You’ve got three months to do this. But why wait? Lifestyle Plan.

You’ve got three
months to do this.
But why wait?
Diageo
Lifestyle Plan.
Your personal invitation to join the pension plan.
For new members and prospective members of the
Diageo Lifestyle Plan from 1 January 2011.
www.mydiageopension.com
What’s on offer?
Diageo is committed to providing good quality pension benefits. As a member of the Diageo
Lifestyle Plan (the Plan) you will build up credits in a Retirement Account. At retirement you
use the value of your Retirement Account to buy a pension that suits your needs and lifestyle.
The Company makes a substantial contribution towards providing you with all the benefits
outlined below.
You can only join the Plan within the first three months of working for Diageo. If you do not
join at this time, you may not get another opportunity.
This guide is designed to give you some information about the Plan so let’s have a look at
what’s on offer:
Value
Flexibility
Each month you will receive a credit
in your Retirement Account of 25%
of your Pensionable Pay.
As a member you will contribute 6%
of your Pensionable Pay.
You will have the opportunity to
retire between age 55* and 75.
Your Retirement Account is also
increased each year in line with
inflation, up to 5%.
When you retire you can choose to
take up to 25% of the value of your
Retirement Account as a tax free cash
sum, to spend as you wish.
The rest will provide you with an
income to suit your needs and
lifestyle.
* The Retirement Account will be reduced to reflect
that it is being paid early, before age 65.
Security
Portability
A minimum of six times your
Pensionable Pay will be paid on
death in service or incapacity. If you
die in service this amount will be
paid as a lump sum to your family.
If you leave Diageo before
retirement and have completed
three or more months’ membership
you have the option to transfer
your benefits to another pension
arrangement.
If you are unable to work due to
incapacity this amount will be used
to provide you with an income
although you will have the option to
take part of it as a cash sum.
What’s in it for me?
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suit your needs and lifestyle.
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Pay paid to your dependants.
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with an income.
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regular payments specifically stated to be pensionable in your contract of employment.
£
£
£
£
0
,00
80
£4
£60,000
£
£
13,150
281,25
0
12,100
258,75
0
11,050
236,25
0
10,000
213,75
0
8,940
14 £
191,25
0
13 ,800
7,890
168,75
12 ,610 312
0
6,840
11 ,430 287 ,500
146,25
0
5,7
10 ,250 262 ,500
80
123,75
,0
,5
0
4,730
8,8 60 237,5 00
101,25
7,6 80 212,5 00
0
3,680
78,750
6,5 90 187,5 00
2,630
5,3 10 162,5 00
56,
250
4,1 20 137,5 00
1,570
33,750
2,9 40 112,5 00
1,7 60 87,50 00
70 62,5 0
37 00
,50
0
£
0
250,00
11,510
0
230,00
10,590
0
210,00
9,670
0
190,00
8,750
0
170,00
7,820
0
150,00
6,900
0
130,00
5,980
0
110,00
5,060
90,000
4,140
70,000
3,220
50,000
2,300
30,000
1,380
£
The
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B
Calculator Wheel &ODMPTFEXJUIUIJT
leaflet
fle is a benefits wheel. You can use this to get an
o the value of your Retirement Account and
ideaa of
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instructions
below:
p 1 The outer edge of the wheel shows different pay
Step
re You should move the wheel so that the window
figures.
liness up with the pay figure that is closest to your own
Pensionable
si
Pay at the date of joining the Plan.
£
0
,00
00
£
£360,000
£42
0,0
00
£3
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£
00
0,0
8,2
20
187,50
0
7,560
172
,500
6,900
157
,500
6,250
142
,50
0
£
5,590
9,8
127,50
0
9,0 60
4,930
112,50
8,2 70 218,7
0
4,270
97,500
7,5 80 201,2 50
3,610
6,7 00 183,7 50
82,500
5,9 10 166,2 50
2,960
67,500
5,1 20 148,7 50
2,300
4,3 30 131,2 50
52,500
1,640
3,5 40 113,7 50
37,
500
2,7 50 96,2 50
980 22,
500
1,9 60 78,7 50
1,1 70 61,2 50
80 43 50
26 ,750
,25
0
1
£2
£240,000
£27
0,0
00
! " !
