Members` Report (Pensioner Members)

THE METAL BOX
PENSION SCHEME
METAL BOX NEWSLETTER
MEMBERS’ REPORT WINTER 2014/15
DEFINED BENEFIT SECTION PENSIONER MEMBERS
In this issue...
PensionER
NEWS
VALUATION
U
PDATE
Summary report
& accounts
INVESTMEN
MND SELEC
T UPDATE
TION
Your contact
s
Equiniti Pe
nsion Solu
tions
The Metal B
ox Pension
Scheme
c/o Equiniti
Pension So
lutions
Sutherland
House
Russell Way
Crawley
RH10 1UH
Email: metal
boxpension
[email protected]
Telephone:
om
0845 293 8
0
51(U
+44 (0)1293
572 750 (ove K)
rseas)
Fax: +44 (0
)1905 363 5
35
Tax code q
ueries
If you have
any queries
regarding th
taxation of yo
e
ur pension
please conta
the Scheme’
ct
s tax office,
quoting the
reference 0
64/HA5460
5
and your Nat
ional Insura
nce number
at the follow
,
ing address
:
HM Revenu
e & Custom
s
Pay As You
Earn
PO Box 197
0
Liverpool
L75 1WX
Telephone:
0300 200 3
300 (UK)
Telephone:
+44 135 53
5 9022 (ove
rseas)
Sch
eme website
Equiniti aim
to respond
to your requ
ests within
5 working d
ays.
majority of ca In the
ses, a
response is
sent by
letter to you
r home
address. If yo
u haven’t
received a re
sponse
within 2 - 3
weeks,
please telep
hone.
HMRC provi
de us with
your tax co
de to apply
to your pen
sion. Please
note that w
e are unable
to change yo
ur tax code
without con
sent from
HMRC, nor
are we able
to contact H
MRC on
your behalf
as they will
not discuss
your details
with a third
party.
www.meta
lboxpensio
ns.co.uk
Here you’ll
find informat
ion about th
and can do
e Scheme
wnload use
ful documen
ts and form
s.
2
Welcome from the
UK Pensions Manager
Welcome to the Members’ Report, sent from the Trustee of The Metal
Box Pension Scheme and AVC Plan. Once again, this year the Trustee
has produced a separate newsletter specifically for the pensioner
community.
Copies of the newsletters issued to active and deferred members of the Scheme can be
downloaded from the Scheme website.
We will shortly be starting the selection process for the pensioner member-nominated Trustee
Director. If you would like to be involved, please see the back page for further information.
In 2015, we will be writing to some pensioners about new options that they might find
beneficial which we will be making available for their pension payments. For further
information please see page 4.
If you have any general queries about your pension, the Scheme administrators, Equiniti,
will usually be able to help. You can contact me if you have any problems getting the
information you need or if you wish to raise a query directly with the Trustee.
Equiniti Paymaster is now known as Equiniti Pension Solutions. The team that looks after
your pension records is unchanged, but you may notice its new name on letters you receive
about your pension.
Cathy Aston
UK Pensions Manager
ge 4 to
See pa t about
find ou ptions
new o le in
availab 5
201
Email: [email protected]
Tel: +44 (0)1872 555 840
3
Pensioner News
How increases to pensions in payment work
Your pension is made up of several
components, each of which increases in a
different way. Increases are applied in line
with either the Retail Prices Index (RPI) or
the Consumer Prices Index (CPI) up to a
maximum depending on the component.
All increases to your pension are applied
on 1 April each year.
Look out for your annual pension increase
letter which will provide you with full details of
the increases applied. The increases applied to
your pension change when you reach GMPA.
When you reach GMPA a check is made to
ensure that the pension being paid to you is at
least equal to the GMP.
Each year after you reach State Pension Age
(SPA), the Government calculates what your
S2P pension plus inflation would have been
had you not been in a contracted-out pension
scheme. If your GMP is lower than this, the
Government pays the difference via the State
Additional Pension (AP). This will change for
individuals who reach SPA on or after 6 April
2016. More information will be provided in
due course.
