AlexForbes Members Guide 2023

Jersey Post Group Defined Contribution Pension Scheme

Member Guide Approved by the Trustees on 11th October 2023

Table of Contents About the Scheme ............................................................................................................................................3 Summary of main benefits ...............................................................................................................................3 How do I join? ...................................................................................................................................................3 Who can join? .....................................................................................................................................................3 How do I apply? ..................................................................................................................................................3 Building up your retirement fund ....................................................................................................................4 Employer’s Contributions ....................................................................................................................................4 Employee’s Contributions ...................................................................................................................................4 Deferred Members ..............................................................................................................................................4 Voluntary Contributions ......................................................................................................................................4 Limitations on AVCs ...........................................................................................................................................4 Additional Contributions ......................................................................................................................................4 Can I transfer in benefits from another pension scheme? ..................................................................................4 How are the contributions invested? ..................................................................................................................4 Lifestyle models ..................................................................................................................................................5 What charges are payable? ................................................................................................................................5 How do I find our how much my fund is worth? ..................................................................................................5 Risk warning .......................................................................................................................................................5 Choosing when to retire ...................................................................................................................................6 Normal retirement date .......................................................................................................................................6 Early retirement...................................................................................................................................................6 Late retirement ....................................................................................................................................................6 Options at retirement ..........................................................................................................................................6 Your pension income ..........................................................................................................................................6 Serious Ill-Health Retirement ..............................................................................................................................7 Ill-Health Retirement ...........................................................................................................................................7 Death in Retirement ............................................................................................................................................7 Withdrawing lump sums from your retirement fund (Commutation) ..........................................................7 What happens if I decide to leave the Jersey Post Group? .........................................................................7 Less than two years in the Scheme ....................................................................................................................7 More than two years in the Scheme ...................................................................................................................7 Commutations of Small Pension Funds (Triviality) (from age 60) ......................................................................8 Small Fund Commutation (at any age) ...............................................................................................................8 Leaving the Scheme whilst still in employment with Jersey Post Group ..................................................8 What happens if I die? ......................................................................................................................................8 Legal basis of the Scheme ...............................................................................................................................9 The Trust.............................................................................................................................................................9 The Trustees .......................................................................................................................................................9 Approved Scheme Status ...................................................................................................................................9 The Administrators ..............................................................................................................................................9 Other Information ................................................................................................................................................9 Additional benefits (PHI and Death in Service) ...........................................................................................10 Permanent Health Insurance (Disability Income) .............................................................................................10 Death in Service................................................................................................................................................10 Complaints procedure ....................................................................................................................................11 Contacts ...........................................................................................................................................................11 Quick reference guide ....................................................................................................................................12

2

About the Scheme This Guide summarises the main features of the Jersey Post Group Defined Contribution Pension Scheme (the “Scheme”). The Scheme is an important part of your total pay and benefit package and has been provided by Jersey Post Group (the “Employer”) to help you save for the future.

The Scheme is a defined contribution retirement savings scheme.

Key Term Defined contribution means that you and the Employer will make contributions to the Scheme but there is no guaranteed level of pension at retirement.

The legal basis of the Scheme is detailed on page 9.

There is a quick reference section at the end of this Guide which should summarise answers to most of your questions. Contact details for Alexforbes Offshore (AFO) who are the advisers and administrators to the Scheme are on the end page of this Guide. AFO are available for administrative assistance and to answer technical questions relating to pensions regulations, transfers and local pensions rules.

Summary of main benefits Each month, Jersey Post Group will make payments, based upon a percentage of your monthly basic salary, into a retirement fund set up for you. This fund will also include the monthly contributions made by you plus any additional voluntary contributions you may make.

The size of your retirement fund will determine the benefits you receive. When you retire, the accumulated fund will be used to create a post-retirement income. You have several options to achieve this income and they are detailed in the section called ‘Your pension income’, although you may also choose to take part of the fund as a tax-free lump sum.

All Members are offered the opportunity to review their pension on an annual basis with the scheme administrator Alexforbes Offshore. All appointments can be made direct with the Alexforbes office (see end page for contact details).

How do I join?

Who can join?

