Inchcape motors pension scheme

INCHCAPE MOTORS PENSION SCHEME (IMPS OR THE SCHEME)

UPDATE ONLY – NO ACTION NEEDED

✔ We’ve harmonised various benefits and options across the Scheme.

✔ You’ll still receive the benefits you’re entitled to.

✔ We’ve sent every member a letter explaining the changes for their section of the Scheme.

What’s changed?

Part of our work to invest in an insurance policy with Legal & General included reviewing the various benefits and options in the Scheme for the different sections and, to simplify things, we’re harmonising some of them across Scheme members.

The changes principally relate to things like definitions used and early, late or ill health retirement. For example, the definition of Spouse is now consistent across the sections. The main benefits and discretions involved are listed below – you can find more detail in the ‘frequently asked questions’ we’ve sent to each Scheme member as the changes vary depending which section of the Scheme you’re a member of.

Definitions of Spouse, Dependant & Eligible Children
Increases when a member dies within a year of retirement
Eligible Child’s pension
Late retirement restrictions
Early retirement in good health
Ill health pension

One historic option has been removed from some sections – the possibility of swapping some future pension increases for a higher starting pension which would then not increase. This was known as pension increase exchange or PIE.

If you have benefits in the Cash+ section, a new option has been introduced. You can now choose to convert your Cash+ benefits into a pension provided within the Scheme.

Please remember factors used to calculate some Scheme benefits change from time to time to reflect market conditions, which means future benefit illustrations may differ from ones you’ve received before.

This post and the letter sent to members is intended to provide a summary update. Your legal rights to benefits remain governed by the trust deed and rules of the Scheme and nothing in this letter overrides those.

Who do I speak to if I have a question?

You can contact the Scheme administrator, Equiniti:

• By phone: 020 3890 2159
• By email: inchcape@equiniti.com

Julia Yates

Vidett Trustee Services Limited

What’s been happening?

As Scheme Trustee, we’ve been working together with Inchcape (the Company) to maintain the Scheme’s strong financial position and look at steps we can take to further enhance the security of your benefits.

Making your benefits even more secure

We’ve made a change to the Scheme’s investments to make your benefits even more secure. We’re investing in a type of insurance policy that removes some of the risks the Scheme faces. It will increase certainty for you as a Scheme member, us as Trustee and the Company.

We’ve invested in this policy (known as a bulk annuity or buy-in) with Legal & General (L&G), a leading UK financial services provider. You can find out more about L&G at https://www.legalandgeneral.com/prt.

As part of this change, L&G is now considered to be a Data Controller under the UK General Data Protection Regulation (GDPR). This means we need to share L&G’s privacy policy with you, which explains what data they will hold on you and how this will be used. A copy is being sent to all members but is also available at: https://inchcapemotorspensionscheme.co.uk/prt-privacy-policy-june-2021_new/. (We have previously provided you with our own Privacy Notice but you can view it on the Scheme website.)

What happens next?

Investing in this insurance policy won’t change your relationship with the Scheme and Equiniti continue to administer the Scheme and pay pensions. The difference is L&G will now provide us with the money to pay your benefits.

As part of the move to the L&G policy, we’ll be continuing to check the data we have on your member record. This involves making checks against Scheme rules, pensions law and directly with you. We may be asking for your help in the coming months to be sure the data we and L&G hold for you is right but you don’t need to do anything now.

We’ll also continue to provide information on the benefits and options available to you and your dependants from the Scheme.

Who do I speak to if I have a question?

You can contact the Scheme administrator, Equiniti:

• By phone: 020 3890 2159
• By email: inchcape@equiniti.com

Julia Yates

Vidett Trustee Services Limited

As Trustee of the Scheme, we have many responsibilities, including giving information to members about their benefits under the Scheme. As we noted in the 2023 Headlight newsletter, we’re improving our approach to communications to make it easier for you to understand the benefits and options you have.

We’re extremely pleased to be able to launch a new range of support and guidance for deferred members and pensioners. Find out more information here.

We thought we’d also share some of the recent things we’ve done to help you understand how we manage the Scheme in members’ best interests:

• We made changes to the Scheme’s investments so they move more closely in line with the value of members’ benefits. We’re also starting to look at other types of investment that will offer even greater security for members.

• The Scheme is held and managed separately from Inchcape. As Trustee, we regularly monitor the Scheme’s financial health to make sure it remains strong. At the last formal valuation in 2022, there was more money than we expected to need in the Scheme (often called a surplus). Although the value of Scheme assets and members’ benefits change with economic and market conditions, our advisers say we still have enough money in the Scheme. Even if things did change, we’ve protected the Scheme’s financial position with a legally documented guarantee from Inchcape to support funding of benefits in all sections of the Scheme now and over the long term.

We’ll provide more updates on the Scheme over the coming months, including in the next edition of the Headlight newsletter. If you have any questions in the meantime, please get in touch.

The Pensions and Lifetime Savings Association (PLSA) ‘Retirement Living Standards’ help savers think in a practical way about the kind of lifestyle they might lead in retirement.