!
! !
!
"
!
! £
0
375,00
16,440
0
345,00
15,130
0
315,00
13,810
0
285,00
12,500
0
255,00
11,180
0
225,00
9,860
0
195,00
8,550
0
165,00
7,230
,000
135
5,920
,000
105
4,600
75,000
80
3,2
45,000
1,970
£150,000
£18
0,0
00
!
"
£
00
20,0
£1
£
rvice
in Se m
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£
An
Pennual
at 65sion
ment
Retireccount
A at 65
0
156,25
6,570
0
143,75
6,050
0
131,25
5,520
0
118,75
5,000
0
106,25
4,470
93,750
3,940
81,250
3,420
68,750
2,890
56,250
2,360
43,750
1,840
31,250
1,310
750
780 18,
19,730
437,50
0
18,150
402,50
0
16,570
367,50
0
15,000
332,50
0
£
13,420
23
297,50
0
21 ,020
11,840
262,50
19 ,180 500
0
10,260
17 ,340 460 ,000
227,50
,50
0
,00
4
8,680
1
2
0
0
5
0
192,50
0
13 ,650 380 ,000
7,100
157,50
11 ,810 340 ,000
0
5,520
10 ,970 300 ,000
122,500
,1
,0
3,940
8,2 30 260,0 00
87,500
6,4 80 220,0 00
2,360
52,500
4,6 40 180,0 00
2,7 00 140,0 00
60 100 00
60 ,000
,00
0
£
£
3,280
93,
750
3,020
86,250
2,760
78,750
2,500
71,250
£
2,230
4,9
63,750
1,970
4,5 30
56,250
4,1 30 125,0
1,710
48,750
3,7 40 115,0 00
1,440
3,3 50 105,0 00
41,250
2,9 50 95,0 00
1,180
33,750
2,5 60 85,0 00
920
2,1 60 75,0 00
26,250
650
1,7 70 65,0 00
18,750
1,3 70 55,0 00
390
00
4
8
11,250
98 0 3 5,000
59 0 2 5,000
5
0
15 ,000
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0
£90
,00
0
£
500
310 62,
26,
500
210 57,
24,
500
100 52,
22,
47,500
000
20,
42,500
890
17,
500
780 37,
15,
500
680 32,
13,
500
570 27,
11,
500
70 22,
9,4
500
60 17,
7,3
500
60 12,
5,2
7,500
50
3,1
Step
p 2 Down the side of the window are ages. You
should
u find the age, which is closest to your age at the
datee of joining the Plan.
£
£
Step 3 The figure to the left of the window in line with your age is the value of your Retirement
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window is an illustration of the annual pension that you could buy with your Retirement Account
based on current market rates.
The benefit wheel makes a number of assumptions and is for illustration purposes only.
What will it cost me?
As a member of the Plan, you will contribute
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How do I pay my pension contributions?
Pension contributions not deducted through the
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automatically deducted from your Pensionable
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appropriate to your pay.
What is Salary Exchange?
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opportunity to save money by the way your
pension contributions are paid to the Plan. Whilst
contributions deducted from your Pensionable Pay
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contributions to the Plan by reducing your salary by
the amount of your pension contributions.
This means that both you and Diageo pay lower
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How does Salary Exchange work?
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equal to your normal pension contribution
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by an amount equal to your normal pension
contribution.
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result of being paid a lower salary.
How will Salary Exchange affect me?
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contributions going into the Plan and all
retirement and death benefits will be the same as
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salary-related payments or benefits that you
receive from the Company, such as salary
increases, freeshares, bonuses and overtime.
These will also be based on your Reference
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letters, loan applications or job references.
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position as both employee and employer pension
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for Pensions section on the ‘Yes, I will join the Plan’
form and return this form to the Diageo Pensions
Team (address can be found at the back of this
guide).
Should I participate in Salary Exchange?