Membership is open to all Jersey Post Ltd permanent employees and employees of Jersey Post Ltd who are on a fixed term contract over one year in length. You are eligible to join the Scheme if you are over the age of 16 and under the age of 65 on the first of the month following the end of your probationary period of 20 weeks from commencement of employment. You will automatically be eligible for membership unless you complete the opt out section of the Application Form. This must be given before your Scheme joining date.

How do I apply?

• • •

Complete an Application Form and return it to HR. (The application form is available from HR or click here).

Consider whom you wish to benefit in the event of your death.

Complete the Nomination of Beneficiaries form included in the application form and hand to HR or send to AFO. For more details see page 8. This is really important, as it informs the Trustee of how you wish your retirement fund to be distributed in the event of your death and must be kept up to date.

3

Building up your retirement fund The Scheme is funded by contributions from you and Jersey Post Group and you may pay extra contributions which are strictly voluntary. They are a highly tax-effective way of providing additional long-term financial security.

Employer’s Contributions Jersey Post Group contributes to your fund on a monthly basis. This is known as the Employer Contribution and is based upon a rate of 10% of your Pensionable Salary. Contributions will be adjusted automatically as Pensionable Salary levels change.

Key Term Pensionable Salary is your basic salary or wage, together with any regular payment or allowance which is specified as being pensionable. It does not include payments in respect of untaken leave, overtime payments or any other earnings or pay of a fluctuating or temporary nature.

Employee’s Contributions You will make contributions to the Scheme at the minimum rate of 5% of your Pensionable Salary. contributions will be deducted by Jersey Post Group from your salary.

These

Deferred Members There are two types of members, “Active” and “Deferred”. An Active Member is a Member currently employed by the Employer. A Deferred Member is a member who is no longer in the employment of the Employer. Deferred Members are not permitted to contribute into the Scheme and Employer Contributions will stop when you leave employment.

Voluntary Contributions You can also make additional voluntary contributions (AVCs) which will be deducted from your monthly salary. You can increase, decrease or cease AVCs at any time provided you give Jersey Post Group at least one month’s advance written notice.

Limitations on AVCs The tax relief on contributions you make personally to any approved pension scheme, including the Scheme, any personal pension scheme or retirement trust scheme, must not exceed £50,000 in any tax year or your taxable earned income if this is less. Further restrictions apply to Members who earn in excess of £150,000 per year. AFO can advise you on the details.

Any contributions made by Jersey Post Group are not included in this sum and are separate.

Additional Contributions It is also possible to “top-up” your retirement fund with a lump sum from time to time and benefit from tax relief in the same way as for AVCs subject to the same limitations outlined above. If you wish to make a personal one-off lump sum contribution this must be done by bank transfer to the Trustees of the Jersey Post Group Defined Contribution Pension Scheme. AFO can provide you with an Additional Contribution Form with bank details or click here.

Can I transfer in benefits from another pension scheme?

It may be possible to transfer benefits from a previous arrangement into the Scheme. To complete a transfer in, contact Alexforbes Offshore.

How are the contributions invested?

The contributions are invested into a wide range of investment funds which have been blended into specific portfolios designed for Jersey Post by Alexforbes Investments, this is called the Lifestyle Strategy.

The Lifestyle Strategy automatically moves your retirement fund from higher risk investment options to lower risk investment options as you move towards your retirement age.

4

Lifestyle models The principle purpose of establishing Lifestyle models is to ensure that your invested interest in the Scheme is appropriately managed, taking into consideration the time horizon to age 65. The asset allocation models are regularly reviewed by the Trustee to ensure that your invested interest is de-risked appropriately as you near retirement. This will help minimise the risk of a substantial reduction in retirement benefits in the event of economic instability in the run-up to your retirement.

Note: if a Member continues to work after the age of 65 they will continue to make contributions to the Scheme, as will Jersey Post, and the Member will remain in the Age 65 Investment Portfolio until they retire.

Below is a chart which illustrates the Lifestyle Strategy with the switches occurring during the ten years prior to the year before retirement.

What charges are payable?

Whilst you are a contributing member, your Employer will pay the administration fees relating to your participation in the Scheme.

All Members are subject to investment management fees which vary according to the assets in their investment fund and an investment adviser fee of 0.45% , taken quarterly in arrears by deduction of units. They are shown on the Member's individual pension statement.

