, no reduction will apply to an E & J member to whom the Rule of 85 applies if they have reached age 60.
  • Normal Retirement - Your normal retirement date is the end of the month in which you reach age 65.
  • Late Retirement – Your benefits will be increased to allow for this late payment. 
  • Ill Health Retirement - If you have reached age 55 no special terms arise from your reason for retirement. If you have not reached age 55 you may, with the consent of the Trustees, be able to draw your benefits early. This is subject to the Trustees agreeing, after taking medical advice, that you are (and will continue to be) incapable of doing your normal job due to your physical or mental health. You must draw any deferred benefits you have under the Investor Plan at the same time. In most cases, your benefits under the Chemfeed Plan will be reduced because they are being paid early.

The Trustees have the discretion to decide how your cash sum death benefit is divided between your relatives, dependants, legal personal representatives or nominated beneficiaries. This way, payment can be made more quickly and the benefits are unlikely to attract inheritance tax.

 

However, you can complete an Expression of Wish form and the Trustees will pay close attention to it. You would be wise to keep it up to date if your circumstances change – if you get married, register a civil partnership, separate or divorce, or have children. Even if you are unattached or don’t have children, you may have family members or close friends who you would want the Trustees to consider.  

 

If you die as a deferred member

 

Cash sum

A cash sum equal to a refund of your contributions to the Veolia Plan (with interest calculated at 3% a year), plus the value of any AVCs you may have paid while a member of the Veolia Plan, will be paid at the Trustees’ discretion as described under the ‘Overview’ heading above.

 

Spouse’s pension

A spouse’s pension will be paid equal to 50% of your revalued deferred pension at the date of your death.

 

If you are more than 10 years older than your spouse or partner, the Trustees have discretion to reduce their pension.

 

If the Trustees agree, the spouse’s pension will be paid as cash, as long as it is less than the Lifetime Allowance.

 

Eligible children’s pension

A pension based on your spouse’s pension will be paid for your eligible children as follows: 

Number of eligible children

% of spouse’s pension if a spouse’s pension is paid

% of spouse’s pension if no spouse’s pension is paid

1

50%

66.6%

2 or more

100% divided equally

133.3% divided equally

Other dependants

If you are not married or living with a spouse when you die, the Trustees have discretion to pay the spouse’s pension to any other dependant.  

If you are not married or living with a spouse when you die, the Trustees have discretion to pay the spouse’s pension to any other dependant.

 

If you were an active Investor Plan member until your normal retirement date (65) but stopped contributing, AND you deferred taking your Chemfeed benefits (known as a serving deferred member), it will be assumed that you had retired on the day before your death. The benefits paid to your dependants will be as described in the section ‘If you die after drawing your pension’ with the additional provisions:

 

  • A lump sum will be paid equal to the maximum cash sum you could have taken if you had retired on the day before your death
  • The cash sum arising from the 5 year guarantee will be based on the residual pension which would have been payable had you taken the maximum cash sum on the day before your death.

For more information on cash sums paid if you retire later and die after age 75, please contact AskHR.

 

If you die after drawing your pension

 

Cash sum - 5 year guarantee

If you die within 5 years of retirement, a cash sum equal to the balance of 5 years’ instalments of your pension will be paid (excluding increases). For information on the cash sum paid if you retire later and die after age 75, please contact AskHR.

 

Spouse’s pension

A spouse’s pension will be paid equal to 50% of the pension you were receiving when you died. If your pension was reduced (for example if you took a cash sum when you retired), this reduction is ignored when calculating your spouse’s pension.

If you are more than 10 years older than your spouse or partner, the Trustees have discretion to reduce their pension.

If the Trustees agree, the spouse’s pension may be paid as cash, as long as it is less than the Lifetime Allowance.

 

Eligible children’s pension

A pension based on your spouse’s pension will be paid for your eligible children as follows:

Number of eligible children

% of spouse’s pension if a spouse’s pension is paid

% of spouse’s pension if no spouse’s pension is paid

1

50%

66.6%

2 or more

100% divided equally

133.3% divided equally

Pension for a Dependant

 

In certain circumstances, a pension may be payable under the Scheme’s Trust Deed and Rules to one or more of your Dependants. In broad terms, for these purposes a Dependant is:

  • any person who is financially dependent on you or with whom you have a relationship of mutual dependence;
  • or any children who have not reached the age of 18 or who are in full time education or training up to the age of 24 or who are dependent on you because of disability

Once in payment, your Chemfeed Plan pension is subject to annual reviews in line with the Retail Prices Index (RPI).

 

Your Plan pension is guaranteed to increase each year on 1 April by the rise in the RPI during the 12 months to the previous December, up to a maximum of 5%. If RPI does not increase, your pension will remain at the same level (it will not decrease).

 

Different increases apply to any parts of your pension in respect of:

  • any Guaranteed Minimum Pension (GMP) element, and
  • any pension arising from voluntary contributions or service in the Wallace and Tiernan Pension Scheme before 6 April 1997.  