What is the Guaranteed Minimum
Pension (GMP)?
• Your pension will include a GMP
if you joined the Scheme prior to
6 April 1997 or transferred benefits
in from another scheme which
was contracted out of the State
Second Pension (S2P) (previously
known as SERPS).
• From Guaranteed Minimum
Pension Age (GMPA) the Scheme
is responsible for paying a pension
at least equal to the GMP.
• GMPA = age 65 for a man or age
60 for a woman.
• GMP is intended to broadly
replace the pension that would
have been available under S2P
for periods of membership of
contracted out pension schemes
prior to April 1997.
New options for some pensioners
During 2015, some pensioners will receive information
about an offer from the Company to swap some of
the future annual increase to their pension for a higher
immediate pension. It is expected that letters will be
issued in February, with further information in April / May.
You do not need to do anything until you hear from us.
If you do not receive a letter, then these options are not
available to you at this time.
4
Pension payment dates
Pensions are paid on the 11th working day of each month and cover the
period from the beginning to the end of the month. The cut-off date is the
last date that amendments can be made to the payroll.
Pension payment dates for 2015 / 2016 are as follows:
Payment date
Cut-off date
Payment date
Cut-off date
17 April
02/04/2015
15 October
02/10/2015
18 May
05/05/2015
16 November
03/11/2015
15 June
02/06/2015
15 December
02/12/2015
15 July
02/07/2015
18 January
05/01/2016
17 August
04/08/2015
15 February
02/02/2016
15 September
02/09/2015
15 March
02/03/2016
Beware – pension scams
You may have seen articles in the press and on TV recently about
pension liberation scams, where companies offer individuals access
to their pension savings. Individuals who are taken in will lose most,
if not all, of their savings.
As you are already receiving your pension from the Scheme, this issue does not directly
affect you. However, scammers may still try to contact you through letters, mass texting
or cold calls. You should be very wary about giving out information in response to any
such contact and always ensure you know who you are dealing with.
If you are concerned that you may have been targeted, please do not hesitate to call
the administration team at Equiniti or the UK Pensions Manager.
To find out more information, please visit:
www.thepensionsregulator.gov.uk/pension-scams.
5
Valuation update
The chart below shows the Scheme’s funding position at the last
interim valuation as at 31 March 2014 compared to the most recent
full actuarial valuation as at 31 March 2013.
Shortfall
£369m
Shortfall
£309m
Funding
Level
83%
Funding
Level
85%
Liabilities
£2,071m
Liabilities
£2,206m
Assets
£1,762m
2014
Assets
£1,837m
2013
The figures above include DC Section assets and liabilities of:
i
£19m
£15m
2014
2013
Why are the DC Section figures included?
As the DC Section is part of the Scheme for accounting purposes, the figures need to
be included in the assets and liabilities. However, as DC Section members’ contributions
are paid directly to their Personal Accounts with Standard Life, they do not affect the
funding of the DB Section.
How has the funding level changed since 31 March 2013?
The estimated funding level has improved from 83% to 85% between the last full valuation at
31 March 2013 and the interim valuation at 31 March 2014 corresponding to a decrease
in the shortfall from £369m to £309m. Although the value of the assets fell over the year
by £75 million, the value of the liabilities fell by £135 million over the same period. This
means that the gap between the assets and liabilities is smaller, resulting in an improved
funding level.
6
What is being done to improve the
funding position?
Where can I get more information
about how the Scheme is funded?
The Trustee and Company have agreed
a Recovery Plan for the Company to pay
additional contributions, starting in January
2011 aimed at paying off the shortfall
by 2029. From January 2015, these
contributions amounted to £25.1 million a
year (around £2 million per month).
You can find information in the
documents area on the Scheme website
www.metalboxpensions.co.uk. You
can also request copies from the
UK Pensions Manager.
What would happen if the Scheme
were to wind up?