If you are no longer employed by Jersey Post and you decide to leave your pension benefits in the Scheme, you will become responsible for paying an annual administration fee which is currently £105.70 per annum (taken annually).

Fees are taken by deduction of units from your fund, the first year administration fees will be taken pro-rata to the annual collection date of 1st April and these fees usually increase annually in line with Jersey RPI. How do I find our how much my fund is worth?

You will have access to your pension portfolio online where you can view your current pension value, contribution history, request changes to your personal details and contact the scheme administrator for any queries. AFO will send your access details to register online to the personal email address you have provided on your application form after you have paid your first contribution.

Risk warning All investment involves risk. Past performance is not a guide to future investment performance. The value of investments and the income from them can fall as well as rise as a result of market fluctuations and you may not get back the full amount you originally invested. Where investment is made in currencies other than the investor’s base currency, movements in exchange rates may have an independent effect, which may be favourable or unfavourable, on the gain of loss otherwise accruing to the value of the asset. If you have any doubts or questions about your investment strategy, you should consult your investment adviser.

5

Choosing when to retire What you will receive depends on the value of your fund when you decide to retire. This will help you plan your retirement, alongside the services of an Alexforbes Offshore adviser.

Normal retirement date For the purposes of the Scheme Rules the retirement date for all Members of the Scheme is at age 65.

Early retirement You may take early retirement at any time after the 1 st of the month following your 50th birthday but this can only be done with the agreement of Jersey Post Group.

If your retirement fund includes a transfer in from a UK pension scheme, then the earliest date you can start taking benefits is 55.

The disadvantage of early retirement is that there will be less money invested in your retirement fund and your pension will be more expensive to purchase because the insurance company will have to pay a pension to you for a longer period.

Late retirement If you remain in service of the Employer after the normal retirement date, you have a late retirement option. Late retirement allows you to postpone drawing benefits under the Scheme until age 75. Late retirement is subject to the consent of your Employer. The advantage of late retirement is that it will allow your retirement fund more time to grow and will give you greater flexibility as to how and when you take your benefits. If a Member continues to work after the age of 65 they will continue to make contributions to the Scheme, as will Jersey Post, and the Member will remain in the Age 65 Investment Portfolio until they retire.

Options at retirement When you retire, the accumulated value of your retirement fund can be used in a number of different ways and it is essential that you take advice on the best solution for you. The options available to you are now many and varied and can be tailored much more closely to your personal needs and circumstances than has been the case in the past. This advice will be provided by Jersey Post Group’s pension adviser and administrator, Alexforbes Offshore.

There are also options to withdraw lump sums from your retirement fund, see page 7.

Your pension income You will need to transfer from the Scheme to an income-producing pension structure; the Scheme does not provide an income. Your Government of Jersey State Pension may also be payable in addition to the pension provided by the range of options listed below: •

purchasing a fixed and guaranteed income from an insurance company (known as an annuity); or

•

transferring the retirement fund to a Retirement Trust Scheme; or

•

transferring the retirement fund into an Approved Drawdown Contract.

Each of these options, or a combination, can provide varying degrees of flexibility, investment risk and income, or can better help preserve the value of the fund for your estate if your health is poor.

Each of the options outlined above could also involve arrangement costs.

All are options which you can select to suit your circumstances. For example; if you are married you may wish to create an income to be paid to your spouse after your death and/or you may want to make provision for your pension to increase on a regular basis to protect against future inflation.

Because of the flexibility available to you it is most important that you seek advice before making any decisions. Please contact Jersey Post Group’s pension adviser, AFO. You will not be charged for meeting with an adviser. Any additional charges for advice will be clearly explained to you, before you make a decision.

6

Serious Ill-Health Retirement If you retire (at any age) due to serious ill health (that is if you are not expected to live for more than one year), you may commute your entire retirement fund for a lump sum, with the consent of the Trustee. This is tax free where benefits have not commenced but if benefits have commenced a tax charge of 10% is payable on the residual balance.

Ill-Health Retirement If you retire (at any age) due to ill health*, benefits may commence whether or not you have attained the age of 50.