We believe that almost all employees will benefit
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be included from the date you join the Plan unless
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section on the ‘Yes, I will join the Plan’ form. However,
there are a few instances where participation in
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of the factors set out below apply to you:
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or if you fall below this level at any time during the
year. This is because you could lose entitlement to
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and you will be advised of the new limit if this
applies to you.
If your salary increases in the future, then you will
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above the minimum earnings limit at that time and
you do not complete the 4BMBSZ &YDIBOHF for
Pensions section on the ‘Yes, I will join the Plan’ form.
If you are still unsure whether you should take
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take independent financial advice. You can find
an Independent Financial Adviser in your area by
visiting www.unbiased.co.uk.
Yes, I will join the Plan
If you’ve decided to join the Plan, please complete this form and return it to the Pensions Team.
My personal details1MFBTFVTF#-0$,$"1*5"-4
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Home address:
Postcode:
Marital status: 4JOHMF.BSSJFE$JWJM1BSUOFSTIJQ%JWPSDFE-FHBMMZ4FQBSBUFE8JEPXFE
Company location:
Date joined company:
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Please delete as appropriate
My confirmation and consent
I wish to join the Diageo Lifestyle Plan and confirm that the details I have given are correct and that I have read
and understood the summary Diageo Lifestyle Plan information made available to me. For the purpose of
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information about me for the purposes of administering the Plan and paying benefits under it.
Please note
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accepted by the Pensions Team.
(ii) All benefits and contributions are subject to the Rules of the Diageo Lifestyle Plan which may change from
time to time.
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opt outPG4BMBSZ&YDIBOHFQMFBTFSFBEBOETJHOUIFEFDMBSBUJPOCFMPX#ZPQUJOHPVU
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of the Plan.
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doing this and you may wish to take independent financial advice.
I fully understandUIFJNQMJDBUJPOTPGPQUJOHPVUPG4BMBSZ&YDIBOHF
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If you have any questions about this form, please contact the Pensions Team
on or email [email protected]
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It is important that you complete either (a) or (b) below. If you do not tell the Trustees about your
dependant(s) or nominate a person(s) to receive benefits, in the event of your death, any lump
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a) Information about my Immediate Dependant(s)
Please provide details below of your Immediate Dependant(s). An Immediate Dependant is
defined as your spouse, civil partner or a Dependent Child. The Trustees’ decision as to whether
someone is your Immediate Dependant will be final.
/BNF
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b) Nominated Person(s)
If you do not have any Immediate Dependant(s), please provide details below of of any
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Questions
What options do I have when I retire?
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pension to suit your needs and lifestyle. You have a number of options regarding this pension,
including a choice of how much your pension will increase each year as well as an option to provide
a pension for your spouse or dependants, payable when you die.
How do I purchase a pension?
When you retire your Retirement Account will be used to buy you a pension from an insurance
company. The Trustees of the Plan have appointed an annuity service provider who will work on
your behalf to get the best market rates for you when you retire. As you approach retirement, you
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service provider, allowing you to make an informed decision. Diageo will pay the cost of providing
you with the annuity service provider.
How is the death in service benefit calculated?
Your lump sum death benefit is calculated as the greater of:
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How is the incapacity benefit calculated?
Your incapacity benefit is calculated as the greater of:
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5IFBNPVOUJOZPVS3FUJSFNFOU"DDPVOUJNNFEJBUFMZCFGPSFZPVSEBUFPGMFBWJOHTFSWJDF
:PVXJMMCFBCMFUPUBLFVQUPPGUIJTBNPVOUBTBUBYGSFFDBTITVN
You then use the balance to buy a pension.
What happens if I leave before retirement?
If you leave within two years, you will be able to take a refund of any normal pension contributions
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will be given the option to defer your benefits in the Plan until retirement or the option to transfer
your benefits to another suitable pension arrangement.
How long will Salary Exchange last?
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or the law changes, or it is no longer viable for Diageo to operate this arrangement, Diageo reserves
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conversion arrangements that you participate in) and you will begin making normal pension
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What is the Government’s view about Salary Exchange?