The Trustee is required to tell you how
well funded the Scheme would be if the
Company became insolvent and the
Scheme was discontinued. This information
is provided for legal purposes only and there
are no plans to wind up the Scheme.
If the Scheme’s assets had been transferred
to an insurance company to buy members’
benefits on 31 March 2014, it has been
estimated that there would have been
enough money to provide approximately
66% of the total benefits (63% as at
31 March 2013).
As an alternative to buying benefits with an
insurance company, the Pension Protection
Fund (PPF) may be asked to help. The PPF
provides compensation to members if their
employer becomes insolvent and leaves a
scheme in shortfall. If this happened, the
PPF pension you would receive is likely to
be less than the full benefits that you had
earned in the Scheme.
Have there been any payments from
the Scheme to the Company?
There have been no payments made from
the Scheme to the Company since
the last newsletter.
What other contributions does the
Company pay?
The Company also pays contributions to
meet the cost of benefits that have not yet
been earned. The amount of money paid
into the Scheme by the Company can go up
or down and it is reviewed regularly by the
Scheme Actuary.
From 1 January 2014, the Company
increased the contributions it pays to
meet the cost of benefits earned in
the DB Section in the future from 4.5 x
Members’ Contributions to 5.2 x Members’
Contributions.
In addition to this, the Company meets the
cost of the Pension Protection Fund (PPF)
levy, which in 2014 was £329,000.
Is the Scheme subject to any directions
imposed by the Regulator?
We are required to explain whether the
Scheme has been modified by the Pensions
Regulator, is subject to directions from
the Pensions Regulator, or is bound by a
schedule of contributions imposed by the
Pensions Regulator. We confirm that none of
these situations apply to the Scheme.
77
Summary of the
Report & Accounts
The financial information shown below is taken from the Trustee’s
Report and Financial Statements.
Please note that these figures relate to the DB Section only.
Membership of the DB Section
Active
members
Pensioner
members
Deferred
members
31 March 2014
5,265
1,036
13,048
Total
19,349
31 March 2013
5,546
1,239
13,058
8
Total
19,843
Financials for the DB Section
2014
£ thousands
2013
£ thousands
1,822,197
1,663,197
Member contributions
2,587
2,991
Employer contributions
38,916
38,406
Transfers in (from the Metal Box AVC Plan)
4,383
4,728
Total money in
45,886
46,125
Net returns on investments
(22,532)
210,314
(95,850)
(93,254)
(284)
(1,173)
Transfers out and refund of contributions
(3,764)
(1,093)
Administration expenses
(1,967)
(1,561)
(412)
(358)
Total money out
(102,277)
(97,439)
Value of DB Fund at end of the year
1,743,274
1,822,197
Value of DB Fund at start of the year
Money into the DB Section
Money out of the DB Section
Pensions and retirement lump sums
Death benefits
Pension Protection Fund levies
2013
2014
Value of DB FuYendar
at start of the
£1,822,197,000
Total
money out
(£102,277,000)
Return on
investments
(£22,532,000)
Total
money in
£45,886,000
Value of DB Fund
at end of the Year
£1,743,274,000
9
Investment update
At 31 March 2014, the investments were split as follows:
Liability Matching Assets1
Investment
£804m
Grade Credit
£257m
Hedge Funds
£91m
Private Equity
£127m
Alternative Credit
Opportunities
£98m
Developed
Market
Equities
£144m
Infrastructure
£69m
Alternative Betas2
£60m
Emerging
Market
Equities
£48m
Property
£45m
1) Gilts, swaps, inflation linked bonds, cash, currency hedge
2) Re-insurance, emerging market currency, volatility premium
How are the investments performing?
The Trustee compares the return achieved on the assets
with a benchmark return (a measure of the liabilities),
which it aims to beat over time.
%
Scheme
returns
Benchmark
The performance of the DB Section assets (pa) against this benchmark (pa) is
shown below:
1 year
-1.5%
-3.9%
3 years
7.5%
8.3%
5 years
9.7%
7.9%
10 years
10
6.1%
7.2%
Over the last year, the assets
beat the benchmark by 2.4%.