Normally you will need to transfer to one of the options outlined in “Your Pension Income” (page 6) as the Scheme does not provide an income. *”Ill health” is where a medical practitioner has, in writing, provided evidence to the Scheme manager that the pension holder is, and will continue to be, incapable of carrying on his or her occupation because of physical or mental impairment and the pension holder has in fact ceased to carry on his or her occupation.

Death in Retirement The benefits payable on your death in retirement and to whom will depend on the options you selected at retirement.

Withdrawing lump sums from your retirement fund (Commutation) There are options for withdrawing money from your retirement fund but again it is sensible to take advice if you are considering this.

After the age of 50 you may take part of your fund as a tax-free lump sum. This is limited by the Comptroller of Revenue and is currently 30% of your fund value. You may take this in up to three separate tranches. The remainder is then available to be transferred to a retirement plan to provide the pension income. You should be aware that as soon as you withdraw cash from your pension, this has an impact on the taxation of your pension should you die, see page 8.

For details on transferring out of the Scheme entirely because you are leaving Jersey Post Group, please see below.

What happens if I decide to leave the Jersey Post Group?

Less than two years in the Scheme If you leave Jersey Post Group after having been a member of the Scheme for less than two years: •

You will be entitled to a refund of any of the fund accumulated from your own contributions that have been paid (subject to their investment value) during your period of membership, tax will be deducted at 10% before the payment is made.

•

You may transfer the amount of your own contributions to another approved company pension arrangement;

•

You may transfer the amount of your own contributions to a Retirement Trust Scheme;

Jersey Post Group Defined Contribution Pension Scheme contributions will be forfeited by you and will not be available either as a refund or as a transfer. They will be refunded to the Trustee. .

More than two years in the Scheme If you leave Jersey Post Group after having been a Member of the Scheme for at least two years, AFO will give you an indicative valuation of your fund (this may differ from the value on the transfer out date). You may either: •

Transfer the amount to another approved company pension arrangement; To complete a transfer out to another employer’s pension scheme, please contact the pension administration team at AFO.

•

Transfer the amount to a Retirement Trust Scheme; To transfer out to a different scheme or arrangement, please contact a financial adviser at AFO.

7

•

Leave the amount invested in the Scheme where it will continue to be invested until you retire.

The amount accumulated will be used to provide retirement benefits in accordance with the Scheme. You will no longer be able to make contributions to the scheme and Jersey Post Group will no longer make contributions on your behalf. You will become responsible for the administration fees relating to the Scheme.

•

Small Fund Commutation or Triviality The Scheme also provides Members with the option to select the Small Fund Commutation Allowance – see below.

Commutations of Small Pension Funds (Triviality) (from age 60) Trivial commutation means that under the following circumstances you may take the total value of your fund as a cash lump sum.

•

You have reached the age of 60.

•

The lump sum does not exceed a total aggregate value of £35,000. This includes any previous trivial commutations from occupational and private pension schemes as well as the value of the fund you are commuting at the time. The Trustee will allow you to take up to 30% of the fund tax free. 10% tax will be deducted from the rest of the fund by the Trustee.

Small Fund Commutation (at any age) You may commute the whole of the retirement fund if the value of the fund to be commuted is not more than £19,000 and the total of all the lump sums that you may have previously commuted does not exceed £50,000. These sums are taxable as income and 20% tax will be deducted at source before payment to you.

Leaving the Scheme whilst still in employment with Jersey Post Group If you wish to leave the Scheme whilst still in employment with Jersey Post Group, you are required to give one month’s written notice to the HR Department. If you do leave the Scheme, your salary will not be increased by the amount of the Employer’s Contribution that ceases to be paid into your retirement fund, and your fund will remain held by the Trustee. This will remain the case until you leave the Scheme either by retiring or by transferring your fund to another pension plan on leaving employment with Jersey Post Group.

What happens if I die?

If you die whilst in employment with Jersey Post Group, the accumulated value of your retirement fund, plus any death in service payment, will usually be used to provide a lump sum payment to your nominated beneficiaries, although such nominations are not binding upon the Trustee.

Consequently, it is important for you to express your wishes in the Nomination of Beneficiaries Form. If your circumstances change (for example on your marriage, the birth of a child, divorce etc.) you should ensure that you update your nominations. If no nomination is made then the Trustee will decide for you. Normally the value of the fund would go to your estate.

