How the Scheme works
The Defined Contribution (DC) Section of the Prudential Staff Pension Scheme (the Scheme).
One of the valuable benefits provided to you as an employee of the Company is membership of the DC Section of the Scheme.
Membership of the Scheme provides you with a number of valuable benefits, which are set out briefly below. Each of these is explained in more detail throughout this website or in the Member Booklet.
Member Booklet
Membership of the Scheme provides you with valuable benefits, which are explained in detail in this guide.
The Trustee
Prudential Staff Pensions Limited (a limited company) is the Trustee of the Scheme, who is responsible for ensuring the Scheme is administered in accordance with the Trust Deed and Rules as well as ensuring the Scheme assets are invested for the benefit of members and their beneficiaries.
The Company appoints the Trustee and individual Trustee Directors are selected under the agreed arrangements in line with current legislation. There are up to 10 individual Trustee Directors – four of whom are Member Nominated Trustee Directors (MNTDs). The remaining six are appointed by the Company.
Company Trustee Directors
- Keith Bedell-Pearce CBE (Chairman)
- David Green
- Andrew Swan
- Darren Tish
- Jo Waldron
Member Nominated Trustee Directors
- Wolfgang Bauer
- Stephen Cunningham
- Edward Morris
- John Paino
Updates and information on the Trustee is provided regularly in the in-house publication 'Overview'.
What does Defined Contribution mean?
As a member of the DC Section, when you retire your retirement benefits are determined by the accumulated value of your Personal Account (sometimes referred to as your pension pot).
The value of your Personal Account is determined by several key factors:
- Contributions paid by the Company (Employer Credits)
- Your personal contributions
- Additional Matching Employer Credits, paid by the Company on your behalf and
- The investment performance of your Personal Account
Each month the contributions received are invested in your chosen fund(s) and it is the accumulated value of these investments that determine the value of your Personal Account. If you do not make an active investment choice, your Personal Account (including your personal contributions, Employer Credits and Matching Employer Credits) will be invested in the Multi-asset Lifestyle Profile.
How does the Scheme work?
If you are an employee of the Company in the UK, you will automatically become a member of the DC Section for pension benefits on the first day of your employment through the process of contractual enrolment.
The Company will make pension contributions, known as Employer Credits, of 8% of Pensionable Pay on your behalf.
You can choose how much you pay in personal contributions. When you initially join your contribution rate will be set at 1% of your Pensionable Pay (the default member contribution).
If you wish to change your personal contributions, or Pensions Plus contributions, you can do this via Workday. If you do not have access to this application you can complete a Decision Form and return it the DC Section Administrator.
By making contributions yourself you benefit from additional Matching Employer Credits as well as giving yourself the opportunity to build up a larger fund whilst you remain an employee.
The Company will match any personal contributions up to a maximum of 5% of Pensionable Pay. This means you not only benefit from the Employer Credits you also get your own contributions of up to 5% of Pensionable Pay doubled.
Annual Benefit Statements
Each year you will be able to view online an Annual Benefit Statement. This is a very important document and gives you current information on the amount contributed by you or on your behalf in the preceding twelve months together with the current and estimated value of your Personal Account and the benefits it could provide you on retirement.
If you regularly review your investment choices and retirement planning, either by yourself or with a financial adviser, then the Annual Benefit Statement will assist you with such matters.