...you worked part time?

You still receive the full range of Plan benefits. However, to ensure that your benefits reflect your part-time hours of work, your part-time pensionable salary and your Veolia Plan pensionable service were re-expressed in terms of their full-time equivalents when calculating your benefits.   

 

...you want to transfer benefits into the Plan?

You are not able to transfer benefits from a previous employer’s pension scheme or from a personal pension into the Chemfeed Plan.

 

…you want to transfer your benefits out of the Siemens Benefits Scheme?

Please contact AskHR for a Transfer Out Quotation.

 

...you get divorced?

Pension rights are normally taken into account as part of a couple’s assets. There are a number of options available to the Court in dealing with pension rights and we will comply with any instructions from a court. If you need more pension information, please contact AskHR

 

If you are getting divorced or dissolving your civil partnership, you should consider updating your Expression of Wish form.   

Veolia Plan

The Chemfeed final salary division of the Veolia UK Pension Plan.

 

Pensionable service

Any continuous period in years and complete months during which you were a contributing member of the Veolia Plan.

 

Pensionable salary

For the purposes of calculating the benefits due from the Chemfeed Plan (but not benefits in the Investor Plan) this is the basic annual salary less (except in the case of E&J members) an amount equal to the basic flat rate State pension for a single person.


Maximum limits

For the 2019/20 tax year, the earnings cap is £166,200 a year. It increases broadly in line with increases in the Retail Prices Index (RPI). Maximum Siemens Benefits Scheme limits apply only to your Plan benefits. You may have additional Investor Plan benefits that exceed these limits.

 

Lifetime Allowance

A limit on the total value of pension benefits that you can build up tax-efficiently during your lifetime, including your Plan benefits and benefits from other pension arrangements, except those from the State.

When you take any benefits from the Plan, their value will be checked against your available Lifetime Allowance. The Lifetime Allowance is £1,055,000 for 2019/20.

Benefits built up above the Lifetime Allowance can only be taken as cash and will be taxed, currently at an overall rate of 55%.

 

Spouse

The person to whom you are legally married at the date of your death. In line with the Civil Partnership Act 2004, same-sex partners who have been through a civil ceremony will be treated as spouses with regard to payment of any contracted-out benefits built up after 6 April 1988. In addition, they will be treated as spouses in all respects with regard to benefits built up after 5 December 2005. 

If you are not married or are not in a registered civil partnership, or are not living with a spouse, this definition also includes any person who, in the opinion of the Trustees, was dependent on you financially or because of disability or had a financial relationship of mutual dependence with you.

 

Final pensionable salary

The higher of:

  • the pensionable salary you received in the 12 months prior to ceasing pensionable service; and
  • the highest pensionable salary you received in any Scheme Year (1 April to 31 March) during the final 5 years of pensionable service.

Where:

  • pensionable salary (for the purposes of calculating the benefits due from the Plan - but not benefits in the Investor Plan) is the basic annual salary less (except in the case of E&J Members) an amount equal to the basic flat rate State pension for a single person; and
  • pensionable service means service under the Veolia Plan plus, for the purpose of calculating final pensionable salary only, service as an Investor Plan member.

Final pensionable salary is subject to the maximum limits.

 

E & J member

A Chemfeed member who was designated an E & J member under the Veolia Plan.

 

Rule of 85

A member’s pensionable service (including pensionable service under the Veolia Plan) plus his age equal at least 85.

 

Statutory Revaluation

This is a form of limited indexation of benefits prescribed by law. It requires that deferred benefits are indexed from your date of leaving to the date they come into payment or to the date you transfer your benefits to a new employer’s scheme or personal pension scheme, or to your normal retirement date.

This indexation is currently based on the rise in the Consumer Prices Index (CPI) subject to a maximum of 5% a year for benefits built up before April 2009 and 2.5% a year for benefits built up after that date.

 

Guaranteed Minimum Pension (GMP)

The minimum level of pension that the Plan has to provide you with if you have pensionable service between 5 April 1978 and 6 April 1997. It replaces the pension you would have received from the State Earnings Related Pension Scheme (SERPS). SERPS later became the State Second Pension (S2P).

 

Eligible child

Any child of the member (including a step-child or legally adopted child) who is under the age of 18 or, if in full-time education or vocational training, is under the age of 23, or was dependent on the member at the time of his/her death on account of physical or mental incapacity.

Log in to your DB account

Log in to get your pension information. If you have not already registered for your online account, please contact AskHR who will be able to provide you with your registration details.

 

By registering and logging in you can view/update the following...

 

  Your current pension amount and tax code

  A history of previous payments

  Your personal details, including postal and e-mail address

  Your bank details

and much more...

Contact Pensions

If you are an active Siemens Employee contact us via HR Direct. 


If you no longer work for Siemens (or don't have access to (HR Direct) contact us via the AskHR email or post.

Email: askhr.uk@siemens.com

Post: PO Box 9011, Poole, BH12 9HW

Telephone: 01202 846000