Your Nomination of Beneficiaries Form must be kept up to date. You will be asked to renew this approximately every three years. Copies of this form can be obtained from the Human Resource (HR) Department HR Connect - Jira Service Management (atlassian.net) and are also available on Jersey Post RedNet, or AFO. If you die and you have not received any benefits, the lump sum payment is paid in full with no deduction of tax. If you have taken benefits, such as tax-free cash or an income, a 10% tax charge is deducted from the lump sum before payment.

8

Legal basis of the Scheme The Trust If there is any discrepancy or question of interpretation between the information given in this Guide and the Trust Deed and Rules, then the Trust Deed and Rules will take precedence. The Trust Deed and Rules are available on request.

Key Term Trust Deed and Rules means the Declaration of Trust and the Rules scheduled to it dated 23 March 2010, together with any subsequent amendments, now known as the Jersey Post Group Defined Contribution Pension Scheme and made between the Employer and the Trustees.

The Trustees Details of the Trustees are available on request and on the Jersey Post RedNet site. The Trustees to the Scheme are individuals appointed by Jersey Post Group and who change from time to time. The Trustees are separate to the Employer, the Scheme Administrator and the Investment Manager. This reduces the potential for conflicts of interest when the Trustees discharge their duties.

Key Term The Trustees are responsible for the overall administration and governance of the Scheme, and for ensuring that the Scheme is administered in accordance with the Trust Deed and Rules and applicable law. The Trustees are made up of representatives of both Jersey Post and the employees with an independent Chairman.

Approved Scheme Status The Scheme is an “Approved Scheme” under Article 131 of the Income Tax (Jersey) Law 1961. As part of that approval the Trustees are bound to comply with all undertakings required by the authorities as a condition of approving the Scheme. All the contribution levels and benefits set out in the Scheme’s Rules and this Guide are subject to limits as set down by the Comptroller of Revenue (a requirement of “Approved” status).

The Administrators The Scheme is administered by Alexander Forbes Channel Islands Limited (Alexforbes Offshore or AFO) on behalf of the Trustees who safeguard your interests and make sure the required contributions are paid and invested properly.

Other Information • •

It is not permissible under the Rules of this Scheme for Members to assign their benefits or to use them as security in raising a loan.

Jersey Post Group reserves the right to vary the Scheme Rules from time to time, which may result in a reduction in the contribution rate or discontinuance of the Scheme.

9

Additional benefits (PHI and Death in Service) These arrangements will provide you with a structure of financial support if you suffer an accident, illness, disability or death whilst you are actively contributing to the Scheme. They will provide income or capital if you are disabled or debilitated, and, in the event of terminal illness or death, a capital sum for the benefit of the Employee/family and Dependants.

Key Terms The Scheme definitions of the following are Dependants • the Spouse of a Member; • any person who in the opinion of the Trustees is or was financially dependent on the Member; • any former Spouse of a Member in respect of whom a financial provision order has been made against the Member in any court of law; and • any other person who, in the opinion of the Trustees, has been supported by a Member as if that person was the Member's Spouse.

Spouse means the wife, husband or Civil Partner of a Member or in relation to a deceased Member any widow, widower or surviving Civil Partner of that deceased Member. For the avoidance of doubt, the expressions “wife” and “husband” shall include persons in a marriage between persons of the same sex and the expressions “widow” and “widower” shall be consumed accordingly. (NB: It does not include non-married co-habitués or a surviving cohabitué on the death of a member although such a person may fall within the definition of a “Dependant”.)

Civil Partner means any relationship between two people which is legally recognised and registered as a civil partnership on an official register in any jurisdiction in which one or both of them are or have at any time been resident or domiciled.

Child means any person under the age of 16 years of age or who is still in full time education and not older than 23 and the term “Children” is construed on the same basis.

The cost of this financial protection will be met in full by Jersey Post unless otherwise stated.

Permanent Health Insurance (Disability Income) If you are unable to work as a result of accident or illness the Scheme will provide, after 52 weeks of continuous absence from work and subject to your meeting the insurer's requirements, which may include further medical assessments: • • •

75% of your Pensionable Salary less the Jersey State Incapacity Benefit (£13,828.36 as at October 2023) Pension contributions of up to 15% of your Pensionable Salary will continue to be paid Employees are required to be in service for a minimum of five months before they are eligible for cover These benefits will be paid to full, partial recovery or to age 65. If, for underwriting reasons, you are unable to enjoy the full cover in relation to your Pensionable Salary, you will be notified in writing.