The PLSA have updated their standards in line with rising healthcare, food and fuel prices and the need to provide extra financial support to family. They now suggest a single person will need £14,400 each year as a minimum income, £31,300 for a moderate standard of living and £43,100 to be comfortable. For couples, the equivalent numbers are £22,400, £43,100 and £59,000 each year. 

These figures represent the amount of expenditure required to achieve a given living standard. You may need to add other costs depending on your circumstances, such as mortgage, rent, social care costs and any tax on pension income.

The PLSA has a website where you can explore this in more detail and see what life in retirement could look like.

Members of the Inchcape Motors Pension Scheme (the Scheme) were recently sent a flyer to remind you to:

• check the personal information held on your member record; and
• provide evidence to confirm some of the details

This communication is genuine and should look similar to the image shown.

Please review the form you were sent by letter from EQ (Equiniti, the Scheme administrator) in December 2023 and update anything that has changed or is missing. You can send it back to EQ along with the documents requested as evidence of your name and age in the prepaid envelope provided with the original mailing or to:

If you have any questions about completing the form or haven’t received the letter, please contact the Scheme Administrator, EQ.

Members of the Inchcape Motors Pension Scheme (the Scheme) were sent a letter by EQ (Equiniti, the Scheme administrator) in December 2023 asking you to:

• check the personal information held on your member record; and
• provide evidence to confirm some of the details

This letter is genuine and should look similar to the image shown.

If you have any questions about completing the form or haven’t received the letter, please contact the Scheme Administrator, EQ.

You may have seen the level of price inflation in the UK has reached the highest level in 40 years. How this affects your benefits depends on when you built them up and whether you have already drawn your pension.

Most Scheme pension benefits are linked to inflation and will increase when inflation is higher. The increases vary depending on when each element of your pension was built up and the section of the Scheme you are a member of.

Most Scheme pension increases are linked in some way to the increase in the Consumer Price Index (CPI) but with the maximum increase capped. You can find out more details in the retirement guides available on the scheme documents page.

You can learn more about inflation and what it means for your retirement planning at: www.moneyhelper.org.uk/en/savings/how-to-save/inflation-whatthe-saver-needs-to-know

If you are unsure about the level of increase that applies to your pension payments, please contact the Scheme administrator.

The Pensions and Lifetime Savings Association (PLSA) has launched ‘Retirement Living Standards’ to help people picture their future retirement and understand what they need to save to achieve it.

As you may have seen your expenditure increase over the last year by almost 20%, the PLSA have updated their standards in line with high inflation and rising food and fuel prices. They now suggest:

• a single person will need £12,800 each year as a minimum income, £23,300 for a moderate standard of living and £37,300 to be comfortable
• for couples, the equivalent numbers are £19,900, £34,000 and £54,500 each year

The PLSA has a website where you can explore this in more detail and see what life in retirement could look like.     

To keep yourself and your data safe, we encourage you to:

• look out for phishing emails or fraudulent activity on your pension or other online accounts
• reset passwords on your pension and other online accounts regularly
• use strong, unique passwords for each online account you have
• remain vigilant for pension scams and unauthorised or unusual use of your personal data

Read ICO’s helpful advice about data protection to find out more.

The Chancellor’s Spring Budget delivered on 15 March 2023 brought with it some significant changes to UK pension taxation from 6 April 2023. If you are impacted by any of the changes we recommend you seek professional advice prior to taking any action.

The lifetime allowance is the maximum amount of savings you can have at retirement from all pension schemes without incurring an additional tax charge. The additional tax charge on any lifetime pension savings above the lifetime allowance will no longer apply from 6 April 2023.

The annual allowance (AA) is the maximum amount of pension benefits you can save each year with the benefit of tax relief. The annual allowance will increase for everyone from 6 April 2023. For the 2023/24 tax year, it is £60,000, but if you have a high income or have started to draw money purchase benefits in a flexible way, your AA may be as low as £10,000 a year.

The Government is gradually increasing the State Pension age which rises to age 67 in 2028. To check when your State Pension age is, use the handy checker on the Government website at: www.gov.uk/state-pension-age.

There will also be a rise in the minimum age at which you can start taking benefits from a pension scheme. The minimum age will go from age 55 to age 57 in April 2028. From this date, this means you will not be able to access your pension benefits until age 57 (unless it is agreed you meet the ill health conditions).

Stay alert to the danger of scams of all types and remember “if something sounds too good to be true it probably is!” 

Steps to protect yourself:

• Reject any unexpected pension offers whether made online, on social media or by telephone.
• Check the FCA register or call the FCA contact centre to see if the firm you are dealing with is FCA registered.
• Do not be rushed or be pressured into making a decision.
• Consider getting impartial information or advice.
• Visit www.fca.org.uk/scamsmart/how-avoid-pension-scams if you are considering transferring out your benefits.

Anyone can be the victim of a pension scam, no matter how financially savvy they think they are. It’s important that everyone can spot the warning signs. Watch the video case study of a pension scam victim below or read the latest leaflet from The Pensions Regulator here.