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If I participate in Salary Exchange, will I be able to opt-out later?
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and want to opt out you should contact the Diageo Pensions Team on or by email at
[email protected]
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Minimum Wage. If your salary in the future increases to over these limits you will automatically be
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applies to you.
What is the definition of a lifestyle change?
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3FUVSOJOHGSPNNBUFSOJUZMFBWF
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"CTFODFEVFUPTJDLOFTTMFBWFXIJDIDBVTFTZPVUPCFJOSFDFJQUPGTUBUVUPSZQBZNFOUT
If you experience this lifestyle change you will (if necessary, in order to prevent a Salary Exchange
Adjustment being made from your statutory payment) be automatically opted out of Salary Exchange.
If I am automatically opted out, can I choose to take part?
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situation will be reviewed on a monthly basis, to check that it is still appropriate for you not to take
part. If your salary has increased over the minimum earnings limit which Diageo will initially set at
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you have completed the 4BMBSZ &YDIBOHF for Pensions section on the ‘Yes, I will join the Plan’ form.
If I opt out of Salary Exchange, will I be able to participate in the future if I think Salary
Exchange is right for me?
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Will Salary Exchange impact any benefits I get from the State?
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*GCZQBSUJDJQBUJOHJO4BMBSZ&YDIBOHFZPVSHSPTTTBMBSZJTSFHVMBSMZbBZFBSPSMFTTUIJTXPVME
BíFDUUIFBNPVOUPG/*DPOUSJCVUJPOTZPVQBZBOENBZNFBOUIBUUIFTFTUBUFCFOFñUTBSFSFEVDFE
"TTVDIZPVXJMMDFBTFUPCFFMJHJCMFUPQBSUJDJQBUFJO4BMBSZ&YDIBOHFBOEZPVXJMMCFBVUPNBUJDBMMZ
PQUFEPVUPG4BMBSZ&YDIBOHFJOPSEFSUPQSFTFSWFZPVSFOUJUMFNFOUUPUIFTFCFOFñUT
4BMBSZ&YDIBOHFXJMMOPUJNQBDUUBYDSFEJUTZPVNBZSFDFJWFGSPNUIF4UBUFTVDIBT8PSLJOH5BY
Credit.
Will Salary Exchange have any effect on any pension I’m entitled to from the State?
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Estimated reduction in S2P for year 2010/11
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illustrative purposes only, the actual impact varies for each individual member as the calculations are
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about your state pension benefits please contact 5IF1FOTJPO4FSWJDF on .
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Will Salary Exchange affect repayment of my student loan?
Repayment of student loans, via payroll, is triggered where annual earnings are currently above
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may mean that it will take longer to repay any student loan, however, you can request to make
voluntary contributions towards your student loan if you wish to do so.
How will Salary Exchange affect mortgage reference letters?
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Adjustment) as will your payslip.
What happens if I go on maternity leave?
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any period when you are receiving just statutory maternity pay, you will continue to build up your
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What happens if my pensionable pay changes during the year?
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Adjustment will be adjusted accordingly.
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is available from the pensions website XXXNZEJBHFPQFOTJPODPNEMQ1BHFT)PNFBTQY
Further information
Please visit:
www.mydiageopension.com/dlp/Pages/
Home.aspx
If you have any further questions contact
the Diageo Pensions Team in Edinburgh on
0131 519 2100 or
email [email protected]
Please remember that the Pensions Team
cannot give you individual or financial
advice. If you are unsure about whether or
not you should participate in either the Plan
or Salary Exchange, you can speak to an
Independent Financial Adviser (IFA). You can
find an IFA in your area by visiting
www.unbiased.co.uk
Important
If you decide to join the Diageo Lifestyle Plan, you must return
the ‘Yes, I will join the Plan’ form to this address within three
months of starting to work for Diageo, to:
Pensions Team
Diageo plc
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This guide is only a summary of the Plan benefits. This could mean that details
which are important to you are not given and you should be aware that this
guide does not confer any enhancement or override the legal Trust Deed and
Rules which govern the Plan.
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