Example In respect of a Member earning £25,000 who has been unable to work due to accident or injury after 52 weeks and acceptance of the claim would receive £492.65 per month to full, partial recovery or to age 65. (£25,000 x 75% - £13,828.36 = £4,921.64) (£4,921.64/12 months = £410.14 per month) NB: These sums will continue to be eligible for social security and ITIS payments Death in Service In the event of your death 2 x your annual salary will be paid to your estate (as at 1 June 2023).

10

Complaints procedure Where a complaint is made or a dispute arises, an application for a decision under the arrangements should be sent to Jersey Post Group HR Department who will forward the matter to the Trustee. All necessary information should accompany the application so that the matter can be dealt with promptly. All applications received will be acknowledged within seven days of receipt. A decision on the matter will be given within two months of receipt, and will include a note as to the further action that the Member may take.

Contacts Please contact your HR department for more information. You can request information via HR Connect - Jira Service Management (atlassian.net) If you need valuations or other information relating to your pension, contact the Scheme Administrators and Advisers, Alexforbes Offshore, at the address on the end page of this Guide.

11

Quick reference guide Activity

Action – documents needed

Contact

Joining the Scheme

Complete Application Form and return to HR If you wish to self-select your funds, please speak to an AFO adviser

Form provided by HR or click here pensions@alexforbes.je Tel +44 1534 837870

Decide on your Beneficiaries

Complete the Nomination of Beneficiaries form attached to the application form and return to HR. To change your nominations, ask HR for a new form or click here

Form provided with application form Or for a separate form, click here

Gain web access to your portfolio

AFO will send you an email with your access details after you have paid your first contribution. A Member Portal Access Guide will be sent with this welcome email

webaccess@alexforbes.je

Leaving the Scheme

HR will inform AFO that you are leaving.

AFO will offer you a free consultation.

When your last contribution has been paid, AFO will send you an options form

pensions@alexforbes.je Tel +44 1534 837870

Retirement

Seek advice on options at retirement (free service)

pensions@alexforbes.je Tel +44 1534 837870

Transferring funds

Seek advice from AFO (free service)

pensions@alexforbes.je Tel +44 1534 837870

Commuting funds

Seek advice from AFO (free service)

pensions@alexforbes.je Tel +44 1534 837870

Additional Voluntary (regular) Contributions

Notify HR in writing giving one month’s notice.

HR

Additional (one off) contributions

For one off lump sum contributions, ask HR or AFO for an additional contribution form or click here

pensions@alexforbes.je Tel +44 1534 837870 HR or click here

Death In Service, PHI

Contact AFO, Sian Parmiter, Risk Benefits Manager or her team

01534 837814 or employeebenefits@alexforbes.je

12

Administrators and Advisers to the Scheme Contact us

Alexforbes Offshore PO Box 336 2-6 Church Street St Helier Jersey JE4 8UU

Pensions Team Tel: +44 1534 837870 Email: pensions@alexforbes.je Risk Benefits Team Tel: +44 1534 837814 Email: employeebenefits@alexforbes.je

Neither the Trustees nor any Employee of Jersey Post Group are authorised to provide investment advice in connection with the Scheme. If Members require financial advice they should contact a financial adviser, such as the one retained for this purpose by Jersey Post Group

Data protection The data supplied by you will only be used for the purposes of processing your investment including administration and handling any query which may arise. The data supplied will not be passed to any other parties except as necessary to provide you with the services you have requested and to comply with our legal, tax and regulatory obligations. It is important that the data you have supplied is kept up to date. You should therefore notify us promptly of any changes so that we may update our records.

Full details of our privacy policy are available on our website at www.alexforbes.com/je/en . This notice includes a list of your rights as an individual over your personal data. If you require further information regarding our data protection policy, please contact our data protection team at dataprotection@alexforbes.je

Alexander Forbes Offshore is the registered trading name of Alexander Forbes Channel Islands Limited | Registration Number: 9596 Regulated by the Jersey Financial Services Commission

alexforbes.com/je/en/ V4 | October 2023