The percentages shown are
negative because, as explained
on page 11, the value of both
the assets and liabilities got
smaller during the year.
The longer-term performance
reflects the volatility experienced
by the financial markets in the
last ten years.
Missing deferred members
The Trustee has been trying to locate deferred members of the DB Section
who have gone past age 65 and not yet claimed their pension. If you
recognise any of the names in the following list as ex-colleagues, could
you please ask them to get in touch with Equiniti to see if they have a
pension in the Scheme:
Name
Mr Martin J Bennett
Mr J L Boult
Ms Joyce Bullen
Mr Derek Cunliffe
Mr Jeffrey Terence Donald
Mr Stephen Duncan
Mr Brian Field
Mr John Alan Fletcher
Ms Brenda Garner
Mr Derek Goad
Mr Brian C Green
Mr Richard John Hamblin
Mr John Charles Holt
Mr Charles Richard Horn
Mr W Horrocks
Mr Mendel King
Mr Kwabena Kyei
Mr David Labrosse
Mr Colin Maddison
Mr Gordon Grantley Marfell
Ms Margaret McCann
Mr William George Morrey
Mr Brian William Porter
Mr Robert W Prow
Mr M Roberts
Mr Alan Donald Sands
Mr Kadir Sheikh
Ms Margaret Annora Stephens
Mr John Andrew Watt
Miss Sheila Lilian White
Mr Joseph Williams
Current
age
70
67
74
66
66
80
70
67
69
65
68
65
74
66
67
71
66
67
70
65
74
65
72
65
74
68
66
74
68
72
72
Worked at
Left company
Unknown
Unknown
Winsford
Westhoughton
Neath
Unknown
Manchester
Stelrad, Hull
Unknown
Wantage
Acton
Wantage
Formflo
Reading
Speke
Dublin Sales
Unknown
Portsmouth Bottles
Swindon
Stelrad
Unknown
Speke
Rochester
Arbroath
Unknown
Unknown
East London
Unknown
Unknown
Leicester
Unknown
August 1975
May 1974
March 1979
March 1979
October 1980
September 1980
July 1978
October 1980
October 1975
June 1976
May 1976
September 1976
May 1980
April 1981
April 1976
December 1981
September 1978
April 1979
June 1980
May 1981
February 1979
February 1980
September 1978
March 1985
December 1983
December 1979
June 1980
July 1975
May 1980
May 1980
April 1977
11
Metal Box Pension Trustees Limited (the Trustee) is responsible for
the stewardship of the Metal Box Pension Scheme and AVC Plan.
There are currently four employer-nominated and two
member-nominated Trustee Directors:
The employer-nominated Trustee Directors are:
Terry
Cartwright
(Chairman)
Consultant
Paul Browett
Howard Lomax
John Riley
Vice President
and Treasurer,
CROWN Europe
Retired
Director of
Engineering,
CROWN Food
Packaging,
Baltimore, USA
Appointed
1 March 2014
The member-nominated Trustee Directors are:
David Powell
Richard
Westcott
Pensioner
Head of Methods
and Standards,
CROWN Europe
Appointed
1 July 2014
MND selection
Member-nominated Trustee Directors are appointed for a three-year
term. David Powell was appointed in April 2012 and his period of office
will expire on 31 March 2015.
Any pensioner who is receiving a pension in his or her own right, who has at least
three years’ contributory membership of the Scheme and has the support of at least
15 Scheme Members, may now apply to be considered for selection as a Director. If you
would like further information and an application form, please contact Cathy Aston,
your UK Pensions Manager.
The closing date for applications is 6 March 2015.
Designed and produced by Anthony Hodges Consulting Ltd 2015_101600
On behalf of Metal Box Pension Trustees Limited, the Trustee of The Metal Box Pension Scheme © 2015
Who looks after the Scheme?