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Career Salary

Westland Pension Scheme. Career Salary. This presentation has been prepared to help you understand how your Career Salary benefits are calculated. Your pension value at 6 April 2011. You have earned " Block 1 ". Understand how Block 1 is calculated.

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Career Salary

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  1. Westland Pension Scheme Career Salary This presentation has been prepared to help you understand how your Career Salary benefits are calculated Your pension value at 6 April 2011 You have earned "Block 1" Understand how Block 1 is calculated Understand how your Final Pensionable Salary is calculated Understand how Career Salary benefits grow How your Career Salary benefits grow Receive revaluation each year Earn a “block" of pension each year Further Information Further reading and information NOTE- THIS PRESENTATION ONLY APPLIES TO THE MAIN SECTION You should note that this is a general guide and is not a legal document. It should be read in conjunction with the Scheme booklet. If there is a conflict between this guide and the Rules of the Scheme, the Rules will prevail. This guide is not a full statement of the rules which governs the Scheme, and members are advised to take independent financial advice on the options available to them. Previous Contents Next Career Salary Prepared on behalf of the Trustees – May 2011

  2. Westland Pension Scheme Pension value at 6 April 2011 You have earned Block 1 This is calculated using your Final Pensionable Salary on 6 April 2011 and your Pensionable Service before 6 April 2011 See pages 2 & 3 for more detail on how Block 1 is calculated Previous Contents Next 1 Your pension value at 6 April 2011 Prepared on behalf of the Trustees – May 2011

  3. Westland Pension Scheme Understand how Block 1 is calculated Block 1 is the pension you earned from your service before 6 April 2011 1/70 (or 1/60 or 1/65 if you opted for buy up) x Final Pensionable Salary x Pensionable Service between 1 May 2007 and 5 April 2011 (including additional buy up credit which you were notified of in December 2010) + 1/70 x Final Pensionable Salary x Pensionable Service between 1 April 1998 and 30 April 2007 + 1/65 x Final Pensionable Salary x Pensionable Service before 31 March 1998 (including Old Works Credit) + Pension earned through a transfer in from another pension scheme. You will have been notified how this is calculated when you transferred in your benefits See page 3 to understand how your Final Pensionable Salary is calculated Previous Contents Next 2 Your pension value at 6 April 2011 Prepared on behalf of the Trustees – May 2011

  4. Westland Pension Scheme Calculating your Final Pensionable Salary Your Final Pensionable Salary is calculated on 6 April 2011 2000-01 2001-02 22 2002-03 23 Your Final Pensionable Salary is protected by the underpin agreed in 2007. Final Pensionable Salary is higher of: Protected Salary And (2) Three year average salary Three year average salary is the average of the best three consecutive years in ten years from 6 April 2001 to 6 April 2011. 2003-04 24 Protected Salary is the highest one year in these five years. It is increased in line with inflation up to 6 April 2011. We know this is an increase of 10.9%. 2004-05 25 2005-06 26 Scheme Year Protected Salary = £27,000 plus 10.9% = £29,943 2006-07 27 2007-08 28 2008-09 29 Three year average salary = (£29k + £30k + £31k)/ 3 = £30,000 2009-10 30 2010-11 31 2011-12 0 5 10 15 20 25 30 35 Pensionable Salary (£,000) Previous Contents Next 3 Your pension value at 6 April 2011 Prepared on behalf of the Trustees – May 2011

  5. Westland Pension Scheme How your Career Salary benefits grow One year on - you will add revaluation and Block 2 Each year your pension grows by: a) “revaluation”; and b) a new “block” linked to your Pensionable Salary. Scheme year: 6 April to 5 April (like tax year) Understand how Career Salary benefits grow Previous Contents Next 4 Prepared on behalf of the Trustees – May 2011

  6. Westland Pension Scheme Revaluation Your pension is revalued each year broadly in line with inflation How to calculate Total Pension at start of the Scheme Year x Revaluation rate Revaluation rate: Increase in Consumer Price Index for year (capped at 4.75%) (measured in September) By way of example 2011/12: Total Pension at 6 April 2011 x Revaluation rate at September 2011 2012/13: Total Pension at 6 April 2012 x Revaluation rate at September 2012 Understand how Career Salary benefits grow Previous Contents Next 5 Prepared on behalf of the Trustees – May 2011

  7. Westland Pension Scheme Earning Blocks Your “block” is calculated using your accrual rate and salary in that year How to calculate Accrual rate x Pensionable Salary in 2011/2 • Accrual rate: • The default accrual rate is 1/67th • You may “buy up” to 1/65th or 1/60th • Pensionable Salary: • Your gross earnings in the relevant year (except payments that are not pensionable) Scheme year: 6 April to 5 April (like tax year) Understand how Career Salary benefits grow Previous Contents Next 6 Prepared on behalf of the Trustees – May 2011

  8. Westland Pension Scheme Your Career Salary benefits grow Build up your pension each year Each year your pension grows by: a) “revaluation”; and b) a new “block” linked to your Pensionable Salary. Block 6 and so on for the rest of your career with AgustaWestland Scheme year: 6 April to 5 April (like the tax year) Understandhow Career Salary benefits grow Previous Contents Next 7 Prepared on behalf of the Trustees – May 2011

  9. Westland Pension Scheme Further reading and information • If you would like to understand more about your pension benefits, take time to read the Scheme booklet. • You will receive a benefit statement in the Autumn which will explain your benefits as at 6 April 2011. • The Scheme website contains useful information about the Scheme’s benefits. • Contact Aon Hewitt if you would like further information. Contact Aon Hewitt if you have any questions Email: westland@aonhewitt.com Write to: Westland Admin Team, Aon Hewitt, 25 Marsh Street, Bristol, BS14AQ. Telephone: 0117 945 3517 Previous Contents Next 8 Further information Prepared on behalf of the Trustees – May 2011

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